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In this issue:

• Chart of the Week
• AI in the Workplace: Transforming Industries and Entrepreneurship with Rachel Lyubovitzky
• Battle of The Bulge: How Fighting Fat Affects Your Employee Benefits
• From Sci-Fi to Reality: The Race for Workplace Efficiency through Futuristic Tech
• The Key to Recruitment Success? Soft Skills Matter Most
• An Interview to Remember

Chart of the Week

The recent data has shown a loss of economic momentum, with declining job openings, tightening lending conditions and surveys indicating lower business spending and hiring plans. Chart by @JPMorganAM

Battle of The Bulge: How Fighting Fat Affects Your Employee Benefits

Join HR Influencer – Jim Stroud in his groundbreaking series, HR Reactions, as he reacts to public comments on work-related topics. In this episode, Jim dives into the urgent issue of how fighting fat is affecting employee benefits. Discover the struggles faced by employees desperately seeking weight-loss treatments that their employer-provided health plans refuse to cover. Hear their compelling stories and witness the impact this has on their lives and well-being. Get ready for eye-opening insights, real opinions from different camps, and thought-provoking discussions. Don’t miss this engaging and informative episode that sheds light on the untold side of employee benefits. Tune in now and be part of the conversation!

This video brought to you by: ClickUp – the future of work and collaboration. Get ClickUp for free— no credit card needed!

AI in the Workplace: Transforming Industries and Entrepreneurship with Rachel Lyubovitzky

Join us in an insightful conversation with Rachel Lyubovitzky, a trailblazing entrepreneur and AI enthusiast, as she shares her expertise and experiences in leveraging artificial intelligence (AI) to shape the modern workplace. As the CEO, co-founder, and Chairwoman of Setuply, and with a remarkable track record of successful exits, Rachel brings a wealth of knowledge to the table. In this captivating episode, Rachel delves into the impact of AI on the workplace and unveils specific real-world examples that have revolutionized industries. From client onboarding to fostering innovation and diversity, Rachel explores the potential benefits and challenges of integrating AI, while highlighting the ethical considerations surrounding its use. Don’t miss this thought-provoking conversation that explores how AI is transforming traditional job roles, disrupting industries, and offering exciting opportunities. Discover what it takes to navigate the evolving landscape of AI and gain insights into the skill sets and areas of focus that will be crucial for individuals as AI continues to advance. The future of AI in the workplace awaits—join us on this exciting journey of exploration and unlock the limitless potential it holds.

From Sci-Fi to Reality:The Race for Workplace Efficiency through Futuristic Tech

Just the other day I was laying on my couch and generally ignoring the world. Its not often I get to kickback and do nothing, but Father’s Day gave me the opportunity and I was not squandering it. My DVR and multiple streaming services were ready and set to keep me company. My agenda was pretty much set, eat, sleep and repeat as necessary. Eventually, I caught up on all the Disney+ Marvel shows, Dr. Who episodes and a classic Bruce Lee DVD that I picked up in a garage sale a few years back. (It’s good to have goals.)

With nothing else to do, I decided to channel surf for new adventures. To my surprise, I stumbled across a new channel on my satellite listings – HR TV, a station devoted solely to content of interest to Human Resources professionals. Imagine my shock! In progress was a show called “HR News” and its topic was “The New Normal.” I watched as they discussed a new report on Neurotechnology from the UK Information Commissioner’s Office (“ICO”). (FYI, Neurotechnology is technology used to monitor neurodata, the information coming directly from the brain and nervous system.) In the report, the ICO warned that “that newly emerging neurotechnologies risk discriminating against people if those groups are not put at the heart of their development” and it predicted that the use of such technologies would become “widespread over the next decade.” The reporter went on to say that neurotech devices could give employers access to incidental information that can be used to discriminate against employees, such as information about early cognitive decline.

I was glued to the screen when they delved further into neurotech devices and how they could be used in the workplace to do things like:

• Monitoring fatigue to ensure employee safety and productivity.
• Tracking attention to boost productivity.
• Enhancing safety by detecting when workers are losing focus.
• Decreasing stress by creating a more responsive working environment.
• Extracting productivity-enhancing data from workers’ brains.
• Giving workers superhuman abilities.
• Bringing a brain-tracking wearable to office workers, including those working remotely.
• Enabling commercial devices, like phones, powered by mind control.
• Analyzing and influencing the human nervous system, especially the brain.

