Although a number of companies are doling out raises and bonuses this year after the tax cut, more of these organizations should invest these funds in human capital, argues Richard Levin, economist and former CEO of online education company Coursera, in The New York Times.
"The need to invest in people has never been more pressing," Mr. Levin wrote. "Technology is both destroying and creating jobs, and with the advent of artificial intelligence and ever more powerful computational capacity to process almost unimaginably large data sets from millions of interconnected devices, the pace of creative destruction is likely to accelerate."
As online technology continues to develop, companies can provide a growing number of quality learning opportunities to employees. Several Fortune 500 companies are trying out these courses to develop their employees' skills, and a few have begun large-scale deployment, Mr. Levin noted. These customized courses can help employees gain skills in big data, machine learning and deep learning.
Management consulting firm McKinsey estimates approximately 50 percent of all U.S. jobs in are at risk of automation in the next two decades. "If the country is to remain competitive, it needs to invest in people to ensure that the high-skill jobs remain here," Mr. Levin added.
Additionally, the "hard skills" most in demand today are cloud computing, statistical analysis and data mining, and software development skills, according to a LinkedIn report. With this knowledge, companies have the opportunity to make long-term investments in their employees.
"The tax cut has given companies an opportunity to invest in the future," Mr. Levin wrote. "So, to America's chief executives: Don't spend it all on buybacks and bonuses. Invest in plants, equipment and research. But the best investment you can make with that money is in your people."