Industry 4.0 and the Changing Workforce: Challenges and Opportunities for HR

Imagine yourself entering a manufacturing plant where robots are hard at work on the assembly line, not a single human worker in sight. Or how about a shopping experience where you can simply scan the items you need with your phone and walk out of the store without ever having to interact with a cashier? These kinds of advancements in technology are made possible by Industry 4.0, a new era that relies heavily on digital technologies such as artificial intelligence, robotics, and the Internet of Things (IoT).

But Industry 4.0 is revolutionizing the work in multiple industries. Take healthcare, for example, where digital technologies can be utilized to remotely monitor patients, analyze medical data, and improve diagnosis and treatment. Or the transportation industry, where autonomous vehicles and smart traffic management systems can improve safety, decrease traffic congestion, and even reduce carbon emissions.

While Industry 4.0 has brought about unparalleled efficiency and productivity, it has also drastically changed the workforce. According to a recent study by the McKinsey Global Institute, roughly one-fifth of the global workforce will be affected by the adoption of AI and automation. Industry 4.0 has posed a significant difference in the composition of the workforce. Let’s look at the changes in the workforce composition due to industry 4.0 in the below table-

The impact of Industry 4.0 is expected to be so significant that the Economist has predicted that 50% of jobs are vulnerable to automation. However, it's important to note that some industries are more likely to be automated than others. This is because robots, like human employees, have a particular skill set.

The OECD has released a list showing the likelihood of roles within specific industries becoming obsolete or automated. At the top of the list are occupations within food preparation, construction, cleaning, driving, agricultural sectors, postal and courier services, shipping, and delivery industry jobs. These industries are likely to see a significant change in the workforce composition, with a decrease in manual labor and an increase in demand for technical skills and critical thinking. While jobs that are less likely to be impacted are- social workers, nurses, nuclear engineers, teachers, and writers.

Is such a shift in skill requirement creating challenges for HR?

As Industry 4.0 continues to transform the workforce, HR professionals are faced with new challenges like-

• Recruiting and retaining highly skilled workers is more difficult due to the shift in skill requirements towards technical skills, critical thinking, and adaptability.
• The demand for workers with these skills is growing, but the supply of workers with these abilities is limited.
• ?Internal perceptions and? the attitudes of employees about the impact that automation and digitization will have on their jobs.

What steps HR could take to overcome these challenges?

To tackle the challenges posed by Industry 4.0, HR departments can take a few steps.

• Invest in employee development programs to enhance the skills of their workforce and make them future-ready.
• Overcome the talent gap by forming partnerships with educational institutions to tap into fresh talent with the requisite expertise.
• Offer flexible work arrangements, such as remote work options, to attract and retain top talent from all around the world.
• Providing continued ongoing support, psychological and mental wellbeing, and a positive employee experience in the face of disruptions caused by Industry 4.0

The Future of Work: Navigating Industry 4.0 with HR

Industry 4.0 is transforming the workforce and requiring a shift in skill sets and expertise. The composition of the workforce is changing, and the demand for highly skilled workers is increasing. However, Industry 4.0 also presents new opportunities for reskilling and upskilling workers. HR professionals will need to become more agile and proactive in their strategies to meet the challenges posed by Industry 4.0. By taking these steps, companies can remain competitive and ensure that their workforce is prepared for the new digital age.