What long-term effect will the pandemic have on the global workforce? An October report by the World Economic Forum (WEC) reported that two-fifths of the companies it surveyed are planning to reduce their workforces. The reason? Technology.
Accurate or not, the forecast for a shift is shared by others like McKinsey, which in 2017 predicted that 14% of the global workforce or 375 million workers would need to acquire new skills or find new jobs by 2030. In a May update this year, McKinsey said the pandemic has accelerated matters. AI has been invaluable in reducing expenses and reducing customer wait times for many industries but combined with other advances in the field and the current recession, WEC estimates that these accelerated tech changes could displace as many as 85 million jobs globally within the next five years. The organization noted that job creation is lagging behind what it called “job destruction” for the first time in recent years.
Many countries, like the U.S., initially responded with various stimulus packages to assist the unemployed. But for the long term, leaders need to seriously consider upskilling or reskilling their affected workers. Failure to do so, said the WEC, could push 115 million people worldwide into extreme poverty as soon as this year. The pandemic demanded that brands pick up their pace in AI, AR, and VR, and companies needed to hastily provide training to their workers to stay relevant in their areas of expertise. Brands that are still recovering need to do this to make sure they’re supporting their teams and staying on top of things.
And to ensure that the brand is up to date on the latest, leaders should embrace lifelong learning. Doing so also sends a strong signal to employees that the company not only cares about supporting their employees in meeting future challenges, but the actions will also foster employee confidence and loyalty. The larger challenge is for companies where jobs have been or are expected to be replaced in whole or in part by automation or other factors. What leaders must first do is to best determine what kind of skills will be required in the new normal and a new business model.
From there, it’s a matter of putting together a plan to build and train employees to prepare as much as possible for the future and support the new business plan. Any skill gaps that are identified also need to be addressed, and additional training is done to close them.
Companies that upskill and/or reskill their workforce should seriously consider adding training that includes emotional and social skills as well as worker adaptability and resilience to help them cope with all the changes. This will help workers be better prepared in the event of future disruptions and things at home.
Unfortunately, leaders should recognize that not every employee may be a good candidate for reskilling or fit into the new normal. This should be candidly discussed, and where possible, a talk should lead to other job alternatives within the company or a smooth transition out.
Affected companies that employ upskilling and/or reskilling will be better prepared for the new normal and have a loyal workforce and embrace the new business model. Communication must be clear and candid throughout the process.