Manufacturing

Why Industry 4.0 is generating the biggest skills crisis in human history

To understand the importance of technology in driving change in society, we need only look at the names of chapters in human history – from the rudimentary tools that defined the Stone Age, to the supercomputers of the Information Age. These technological eras appear very different at first glance, yet there are common themes that emerge in each chapter – the automation of human labour, rises and falls in demand for particular skills, and economic upheaval, to name a few.

As technology allows us to work faster and more efficiently, the distance between these eras becomes progressively shorter. In the business world today, the rate of societal change is such that companies face a constantly renewing backdrop of disruption from new technologies, each of which is demanding new skills and greater overall agility to navigate. This is creating one of the biggest employability challenges for businesses and individuals alike moving forward, as they both seek to ensure they are attuned to the demands of today’s work.

Companies must fundamentally change the way they view skills, training and career development so they are positioned to maximise the opportunity presented by this change. This isn’t just another story about technology creating as many jobs as it invalidates: they must consider how existing roles will evolve and how people in at-risk jobs can transition into roles where they work alongside technology and continue to add value on top of it.

Re-envisaging education

For almost half a century, it has made sense for careers to follow a linear path. From early to later education, skills are gradually narrowed down and refined to serve a particular niche, with a particular job role serving as the end objective. The reason this particular ‘pyramid’ style of education has worked is because it could be mapped out to longer cycles in the demand for specific roles, which may have lasted for a generation or more.

Today, the demand for – and turnover of – skills is cycling faster than ever before and will continue accelerating in the years ahead. This not only poses a problem for linear structures of education and career development, but on an individual level, challenges the long-held association between our jobs and our identities. Jobs give us purpose, and job roles provide a pathway for us to achieve that purpose. So, what happens when skills fall out of demand, and we fall short of fulfilling that very purpose?

The evolution of professional identity

In their indispensable guidebook,The Adaptation Advantage, Heather E. McGowan and Chris Shipley take on this topic head on. The authors describe how identities typically carry a permanent professional stamp, i.e., ‘teacher’, ‘plumber’ or ‘politician’. This, they argue, “is the barrier to making the crossing from the past of work to the future of work. But cross we must because the future is coming at us faster than we can understand it.”

The first step toward overcoming this barrier is to direct our educational and professional development away from specific roles and instead focus our efforts on improving our overall adaptability. Of course, each role will have a set of transferable and non-transferable skills, but there is little precedent today for knowing which is which. Identifying skills which sit across different roles, means employees can more easily move laterally into new roles as and when it is necessary for them to do so.

Socially responsible employers, not just employees

Adaptability may be perceived as an attribute that employees must possess, but in reality, it’s an attribute that is equally (if not more) essential for employers. Having the right skilled employees working in-house will still contribute significantly to a company’s competitiveness but keeping abreast of demand for new skills by constantly hiring new talent is both a costly and unsustainable strategy. Instead, companies must look inward to retain, retrain and redeploy existing employees in those in-demand roles.

An effective method of identifying which employees should be reskilled is by creating an inventory of skills, taking into account those which are most valuable and those which sit across multiple roles. This not only effectively eliminates the unpleasant nature and cost of employee redundancies, but by looking at how individual processes translate to value, helps companies eliminate bloated processes and release capacity, simultaneously making roles both more relevant and more efficient.

Adapting our understanding of ‘work’

Those that take a keen interest in technology and the economy may well have come across the term ‘fourth industrial revolution’ recently. This moniker has become a common label for the current period in which intelligent technologies such as AI, automation and robotics are becoming commonplace in our daily lives, and completely changing the nature of work.

But change can often be met with resistance, particularly today when the capability for technology to perform specific tasks formerly fulfilled by humans is greater than ever before. But we cannot sit back in our comfortable status quo position when we know that doing so could block the path to a more prosperous future.

We should instead focus on enhancing a very different human instinct – adaptation – to move forward. It is a constant trait of humankind that allows us to thrive and remain resilient, even in the event of sudden changes in the environment. Employers and employees alike must revise their understanding of what a ‘job’ entails, and prioritise both enhancing and encouraging adaptability. Reskilling is essential to realise the immense potential of the future of work. All it requires is a willingness to do things differently.

Author

  • James McLeod

    James McLeod is the EMEA Director of Faethm AI, the world’s data source for the Fourth Industrial Revolution and the Future of Work. James leads the company’s European operation and supports customers’ adoption of its SaaS analytics platform and forward-looking scenario tool, which uses machine and deep learning to model the impact of emerging technologies on any economy, industry, organisation or job. Using this data, companies can make informed decisions on talent management and fill talent demand by retaining, retraining and redeploying their existing workforces. James has over a decade of experience within both the data analytics and enterprise software industries, formerly holding management positions at Rackspace, Tableau Software and Experian. His current remit includes managing the company’s rapid growth in the EMEA region, including the recruitment of new partners, and overseeing Faethm AI’s professional services branch.

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