As fascinating as the news reports were, I still managed to fall asleep on the couch; which typically happens when I watch TV there. I started dreaming but as I think of it now, I think my subconscious mind was still following the reports on TV. I kept reflecting on how companies have been relentlessly pursuing workplace efficiency via technology for decades. In a surreal way, I was traveling back in time.

2017

• Employees at Three Square Market, a technology company in Wisconsin, can choose to have a chip the size of a grain of rice injected between their thumb and index finger. Once that is done, any task involving RFID technology — swiping into the office building, paying for food in the cafeteria — can be accomplished with a wave of the hand. No need to carry a keycard anymore or press in a code. Microchips in your hand is more efficient.

2016

• When companies were buying their employees fitbits in order to encourage a healthy lifestyle. The end goal being to boost employee productivity and save money on health insurance costs. Another point for workplace efficiency.

2013

• Some companies were using technology in keycards to monitor employees in real time so that they could measure productivity. The sensors they used identified a person’s tone of voice, movement and even their posture when communicating with others. Why? So they could study the chemistry behind what makes certain workspaces like Google great at building teams. #Efficiency

2001

• Back then hospitals had a tracking system attached to name tags so that management could see where their staff was, how much time was spent in each location and who they were with (i.e. multiple employees in a patients room providing care vs in the lounge) #Efficiency

And then I woke up on my living room floor because when I dream about HR technology, I toss and turn a lot. You would be surprised by how often that happens to me. In any regard, as I adjusted to the light, I could not help but ponder all the news reports I watched and the flashbacks in my dream. No doubt there will be new tools and processes invented with the claim that they will make companies more efficient. Some of the tools will deserve the hype (ChatGPT, for example) while others will cause discord among the rank and file. How can these future companies and the leaders that will manage these technologies, make these tools acceptable for all concerned? A few ideas come to mind.

• Have employees opt-in to the new efficiency technology. Do not force them to comply or punish them if they opt-out; especially if they have privacy concerns. That could really backfire against you in terms of your Employer Brand.
• Clearly specify what data is collected when using these efficiency tools and narrowly define its use. This is most concerning when you are microchipping workers. For that matter, when possible, anonymize and aggregate the data for the sake of managers tempted to snoop on workers. You may want to limit who has access to the general data.
• Employees should always have access to the personal data being collected on them from the next efficiency tool. The tool could be fallible in its data collection and thereby harm the work reputation of the employee. Said employee should have the chance to defend themselves as such tools could hamper their work performance review.
• Put a time limit on how long the data can be stored and delete it after a predetermined time.
• Most importantly, use data to inform your decisions but, do not forsake human judgement. No machine, no matter how well built is perfect.

Anyways, if you have Satellite TV or Cable TV, it may be worth your while to check out HR TV. It is amazing the kind of information you will find there. If it’s not available in your area, sorry for your luck. If you do find it in your TV menu, I suggest the following shows:

• The Real Recruiters of Atlanta
• Dancing with the HR Stars
• Friends with Benefits and Compensation
• Boolean Bandits
• The Walking Dead Hiring Managers

All quality shows worth a weekend binge.

Jobin.cloud

> Jobin is a LinkedIn automation tool. A combination ATS and CRM with ChatGPT integration. Click here to try it out now! (Totally worth a demo!!!)

The Key to Recruitment Success? Soft Skills Matter Most

Technological advancements make for popular headlines, but the secret to hiring success are candidates with excellent soft skills. These invaluable qualities are increasingly important for companies seeking new talent. If you are a recruiter who is eager to improve your hiring success rate, here are some things you need to know.

Soft Skills > Tech Skills

• Employers rank soft skills higher than technical skills when hiring new employees.
• Companies are focusing on upskilling workers to address the social and emotional skills that are in high demand
• Research studies have concluded that 85% of job success comes from having well-developed soft and people skills, and only 15% of job success comes from technical skills and knowledge.
• Employees with strong soft skills are more likely to be productive, engaged, and collaborative, leading to better overall organizational performance

Once you understand how important soft skills are, the next question is: How can we evaluate these skills when hiring someone? Here are some simple suggestions to help you assess soft skills during the hiring process.

