Employers expect automation to increase headcount

NEW ZEALAND employers are anticipating that the continued growth in automation will drive an increase in headcount over the next two years, requiring more people and more skills. This is in contrast to the current public debate that as companies go digital, jobs will be increasingly at risk. However, it is clear that automation is happening at different speeds across the country, with key industries and functions likely to suffer while others gain.

These are the results from ManpowerGroup’s latest report – Robots Need Not Apply: Human Solutions in the Skills Revolution – which surveyed 20,000 employers across 42 countries, including over 650 in New Zealand, on the impact of automation on headcount, the functions most impacted and the soft skills that are both of greatest value and hardest to find.

In response to the impact of automation, 20 percent of New Zealand employers expect to grow their workforce while 64 percent plan to maintain current headcount over the next two years. This signals that digitisation will be a net gain for employment across New Zealand in the near-term, so long as job seekers have the right blend of skills required in today’s digital age.

Looking inside organisations, the impact of automation varies by function. Frontline and Customer-Facing roles, as well as IT functions, come out on top with anticipated headcount increases of 19 percent and 18 percent as companies start investing in the strategic combination of both human and digital skills. Contrary to this, manufacturing and production and administrative and office functions expect decreases of 17 percent and 15 percent as a result of automation.

With more and more New Zealand employers undergoing digital transformation, skills needs are constantly changing; making it difficult for companies to find the talent they need. The rise in consumerism and the value companies now place on customer service is increasingly evident and human strengths are more valued than ever before. In fact, more than half of New Zealand companies surveyed say communication skills, both written and verbal, are the hardest-to-find and the skills they now value most, followed by problem-solving and collaboration.