The Evolution of Offshoring in the Age of AI: A Paradigm Shift in Global Business

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In the evolving landscape of global business, the rise of Artificial Intelligence (AI) is poised to revolutionize traditional practices, including the need for offshoring. Historically, offshoring has been a strategic choice for businesses seeking cost savings through cheaper labor and operational expenses in foreign markets. However, AI technologies are now reshaping this landscape, challenging the conventional rationale behind offshoring and presenting new opportunities and considerations for businesses worldwide.

Automation and Labor Dynamics

AI’s ability to automate tasks that were previously performed by human workers is one of its most significant impacts on offshoring. Tasks ranging from routine data entry to complex data analysis can now be efficiently handled by AI algorithms, reducing the dependency on human labor. Artificial Intelligence and Labor Market Dynamics: Employment Problems and Development Trends by Revaz Shengelia, Demur Sichinava :: SSRNThis shift diminishes the cost advantage traditionally associated with offshoring to countries with lower labor costs. As AI continues to advance, the economic incentive for offshoring purely based on labor arbitrage diminishes, prompting businesses to reconsider their global operational strategies.

Localization and Customer Engagement

Beyond cost considerations, AI enhances businesses’ ability to localize their operations and engage with customers in a personalized manner. Natural Language Processing (NLP) Natural Language Processing (NLP) – Overview – GeeksforGeeks and machine learning Machine Learning Tutorial – GeeksforGeeks algorithms enable AI systems to understand and respond to customer inquiries in multiple languages and dialects, effectively eliminating language barriers that often necessitate offshore customer service centers. This localization trend encourages businesses to establish or relocate operations closer to their target markets, focusing on proximity to customers rather than distant cost advantages.

Supply Chain Optimization and Resilience

AI-driven analytics and predictive modeling significantly enhance supply chain management, Artificial intelligence in supply chain management: A systematic literature review – ScienceDirectreducing the risks traditionally associated with offshore production and sourcing. By analyzing vast datasets in real-time, AI can predict demand fluctuations, optimize inventory levels, and identify potential disruptions before they escalate. This capability reduces the reliance on offshore suppliers for cost reasons alone, as businesses prioritize supply chain resilience and agility over mere cost savings. Consequently, AI promotes a strategic reevaluation of supply chain dynamics, potentially favoring regional or domestic suppliers over offshore alternatives.

Skills Redistribution and Knowledge Economy

As AI assumes repetitive and data-intensive tasks, it fosters a shift towards a knowledge-based economy where human skills such as creativity, critical thinking, and complex problem-solving are increasingly valued. This shift encourages businesses to reconsider the location of high-value activities traditionally offshore, such as research and development (R&D) and innovation hubs. Rather than offshoring these critical functions solely for cost savings, businesses may prioritize proximity to talent pools and research institutions, fostering innovation ecosystems that drive long-term competitiveness.

Regulatory and Ethical Considerations

AI’s impact on offshoring extends beyond economic factors to include regulatory compliance and ethical considerations. As data privacy regulations become stricter globally, businesses must navigate complex legal landscapes when offshoring data-intensive operations. AI technologies that enable secure, compliant data handling and processing can mitigate these risks, potentially influencing businesses to retain sensitive operations domestically or within trusted jurisdictions. Moreover, ethical considerations regarding labor practices and environmental sustainability increasingly influence business decisions, prompting a reassessment of offshore strategies in favor of more socially responsible practices.

Conclusion

In conclusion, while AI presents profound opportunities for businesses to innovate and optimize operations globally, its impact on offshoring is multifaceted. The traditional cost advantages of offshoring are being reevaluated in light of AI’s capabilities in automation, localization, and supply chain resilience. As businesses adapt to this evolving landscape, strategic decisions regarding offshore operations will increasingly prioritize proximity to markets, regulatory compliance, and the cultivation of talent and innovation. Ultimately, AI’s influence on offshoring signifies a paradigm shift towards a more agile, localized, and technologically integrated global business environment.

As businesses navigate these transformative changes, the strategic integration of AI will undoubtedly shape the future of offshoring, challenging traditional paradigms while unlocking new opportunities for growth and innovation on a global scale.

 

Hope is not a Strategy…or is it

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When it comes to planning for success, the phrase “hope is not a strategy” is often repeated as a caution against relying solely on wishful thinking. The sentiment behind it is valid—strategies require deliberate actions, clear goals, and preparation. However, dismissing hope entirely misses a crucial point: hope, when combined with effort and strategy, is a powerful catalyst for meaningful change.