• Give candidates an opportunity to work with the team. This is the most accurate way of assessing soft skills.
• Develop interview questions that allow you to extract the information you need. Employers often use skills assessments ― for both hard and soft skills ― to gauge the cumulative abilities and skill sets of current employees. These tests can also help you measure whether a candidate has the attributes to perform the job successfully.
• Administer pre-employment personality tests. Options for soft skills evaluation range from the formal, like personality tests, to informal directed questions in the interview setting.
• Observe how candidates interact with others during the interview process. This can include how they greet the receptionist, how they interact with other interviewees, and how they respond to unexpected situations.
• Ask behavioral questions that require candidates to describe how they handled specific situations in the past. This can help you assess their problem-solving, communication, and conflict resolution skills.

As recruiters, it’s crucial for us to recognize the increasing importance of soft skills in the hiring process and adapt our assessment methods accordingly. Behavioral interviews, personality assessments, and group exercises are effective tools we can employ to evaluate candidates’ communication, teamwork, adaptability, and problem-solving abilities. By incorporating these techniques, we can make informed decisions and select individuals who possess the ideal combination of hard and soft skills, ensuring the best fit for the role and the organization.

An Interview to Remember

ICYMI

• The Price of Progress: How Automation Could Impact Your Paycheck
• AI in Recruiting: A Love-Hate Relationship Revealed
• Regulate AI? Do it or Die!
• What Will Recruiting Be Like Next Year?
• Will Your Job Survive the AI Revolution?

One last thing…

Subscribe now to get my newsletter in your email each week! In addition to what you see here, there is even more content that is designed by AI to fit your specific tastes. Sign up now and see for yourself.

Until next time, see you in the funny papers.

Jim Stroud

P.S. May I be of assistance?

This week’s newsletter is brought to you by:

The Recruiting Radar is a weekly newsletter of leads for people in the business of recruiting. Subscribe now.

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In today’s edition:

• Chart of The Week: How the HRTech market is changing
• Video: Does your company have an AI policy?
• Article: The Price of Progress: How Automation Could Impact Your Paycheck (Part 2)
• Comic: Reversing the Return to the Office Policy
• ICYMI

Chart of the Week: How The HRTech Market is Changing

Source: How the #HRTech market is changing.

VIDEO – Does your company have an AI policy?

A survey by ResumeBuilder.com revealed that 91% of hiring business leaders are seeking workers with ChatGPT experience. In fact, 30% of companies are urgently looking for these skilled individuals to gain a competitive advantage. So, yay, ChatGPT! Right? No, not every company is on board with ChatGPT. Join me as I uncover the reasons why Samsung, Verizon, JPMorgan Chase, and others have banned ChatGPT (at least for the meanwhile). Plus, get a glimpse of a job that will surely become a trend in the very near future – Chief AI Officer. Don’t miss this eye-opening video!

This video brought to you by:

ClickUp – the future of work and collaboration. Get ClickUp for free— no credit card needed! #ai #candidateexperience #futureofwork

(Articles cited in this video and more, can be found here.)

Jobin.cloud

> Jobin is a LinkedIn automation tool. A combination ATS and CRM with ChatGPT integration. Click here to try it out now! (Totally worth a demo!!!)

The Price of Progress: How Automation Could Impact Your Paycheck (Part 2)

Increased automation can have both positive and negative effects on wages. Let’s put on the rose-colored glasses first.

ROBOTS AND ROSES

Automation often creates as many jobs as it destroys over time. A few modern examples…

• Computerization and Office Automation: The rise of computers and office automation systems in the latter half of the 20th century brought about significant changes in administrative tasks. While it reduced the demand for certain clerical roles, it also created jobs in IT support, software development, data analysis, and digital marketing.

• Retail Industry: Automation in the retail sector, such as barcode scanners, self-checkout systems, and inventory management software, has improved operational efficiency and reduced the need for manual tasks. However, it has also led to the growth of e-commerce, creating jobs in online retail, logistics, digital marketing, and customer service.

• Renewable Energy: The transition to renewable energy sources, such as solar and wind power, has led to the growth of the clean energy industry. While it has impacted traditional fossil fuel sectors, it has also created jobs in renewable energy infrastructure development, manufacturing of clean energy technologies, and energy efficiency consulting.

