Today, in-demand technical competencies go beyond the conventional, evolving in line with the latest tech trends. To offer a comprehensive perspective on this transformation, we spoke to Madhu Menon, National Head of Talent Acquisition for Deloitte.
The digital revolution, characterised by rapid growth in emerging technologies such as artificial intelligence, machine learning, and data analytics, is transforming the employment landscape. As indicated by the 2020 Future of Jobs Report by the World Economic Forum, 50% of all employees will need reskilling by 2025, as the adoption of technology increases. The report predicts that “by 2025, 85 million jobs may be displaced by a shift in the division of labour between humans and machines, while 97 million new roles may emerge that are more adapted to the new division of labour between humans, machines and algorithms”.
Clearly, traditional technical competencies are becoming outdated, and in their place, a new suite of skills, deeply intertwined with these advancements, is taking centre stage. These include proficiency in areas like data analytics, cybersecurity, AI, and machine learning. This shift doesn’t just affect tech roles; it impacts a wide range of sectors that are increasingly relying on technology for efficiency and innovation.
As a result, professionals who are skilled at integrating these advanced technical skills into a variety of sectors are currently redefining the landscape of the job market. For a detailed understanding of this seismic shift, we spoke to Madhu Menon, who heads Talent Acquisition, Deloitte on a national level.
Evolving skills and job market
“There is a rapid change and evolution in the skills and their demand,” says Menon. “Initially we had mainly been focused on Edge Computing, Cloud Computing, UI/UX design, Python, Hadoop, Java, Front End, Back End, Full Stack.” However, Menon notes a paradigm shift in recent times: “The high-demand skills are now Data Science and Data Analytics, Cyber Security, DevOps, Blockchain, IoT, AI, AR and VR, Edge Computing, Cloud Computing, and Full Stack Developer.”
The transformation in in-demand skills, as outlined by Menon, and a new environment of rapidly advancing technology, necessitate adaptability, requiring employees to continuously update their skills to meet new demands. As technology permeates every business sector, companies seek individuals competent in emerging areas like AI, Cyber Security, or Data Analytics, but who can also navigate older systems, demonstrating a comprehensive skill set. Consequently, organisations not only expect technical proficiency but also aspire to build a workforce that is resilient, versatile, and ready to evolve alongside technological advancements.
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“Organisations today have evolved from hiring talent with functional capabilities to talent with diverse capabilities and technical competencies,” Menon confirms. “While equal importance is given to functional expertise, organisations are crafting roles to attract talent that can be trained and developed, building on cutting edge and alternative technical skills.”
Menon points out that there are, however, significant regional and industry-specific variations in sought-after technical skills. “These skills vary significantly across different industries but ultimately align with the specific tasks required, whether they are digital or physical in nature. For instance, industry-specific technical skills include point of sale (POS) software for the retail and food service sectors, electronic medical record (EMR) software for healthcare, and customer relationship management (CRM) systems for sales and marketing,” she says.
In addition, Menon highlights that the accelerated shift to remote work and hybrid work models has resulted in a dispersion of talent across different geographical locations. “Within the country, technology hubs like Bangalore and Hyderabad are renowned for offering a wide pool of IT talent. But the advent of the hybrid work model has allowed professionals with technical and functional skills to relocate to their hometowns. As a result, there is now a spread of technical skills and talent across various regions, contributing to the development and availability of expertise in those locations as well,” she says.
Organisations today have evolved from hiring talent with functional capabilities to talent with diverse capabilities and technical competencies. While equal importance is given to functional expertise, organisations are crafting roles to attract talent that can be trained and developed, building on cutting-edge and alternative technical skills. – Madhu Menon, National Head, Talent Acquisition, Deloitte
Emerging technical trends
Menon identifies emerging technologies like AI and ML as critical game-changers, creating a shift towards automation. “While generative AI will impact the job market, it won’t eliminate human roles entirely,” she predicts. “It [technological advancement] challenges talent to hone skills that technology cannot replicate, such as in the areas of human relations, customer experience, strategic thinking, and so on,” says Menon.
In essence, as AI and ML drive automation, the value of human skills that augment these technologies becomes paramount. This interplay of human and technological capabilities is expected to shape the future of work.
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Strategies for Identifying and attracting candidates
Organisations are proactively adapting their talent attraction strategies to meet the demands of this evolving job market. By emphasising skill development, optimising recruitment processes, investing in training programs, fostering an inclusive culture, and offering attractive benefits, leading organisations aim to position themselves as magnets for talent with in-demand competencies.
