Automation & Skill Shift

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Automation & Skill Shift

• Automation and Artificial Intelligence are changing

the nature of work – shifts in demand for

workforce skills, how work is organised within

companies & people interaction with machines in

the workplace:

• Automation will accelerate the shift in required

workforce skills. Increased demand for basic digital

skills & advanced technological skills like

Programming and social and emotional skills like

Leadership & Managing others

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23 July 2018 SUSTAINABILITI LIMITED

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• Some skill categories will be less in demand: basic cognitive skills like data input and processing;

physical and manual skills including general

equipment operation in all sectors with the exception of healthcare.

• To stay competitive, companies will need to make

significant organisational changes and address skills shifts simultaneously

• Competition for high-skill workers will increase with displacement of low-skill workers encouraging

income inequality & reducing middle-wage jobs.

• Collaboration among all Stakeholders is key in

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Building the Future Workforce

• 5 Actions required to build the Workforce

Skills that matter in the Future

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Retrain

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Redeploy

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Recruit



Rehire (Contract)



Release

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A Future that works:

Automation,

Employment and Productivity

• Automation and artificial intelligence (AI)

are changing the nature of work.

• As part of ongoing research on the impact of

technology on the economy, business, and

society, I present new findings on the coming

shifts in demand for workforce skills and

how work is organized within companies, as

people increasingly interact with machines in

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• How to positively affect the future of work:

solution spaces

• The disruption to the world of work that digital

technologies are likely to entail could pose significant challenges to both policy makers and business leaders, as well as workers.

• There are several solution spaces to consider:

o Evolve education systems and learning for a changed workplace. Policy makers working with education

providers (traditional and non-traditional) could do more to improve basic STEM skills through the school systems, and put a new emphasis on creativity as well as critical and systems thinking, and foster adaptive and life-long learning.

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o A role for the private sector to drive training.

Companies face gaps in skills they need in a more

technology-enabled workplace, and can benefit from playing a more active role in education and training, including providing better information about needs to learners and the education and training ecosystem, and providing better learning opportunities themselves.

o Create incentives for private-sector investment to treat human capital like other capital. Through tax benefits and other incentives, policy makers can encourage

companies to invest in human capital, including job creation, learning and capability building, and wage growth.

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o Public-private partnerships to stimulate investment in enabling infrastructure. The lack of digital

infrastructure is holding back the digital benefits in many economies, both developing and developed;

public-private partnerships could help address market failures.

o Rethink incomes. If automation (full or partial) does result in a significant reduction in employment and/ or greater pressure on wages, some ideas such as universal basic income, conditional transfers, and adapted social safety nets could be considered and tested.

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o Rethink transition support and safety nets for workers affected. As work evolves at higher rates of change

between sectors, locations, activities, and skill

requirements, many workers will need assistance

adjusting. Many best practice approaches to transition safety nets are available, and should be adopted and adapted, and new approaches considered and tested. o Embrace technology-enabled solutions—including

richer information signals—for the labor market that

improve matching and access and bridge the skills gaps. Policy makers will need to address issues such as

benefits and variability that these digital platforms can raise.

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o Accelerate the creation of jobs in general through

stimulating investment and creation in businesses, and accelerate creation of digital jobs in particular, and

digitally-enabled opportunities to earn income,

including through new forms of entrepreneurship. o Innovate how humans work alongside machines.

Greater interaction will raise productivity, but require different and often higher skills, new technology

interfaces, different wage models in some cases, and different types of investments by businesses and

workers to acquire skills.

o Capture the productivity benefits of technology to

create the economic growth, surpluses, and demand for work that create room for creative solutions and

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Priorities for Government,

Business and Individuals

• Government:

• Radically scale midcareer training opportunities to make lifelong learning a priority

• Modernise educational systems for the 21st_Century

• Expand transition support measures for workers

• Create income support measures consistent with new wage realities

• Make job creation and worker re-deployment a national priority

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• Business Leaders should embrace

Automation & AI while carefully

managing workforce transitions:

• Accelerate deployment of automation and AI

• Redesign businesses processes to unlock

productivity gains

• Rethink organisation design

• Build core digital and analytics capabilities

• Adapt talent strategy and manage workforce

transitions

• Consider partnerships for talent development

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• Individuals must prepare for lifelong

learning and evolving careers:

• Evolve a ‘‘startup of you’’ mentality

• Acquire the skills that will be in demand and

embark on a journey of lifelong learning

• Prepare for a job of digital job search

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Next Steps.

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