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CEOs’ top strategic business priority for 2025 is to foster growth, primarily by embracing emerging technologies, according to a July 2024 Gartner survey of 110 global CEOs and senior business executives. However, the potential of these technologies – such as generative AI, blockchain, and edge computing – to disrupt markets and redefine business operations presents significant challenges for CHROs tasked with workforce planning.
With Gartner research finding that less than one-third of CHROs are confident in meeting their strategic workforce planning goals in the next 12 to 18 months, a comprehensive approach to assessing the workforce impact of these emerging technologies is crucial.
Traditionally, CHROs have focused solely on direct impacts, such as productivity changes and skills gaps. While these are important, they represent only a fraction of the broader workforce implications. A holistic assessment also considers the indirect impacts, including role redesign, employee engagement, and culture alignment.
To assess the impact of emerging technologies on the workforce, CHROs must focus on the following five key impact areas:
Emerging technologies are reshaping traditional roles and necessitating new ways of working. A September 2024 Gartner survey of 3,496 employees revealed that 20% of employees have seen their roles replaced by AI or automation, while 18% have been redeployed due to technological advancements.
CHROs must evaluate how these changes impact both current and future roles. For example, machine learning algorithms have transformed radiology by automating routine tasks, allowing radiologists to focus on more complex cases.
To maximize the business value of technology, CHROs should also consider creating new roles that align with evolving capability needs. Changes in ways of working is a qualitative aspect that can be measured through consulting a select group of experts such as managers, high-performing employees or subject matter experts across critical roles. These changes also can be measured through employee surveys, focus group discussions and manager assessments based on their direct employee conversations.
The rapid adoption of technologies can lead to employee fatigue, anxiety, and trust issues, which in turn affect engagement levels. As more tasks are automated, employees may fear job loss and experience performance pressure. Additionally, concerns about data privacy can erode trust. Organizations that proactively address these fears and concerns before implementing new technologies are likely to achieve better adoption and success.
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