• Logistics and Warehousing: Automation technologies, including conveyor systems, robotics, and autonomous vehicles, have revolutionized logistics and warehousing operations. While it has reduced the need for manual labor in certain tasks, it has also created jobs in managing and maintaining these automated systems, supply chain optimization, and last-mile delivery services.

• Advanced Manufacturing: The emergence of advanced manufacturing technologies, such as 3D printing, computer numerical control (CNC) machines, and additive manufacturing, has transformed the manufacturing landscape. While it has reduced the need for some manual labor, it has also created jobs in designing and operating these technologies, materials development, and supply chain management.

Workers who can work with machines are more productive than those without them. For instance…

• Collaborative Robots (Cobots): Cobots are designed to work alongside human workers, assisting them with various tasks. These robots are equipped with advanced sensors and programming that enable safe interaction with humans. In manufacturing settings, cobots can handle repetitive or physically demanding tasks, such as lifting heavy objects or performing precise assembly tasks. By taking on these tasks, cobots not only reduce the risk of injuries to human workers but also increase overall productivity by allowing workers to focus on more complex and strategic activities.

• Augmented Reality (AR) in Maintenance and Repair: AR technology has found applications in various industries, including maintenance and repair. With AR, workers can wear smart glasses or use mobile devices to overlay virtual information onto the physical environment. In the context of maintenance and repair tasks, AR can provide real-time guidance, instructions, and visual cues to workers, helping them identify and resolve issues more efficiently. This technology minimizes downtime, reduces errors, and improves worker productivity by providing them with instant access to information and expertise.

• Wearable Exoskeletons: Exoskeleton technology involves the use of wearable devices that provide physical support and assistance to workers. These devices are particularly beneficial in physically demanding industries such as construction, manufacturing, and logistics. Exoskeletons can reduce fatigue and strain on workers’ bodies by augmenting their strength and endurance. By providing additional support during tasks such as lifting heavy objects or maintaining awkward postures, exoskeletons enable workers to perform their duties more effectively and safely. This, in turn, increases productivity and reduces the risk of work-related injuries.

And due to technical advances, the costs and prices of goods and services decreases over time. Take this into account…

• Mass Production and Assembly Line Techniques: The implementation of mass production and assembly line techniques, pioneered by Henry Ford in the early 20th century, revolutionized manufacturing processes. By incorporating technologies such as conveyor belts, specialized machinery, and standardized parts, Ford was able to significantly reduce the time and cost required to produce automobiles. This led to a substantial decrease in the price of cars, making them more affordable and accessible to the general population.

• E-commerce and Online Retail: The advent of e-commerce and online retail platforms has transformed the way goods are bought and sold. Online platforms eliminate the need for physical storefronts, reducing overhead costs associated with rent, utilities, and staffing. Additionally, streamlined supply chain management, automated inventory systems, and optimized logistics have significantly improved operational efficiency. These advancements in technology have enabled retailers to offer products at lower prices compared to traditional brick-and-mortar stores, benefiting consumers with reduced costs and increased affordability.

• Digitalization of Services: The digitalization of various services, such as banking, telecommunications, entertainment, and education, has led to cost reductions and price decreases. Digital platforms and technologies have automated processes, reduced paperwork, and eliminated the need for physical infrastructure. For instance, online banking allows customers to perform transactions and access services without visiting a physical branch, leading to cost savings for both the bank and the consumer. Similarly, digital entertainment platforms have eliminated the need for physical media production and distribution, resulting in lower costs for consumers and increased accessibility to a wide range of content.

And of course, lower costs incentivize more spending and consequently, the creation of new jobs. Three factors play into this.

• Increased Disposable Income: When the prices of goods and services decrease due to process improvements and technological advancements, consumers have more disposable income available. With the same amount of money, consumers can purchase a larger quantity of goods or explore new products and services they previously couldn’t afford. This increased purchasing power leads to higher consumer spending, stimulating demand and generating a positive economic ripple effect.

• Expansion of Industries and Market Opportunities: When consumers have more discretionary income and are willing to spend, businesses experience higher demand for their products and services. This increased demand often prompts businesses to expand their operations, invest in research and development, and explore new market opportunities. As a result, businesses may need to hire additional employees to meet the increased production or service demands, leading to job creation in various sectors of the economy.

