The Davos Debrief

I hope it’s not too late to wish you all Happy New Year! 

In this edition, we focus on insights from Davos, and how recruitment is a key part of the solution for ‘rebuilding trust’, why AI is centre-stage for building prosperity and job creation and the Great Return (to the office!)...

• Key Takeaways from Davos: what strategic insights from world leaders mean for entrepreneurs and how can the recruitment sector be part of “rebuilding trust” 

• How can AI transform recruitment and create more jobs? 

• Will 2024 see an increased drive to get employees back to the office?

Key Takeaways from Davos 

1. Peace and Security

If there is one thing our world needs right now, it’s peace and security - so I take heart from the overarching theme at Davos last week - “Rebuilding Trust”. Every January, government leaders and the business elite gather in this small Swiss Alpine town for the World Economic Forum’s Annual Meeting. This year, nearly 3000 leaders from 120 countries gathered in Davos, and their far-reaching agenda explored: 

• Growing trust between governments and nations, (which is more important than ever given recent and emerging conflicts)

• Rebuilding trust within societies 

• Rebuilding trust in technology - specifically in AI as a key growth driver for economy and society

• And working towards coherent joined-up thinking around a long-term strategy for climate, nature and energy

1. It’s time for recruitment leaders to step forward 

The ultimate aim of Davos is to help shape agendas which creates a future with jobs, health and security for all - hopefully improving connections and conversations between private and public sectors to enable them to work together for greater success. Recruitment entrepreneurs and businesses can play a key part in delivering these outcomes - since it’s our remit to optimise recruitment practices and be ahead of the trends. 

1. A balancing act: the need to balance meaningful AI regulation without stifling productivity 

At the beginning of Davos, President of the European Commission, Ursula von der Leyen, said that misinformation and disinformation were bigger threats to global business than war or climate change - you can read more about these concerns in this World Economic Forum Press Release.

Similarly, academics voiced concerns that politicians aren’t worried enough about letting AI surge ahead without meaningful regulation. But economists and business leaders worry that too much legislation will stifle the capacity of AI to generate growth and prosperity. So, it is clear that the way forward must be a coherent one - with the right regulation at the right time - governments need to create safe and secure AI regulation in partnership with business leaders and academic bodies. Overall, the message from Davos is that AI gives humans better tools. I found this round up of key takeaways from Davos a helpful summary. 

Why Trust always delivers a big ROI…

My father taught me that successful business is not about good transactions but good relationships. There are few things anyone has ever said to me that have had more of an impact than that. In business, it’s a given that we expect a business to have integrity - we need to be able to trust its proclaimed values, its guarantees, its services or its products. And for founders, trusting their vision, trusting themselves - without second guessing at every step - this is also important. Let 2024 be an era where we learn to trust more, fear less - and create an increasing wave of security and success. 

AI - growth driver with a huge capacity to create jobs 

Sam Altman, CEO of OpenAI and creator of ChatGPT addressed Davos on the ever-expanding capacity of AI. He talked about how AI has been demystified as more and more people start to use it. He also emphasised that AI won’t replace the human touch. Essentially, it gives humans better tools - but the focus is still on understanding each other. You can read more about his key takeaways here. 

AI has been a key driver in the recruitment industry. 2023 was a rollercoaster year for recruitment - which went from astronomic demand to a sudden slump - and this was driven by several factors including AI and technological advancement, changing work dynamics, generational trends and shifting talent demands. 

AI gives recruiters better tools - but careful selection and implementation is key 

AI doesn’t just have the ‘potential’ to transform the workplace - it’s already doing so. But it’s crucial this happens at the right pace and that businesses have the right infrastructure - so it is a business growth enabler, not a distraction. It’s also critical that governments and businesses invest in AI - this is not a race where countries can afford to fall too far behind. 

In 2023, AI-driven recruitment platforms and chatbots revolutionised the hiring process, incorporating video interviews and virtual reality assessments to overcome geographical barriers and enhance candidate evaluations. In 2024, the evolution continues, focusing on advanced technologies to boost predictive analytics, advance diversity and inclusion, and optimise recruitment workflows. While AI brings cost-effective automation, the human touch remains crucial. (James Caan) 

Here are some top AI in Recruitment Takeaways For 2024 

• The current standard process of matching people to jobs isn’t scientific, is prone to mistakes, and can typically be significantly improved by AI

• AI development is exceptionally fast-moving and years of data may be required to properly understand success factors

• Even the most sophisticated AI technologies can make mistakes

• GDPR is a data challenge that needs to be considered

• Concerns about possible transference of entrenched cultural and gender bias remain but new research also points to AI’s capacity to further diversity and inclusion by eliminating unconscious human bias and using data analytic tools to enable better decision-making and predictions about candidates.

• It’s currently estimated that a recruiter spends between 33% to 60% of their working day sourcing and screening candidates - a burden which AI can alleviate, reducing the cost of hiring candidates by up to 71%.

• The overall consensus is that AI will save recruitment firms time and money by delivering a more accurate candidate analysis.

The inevitable Great Return to the office! 

In 2023, companies embraced remote hiring, expanding their talent pools beyond geographical boundaries. Virtual onboarding processes and digital collaboration tools became essential for effective talent management. But we also saw Google, Meta (formerly Facebook), Salesforce, Amazon, Disney and even Zoom, asking employees to return to the office. Many employees remained widely in favour of hybrid work schedules and RTO (Return To Office) mandates were met with resistance.

Personally, I don’t think there is any substitute for in-person meetings - it enables better communication, and collaboration and is a learning environment that’s very difficult to replicate on a remote basis. In 2024, there’s likely to be a big push for increased staff attendance in the office in 2024, but remote work will also remain a prominent force. In Gartner's Top Nine Workplace Predictions for 2024, it outlines what it calls “the Cost-of-Work Crisis”, explaining that employees working on a remote or hybrid basis “have experienced what it is to work without bearing the costs – financial, time and energy – associated with going into an office daily.” Gartner predicts that in 2024, “organisations looking to attract and retain talent will not just try to find the perfect hybrid strategy, but they will look to tackle the cost of work head-on via two strategies: by sharing the tangible and intangible costs of returning to the office or by finding ways to reduce the total costs. This may include things such as caregiving benefits, housing subsidies, financial well-being programs, or the ability for associates to bring their pets to work.”

Expect to see: 

• Schemes and benefits to tackle the cost of RTO: including hybrid working strategies and personalised benefits packages 

• Learning and development programmes will become key as employers embrace internal mobility; there is likely to be a sharp rise in the number of employers offering personalised pathways for growth

Thank you for reading and for joining me on this journey. Whatever goals you may have set at the beginning of January, take them out, dust them off, reclaim them, celebrate them, and if you’re not as far along as you hoped, remember that our mistakes can often propel us forward in a way we may never have envisaged. And wherever you are, remember to surround yourself with like-minded people to help you grow, scale and succeed.

Until next time, 

James