The Ultimate Guide to Integrating Generative AI in Skills Assessment
Across industries, companies are facing a critical challenge: the skills gap driven by rapid advancements in technology. Recent research from Boston Consulting Group indicates that 20% of the new skills required in today's U.S. workforce have emerged in the last six years, thanks to technologies like ChatGPT. In this era, businesses face the challenge of closing the skills gap between their ideal talent profile and their current workforce capabilities. As technology progresses, companies must not only redefine necessary skill sets but also develop strategies to enhance human skills that complement AI.
The irony is that the Gen AI presenting new challenges for companies is also their best solution. Many organizations are stuck in old frameworks that aren't designed for quick adaptation. Experts who can guide these transformations are in high demand and often overwhelmed, while consulting services can be radically expensive. This often creates a lag in response times, putting companies at risk of losing their competitive edge. However, Gen AI offers a way to bridge this gap. In this blog, we'll dive into how Gen AI can not only help redefine necessary skill sets amidst technologies like ChatGPT but also streamline the development of tailored skills assessments and learning programs.
1. Redefining Skills with Generative AI
The first step—obviously—is to redefine the necessary skills for each role, a task that can be particularly challenging in industries with highly specific skill requirements, like manufacturing. Specifically, Generative AI is revolutionizing how we understand and respond to the evolving job market. By efficiently mining data from extensive job boards, professional networking platforms, and official labor datasets, AI provides invaluable insights into current skill trends. According to a report by the World Economic Forum, Erik Brynjolfsson and his team at the Stanford Digital Economy Lab are leveraging AI to analyze millions of job postings. This analysis is not just about understanding what skills are in demand but also identifying skill 'adjacencies'—related skills that can be quickly learned. This is important for companies aiming to retrain their workforce, ensuring they are well-equipped for future challenges and opportunities in the workplace.
This approach allows Generative AI to perform in minutes what would typically take HR professionals over 20 hours of manual labor. This not only saves considerable time but also ensures that the skills defined are up-to-date with market demands.
For those confused about getting too technical, let’s simplify it. In CLASSUM, you just need to input the role you’re updating, and Generative AI takes over by conducting the market research for you, listing all the necessary skills for that role. HR teams can then review this list, making any necessary adjustments to ensure the skills align perfectly with company needs and industry standards.
2. Creating Skills Assessment with Generative AI
Once skills are clearly defined, the next step is assessing these skills. Traditionally, companies might spend significant amounts on consulting firms to develop skills assessment questions. However, with the rise of Generative AI, this process can be greatly streamlined and cost-efficient. Generative AI will play a key role in this endeavor by moving beyond generating basic questions to creating complex problem-solving scenarios that truly test an employee's analytical and practical capabilities. Here’s a closer look at the three main methods used in CLASSUM for skills assessment:
2-1 Likert Scale
The Likert Scale is a popular rating system used in questionnaires to measure attitudes or feelings across a fixed series of responses. Typically, the scale ranges from one extreme attitude to another, like "strongly agree" to "strongly disagree." The Likert Scale is designed to capture opinions or behaviors accurately and is often used to gauge employees’ confidence in their skills. This method is particularly beneficial in roles where soft skills such as communication, teamwork, and adaptability are crucial, and where attitude, satisfaction, or personal feedback are key factors.
2-2 Behaviorally Anchored Rating Scales (BARS)
BARS is a more complex form of rating that measures performance based on specific behavioral examples. Unlike other rating scales that are often vague, BARS connects specific behavioral patterns with predefined performance levels for various tasks. This method is ideal for roles where performance is directly observable and measurable, such as in sales, manufacturing, or roles involving technical skills. BARS provides a clear, objective way to assess competencies like problem-solving, client interaction, or operational efficiency.
3. Close Skills Gap with Tailored Learning Paths
So, what now? Thanks to Gen AI, we've redefined skill sets and generated assessments. However, many companies often overlook this crucial final step, focusing instead on reporting assessment results to C-level execs. The most critical stage is actually using these insights to close skill gaps through tailored learning programs for each employee.
With a clear assessment of skills gaps and employees’ levels, AI’s final role is to customize learning paths for each individual. According to a report from Deloitte, Generative AI is highly effective at creating personalized training materials that improve employee learning. AI produces on-demand content, enabling workers to learn new skills at their own pace through resources specifically designed to help them advance their capabilities.
For instance, CLASSUM’s AI learning paths are crafted specifically for each employee. Based on their assessed skill levels, Gen AI curates all relevant training materials suitable for their current stage and creates step-by-step modules to help employees maximize their learning outcomes. This ensures that the workforce remains agile and aligned with industry trends.
Final Thoughts
In the journey toward a skills-based organization, a thorough and thoughtful skills assessment is crucial. Gen AI tools streamline this process, enhancing both the quality and efficiency of drafting questionnaires and case studies. Just last month, CLASSUM showcased this skills development approach at the DevLearn Conference 2024, where we received fantastic feedback. But our support doesn't end with assessments; we are ready to assist your company through every step of its transformation.
If you’re interested in learning more about how Gen AI can revolutionize your skills development process and wish to view our demo, please don't hesitate to contact us. We're happy to assist you.
References
Boston Consulting Group. (2022, May 23). Top 20 Skills Requested for the Average US Job. Retrieved from BCG Press Release
Deloitte Insights. (n.d.). The shift to skills-based hiring: Talent acquisition in the age of agility. Retrieved from Deloitte
World Economic Forum. (2023, May). Bridging the AI skills gaps to prepare for the jobs of tomorrow. Retrieved from World Economic Forum
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