• Growth of Supporting Industries: Increased consumer spending can also create job opportunities in supporting industries. For instance, when consumer demand for products rises, there is a need for logistics and transportation services to move goods from manufacturers to retailers or directly to consumers. This leads to job creation in transportation, warehousing, and delivery services. Additionally, increased consumer spending on services, such as dining out or entertainment, can create employment opportunities in the hospitality and leisure sectors.

LABOR MARKET INEQUALITY IS REAL

But its not entirely a rosy picture. As the positive changes gradually take hold over time, there is a more immediate consequence of labor market inequality. According to Forbes [June 18, 2021] …

According to a new academic research study, automation technology has been the primary driver in U.S. income inequality over the past 40 years. The report, published by the National Bureau of Economic Research, claims that 50% to 70% of changes in U.S. wages, since 1980, can be attributed to wage declines among blue-collar workers who were replaced or degraded by automation. 

Artificial intelligence, robotics and new sophisticated technologies have caused a wide chasm in wealth and income inequality. It looks like this issue will accelerate. For now, college-educated, white-collar professionals have largely been spared the fate of degreeless workers. People with a postgraduate degree saw their salaries rise, while “low-education workers declined significantly.” According to the study, “The real earnings of men without a high-school degree are now 15% lower than they were in 1980.” 

Here is something else to think about, along these lines. Back in 2020, there was an academic paper that set people’s hair on fire – Robots and Jobs: Evidence from U.S. Labor Markets. It was written by MIT professor Daron Acemoglu. It was this finding in particular that caused the alarm.

The researchers found that for every robot added per 1,000 workers in the U.S., wages decline by 0.42% and the employment-to-population ratio goes down by 0.2 percentage points — to date, this means the loss of about 400,000 jobs. The impact is more sizable within the areas where robots are deployed: adding one more robot in a commuting zone (geographic areas used for economic analysis) reduces employment by six workers in that area.

AUTOMATION IS A DOUBLE-EDGED SWORD

Automation depressing wages may sound like an attractive bargain to companies focused solely on the bottomline but, that can backfire – spectacularly. Take for example, the burger-flipping robot – “Flippy.” In 2018, Flippy was shut down after one day of service because it could not keep up with customer orders. What did the restaurant do in response? Ask human cooks to step in. IBM spent $62 million to develop an AI system to aid in the battle against cancer, but the system failed and could have killed patients. Amazon wanted to automate recruitment and ended up ostracizing women. Amazon also tried innovating with facial recognition. Unfortunately, it failed when their AI falsely matched 28 members of Congress as criminals. (I’m going to resist the urge to make a political joke here.) A real estate tycoon from Hongkong bought an AI system to manage part of his fortune and increase his holdings. Unfortunately, the robot ended up losing as much as $20 million USD a day. To get back a part of his money, the tycoon filed a $23 million lawsuit against the company. The suit is the first known case of a court action filed over automated investment losses. In 2015, the first Henn-na Hotel in Japan opened with an all-robot staff for front-desk, cleaning, portering, and in-room assistance. However, the robots faced numerous issues such as frequent breakdowns, inadequate guest assistance, and misinterpreting snoring as wake commands, leading to customer complaints. After years of difficulties, the hotel chain ultimately replaced the robots with human workers, considering them unreliable, expensive, and annoying.

WHAT RECRUITERS SHOULD BE DOING NOW

All of this to say, in the long-term, new technologies are a benefit that often create more jobs that they  destroy. It’s the short-term that should concern you. Some companies will move too quickly in the hopes of saving money but end up with self-inflicted wounds to their bottomline and (possibly) their employer brand. If history repeats itself, automation will have a definite impact on wages in general and I predict on the recruitment industry specifically as new AI tools proliferate. My suggestion is not to fear the future but prepare for it. As such, here are 5 things I suggest every recruiter should be doing now.