Deloitte, for instance, employs a Hire-Train-Deploy strategy. This involves hiring bright candidates directly from campuses, training them on a customised curriculum aligned with business needs, and focusing on their deployment. “The selection process has been streamlined with AI-enabled skill tools for identifying and filtering relevant skills. Emphasis is placed on skills over degrees and re-skilling and upskilling models,” Menon shares.
The firm has found success with its Hire-Train-Deploy model, a low-cost and high-value business strategy tailored to meet specific client requirements for hot/niche skills. “For instance, we have successfully hired entry-level data analytics practitioners who possess foundational hands-on knowledge. Through further training and upskilling, they have been able to assume specialised roles in areas such as Azure and Big Data, providing significant value to clients. This model showcases our commitment to nurturing talent with in-demand technical competencies and enabling them to make a notable impact within their organisations”.
Assessing technical proficiency and balancing skills in recruitment
Menon adds that during recruitment, candidates’ technical competencies are assessed using an AI/ML-based skill testing tool. The results are shared with the hiring team, enabling us to gauge the candidates’ competency levels effectively.
The organisation understands that technical skills must be balanced with other essential qualities such as soft skills and cultural fit. “In a consulting and services firm, interactions with clients and team members are frequent, which makes soft skills and cultural fit crucial. While technical skills are still evaluated rigorously, we assign greater weightage to soft skills and cultural fit during the evaluation process,” Menon shares, pointing out that candidates undergo multiple rounds of interviews, and are assessed on both technical and soft skills. “Technical skills are assessed through online tool assessments and case studies, followed by SME discussions. Cultural fit and soft skills are evaluated using various competencies aligned with the firm’s guidelines, including Situation/Task/Action/Result assessments,” she shares.
In line with this trend, Menon notes that the BFSI sector has embraced the integration of technical and conventional banking skills by hiring roles previously aimed at IT, such as data scientists, data analysts, and data engineers.
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Deloitte has found success with its Hire-Train-Deploy model, a low-cost and high-value business strategy tailored to meet specific client requirements for hot/niche skills. “For instance, we have successfully hired entry-level data analytics practitioners who possess foundational hands-on knowledge. Through further training and upskilling, they have been able to assume specialised roles in areas such as Azure and Big Data, providing significant value to clients. This model showcases our commitment to nurturing talent with in-demand technical competencies and enabling them to make a notable impact within their organisations”.
The future: emerging roles in BFSI
“Positions like data scientists, data analysts, data engineers, and data architects are now in demand in BFSI to optimise system performance, ensure security, and limit fraud,” says Menon. “They [the sector] have also hired Ethical Hackers, cloud officers, and Security experts”. For the BFSI sector, integrating IT talent has proven successful, particularly in areas such as Data Analytics, AI and ML, Cloud Computing, Cyber Security, and Blockchain.
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As technology continues to evolve, in-demand skills and technical competencies will also continue to redefine the job market. Staying abreast of these changes and aligning hiring strategies to these shifts will be critical for organisations to remain competitive.
About the author: Madhu Menon heads Talent Acquisition at Deloitte India and features among Forbes’ Top 30 Talent Leaders 2023. Her rich career spans over 20 years with industry giants like EY, UNISAFE, and KPMG India.
Fantastic insights! This article delves into the burning question of whether generative AI can eliminate human roles. Madhu Menon’s expert perspective highlights the importance of collaboration between humans and AI, emphasizing the potential for AI to enhance rather than replace human capabilities. Well done!
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Madhu Menon’s insights highlight the evolving job market, driven by technological advancements. Traditional technical competencies are being replaced by emerging skills like AI, Data Science, Cyber Security, and IoT, transforming industries across the board. To thrive in this dynamic landscape, professionals must continuously update their skills. Companies now seek versatile employees who can adapt to new demands while navigating older systems. Regional and industry-specific variations in sought-after technical skills are evident, and the shift to remote work has dispersed talent across different locations. This paradigm shift demands a resilient and adaptable workforce with diverse technical competencies to meet the challenges of the future job market.
An insightful essay explores how generative AI may affect human roles from a fair point of view. It’s clear from Madhu Menon’s insightful presentation how AI enhances human expertise and decision-making. CNC Milling Services The paper makes us think about how human contributions and AI work together symbiotically.”