The True Nature of Hope

Hope is not passive. It is a dynamic and empowering force that fuels resilience, creativity, and determination. Hope is the belief that a better future is possible, coupled with the will to make it happen. It transforms uncertainty into possibility, motivating individuals and teams to take risks, innovate, and persist in the face of adversity.

Hope as the Foundation of Strategy

A well-crafted strategy is grounded in the belief that success is achievable. Hope provides the emotional and psychological foundation for this belief. Without hope, there is little reason to plan, strategize, or act. Hope inspires people to envision outcomes worth striving for and ignites the motivation to work toward those outcomes.

For instance, leaders who communicate hope foster confidence in their teams. They paint a compelling picture of the future, encouraging collaboration and perseverance. This sense of shared hope energizes collective action, creating momentum that propels strategic efforts forward.

The Role of Hope in Overcoming Challenges

Every strategy encounters obstacles. Hope acts as a buffer against despair when setbacks arise. Research in psychology highlights the connection between hope and resilience: individuals who maintain hope are more likely to adapt, problem-solve, and find alternative paths to their goals.

Consider entrepreneurs who launch startups. They often face daunting odds, limited resources, and numerous failures. Hope sustains their vision, helping them persevere through challenges and refine their strategies. Without hope, the grit necessary to keep pushing forward would falter.

Hope Spurs Innovation

Innovation thrives on hope. It takes hope to question the status quo, imagine new possibilities, and invest in uncertain outcomes. Visionaries like Steve Jobs, Marie Curie, and Elon Musk exemplify the synergy between hope and strategy. Their hopeful visions of what could be drove their determination to create groundbreaking advancements.

Hope also fuels collective innovation. Communities and organizations that foster a culture of hope inspire individuals to share ideas, collaborate, and experiment. This optimism creates an environment where people are willing to take calculated risks, leading to transformative breakthroughs.

Making Hope a Strategic Asset

To harness hope as a strategic asset, it must be paired with action. Here’s how to integrate hope into strategy effectively:

  1. Define a Clear Vision: Articulate a hopeful vision of the future. A compelling “why” inspires people to align their efforts with strategic goals.
  2. Set Realistic Goals: Hope flourishes when it’s grounded in achievable steps. Break down long-term aspirations into smaller, manageable milestones.
  3. Foster Resilience: Cultivate an environment where setbacks are seen as learning opportunities, not failures.
  4. Lead with Optimism: Leaders who exude hope encourage teams to stay committed and motivated.
  5. Celebrate Progress: Recognize and celebrate achievements along the way to sustain momentum and reinforce belief in the vision.

Conclusion: Hope Is a Strategy

Hope is more than a feeling—it is an essential ingredient in successful strategies. It energizes action, sustains resilience, and drives innovation. Far from being a passive wish, hope is the force that transforms vision into reality when paired with deliberate effort and planning.

So, the next time someone says, “Hope is not a strategy,” remember this: hope is where all great strategies begin. It is the spark that lights the path to success.

 

A Better Approach to Succession Planning

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Effective succession planning Succession Planning Basics: How It Works, Why It’s Important (investopedia.com)has evolved from its traditional focus on executive roles, and the decades old 9-box, to include non-executive and middle management positions, skills mapping and experiences. Succession Planning: What the Research Says (hbr.org)This strategic shift recognizes the importance of nurturing talent across all levels of the organization and identifying specific skill sets, to mitigate risks associated with talent and skill gaps and turnover in the leadership ranks.  This extended focus ensures organizational and operational stability.

By investing in a creating a pipeline of talent across organizational levels, businesses not only safeguard against disruptions in key functions but also foster a culture of internal talent mobility, focused on growth, development and retention. This proactive approach creates and engaged workforce which will ultimately drive better productivity metrics, companywide innovation, and ultimately, greater employee satisfaction and lower turnover. 

Identifying Key Talent at Every Level

Traditional succession planning often focuses only on executive roles. By broadening their focus, organizations can create a culture and a process that identifies high-potential employees throughout the organization and work to offer opportunities that accelerate their growth. There are a number of key players that can positively impact this process including executives, functional leads and subject matter experts.  Each can play a pivotal role in organizational success and are integral to succession planning efforts.

