Despite a strong belief in employee reskilling for AI roles, many companies continue to hire externally.
Human Resources (HR) professionals express confidence in the potential of current employees to adapt to new roles created by artificial intelligence (AI). However, many organizations are still prioritizing outside hiring over internal talent development.
Research Findings
A recent study conducted by Careerminds, a global workforce solutions company, sheds light on this apparent contradiction. The study indicates that an overwhelming 92% of HR leaders and 88% of people managers believe existing employees can be trained for AI roles. Surprisingly, though, over half of the HR respondents (51%) and nearly half of the managers (47%) reported that their organizations are choosing to hire new talent for these positions instead of redeploying current staff.
This survey included input from 595 HR professionals and 547 managers across the United States, all of whom work for organizations with 500 to over 10,000 employees. Conducted between May 15 and May 26, 2026, the findings suggest a disconnect between belief and practice.
Obstacles to Internal Reskilling
One of the primary challenges cited for the reluctance to reskill employees is a lack of visibility into individual skill sets. The research revealed that 43% of HR professionals and 34% of managers saw this as a significant barrier to effectively identifying candidates for AI reskilling.
Despite these barriers, 87% of HR professionals and 84% of managers still believe that their organizations are taking adequate steps to consider reskilling initiatives. This disconnect suggests that while organizations express a commitment to developing their internal talent, their hiring practices may tell a different story.
Differences Across Industries
Interestingly, the approach to meeting AI-related workforce needs varies significantly between industries. For instance, the technology and telecommunications sectors are notably leaning towards external hiring, with new hires surpassing redeployments by 15%. In contrast, the media and entertainment sectors demonstrate a more balanced approach—56% of HR professionals in these industries indicate that they prefer to redeploy staff rather than hire externally.
Financial Implications
The cost ramifications of hiring practices cannot be overlooked. According to separate research from The Josh Bersin Company, the expense of recruiting externally can be three to five times higher than promoting internally. Moreover, filling positions from outside can take up to 20 days longer on average, contributing to an increased financial burden on organizations.
Strategies for Improvement
As businesses continue to navigate the complexities introduced by AI, reassessing talent development strategies is crucial. Companies that invest in upskilling their existing workforce not only address immediate staffing needs but also enhance overall employee satisfaction and retention.
Mark Saddic, a senior partner at Careerminds, emphasizes the importance of recognizing and utilizing current human resources effectively: “Companies are investing in AI while potentially overlooking one of their most valuable resources: the people they already employ.”
In light of this, fostering a culture that prioritizes ongoing reskilling can lead to a more agile and cohesive workforce, better prepared to embrace the challenges posed by AI innovations. Shifting focus from external recruitment to nurturing internal talent can provide financial benefits while securing long-term organizational success.
Conclusion
In conclusion, the interplay between hiring practices and employee development strategies needs reevaluation in the era of AI. A greater emphasis on reskilling existing employees may not only reduce costs associated with external recruitment, but also strengthen the company's internal capabilities in a rapidly evolving market.