The global economy is currently facing a perplexing phenomenon – a labor shortage despite millions looking for work. Reasons range from aging workforces in developed nations to pandemic-induced early retirements. At the same time, businesses are struggling to fill vacant positions as job requirements evolve.
This mismatch between worker skills and employer demands has led to what some call the Great Resignation. Employees are quitting jobs in search of remote work, higher pay, better benefits, and more fulfilling roles. Quiet quitting – doing minimal work to get by – is also proliferating.
For companies, persistent shortages strain operations and prevent growth. So how can firms bridge the labor gap? A rising solution is automation.
Intelligent technologies like robotic process automation (RPA), artificial intelligence (AI), and machine learning can minimize repetitive tasks and boost employee productivity. This allows organizations to save costs and do more with fewer human team members.
Let‘s explore how leading-edge automation enables businesses to alleviate shortages today – and equip workforces for the jobs of tomorrow.
Current State of the Labor Shortage
The labor crisis emerges from multiple trends colliding. On the one hand, aging populations in many developed nations are reducing workforces – Japan‘s working-age population may decline 30% by 2060. Further stress arises as nations tighten immigration policies, closing the tap for foreign workers.
| Country | % Decline in Working Age Population by 2050 |
|---|---|
| Japan | 23% |
| Italy | 22% |
| South Korea | 17% |
| Germany | 12% |
| China | 12% |
Projections via United Nations
The pandemic also drove early retirements, cutting over 3 million from US payrolls. And ongoing mismatches endure between employer needs and skills job seekers offer. Over 90 million industrial sector roles will transform with added digital requirements by 2025 per the World Economic Forum.
These dynamics manifest in over 10 million job openings in early 2023 – but only 5.7 million hires.
The result is escalating business costs. 90% of US CEOs report labor shortages are destabilizing operations. Skills scarcity may pare global GDP growth by $1.3 trillion. Still wages swell with inflation, expanding operating expenses.
| Year | Average Wage Growth |
|---|---|
| 2018 | 3.3% |
| 2019 | 3.5% |
| 2020 | 3.9% |
| 2021 | 4.7% |
| 2022 | 5.1% |
US Bureau of Labor Statistics data
Contrast this with developing countries where younger demographics and looser immigration enable more abundant talent pools. Nations like India and Mexico have median ages under 30 years old. Automation partnerships across borders could aid developed countries lacking human capital.
Automation: Alleviating Shortages and Enhancing Productivity
In this environment, automation presents a compelling solution. Technologies like RPA deputize software bots to handle tedious, repeatable tasks. Machine learning mines data to uncover insights and predict future needs. Chatbots even engage customers via natural language.
According to Oracle, augmented operations using a mix of human and digital workers lifts productivity over 18%. McKinsey estimates Intelligent process automation (IPA) can automate 45-75% of processes in areas like IT, finance, HR, and customer relations.
While outsourcing can provide labor cost savings, quality and speed may suffer. Well implemented automation increases output dramatically without these downsides. Take autotmation at HDFC Bank reaching productivity gains over 30% by operating 24/7 with no breaks. Humans still handle judgment-intensive work augmented by AI tools.
Consider how leading companies deploy automation:
- Walmart uses over 700 bots executing daily processes from invoices to refunds
- Adobe’s Concierge chatbot handles 15,000+ customer queries per month
- Ocado‘s warehouse robots helps fill 3.5 million item orders weekly
Freed from drudgery, human staff enjoy upskilled roles and novel innovations. Bots shoulder dull tasks like data inputs or document processing. Employees thus upgrade capabilities – learning new systems and devising improvements. Flatter, transparent structures also emerge as middle managers cede jobs to algorithms.
And counter to some critiques, most firms utilizing automation grow jobs. Per McKinsey, just 5-10% of roles might shift away from current humans with IPA – but new opportunities arise.
Automation Transforms HR Processes and Fills Labor Gaps
Beyond front office and operations, automation is revolutionizing back office areas including HR. Software bots are taking over high volume recruiting tasks while AI guides strategic workforce planning.
For example, leading hotel brand Yotel deploys robotic process automation to shorten the time filling open positions. Bots systematically screen applicant resumes and schedule interviews for the most promising candidates. This automation helped Yotel slash recruiting from 4 weeks to 4 days.
In HR analytics, machine learning models uncover macro trends shaping future labor supply and demand. By applying natural language processing techniques to scattered job listings and employment surveys, AI provides nuanced intelligence on emerging skills sought across industries and geographies.
Humans then build predictive workforce strategies tapping automation‘s data richness. Savvy HR leaders utilize automation insights on attrition risks, learning gaps, and diversity issues to enhance retention, development, and equality.
According to Institute for Robotic Process Automation, applying RPA in HR provides returns on investment north of 800% by liberating recruiters and allowing HRBPs more strategic priorities.