A Focus on Skills and Experiences

By creating skills and experience inventories, Succession Planning: The Skill-Based Strategy (growthspace.com)much of the inconsistency is removed from the old process of rating employees against competencies and potential. No longer are employees at the mercy of a manager with impossibly high standards. This approach shifts the responsibility to the employee who self-rates and a number of SME’s across the organization to vet the ratings.

Practical Implementation Strategies:

  1. Skills Analysis and Mapping- Consider the skills necessary to perform the essential function of the position.  Ideally, a skills inventory will be created internally and categorized by function What Is Skills Mapping? (With Definition and Benefits) | Indeed.com
  2. Employee Input- Employees will input their skills into their HCM profiles
  3. Management and Stakeholder vetting- Leaders and other stakeholders will vet the employee’s skills, asking questions to ensure full mastery
  4. Understand the importance of experiences- to the skills inventory should be a parallel set of experiences that are necessary for success in the role
  5. Identification of critical roles: Conduct comprehensive analyses to identify critical roles across the organization. Understand which roles are needed for business continuity
  6. Risk Analysis and Scenario Planning: Develop a skills gap analysis so you can anticipate potential disruptions through scenario planning, ensuring readiness to mitigate operational risks.

Investing in leadership development programs, mentoring initiatives, and personalized training opportunities empowers employees at all levels to enhance their skills, experiences and readiness for future leadership roles. By supporting career growth and recognizing employee contributions, organizations cultivate a culture of loyalty and continuous improvement, essential for long-term success and competitiveness.

 

Generative AI in Recruitment

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Generative AI can be a game-changer in recruitment, The big ways AI is changing hiring (bbc.com)offering innovative ways to streamline processes and enhance candidate experiences. Here are some top ways to leverage generative AI in recruitment:

  1. Automated Resume Screening: Use generative AI to analyze resumes and match them with job descriptions, which can also be created using AI. This can save recruiters time and ensure a more comprehensive review of applicants with less bias. Optimizing Resume Screening: Leveraging Power Automate and Generative AI for Enhanced Productivity — Innowhyte
  2. Personalized Candidate Outreach: Generate personalized messages to candidates based on their profiles and job preferences. This can help in building rapport and engagement with potential candidates, many of whom are receiving a significant amount of outreach.
  3. Interview Preparation: Develop AI-generated behaviorally based interview questions tailored to specific roles or skill sets. This ensures consistency and relevance across interviews, helping to assess candidates more effectively.
  4. Candidate Assessment: Utilize generative AI to create simulations or scenarios for candidate assessment. This can provide insights into candidates’ problem-solving abilities, creativity, and decision-making skills. This will also ensure that the candidate is not getting asked the same question multiple times. AI-Enabled Candidate Assessment: Enhancing Hiring Accuracy and Objectivity | Talentera
  5. Chatbots for Candidate Interaction: Implement AI-powered chatbots to handle initial candidate inquiries, schedule interviews, and provide information about the recruitment process. This improves responsiveness and efficiency in candidate communication.
  6. Skill Development and Training: Develop AI-generated training materials or simulations to help candidates improve their skills or prepare for specific roles. This can be particularly useful for technical or specialized positions.
  7. Diversity and Inclusion Initiatives: Use generative AI to remove bias from job descriptions, candidate evaluations, and other recruitment processes. This promotes fairness and diversity in hiring practices. Inclusion and Diversity in Hiring: 7 Ways AI Helps | Ongig Blog
  8. Predictive Analytics for Talent Pipelining: Employ AI algorithms to analyze past hiring data and predict future talent needs. This enables proactive talent pipelining and reduces time-to-hire for critical positions.
  9. Candidate Experience Enhancement: Leverage generative AI to create engaging content for candidates, such as interactive job previews, virtual office tours, or gamified assessments. This enhances the overall candidate experience and strengthens employer branding.
  10. Continuous Learning and Feedback: Implement AI-driven systems for continuous feedback collection and analysis throughout the recruitment process. This helps in identifying areas for improvement and optimizing recruitment strategies over time.

By integrating generative AI into various aspects of the recruitment process, organizations can improve efficiency, effectiveness, and candidate satisfaction while staying ahead in the competitive talent market.

 

Generative AI in Human Resources

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As we open the door on 2024, many of my colleagues and I will be focusing on how to best utilize the newer generative AI capabilities in our Human Resources functions. Generative artificial intelligence (AI)—data-trained technology that uses prompts to create content—has seen a massive uptick in adoption over the past year. The technology has advanced significantly within a short timeframe and, relatively speaking, it’s just getting started.