1. Embrace Technology: Rather than seeing AI tools as a threat, recruiters can view them as tools to enhance their capabilities. By embracing technology, recruiters can stay updated on the latest AI advancements and explore how these tools can complement their work. They can focus on leveraging AI to automate administrative tasks, enhance candidate screening processes, and gather data-driven insights to make informed decisions. A recruiter will not lose their job to AI. However, they will lose it to another recruiter adept in AI.
2. Develop Specialized Skills: Recruiters can differentiate themselves by developing specialized skills that go beyond the capabilities of AI tools. This can include expertise in areas such as relationship building, understanding organizational culture, assessing soft skills, and conducting effective interviews. Recruiters can focus on building strong interpersonal skills, emotional intelligence, and industry knowledge, which are difficult to replicate through automation.
3. Focus on Human Connections: Building meaningful relationships with candidates and clients is an area where human recruiters excel. By prioritizing personal connections, recruiters can provide personalized guidance, understand unique candidate needs, and offer a human touch throughout the hiring process. Maintaining strong relationships with clients and candidates can help recruiters retain their value and establish trust that goes beyond the capabilities of AI tools.
4. Offer Value-Added Services: Recruiters can go beyond basic candidate sourcing and screening by offering value-added services that require human judgment and expertise. This can include providing career advice, conducting in-depth candidate assessments, offering guidance on market trends, and providing insights on talent acquisition strategies. By offering high-quality, personalized services, recruiters can demonstrate their unique value proposition.
5. Continuous Learning and Adaptation: The recruitment landscape is constantly evolving, and staying updated on industry trends, technology advancements, and changing job market dynamics is crucial. Recruiters should invest in continuous learning, attend relevant industry conferences, participate in training programs, and stay connected with professional networks to adapt to the evolving recruitment landscape.

In conclusion, while automation has the potential to impact wages and the recruitment industry, it is important to approach it with a balanced perspective. Automation brings both positive and negative effects on employment and income inequality. While it may lead to job displacement in the short term, history has shown that it often creates new job opportunities in the long term. Companies should be cautious not to rush into automation without considering the potential risks and challenges that can arise. Recruiters can protect their livelihoods by embracing technology, developing specialized skills, prioritizing human connections, offering value-added services, and committing to continuous learning and adaptation. By adapting to the changing landscape and leveraging AI tools as enhancements rather than threats, recruiters can ensure their continued relevance and value in the recruitment industry. But that’s just one man’s opinion. What’s yours? Reply back and let me know. I want to hear from you. 

Reversing the Return to the Office Policy

ICYMI

• The Price of Progress: How Automation Could Impact Your Paycheck
• AI in Recruiting: A Love-Hate Relationship Revealed
• Regulate AI? Do it or Die!
• What Will Recruiting Be Like Next Year?
• Will Your Job Survive the AI Revolution?

Do you know Scott McKinnon?

“Experienced sales leader, for more than 20 years, I have helped Human Capital Management companies prosper and grow by mentoring, coaching, and implementing strategic initiatives which bring structure to the sales process, resulting in increased sales. My passion is helping people and companies grow beyond their current capabilities.”

Connect with Scott and network with him today!

…

Until next time, see you in the funny papers.

Jim Stroud

P.S. May I be of assistance?

This week’s newsletter is brought to you by:

The Recruiting Radar is a weekly curated list of news and insights on companies that are hiring, expanding, or poised for growth. Membership is limited. Subscribe now.

In today’s edition:

• Chart of The Week: Global Generative AI in HR Market
• Video: Recruiters love AI tools but what do the candidates think?
• Labor Trend: EverythingOps
• Article: Does more AI mean lower wages?
• Comic: Poetry Slam- I Source Therefore I Am
• ICYMI

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Chart of the Week: Global Generative AI in HR Market

Generative AI in the HR Market size is expected to be worth around USD 1669.3 Mn by 2032 from USD 413.1 Mn in 2022, growing at a CAGR of 15.4%. during the forecast period from 2023 to 2032. | Source

VIDEO – Recruiters love AI tools but what do the candidates think?

In this thought-provoking video, we delve into the impact of artificial intelligence (AI) on the hiring process and the contrasting opinions of candidates. With fascinating insights from a recent Pew Research study, we explore the concerns and reservations surrounding AI’s role in making final hiring decisions, tracking productivity, and invading privacy. Join us as we uncover the challenges faced by companies and discover potential solutions to bridge the gap between AI and the human factor. Don’t miss out on this engaging discussion that will make you question the future of recruitment.

Labor Trend: EverythingOps

The above chart from Exploding Topics shows the growth in Google searches for the term AIOps. AIOps is a set of practices combining big data and machine learning to automate IT processes. AIOps is part of the EverythingOps meta trend going on these days.

