Well, Boomer. Even if you started your career in an era when PCs were considered cutting edge, your job prospects may be better than you think.
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It’s been a little over six months since ChatGPT was released to the world. Like other transformative technological shifts, this is already asking leaders how to do everything from drug discovery to investment to talent management and partnerships. But the unemployment rate is near a 50-year low as employers struggle to find and retain the talent they need ahead of the next wave of jobs.
This is driving the move towards skills-based hiring, AI experimentation, and other themes we explored at last week’s Future of Work Summit. [Here is a summary of highlights from the event, courtesy of Emmy Lucas, and a shout-out to Jena McGregor for creating such a thought-provoking event.]
Earlier today, at McKinsey’s annual Media Day, I had the opportunity to hear from McKinsey experts about what they see and do in this space. The management consultancy has faced many challenges over the past few years, from paying hefty fines for its role in selling opioid drugs to an embarrassing lack of diversity in its leadership. [I worked there in 2020.]
Still, McKinsey received more than 1 million applications for 10,000 job openings last year. Additionally, some of the top 1% did not complete her traditional four-year degree. This reflects a shift to recruiting for potential and pedigree, according to Chief Human Resources Officer Katie George. “We used to be job managers,” says George. “Now we are skill managers.”
CEO shift around AI
Of course, one of the most coveted skills is the ability to understand and leverage ChatGPT and other forms of generative AI. Alex Singla, senior partner and global leader of McKinsey’s QuantumBlack artificial intelligence, said the conversation with the CEO has changed in the past few weeks. Gone are the demands for descriptions of technology and whether it is overly exaggerated. Currently, Singla states that his five questions predominate:
- What are the specific use cases?
- How do I get started?
- What are the risks that need to be managed?
- What are the implications for current and future employees?
- How can I learn faster?
Automation, which McKinsey previously predicted by 2040, has been pushed back to 2030. The winners will be those who moved fast, quickly figured out how to integrate these new technologies, and consequently rethought how people and processes are managed. .
Jackie Wright, former chief digital officer at Microsoft and who became McKinsey’s first chief technology and platform officer last fall, also said generative AI is already creating new roles around risk, not replacing existing roles. Point out that the statements are constantly repeated.
For example, junior analysts no longer need to spend most of their time collecting research, preparing proposals, and creating data-synthetic content. Instead, you can shift your focus to more value-added tasks.
QuantumBlack Senior Partner Ben Ellencweig distills the current impact of AI into the 4 Cs, in true McKinsey fashion. Coding (AI-generated suggestions are already delivering up to 55% productivity gains) and Customer Engagement (suggesting more personalized ways to engage with customers). , creative content generation (especially marketing) and content synthesis (essentially connecting the dots). “All mundane tasks go away,” he says. “It’s about change management…just moving at lightning speed.”
Productivity paradox
Technology has the power to accelerate productivity gains, but it’s not the only factor. Workforce mobility, regulations, hiring practices and other factors also affect productivity. Although three-quarters of published job descriptions still call for a four-year degree, 13 states have removed that criterion as a prerequisite for applying for public sector roles, with more skills required. Momentum for a base approach is growing. As an example, Scott Blackburn, senior partner and global co-leader of the McKinsey Center for Government, noted that infantrymen receive extensive training in many of the skills needed to manage enterprise risk.
“Productivity is the only solution” to America’s continued prosperity, argues McKinsey North America managing partner Astosh Padi. “How will we pay for the energy transition?” he asked. “It all comes down to productivity at the state and departmental level.”
Still, U.S. productivity growth has halved to 1.1% annually over the past 15 years, said Olivia White, senior partner at the McKinsey Global Institute. She named seven states that outperformed in terms of profits: North Dakota, California, New York, Texas, Colorado, Massachusetts and Washington. More companies are underperforming, she says, creating productivity gaps that will only exacerbate regional divisions.
Ezra Greenberg, a partner and global leader who oversees the company’s macro scenarios and trends, has one piece of advice that almost any company can follow. That is “maintaining the baby boomer generation.” Their organizational knowledge and ability to mentor younger generations could prove invaluable in the years to come. For baby boomers, adapting to new technology and rethinking their role could be a recipe for less work and more pay.