OpenAI’s research estimates that 80 percent of today’s workers could see their jobs impacted by generative AI. The natural concern, from the workforce is that impacted will mean, taken over by, but, in most cases, that is far from the truth. Companies should determine how to use generative AI with intention, in a productive, safe, and human-first way. Some of the most compelling ideas are below:

  1. Resume Screening and Candidate Matching:
    • Use generative AI to analyze resumes and match candidates to job descriptions based on skills, experience, and keywords.
    • Improve the efficiency of the initial screening process by automating the identification of suitable candidates.
  2. Automated Interview Scheduling:
    • Implement chatbots powered by generative AI to facilitate interview scheduling.
    • Allow candidates to interact with chatbots to find suitable interview slots, answer frequently asked questions, and receive information about the recruitment process.
  3. Employee Onboarding and Training:
    • Develop AI-driven chatbots or virtual assistants to guide new employees through the onboarding process.
    • Provide automated training modules and resources tailored to individual employee needs.
  4. Employee Assistance and Support:
    • Use AI-powered chatbots to answer employee queries regarding HR policies, benefits, and general information.
    • Enhance employee experience by providing quick and accurate responses to common HR-related inquiries.
  5. Performance Management and Feedback:
    • Implement AI tools to assist in performance evaluations by analyzing employee performance data.
    • Provide real-time feedback suggestions for managers based on language models, helping to improve the quality and consistency of feedback.
  6. Employee Engagement Surveys and Sentiment Analysis:
    • Leverage AI to analyze employee feedback from surveys and other sources.
    • Identify trends, sentiments, and areas of concern to proactively address employee engagement and satisfaction issues.
  7. Skills Assessment and Development:
    • Use generative AI to assess employee skills and identify areas for development.
    • Provide personalized learning recommendations and training programs based on individual employee strengths and weaknesses.
  8. Policy Compliance and Legal Support:
    • Implement AI tools to ensure HR policies and procedures align with legal requirements.
    • Provide legal support by analyzing contracts, identifying potential risks, and offering suggestions for compliance.
  9. Predictive Analytics for Employee Retention:
    • Utilize generative AI to analyze historical data and predict employee turnover.
    • Identify factors contributing to attrition and develop strategies for employee retention.
  10. Internal Communication Enhancement:
    • Develop AI-driven tools to enhance internal communication within the organization.
    • Generate automated newsletters, announcements, or other communication materials to keep employees informed and engaged.

It’s essential to approach the integration of generative AI in HR with careful consideration of ethical and privacy considerations. Additionally, ongoing monitoring and human oversight are crucial to ensure the responsible and fair use of AI technologies in the workplace.  Done correctly, that is much to be gained!

Generational Perspectives on Employment: A Contrast between Baby Boomers and Millennials

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The world of employment has evolved significantly over the years, with different generations experiencing and interpreting work in distinct ways. Baby boomers and millennials, What Generation Am I? A Guide to Generations by Year (parents.com)separated by several decades, have grown up in contrasting socio-economic, technological, and cultural landscapes. These factors have played a role in shaping their perspectives on employment. In this article, we will delve into the divergent viewpoints of baby boomers and millennials regarding work, examining their values, priorities, and approaches to careers.

Work-Life Balance

Baby Boomers:

For many baby boomers, work was often seen as a means to provide for their families and secure a stable future. Many were part of the traditional 9-to-5 work culture, where long hours at the office were considered necessary for career advancement. The concept of “putting in the time” was deeply ingrained, often at the expense of personal and family life.

Millennials:

Millennials, on the other hand, tend to prioritize work-life balance. Work Life Balance | Mental Health America (mhanational.org)They witnessed their parents’ dedication to their jobs and the toll it took on family life. As a result, millennials often seek flexible work arrangements that allow them to balance their careers with personal interests and family time. Remote work and freelance opportunities are particularly attractive to this generation, enabling them to integrate work into their lives, rather than the other way around.

Career Loyalty

Baby Boomers:

Loyalty to one’s employer was a hallmark of the baby boomer generation. Many individuals spent the majority of their careers at a single company, viewing job stability and benefits as vital components of their employment. Climbing the corporate ladder and staying with the same company until retirement were common aspirations.