The EverythingOps trend refers to the rise of various “Ops” practices that aim to improve IT operations and productivity. Here are some examples of other “Ops” trends:

• DevOps: DevOps is a set of practices that combines software development and IT operations to shorten the systems development life cycle and provide continuous delivery with high software quality.
• ChatOps: ChatOps is a collaboration model that connects people, tools, process, and automation into a transparent workflow.
• GitOps: GitOps is a set of practices that use Git as a single source of truth for declarative infrastructure and applications
• ObservabilityOps: ObservabilityOps is a set of practices that aim to improve observability in IT systems, allowing teams to detect, diagnose, and resolve issues faster
• LegacyOps: LegacyOps is a set of practices that aim to modernize legacy applications and infrastructure, making them more efficient and easier to manage
• CloudOps: CloudOps is a set of practices that aim to optimize cloud infrastructure and applications, ensuring they are secure, scalable, and cost-effective
• EdgeOps: EdgeOps is a set of practices that aim to manage and monitor edge computing infrastructure, which is becoming increasingly important as more devices become connected to the internet

And although its associated with IT, there are other Ops out there. My favorite, RecOps which refers to recruiting operations. If you are in the market for that kind of thing, I know a guy.

Jobin.cloud

> Jobin is a LinkedIn automation tool. A combination ATS and CRM with ChatGPT integration. Click here to try it out now! (Totally worth a demo!!!)

This BBC article, “AI could replace equivalent of 300 million jobs – report,” has been raising eyebrows as you can imagine. Here’s a quote that stood out to me…

“The only thing I am sure of is that there is no way of knowing how many jobs will be replaced by generative AI,” Carl Benedikt Frey, future of-work director at the Oxford Martin School, Oxford University, told BBC News.

“What ChatGPT does, for example, is allow more people with average writing skills to produce essays and articles.

“Journalists will therefore face more competition, which would drive down wages, unless we see a very significant increase in the demand for such work.

“Consider the introduction of GPS technology and platforms like Uber. Suddenly, knowing all the streets in London had much less value – and so incumbent drivers experienced large wage cuts in response, of around 10% according to our research.

“The result was lower wages, not fewer drivers.

“Over the next few years, generative AI is likely to have similar effects on a broader set of creative tasks”.

It reminded me of something I wrote a few years back when the threat was robotic process automation (RPA). RPA is not a physical or mechanical robot, but rather software robots running on a physical or virtual machine. With RPA, software users create software robots, or “bots”, that can learn, mimic, and then execute rules-based business processes. Although its not a totally fair comparison, I think of RPA as the precursor to all the ChatGPT enhanced tools out here today.

Fast forward to today and I think the arguments and predictions of the effect of tech on wages still holds true, for better or worse. Read it below and let me know what you think? (I changed the title but the article, written January 2020, is the same.)

…

The Price of Progress: How Automation Could Impact Your Paycheck

When the topic of automation is brought up in relation to the job market, the arguments tend to repeat themselves. One view is from the doomsayers who suggest robots are going to steal all the jobs away with the contrarian position being somewhere between a robotopia (where machines do all the work and humanity is sustained on a Universal Basic Income) and an Iron Man scenario where tech and humanity operate simpatico. I think to some extent all workers will become Tony Stark with our iPhone or variant wearable technology augmenting our intelligence. If that seems far-fetched, consider the last time you dialed a phone instead of commanding Siri or tapping the name of a desired party. (God help us all if we wander off lost on a roadtrip without the aid of GPS.) As the new status quo of office robots and automation encroaches, it strikes me as odd that no one seems to be voicing the next great worker concern. If automation can eliminate certain tasks for a certain worker by X percent then, should that worker have his compensation reduced accordingly?

I do not have a background in benefits and compensation analysis but, I think that such is an argument that will be made in the near future. Lately, I have been thinking about this from various angles. Pardon my ramblings as I share my thoughts.

IS IT FAIR?

From the employer’s perspective, I consider the amount of money spent on technology designed to make my workforce more efficient. If the tech does as intended and reduces the daily grind by so much, is a reduction in future salary fair? Conversely, if workers are doing less of one type of work, does that mean they will be doing more of another? If so, would it be unfair to reduce their salaries? How would one qualify a percentage of work in order to make a right assessment?

DOES IT AFFECT THE VALUE OF THE EMPLOYEE?

