Automation and AI are changing the world of work. The Covid-19 pandemic and the resulting uncertainty are causing loss to companies, to convert their work even faster. In this situation, managers focus in particular on their employees and their further development. How artificial intelligence and automation will change the world of work in the future.
- Every third employee does not have enough time for training and education in their working life.
- The use of predictive analytics in companies has increased fivefold.
Even before the Corona crisis and its effects, 99 percent of companies were transforming. According to Mercer’s new study “Global Talent Trends 2020”, 42 per cent of employees assume that their job will be replaced by artificial intelligence and automation within the next three years. Seventy-one percent believe that their employers prepare them well for the future of work, and 77 per cent trust that their company will train them accordingly if their job changes due to increasing automation.
Automation And AI Transformation: Bringing Profitability And Empathy Together
Automation and AI are changing the world of work. The study offers comprehensive insights into nine industries and 16 regions of the world; 450 people were interviewed.
“It is important to reconcile economic efficiency and empathy, especially in uncertain times like these. Companies need both a financial model and a cultural mindset that allows them to prepare for the future and position themselves accordingly,”. “Rethinking the purpose and priorities – that is important for the entire company, but especially for HR managers. This year’s study results clarify that the HR function plays a key role in building a sustainable organization. “
Trend 1 In The Automation And AI Transformation: Focus On Futures
Ninety-six per cent of company managers believe that the purpose of an organization, i.e. its purpose, should go beyond the requirements of the shareholders. However, only 28 percent of companies meet this requirement today. According to the study, every third employee would prefer to work for an employer responsible to all stakeholders, not just to shareholders and investors.
The design of a sustainable business model is a topic that is definitely on the agenda of many executives – 80 per cent want to focus more on sustainability in the areas of the environment, social affairs and corporate governance. While 71 percent of employees trust that their employer will prepare them for the future of work, 69 per cent feel threatened by a burnout risk.
The way we look at career paths is also changing: 84 per cent of the employees surveyed state that they can imagine working beyond retirement age. On the other hand, 73 percent of companies do not have active programs for dealing with employees shortly before the statutory retirement age. “Dealing with older employees and personnel planning that does justice to all generations are becoming more important,” .
Trend 2 In The Transformation: Race To Reskill
Ninety-nine per cent of the companies surveyed are currently transforming and at the same time report significant skills gaps. But even though 75 percent of employees say they are ready to learn new skills, 33 percent say they don’t have enough time for training.
Additionally, only 37 per cent of HR leaders invest in reskilling employees as part of their strategy to prepare for the future of work. In addition, 41 per cent do not know what skills their workforce has today. “When it comes to transformation, the question is not whether, but how. To stay at the top, companies have to train their employees on a large scale, quickly and across all generations,”.
But which skills will be most in-demand over the next twelve months? When asked about the top 3 skills, HR managers named entrepreneurship and a global mindset in second and third place. Employees, on the other hand, named innovation and problem-solving skills as the top two. At the top for both groups is digital marketing.
Trend 3: Sense With Science
Machine learning is constantly evolving and permeating more and more industries and lifestyles. The use of predictive analytics, i.e. predicting future developments by evaluating data, has increased almost fivefold in five years . Still, only 51 percent of organizations use metrics to identify employees who are likely to quit.
Automation and AI are changing the world of work. After all, 49 per cent have an eye on when key employees are likely to retire, 18 per cent know the effects of salary strategies on employee performance, and 14 per cent use analyses to correct and prevent inequality. 13 per cent can determine whether it is better to hire employees externally, build them up internally or use freelancers. Other forms of data collection on employee engagement are also increasing: 61 per cent of companies are already using tools for pulse checks or regular feedback, and 33 per cent are planning to invest in them this year.
While machines outperform humans in tasks that focus on speed and scalability, humans are still superior when it comes to verifying meaningfulness and judgment – both central elements of ethical decision-making. Sixty per cent of HR managers are confident that they can ensure that Artificial Intelligence is free from bias and that no prejudices are institutionalized. However, codes of ethics on the collection, application and impact of staff reviews are still in their infancy.
In talent assessment, in particular, it is important to combine digital methods and human intuition. Today, only about every second employee has had positive experiences with assessments and found them useful. “Companies today know more about human behaviour and cognition than ever before. How they collect this information and react to it requires serious consideration of moral and ethical aspects,”.
Trend 4: Energize The Experience
Automation and AI are changing the world of work. The topic of employee experience, i.e. the experiences that employees have in their job, has found its way into the HR function. Seventy-four per cent of companies are redesigning their work to focus more on their employees. Yet only 28 percent of C-suite executives believe that investing in employee experience in the company will pay off. And while 67 percent of employees trust their employer to take care of their wellbeing, only 26 percent of HR leaders have a health and wellbeing strategy in place. Only three per cent say that they offer an outstanding employee experience.
The topic plays a role here. Employees whose businesses are focused on health and wellbeing are twice as likely to be motivated. And motivated employees are essential to realizing a company’s transformation plan: They are more likely to stay with the company, are more resilient, and are more willing to learn accordingly.