Millennials:

Millennials tend to value personal growth and skill development over long-term loyalty to a single employer. They are more willing to change jobs and even switch careers in pursuit of new challenges and opportunities. This fluid approach to employment can be attributed, in part, to the economic instability witnessed during their formative years and the rise of the gig economy, What is the gig economy and what’s the deal for gig workers? | World Economic Forum (weforum.org) which has normalized job hopping and freelancing.

Purpose and Fulfillment

Baby Boomers:

While many baby boomers found purpose and fulfillment in their work, these aspects were often secondary to the financial stability that employment provided. Career choices were frequently influenced by practical considerations rather than a quest for personal passion.

 

Millennials:

Millennials seek meaning and purpose in their careers. They are more likely to prioritize jobs that align with their values, allowing them to make a positive impact on society and the environment. This generation places a premium on job satisfaction and is willing to make career decisions that reflect their personal beliefs and goals, even if it means sacrificing higher-paying opportunities.

Technology and Adaptability

Baby Boomers:

Baby boomers adapted to technology as it emerged, but their careers were not as intertwined with digital tools and platforms as those of millennials. They often had to learn new technologies later in their careers, and some may have viewed technology as a disruptor rather than an enabler.

Millennials:

Having grown up in the digital age, The Digital Age: The Era We All Are Living In – DZone millennials are comfortable with technology and its rapid evolution. They readily embrace new tools and platforms, which has contributed to the rise of remote work, digital nomadism, and the gig economy. This adaptability allows them to navigate an ever-changing job market with relative ease.

In conclusion, the differing perspectives of baby boomers and millennials on employment reflect the evolving nature of work and societal values. While baby boomers often prioritized stability and financial security, millennials place greater emphasis on work-life balance, purpose-driven careers, and adaptability. Understanding these generational differences Generational Differences in the Workplace
 [Infographic] (purdueglobal.edu) is crucial for employers, policymakers, and individuals seeking to thrive in the modern world of work, fostering collaboration and harnessing the strengths of each generation.

Coach versus Mentor

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A coach and a mentor are both valuable resources for personal and professional development, but they serve different roles and have distinct characteristics. Here are the main differences between a coach and a mentor:

Purpose and Focus:

Coaching: Coaching The Role of a Coach in The Workplace | EZRA (helloezra.com) primarily focuses on performance improvement and goal achievement. A coach helps individuals identify their goals, develop action plans, and provides support, guidance, and feedback to enhance their skills and reach their desired outcomes. The emphasis is on short-term objectives and specific areas of development.

Mentoring: Mentoring 10 Reasons Why You Need a Mentor | Indeed.com is more about long-term personal and professional growth. A mentor is someone with extensive experience and knowledge in a particular field who offers guidance, advice, and wisdom to a less-experienced individual. The focus is on sharing insights, imparting wisdom, and nurturing the mentee’s overall development.

Relationship:

Coaching: The coach-client relationship is typically formal and structured. Coaches establish a professional relationship based on trust, confidentiality, and clear boundaries. They work collaboratively with clients to explore their goals, challenges, and strategies for improvement.

Mentoring: The mentor-mentee relationship is often informal and built on a foundation of mutual respect and trust. Mentors usually have a personal connection or shared interest with the mentee. The relationship tends to be more flexible and can involve discussions about various aspects of life and career.

Expertise and Experience:

Coaching: Coaches may or may not have specific expertise in the client’s field. They focus more on coaching skills, such as active listening, questioning, and providing support. Coaches help individuals develop their own solutions and perspectives by drawing out their strengths and potential.

Mentoring: Mentors possess extensive experience, knowledge, and expertise in the mentee’s field or area of interest. They share their wisdom, offer advice, and provide insights based on their own professional journey. Mentors may also provide introductions to their network or offer career guidance specific to the industry.

Duration and Intensity:

Coaching: Coaching engagements are typically time-bound and have a specific duration. The Four Stages of a Coaching Assignment (coaching-focus.com)Coaches work with clients for a defined period to achieve their goals or address specific challenges. The frequency of coaching sessions can vary depending on the individual’s needs and availability.

Mentoring: Mentoring relationships tend to be more open-ended and can last for an extended period, sometimes even spanning years. How Long Should Mentorship last? (mentorloop.com)Mentors offer ongoing support and guidance as the mentee progresses in their personal and professional journey.

Approach:

Coaching: Coaches use a structured and goal-oriented approach, employing various techniques and methodologies to help clients gain clarity, set objectives, and take action. The Best Ways for Coaching an Employee in the Workplace | Indeed.comThey facilitate self-discovery, encourage self-reflection, and help clients overcome obstacles.

