Employee 4.0: Employment Effects

Major challenges are posed by the employment effects that are expected in the context of digitization. The employment effects can be divided into qualitative and quantitative aspects. On the qualitative level, which refers to the requirements for qualifications and skills, an increasing importance is attributed to: - IT basic skills and media literacy, - methodological and social skills, - emotional and social competence, - creative competence, - willingness and ability to learn and adapt, - ability to deal with speed and complexity, - self-management, and - lifelong learning. Additionally, the abilities to communicate and cooperate both with and without direct personal contact, as well as to share knowledge, are considered essential requirements. These requirements are viewed in relation to all employees and professional groups. 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? 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 through our knowledge. However, with digitization, this unique selling point 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, it is understood that 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 activities will need to be managed, leading to the emergence of new job profiles and activities. Additionally, new companies whose value creation occurs online, in networks, and on platforms, are creating jobs. On the other hand, negative employment effects are also expected. It is currently being discussed that the chances of long-term employment for some "average" qualified individuals (those with medium levels of qualifications) may decrease. The previously assumed notion that the development of new technologies would increase the demand for skilled workers while decreasing the demand for low-skilled workers seems to no longer hold true. Recent research results indicate changing dynamics. It is expected that many activities previously carried out by employees with medium qualification levels, involving manual and/or cognitive, sometimes highly complex routine tasks, will be substituted by technology. While these initially negative employment effects can be partially mitigated: - Firstly, the demographic gap could 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 digitization, there is a possibility to compensate for the negative employment effect. Additionally, this could help alleviate the shortage of skilled workers in certain professions. - Secondly, through technological advancements in certain tasks, resources are freed up, which can be utilized effectively. There is indeed the option to generate time prosperity, i.e., to unlock time reserves that can be used meaningfully for purposes such as customizing customer needs, expanding service offerings, generating innovations, which in turn can lead to positive employment effects. - Thirdly, through medium- to long-term qualifications, affected employees can be empowered for higher-value tasks, providing them with a perspective for the future. This is associated with holistic and professional human resource management that focuses on talent and strength orientation 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 towards digitization, tasks requiring sensorimotor skills will be more difficult to automate due to fine motor skills, as well as non-routine cognitive tasks due to the high levels 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.