Employee 4.0: Employment Effects

Great challenges are posed by the employment effects that are expected in the context of digitalization. The employment effects can be divided into qualitative and quantitative categories. On the qualitative level, which refers to the requirements for qualifications and skills, an increasing importance is assumed for: - IT basic skills and media literacy, - Methodological and social skills, - Emotional and social competence, - Creative competence, - Willingness and ability to learn and adapt to change, - Ability to deal with speed and complexity, - Self-management, and - Lifelong learning. Additionally, the ability to communicate and cooperate with or without direct personal contact, as well as sharing knowledge, are essential requirements. All employees and professional groups are taken into consideration. At this point, two immediate questions arise: 1. Is such an expansion of the skill profile realistic? 2. Is the expansion of the skill profile addressed in education and training? Or are education and training programs being adapted accordingly? Furthermore, it is important to consider that in a knowledge and innovation society, which we have been living in for years, expertise plays a central role. Whether it's bankers, engineers, teachers, scientists, mechatronics technicians, salespeople, etc., we define ourselves by our knowledge. However, with digitalization, this unique feature and security factor are being dissolved. Expert knowledge is no longer exclusive and can be googled by anyone on the internet. This leads to the third question: What remains? In general, within the framework of designing business models and service delivery processes, innovation development, creating strategic alliances, machine-to-machine interfaces, human-to-human interfaces, etc., a variety of tasks will need to be accomplished, leading to the emergence of new job profiles and activities. Furthermore, new companies whose value creation is based on the internet, networks, and platforms will create job opportunities. On the other hand, negative employment effects are also expected. Currently, there is a discussion that the chances of permanent employment for some "average" qualified individuals (middle qualification levels) may decrease. The previously taken-for-granted assumption that the development of new technologies increases the demand for skilled workers while decreasing the demand for low-skilled workers seems to no longer apply. Recent research results show altered relationships. It is expected that many tasks previously carried out by employees with medium qualification levels, involving manual and/or cognitive, sometimes highly complex routine tasks, will be substituted by technology. However, these initially negative employment effects can be partially mitigated. Firstly, the demographic gap may come into play. If the supply of skilled workers decreases due to demographics and at the same time the demand for certain skilled workers decreases due to the substitution effect in the context of digitalization, there is a possibility to compensate for the negative employment effect. Additionally, the shortage of skilled workers in certain professions could also be addressed. Secondly, through technological advancements freeing up resources in certain tasks, these resources can be used effectively. There is indeed an opportunity to generate time prosperity, i.e., to leverage time reserves that could be used meaningfully for customer needs individualization, expanding service offerings, generating innovations, which in turn could lead to positive employment effects. Thirdly, through medium- to long-term qualifications, affected employees can be enabled for higher-value tasks, providing them with a perspective for the future. This is associated with a holistic and professional personnel management that focuses on talent and strengths in personnel deployment and development, as well as promoting "mobility" in career paths. Fourthly, physically and mentally demanding and monotonous tasks can be replaced, leading to a humanization of work. Experts agree on one thing: Despite all efforts in digitalization, tasks requiring sensory-motor skills will be difficult to automate due to fine motor skills, as well as non-routine cognitive tasks due to the high level of social and emotional intelligence and creativity. Examples include healthcare and social services, research and development, business services and management, as well as local services with highly specialized tasks. For more information on the topic of Employment 4.0 and Prof. Dr. Jutta Rump, please visit: [link](https://www.excellente-unternehmer.de/redner/jutta-rump.html)