Mentoring: Mentors take a more informal and nurturing approach. They provide guidance, share experiences, and offer advice based on their own successes and failures. Mentors often provide a sounding board for ideas, offer perspective, and encourage the mentee’s growth.

It’s important to note that these distinctions are not always absolute, and there can be overlap between coaching and mentoring depending on the specific context and the individuals involved. The terms “coach” and “mentor” are sometimes used interchangeably, and individuals may fulfill both roles to varying degrees.

Artificial Intelligence in Human Resources

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Artificial Intelligence (AI) is the theory and development of computer systems able to perform tasks that normally require human intelligence, such as visual perception, speech recognition, decision-making, and translation between languages. It is important for several reasons:

  • Automation: AI can automate tedious and repetitive tasks, freeing up humans to focus on more complex and creative work.
  • Efficiency: AI can process large amounts of data quickly and accurately, making it possible to identify patterns and trends that would be difficult or impossible for humans to detect.
  • Innovation: AI can be used to create new products, services, and business models that would be difficult or impossible to develop using traditional methods.
  • Personalization: AI can personalize experiences and interactions based on individual preferences and behaviors, improving customer satisfaction and loyalty.
  • Decision-making: AI can provide valuable insights and recommendations to support decision-making across a wide range of industries and applications, from healthcare to finance to logistics.

AI like ChatGPT has quickly transformed the way that work is performed in HR organizations,

  • Recruitment and Hiring: AI is transforming the way organizations approach recruitment and hiring. By using AI-powered tools, HR departments can analyze resumes, evaluate skills, and assess the cultural fit of potential candidates. AI can help HR teams identify and shortlist candidates based on the job description, skills, and qualifications required.
  • Talent Management: AI can help HR departments to manage and develop talent within an organization. AI can analyze employee performance data, identify skill gaps, and recommend training programs. AI can also help HR departments to predict employee turnover and create proactive retention strategies.
  • Employee Engagement: AI can help HR departments to measure and improve employee engagement. By analyzing employee feedback and sentiment data, AI can identify areas where employee engagement is low and suggest interventions to improve it. AI-powered chatbots and virtual assistants can also help to provide employees with personalized support and guidance.
  • Performance Management: AI can help HR departments to automate performance management processes, such as performance evaluations and goal-setting. AI can analyze employee performance data and provide objective feedback to employees, eliminating bias and subjectivity in the evaluation process.
  • Compliance: AI can help HR departments to ensure compliance with regulations and policies. AI can analyze large volumes of data to identify potential compliance risks and flag any violations. AI-powered chatbots can also help to answer employees’ questions about compliance policies and procedures.

Overall, AI has the potential to transform the way we live and work, improving efficiency, productivity, and innovation in a wide range of domains.

Living in Uncertain Times

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Emotional traumas can come in many forms, and living in our current uncertain times, where stress is inevitable and is perceived as uncontrollable can cause the same emotional trauma today as used to be attributed to men returning from war.

The ability to recognize emotional trauma has changed radically over the course of history. The women’s movement in the 1960s broadened the definition of emotional trauma to include physically and sexually abused women and children. Now, because of the discoveries made in the ’90s – known as the decade of the brain – psychological trauma has further broadened its definition.

According to Centerstone, recent research has revealed that emotional trauma can result from such common occurrences as an auto accident, the breakup of a significant relationship, a humiliating or deeply disappointing experience, the discovery of a life-threatening illness or disabling condition, or other similar situations. Traumatizing events can take a serious emotional toll on those involved, even if the event did not cause physical damage.

Regardless of its source, an emotional trauma contains three common elements:

  • It was unexpected
  • The person was unprepared
  • There was nothing the person could do to prevent it from happening

As with many situations, it is not the situation itself but the person’s perception of the event that can cause the issue. Different people have learned and used different coping mechanisms, and their resiliency may differ. What seems nearly catastrophic to one person is a setback but is kept in perspective by another.

One way to tell the difference between experiencing stress or emotional trauma is by looking at the outcome – how much residual effect an upsetting event has on our lives, relationships and overall functioning. Traumatic distress can be distinguished from routine stress by assessing the following:

  • How quickly you become upset
  • How frequently you become upset
  • How intensely threatened you feel by the event
  • How long the feelings last
  • How long it takes to calm down

But the rapid-fire events that many of us are experiencing in our lives today can be cumulative in nature. An event that you did not expect and was not directly impactful to you may still lead to a traumatic experience when it is on top of other events in close succession.

