CHRO dinner: HR leaders trade insights on bridging the skills gap

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A group of HR leaders gathered at the Saxon Hotel’s dining library on 9 October 2024 to exchange knowledge and insights on how to tackle one of the most pressing issues of our time – the skills crunch. The three-hour dinner, hosted by CHRO South Africa in partnership with LinkedIn and Ayanda Mbanga Communications, provided a rare opportunity for C-suite human capital leaders to brainstorm avenues for retaining talent in the age of artificial intelligence (AI).

To break the ice, CHRO managing director Joël Roerig invited guests to share funny anecdotes about a time they used AI, a prompt that triggered amusing responses. One attendee recalled speaking on the phone with an interactive AI-powered assistant five times before she realised it was not human, while another narrated how he used ChatGPT to generate bedtime stories for his children.

The attendees then delved into the topic at hand, noting that organisations were struggling to find and retain skilled labour amid rising unemployment rates. During the discussion, it became apparent that HR leaders across various industries were experiencing similar challenges.

One attendee, describing her organisation as ‘predominantly office-bound’, revealed that the business had lost staff who preferred a hybrid working model after the Covid-19 pandemic. To reduce its turnover rate, the organisation began to recruit mature hires who preferred to work in an office, a strategy that had higher cost implications.

“We are now looking at culture fit. We started conducting stay interviews as a people strategy, because by the time you’re conducting an exit interview, it’s too late,” she said.

The guests also noted that the skills-gap is partly driven by a mismatch between university curricula and the needs of employers. One attendee revealed that her company had forged relationships with technical vocational education and training institutes (TVETs) to influence their curricula as a way to equip graduates with in-demand skills. However, the guests lamented the pervasive bias against graduates from TVET colleges, saying it had resulted in a shortage of artisans.

“I have seen lots of MBAs who cannot run a business. We need to marry skills and education. A lot of young people are taught to chase the degree, but not the skills,” one attendee said.

Many companies, faced with the reality of a widening skills gap, had decided to recruit from a select group of universities, a strategy the attendees faulted. They warned that this approach could replicate existing inequities. HR leaders were urged to put diversity, equity, and inclusion (DEI) at the centre of their recruiting practices to ensure a plurality of perspectives within the workplace.

“I recall an initiative within the financial services sector to create a pool of talent they could draw from. The only way to solve this problem is to build and programme your own strategies tailored to your people and your situation. We must invest to build skills. One way is investing in bursaries for demographics that are underrepresented in the workforce,” another said.

Strong work culture

At the dinner, a clear theme emerged. Several attendees pointed toward culture as a major reason for employee turnover, saying a weak organisational culture left employees feeling unconnected to their workplace and more likely to leave.

“It is easy to replicate what you do to stay competitive. Identify what sets you apart and leverage on it. Many of our employees who left for higher-paying jobs have come back, and we realised they came back for the culture,” he said.

During the dinner, the guests noted that the retention strategies they employed a decade ago were not effective in this age. Also relevant to the discussion was the Gen Z demographic born between 1997 and 2012, which has brought a new ethos into the workforce, demanding inclusion and collaboration.

“Companies are starting to hire people with a background. If we hire from the same institutions, we hire the same kind of people, taught by the same teachers. We need new perspectives,” a guest said.

Reskilling for AI

As the evening drew to a close, the guests brainstormed about how to develop specialised skills among workers in light of the proliferation of AI. Many described using the technology to automate tasks such as sifting through a large volume of applications, freeing up time for higher-level tasks. However, they noted that it was critical to develop the skills to use AI effectively.

Faced with the popular concern about potential job losses, the guests challenged HR leaders and workers to imagine how AI could unlock new possibilities in the workplace. They however urged HR professionals to guard against overreliance on the technology by applying their analytical skills.

“AI can think, but the ability to make sense of the data is what supports decision-making. If you have this ability, you will be far ahead. This is a skill we should be building among our people: we need to learn how to prompt effectively,” a guest said.

Above all, organisations were encouraged to adopt a ‘skills-first’ approach to recruitment, with one predicting that the pendulum in the ever-changing job market would soon swing towards job applicants, creating higher demand for talent. He advised companies to evaluate for ability rather than academic qualifications.

“AI can help automate tasks, allowing me to focus on skills. If I have skills, irrespective of my prior experience, I should be able to do that job,” he said.

In attendance:

Ayanda Mbanga, CEO, Ayanda Mbanga Communications
Joel Roerig, managing director, CHRO South Africa
Mamello Masia, HR executive, Mowana Properties
Matthew Gray, LinkedIn regional leader, Sub-Saharan Africa
Muriel Adhiambo, senior writer, CFO East Africa
Nceba Ndzwayiba, group human resources and transformation director, Netcare
Paula Karam, head of learning, LATAM and Africa, LinkedIn
Rajas Pillay, HR and transformation executive, HR Sense
Tshepiso Zwane, HR director, Clientele
Zain Reddiar, CHRO, iSon Xperiences

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