AI drives global shift in hiring, pay premiums & workforce skills

New data from IDC indicates that global organisations are intensifying their focus on artificial intelligence, leading to significant adjustments in workforce strategy. Approximately 66% of businesses worldwide are planning to slow recruitment for entry-level positions, citing AI-driven changes in the nature of work. According to the research, 91% of organisations report at least some roles have changed or disappeared already due to the adoption of AI technologies.

Entry-level hiring

The impact of AI on hiring trends is especially pronounced at the entry-level. Two-thirds of organisations surveyed expect to restrict the recruitment of junior staff as automation and digital tools assume more of the routine work previously handled by new entrants. This shift is making it harder for companies to develop internal leadership pipelines, with 71% reporting increased difficulty in recruiting and training future leaders.

Changing role requirements

Organisations report that new skills have overtaken traditional credentials in importance. Only 5% regard a university degree as essential for entry-level roles. Instead, practical skills such as technical certifications, problem-solving, and communication are now prioritised. Some 66% of businesses say that certifications in AI tools or coding are among the top requirements. Meanwhile, 59% value critical thinking skills, and 51% look for strong collaboration abilities in recruitment.

Reskilling and training

Companies are responding to AI's operational impact by increasing investment in training. The survey finds that 67% of organisations have already launched programmes aimed at equipping staff with AI and digital skills. The UK is among the most active in EMEA, with 72% reporting companywide or departmental AI training initiatives. However, organisations still face obstacles, with 57% citing low employee engagement in training and 51% noting budget limitations.

Workforce restructuring

The IDC data highlights a high level of role change and displacement in the global workforce. Nine out of ten firms say they are experiencing change, with one in three undertaking significant restructuring to integrate AI. New Zealand, Argentina and the US report the highest levels of outright job elimination due to AI, at 53%, 53%, and 50% respectively. In contrast, only 11% of Chinese firms report displacement, but 79% are actively redesigning jobs, reflecting broader retraining policies driven by national strategy.

Recruitment and pay

Competition for specialised AI talent is intensifying. Half of surveyed organisations say they are willing to pay a premium of 25% to 100% above typical tech salaries for workers with AI expertise. In the UK, 17.2% say they would pay over 50% more than usual rates for qualified AI professionals. Beyond salary incentives, employers are offering additional benefits, including access to advanced tools and clear career progression paths, to attract and retain talent in a tight labour market.

AI governance challenges

Despite widespread adoption of AI, the research reveals a gap in regulatory readiness. Only 16% of businesses feel very familiar with their local AI laws, while 24% find those regulations clear and helpful. Fewer than a quarter of organisations have established internal policies to govern employee use of AI systems, leading to concerns around compliance and ethics. The report shows that 57% of companies in China, 53% in India, and 53% in Germany are not acquainted with their country's AI-related regulations.

UK perspective

UK businesses are taking a notably human-centred approach to AI integration. While a significant proportion (62%) plan to slow entry-level hiring, the figure is slightly lower than the global average. UK organisations also lead much of Europe in rolling out AI training and are prepared to pay considerable salary premiums for workers with the right skill sets.

"AI is no longer emerging, it's fully here. It's reshaping how we work and how businesses operate. Entry-level jobs are changing, and the skills companies look for are too. Both workers and businesses need to adapt quickly. This isn't about staying competitive, it's about staying viable," said Nick Catino, Global Head of Policy, Deel.

Across all regions studied, emerging approaches to recruitment, training, and job design indicate that the pace of AI-driven transformation is unlikely to slow over the coming years.