As artificial intelligence reshapes industries, organizations face critical workforce challenges, including the shrinking availability of entry-level roles, evolving management responsibilities, and the increasing need to redefine employee value propositions. Deloitte’s 2025 Global Human Capital Trends report highlights key tensions between business and human outcomes, urging organizations to rethink traditional workforce development approaches.
Workforce Challenges and Strategies
1. Addressing the Experience Gap
Many organizations struggle with a widening gap between skilled candidates and required experience, making it difficult to build a sustainable talent pipeline.
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66% of managers and executives report that most new hires are not fully prepared due to a lack of experience.
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Traditional entry-level roles are disappearing, limiting opportunities for hands-on skill development.
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73% of executives and 72% of workers believe organizations should provide better opportunities for workforce experience building.
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Organizations can close this gap by shifting from experience-based hiring to skills- and potential-based hiring strategies.
2. Reinventing the Role of Middle Managers
With the rise of AI, the responsibilities of middle managers are evolving, requiring a shift from administrative tasks to people development.
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73% of organizations acknowledge the importance of redefining the manager’s role, but only 7% have made significant progress in doing so.
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On average, managers spend 40% of their time on administrative tasks, with only 13% focused on talent development.
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36% of managers feel unprepared for leadership roles, and 40% report a decline in mental health after taking on managerial responsibilities.
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AI-powered tools can help managers automate routine tasks, allowing them to focus more on leadership and employee engagement.
3. Enhancing the Employee Value Proposition in an AI Era
Organizations need to ensure that AI integration benefits employees, fostering trust and engagement in an evolving workplace.
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52% of leaders recognize the critical value of human-AI collaboration in the workplace.
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Over 70% of managers and workers are more likely to stay with a company if its Employee Value Proposition (EVP) supports career growth in an AI-driven environment.
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Transparent communication about AI’s role in job transformation, career progression, and work-life balance can build workforce trust and retention.
Insights from Industry Leaders
Experts emphasize the importance of balancing short-term results with long-term workforce value:
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Karen Pastakia (Deloitte Canada): Organizations that use AI to enhance workforce well-being and modernize management structures will unlock long-term value.
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Simona Spelman (Deloitte Consulting LLP): Prioritizing individual worker skills, motivations, and well-being over broad workforce strategies can drive organizational success.
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Kyle Forrest (Deloitte Consulting LLP): Leaders must adapt and evolve their strategies to address workforce challenges while driving business growth.
Organizations must embrace AI-driven transformations while ensuring workforce stability through skills-based hiring, redefined managerial roles, and enhanced employee value propositions. By aligning AI integration with human development, businesses can create sustainable growth, improve workforce satisfaction, and navigate the complexities of the modern workplace.