The recent failure of Silicon Valley Bank is a prime example. While many non-technology companies and investors did not have funds in SVB, the failure of the institution, which has been around since 1983, concerns people, especially when they hear that another 3-4 banks are likely to experience insolvency in short order and no one is rushing to bail SVB out.

If you find yourself experiencing extreme stress, the below coping mechanisms could help; if not, please seek professional help. There are many excellent virtual, online counselors, such as through Talkspace that can help you work through these issues so they do not disrupt your life.

  • Talk about it. By talking with others about the event, you can relieve stress and realize that others share your experience and feelings.
  • Spend time with friends and family. They can help you through this tough time. If your family lives outside the area, stay in touch by phone if possible. If you have children, encourage them to share their feelings and concerns with you.
  • Take care of yourself. Get as much rest and exercise as possible. Try to continue any religious practices or centering activities.
  • Take one thing at a time. Getting things back to normal can seem impossible. Break the job up into doable tasks. Complete that task first and then move on to the next one. Completing each task will give you a sense of accomplishment and make things seem less overwhelming.
  • If you can, help. Give blood; help prepare meals for others, including the elderly. Volunteer to help clean up or rebuild your community. Read to children in the shelter. Helping others can give you a sense of purpose in a situation that feels beyond control.
  • Avoid drugs and excessive drinking. Drugs and alcohol may seem to help you feel better, but in the long run, they generally create additional problems that compound the stress you’re already feeling.
  • Ask for help if you need it. You may want to talk with a mental health professional to discuss how well you are coping with recent events. You could also join a support group. Don’t try to go it alone. Asking for help is not a sign of weakness. It is a sign of strength and allows you to feel back in control.

Competencies versus Skills

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Many organizations are transitioning from competency-based to skills-based job descriptions.   You Need a Skills-Based Approach to Hire and Developing Talent (hbr.org) One of the primary reasons for this growing shift is that while competencies are broad-based requirements, like innovation and team building, and are more qualitative in nature, skills are more easily quantifiable. Skills are requirements like knowing how to perform pivot tables in excel or having demonstrated the ability to lead a culturally diverse team across multiple global locations effectively. You either possess the skill, or you do not. The Future of Work 2022 | Accenture. Recruiters and search firms are finding this approach to yield better results and candidates from different backgrounds than they would have typically approached.

While this shift sounds easy in concept, creating the job descriptions to transition from a competency-based approach to a skill-based one is an arduous and lengthy initiative that could span multiple years. Not only does each job need to be broken down into granular task requirements, but for the job descriptions to be most helpful, they must be able to vet both external and internal candidates. Employees need to be able to review the job description for a position they would like to have and see clearly why they are or are not qualified. There needs to be a skills repository on your HCM to assist managers in choosing the necessary skills for each position. Likewise, employees have to complete personal profiles listing all the skills they believe they have so that a gap analysis can be automatically conducted between the requirements and the employee’s current skill set. Then comes the conundrum of being able to vet the skills. Just because someone says they have the talent to install a garbage disposal and can talk you through the steps does not necessarily mean they can complete this task in real life. Who is responsible for the vetting? L&D? Talent Acquisition? Hiring managers? How Recruiters Evaluate Candidates With a Skills-Based Lens

One of the benefits of using skills-based job descriptions is that you no longer need to depend on job titles. It opens up your positions to people from various backgrounds, positions, and titles who may far exceed the capabilities of someone from only one title. Your application flow is improved, as is the quality of your candidates. This approach also ends employees’ perception of favoritism when awarding promotions to new assignments. Both managers and HR can quickly point to the reason(s) that one employee was ready for promotion and one not quite ready.

For employees with a gap in their skills to reach the next level, HR must be prepared in their LMS to have courses, content, books, and other learnings tied to the required skills. The most frustrating scenario for an employee is being told they lack certain skills but do not have a clear path laid out in order to obtain those missing skills. Skills Development Training: Must-Have LMS Features (elearningindustry.com)

Thanks to the new approach of skills-based job descriptions, companies can attract and hire the best talent for their job openings. Job titles and degrees are not always the best indicators of a candidate’s abilities, and focusing on skills can lead to better outcomes for both the company and the employee.