Typical RPA Returns in HR via IRPA
Forward-looking organizations integrate automation across recruiting, onboarding, learning, compensation, and culture building programs. This empowers strategic growth even amidst today‘s labor supply hurdles.
Emerging Automation Jobs
In particular, novel roles spring up managing and maximizing automation itself. Below we explore key positions:
Bot Managers
Also known as RPA developers or automation architects, these professionals build, test, monitor, and enhance process bots. Using languages like UiPath StudioX or Blue Prism Visual Business Objects, they create rules-based algorithms to emulate clerical work. Strong analytical and technical skills are required.
AI Trainers
These experts "teach" machine learning algorithms using sample data. Also called ML engineers or data scientists, they run models to uncover patterns within complex data sets. This equips AI applications with capabilities from predictive analytics to image recognition. Programming languages like Python and solid math competence are vital.
Automation Consultants
Working with business leaders, these change agents assess processes to identify automation opportunities. They quantify expected ROI, considering costs of licenses and maintenances against performance benefits. During implementation, they configure solutions spanning RPA, AI, and legacy systems to maximize value.
Conversational Designers
As chatbots proliferate across industries, demand grows for UX writers optimizing dialogues. Guiding users through menus and invoking natural speech, these professionals enhance customer satisfaction and conversion rates. They also incorporate analytics to continually refine interactions.
"We are entering the age of augmentation as AI and other technologies usher in a new era of enhanced productivity and expanded possibilities," explains UiPath CEO Daniel Dines. "Automation will ultimately create fulfilling, creative opportunities for the world‘s workers. Companies embracing an automation-first mindset will lead this workforce evolution."
Dines projects the number of robots doing office and administrative work will expand over 10X by 2028. Supporting roles like bot managers and trainers will see parallel growth.
Research by McKinsey, MIT, and the World Economic Forum confirms automation displaces very few existing jobs even as it spawns new ones. AI trainer roles emerging today did not exist a decade ago. Forward-looking institutions like the Automation Guild foster skills for automation careers through conferences, workshops, and online education.
| Emerging Automation Role | Median Salary | Projected Growth (2024) |
| RPA Developer | $105,000 | 36% |
| ML Engineer | $114,000 | 45% |
| Chatbot Designer | $63,000 | 13% |
Salary & demand data via Glassdoor and Forrester
These novel automation positions offer generous compensation with US median pay over $100,000 along with strong career trajectories. They also enable businesses to capture greater value from process improvements.
Preparing for the Future of Work
As automation gains traction, how should businesses adopt technologies while supporting workforces? Key steps include:
Assess Existing Processes
Document procedures across departments to reveal automation potential. Estimate where software bots could take over mundane tasks. Plug findings into an optimization roadmap.
Upskill Employees
Provide training in digital tools and encourage learning transferable skills like analytics or critical thinking. Tuition assistance and internal academies are great channels.
Seed an Automation Culture
Communicate changes transparently and reassure staff. Highlight how AI aids careers through greater innovation and less drudgery. Recognize automation progress and share upside.
Keep Ethics in Focus
As algorithms guide more decisions – from loans to healthcare – ensure fairness and human oversight. Continually review for unintended bias and create feedback loops for corrections.
Automation In Practice: Income Retail Success Story
UK financial services firm Income Real Estate exemplifies best practices harnessing automation to tackle labor scarcity. When COVID-19 struck, Income lost 20% of staff through health risks and parents caring for homebound children. Customer inquiries also spiked as renters and mortgage holders faced hardship.
Income CEO David Stewart-Smith realized that "we couldn‘t simply recruit our way out of this crisis. We had to work smarter." Income tapped RPA and AI tools to handle surging call volumes without additional hires in customer support. Virtual agents expedited responses for common questions on payment deferrals or loan modifications.
The rollout proceeded gradually with transparency on objectives, constant communication, and employees invited to name their bot assistants. Launched in just six weeks, the "Digital Workforce" fielded half of all inquiries during peak months. Humans focused on judgment-intensive cases needing empathy and interpretation.
Through the pandemic, Income automated over 216 processes from payments to mortgage origination. Stewart-Smith notes automation enabled "improving services amidst constraints" and staff readily embraced the technologies as "colleagues rather than threats." 2021 marked Income‘s highest customer satisfaction scores and process efficiency lifted over 40%.
Income Retail‘s Pandemic Automation Success
The crisis became an opportunity to upskill workers and future proof operations. Employees gained sought-after automation abilities managing robotic installations. Income now runs an automation academy training program open to staff across the parent organization.
Automating with Care
In closing, robotic and intelligent process automation present meaningful levers to resolve today‘s labor crisis. Automating repetitive work liberates human talent for judgment-intensive jobs. This allows organizations to maintain operations with fewer hires.
But technology is just an enabler – ultimately companies must invest in people too. Adjusting organizational structures, reskilling staff, and enabling creativity ensures the gains of automation are shared broadly. Workers can then pivot from dull tasks to opportunities driving the future of business.
