The AI talent pipeline: What skills are companies hiring for?
AI is rapidly transforming modern operating models, and organisations face a growing disconnect between technological advancement and workforce readiness.
As highlighted in REBA’s report How organisations close skills gaps and redesign pay for an AI-integrated future, businesses need to rethink their talent pipelines rather than relying on external hiring to fill widening capability gaps.
AI is changing talent pipelines
External labour markets are struggling to supply the volume of AI-complemented capabilities required. In response, organisations will need to reprioritise their approach from ‘hiring for skills’ to internal reskilling and talent redeployment.
The ongoing automation of routine tasks, combined with rising hiring costs, is eroding entry-level jobs, a traditional foundation for talent pipelines. Jobs website Adzuna has seen a 30% drop in UK entry-level job postings since ChatGPT’s launch, highlighting that graduates are facing the toughest job market since 2018.
As AI and talent pipelines change, reward structures are changing too.
A changing EVP
Based on REBA’s How organisations close skills gaps and redesign pay for an AI-integrated future report, in partnership with Marsh, the EVP is shifting away from traditional static benefits towards capability-building, transparency, and employee resilience.
To ensure learning is not treated as an optional extra, organisations are embedding formal, protected development time directly into the EVP. This benefit particularly supports early-career and lower-paid workers in taking on AI-complemented tasks.
Access to technology has become a core driver of employee engagement, as the report shows that providing equal access to AI tools and training is now a critical component of the EVP, directly mitigating attrition risks.
Impact on reward structures
Reward strategy now acts as a cultural signal of how a business structures pay, roles, recognition, and benefits. This directly indicates whether an organisation empowers its people to thrive in a digital, skills-driven future.
Skills-based pay models will likely emerge in response. Rather than linking pay to job titles, length of service, or hierarchy, reward models align compensation with demonstrated, capability-based skills. This approach could give employers greater agility in a labour market where job expectations shift every 12-18 months.
Modernised, transparent job architectures may replace rigid structures, offering visible lateral or vertical career paths and clearer criteria for pay progression.
To find out what skills organisations are now hiring for, download REBA’s How organisations close skills gaps and redesign pay for an AI-integrated future report.
Supplied by REBA Associate Member, REBA
Supporting the reward and benefits community to pursue best practice and drive excellence in their strategies