If there are tasks that can be safely delegated to robots then, it stands to reason that the work automation cannot conquer is of higher value. Does that higher value offset the percentage of work done by robots? I wish I knew. What I do speculate though is that the more work is automated, the value of the worker decreases if they do not acquire new skills. This is why I think the most competitive companies are those with the most robust training organizations. In addition to improving your existing labor force, it also improves retention. A quick aside…

According to a recent survey by the career platform The Muse, 58% of its largely millennial user base said they plan to change jobs this year. What they are searching for is learning and growth opportunities, as well as work-life balance, according to Muse co-founder and CEO Kathryn Minshew.

IF AUTOMATION REDUCES SALARIES, WHAT THEN?

I think if automation reduces salaries across the board, there will be an even more significant upswing in gig workers. Said gig workers will become a key option to companies who do not have a robust training program and cannot remain competitive waiting for the upskilling of their workforce. As an example, consider India which is predicted to have a highly significant non-employee workforce for its companies over the next few years. In fact, to quote The Economic Times…

The use of non-employee talent, or employees not on the rolls of organisations, is expected to grow dramatically in India over the next three years, according to the findings of a survey by global advisory firm Willis Towers Watson.

At the same time, full-time employees’ share of the total workforce is expected to drop 3.3 percentage points in India and 4.1 percentage points globally over the next three years, stated ‘The 2019 Pathways to Digital Enablement Survey’.

“There are two things increasingly happening in work. First is work is increasingly being pulled out of the organisation and being done elsewhere and then being brought in. The second is the growing plurality of means of getting work done,” Willis Towers Watson managing director Ravin Jesuthasan said. “Today, business leaders have a lot of choices on how they get work done. Automation is just one of the different options for them. The various other options could include sending work to talent marketplace, tapping gig workers, using volunteers, etc.,” he added.

The non-employee workforce in India that is seen growing in the next three years includes free agent workers (15%), parttime reduced hour (32%), worker on loan from other organisation (3%) and free agents on talent platforms (230%), the survey said.

I think that HUGE percentage of free agents being utilized by talent platforms is in response to the demands of worker flexibility and the booming gig economy. As such, I would not be surprised if more talent platforms debuted around HR freelance jobsor some other niche.

Another possibility resulting from automation reducing salaries, is the likely trend of companies tying year-end bonuses and worker performance evaluations to future potential. Traditional models postulate that if you did a good job last year then you will do a good job next year so a raise will reward you and give incentive to remain. But if automation is reducing the need for certain skills and reducing compensation to boot then, wouldn’t it make more sense to rate performance based on future potential? IBM thinks so. Using artificial intelligence (AI), Watson Analytics looks at an employee’s experiences and projects to infer the potential skills and qualities each person might have to serve IBM in the future. Watson also scours IBM’s internal training system to see if an employee has gained new skills. Managers then take Watson’s assessment rating into account as they make bonus, pay and promotion decisions. One more quote from the Economic times…

“Traditional models said if you were a strong performer in your current job that was the singular way that you got a promotion,” said Nickle LaMoreaux, vice president for compensation and benefits at IBM. “Well, we certainly still care about performance,” she said. But that now includes hypothetical future performance, too. IBM claims Watson has a 96 percent accuracy rate, as compared to IBM’s internal analysis with HR experts. The company spot-checks employee performance against its predictions.

Historically, employers used past accomplishments as the sole metric for compensation decisions, premised on the idea that the past is prologue. The method worked when job tasks stayed relatively static over time, but “the half-life of skills is getting shorter and shorter,” said LaMoreaux. What employees could do yesterday matters less than what they can potentially do tomorrow

Okay, just in case I lost you in my verbosity, let me sum things up like this…

• If automation does X percent of the work, should workers be paid X percent less? I don’t know. I predict it will be a hot debate topic in the near future and within companies worldwide.
• Workers who do not learn new skills will be less valuable in the workplace. As a result, job-hopping will continue and gig working will increase because people want to retain and/or increase their value.
• The most competitive companies have robust training programs and will leverage them to retain their staff.
• Companies will increase their reliance on gig workers in response to demands for worker flexibility and to remain competitive.
• Worker raises will be tied to the future potential inherent in new skills learned. Welcome to the new normal!

Of course, I could be way off base. What do you think?

Poetry Slam- I Source Therefore I Am

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Until next time, see you in the funny papers.

Jim Stroud

P.S. May I be of assistance?