A workforce budget for every organization

A workforce budget for every organization
The labor market is about to undergo a transformation that is deeper and more fundamental than many organizations realize. AI is about to redefine the nature of work, turning the world upside down. This calls for urgent action, including in the boardroom. That is why it is time for a new tool: the workforce budget, argue Hilde van der Baan and Gijs Linse.

AI will fundamentally and structurally change the labor market is the impression we were left with after the conversation we had with Jeroen Tiel, CEO of Randstad Netherlands (Read also: Jeroen Tiel (Randstad): ‘The labor market must be priority number one’).
According to Tiel, no job will be the same in the future. According to him, there is therefore an urgent need for a comprehensive plan for the future of the Dutch workforce. In such a ‘workforce budget,’ as Randstad calls it, one could precisely map out what the Dutch labor market has to offer. And, even more importantly, what it needs, now and in the future, in terms of skills and competencies. Such a ‘national workforce budget’ would help better align supply and demand in the future. It would help us make choices.
We wholeheartedly support Tiel’s proposal. In fact, it is our firm conviction that not only should we as a country adopt such an approach, but that individual companies and organizations would also benefit from such a workforce budget which provides an overview of the tasks, skills, and capacity an organization needs now and in the future, and how these relate to the current workforce.

Jobs become tasks
The impact of AI on work is often simplified to the question: which jobs will disappear? That question is understandable, but too narrow. Of course, many jobs will disappear, as Tiel also notes, but at the same time, many new roles will emerge. Moreover, the vast majority of jobs will not so much disappear as undergo radical change. AI takes over primarily repetitive, predictable, and analytical tasks. Think of data processing, preparing standard reports, or performing basic analyses. At the same time, the role of humans is shifting towards interpretation, context, ethics, and interaction.
This has far-reaching consequences for the structure of organizations. Work is becoming less and less role-based and increasingly task-oriented. Instead of fixed job descriptions, a reality is emerging in which tasks are flexibly combined and divided between humans and machines.

Implications for HR strategy
This has major implications for one of the foundations of traditional organizations: ‘function’ as a building block of the organization. A workforce budget helps to make this shift explicit. Not how many people do we need? But which tasks need to be performed, by whom (or what), and with which skills?
A workforce budget makes these questions concrete and measurable. For companies, this presumably means that they will have to radically revise their HR strategy. This issue will be explored further in an upcoming issue of Management Scope.

Hard and soft skills
It almost goes without saying that employees in an AI-driven organization will need to be ‘AI-literate.’ That literacy may perhaps be slightly different from classic technical expertise. It will soon be primarily about understanding the capabilities and limitations of AI. At the same time, even in AI-driven organizations, it will not be solely about technical skills. It is precisely human qualities, such as critical thinking, communication, empathy, and ethical judgment, which are gaining importance. AI can do a lot but falls short precisely on these points (for now). Organizations that know how to leverage this human dimension will distinguish themselves. It is important to realize that even in times of far-reaching digitization and robotization, ‘the human’ will continue to play a crucial role.
We support Tiel’s vision that it is precisely the human being who represents and adds ‘value’ to an organization. As machines take over more tasks, the quality of human interaction becomes more important. Not in quantity, but in quality. Customers, patients, clients, and partners do not expect standard interaction, but meaningful attention at the moments that matter. This naturally means that companies must organize their human capital more strategically: in the places where understanding, feeling, trust, empathy, caring, humor, ethics, and creativity are needed. This also calls for a revaluation of so-called soft skills, which in the past may have been secondary to technical expertise.

Vision on entry-level positions
One of the most underestimated consequences of AI is the pressure on entry-level positions. Much of the work traditionally performed by junior employees is ideally suited for automation. This threatens to eliminate an important gateway to the labor market. This creates a complex paradox: companies will soon need experienced workers more than ever, but the path to gaining that experience is disappearing. Without intervention, this will lead to structural talent shortages in the medium term. For organizations, this means they must actively invest in new forms of talent development. Think of learning pathways in which AI is deployed as a co-pilot, or special programs in which young employees gain in-depth experience at an accelerated pace.

AI Literacy
A second urgent challenge is the emergence of a new divide in the labor market: that between people who can work effectively with AI and those who cannot. Between the AI-literate and the AI-illiterate. This divide is not only technological, but also social and economic. People who know how to use AI effectively significantly increase their productivity and value in the labor market. Those who lag behind risk becoming structurally less relevant and may well price themselves out of the market.
For organizations, this means that investing in AI skills is not an option, but a necessity. Training must go beyond technical instructions. It involves understanding possibilities and limitations, critical thinking, and the ability to interpret and guide AI output. Motivation is equally important. Employees must understand what AI offers them. Without a convincing answer to the question ‘what is in it for me?’, adoption will lag behind. Here too, a workforce budget offers guidance: which skills are lacking, which investments are needed, and how do you ensure that the entire organization moves forward together?

Productivity
There is also a broader economic problem: stagnating productivity growth in many developed economies. AI is often seen as the solution, but technology alone is not enough. Productivity gains only materialize when technology is actually integrated into processes, culture, and decision-making. That requires more than investment in tools; it requires organizational change. Companies must therefore take a critical look at their organizational structure. Where are the bottlenecks? Which processes lend themselves to automation? And how can employees be supported to work more productively with AI? This requires a combination of technological investment and organizational change. These are also questions that belong in a workforce budget. It is not just an HR tool, but a strategic resource for the entire organization.

Adaptability
The conclusion is inescapable: AI is fundamentally changing the world of work. Organizations that want to keep pace with these changes must invest not only in technology, but above all in a well-thought-out vision of work. The key recommendation is therefore twofold: Develop a clear AI strategy and translate it into a concrete workforce budget. Where do you want to be as an organization in three to five years? What role does AI play in that? Which tasks will be automated, and which will remain ‘human’? What skills are needed for this? And how do you ensure that you acquire and retain those skills?
The greatest challenge lies not in the technology itself, but in the organization’s ability to adapt. In their ability to redesign work and place human value at the center. A workforce budget is then not an administrative exercise, but a strategic necessity.

This article was published in Management Scope 05 2026.

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