Preparing for the digitisation of the workforce
[Pages:36]Preparing for the digitisation of the workforce
An everis report, written by The Economist Intelligence Unit
Written by:
Executive summary
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About this research
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Foreword
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Introduction
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1. The background to workforce digitisation
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2. Putting strategy into practice
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3. Robots on the payroll
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4. Machine intelligence at work
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5. The on-demand workforce
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Conclusion
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Executive summary
Executive summary
The world of work is changing, fast and fundamentally. Against a backdrop of difficult-to-solve staffing and employment issues, companies are increasingly turning to technology to help them get work done.
For many, automation provides an answer. Advances in robotics and artificial intelligence mean that machines are increasingly capable of taking over work that was previously performed by human employees. In many cases, they are proving a great deal faster, more efficient and more accurate, thereby making it possible to perform certain tasks that were previously impossible to carry out.
At the same time, senior executives are looking beyond their own workforces for the skills and labour they need, searching Internet-based jobs marketplaces that connect them with a seemingly limitless pool of on-demand workers.
In this report we explore how these trends--collectively termed "workforce digitisation"--are changing the nature of work and how organisations are preparing for this revolution. Written by the Economist Intelligence Unit (EIU) and sponsored by everis, it is based on a survey of over 220 C-level and other senior executives, desk research and interviews with companies and thought-leaders who have considered the likely implications of new ways of working.
The key findings are:
Workforce digitisation is taking place against a backdrop of high demand for talent. The most common labour and employment challenge among respondents to the EIU survey is limited local supply of skilled labour. Technology offers a number of solutions to this issue: three examples examined in this report are robotics, artificial intelligence (AI), and on-demand, crowdsourced labour. Executives certainly see technology as part of the solution: 82% of those surveyed for this report agree that their organisation needs to transform the way it sources and manages labour using digital technology, and 80% believe that an organisation's ability to use digital sources of labour will be a key factor in its future success.
More than half of companies have devised a strategy to address workforce digitisation, but fewer than one-quarter have deployed it. The impact of the digitisation of work is certainly on the corporate agenda. Only 7% of respondents say their organisation has not discussed it at all. But while a total of 58% of respondents have devised a strategy that covers the digitisation of labour, only 23% have implemented that strategy. Common barriers to taking action on workforce digitisation include an absence of technical knowledge, business processes that are too hard to change, and a lack of desire to innovate. This does not mean workforce digitisation technologies are not being used--quite the opposite--but they are not being deployed strategically. This may prove problematic, as the technologies raise a number of strategic questions.
Robotics technology is being used to free highly skilled physical workers to focus their talents on where they are needed. Robotics is the least adopted of the three technologies examined in this report. It is commonly adopted among companies which report high-demand for high-skilled labour, and the most popular application is in manufacturing, although adoption in warehouse or stock management may grow faster in future, the survey suggests. Concerns have been raised about the impact of robots on human employment. Companies interviewed for this study which use robots claim they allow skilled employees to focus their talent where they are needed most, and permit new capabilities and company growth that would otherwise not be possible.
AI has the potential to displace mid-ranking clerical workers. AI is already fairly widespread in business, the EIU survey reveals: 43% of respondents say their organisation is making some use of the technology. By far the most common application today is in data analysis--recent innovations
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Executive summary
are helping companies extract insight and learn from the growing volume of data they collect. Proponents see AI as a tool to help expert knowledge workers to become more productive. However, they concede that clerical staff whose job is to process, compile and integrate information sources could well be displaced. On-demand, crowdsourced labour offers scalability but raises strategic issues. Digital technology is allowing businesses to recruit on-demand workers on a larger scale and at greater speed than ever before. Survey respondents acknowledge that using temporary workers has its drawbacks: 74% believe that using contract or short-term labour prevents organisations from building knowledge, and the same proportion say that offering employees job security is important to attract top talent. Nevertheless, 44% use the on-demand, crowdsource labour model to some extent, most often to access creative talent such as graphic designers or copywriters. The ongoing public debate about Uber, the taxi-booking app, may dissuade companies from making strategic commitments to this kind of service, but integrating them into the overall employment strategy will require executive oversight, sooner or later. Business leaders who wish to benefit from workforce digitisation can expect to face tough questions from employees. Each of the three technologies discussed in this report can be seen, not without reason, as a threat to current employees. While they are eager to benefit from the workforce digitisation, few executives surveyed for this report want to see jobs cut from their organisation. Many of the experts interviewed for this report argue that automation can help to make people's working lives safer and allow them to focus on higher-value work. And survey respondents value the engagement, loyalty and accumulated knowledge of employees. As they begin to apply workforce digitisation more strategically, executives must ensure that these values are protected --for the benefit of the organisations, of their employees, and perhaps even society.
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About this research
About this research
Preparing for the digitisation of the workforce is a report by The Economist Intelligence Unit, sponsored by everis. The report investigates the groundwork that companies are laying as they consider the role that robotics, artificial intelligence and the ready availability of on-demand, crowdsourced labour will play in their employment and workforce strategies. The research draws on a survey of 228 senior-level and C-level executives from companies in the US, Europe, Latin America and Asia-Pacific. It incorporates interviews with the following executives: Alex Allen, vice president of marketing, Spring Venture Group Robbie Allen, founder and CEO, Automated Insights Hal Blenkhorn, director of engineering, Tegra Medical Rodney Brooks, founder, chairman and chief technology officer, Rethink Robotics Paul Clarke, chief technology officer, Ocado Ian Davies, head of engineering and technical director, Easyjet Lou Ferrara, vice president and managing editor, Associated Press Jennifer Griffin, vice president of content integrity and insights, Bazaarvoice David Hale, CEO, Gigwalk Daniel Nadler, CEO, Kensho Technologies Tanya Perry, vice president of US sales and operations, Shopguard David Plouffe, senior vice president of policy and strategy, Uber Brad Schneider, director of applications development, The Container Store Mark Skilton, professor of practice, Warwick Business School The report was written by Jessica Twentyman and edited by Pete Swabey.
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