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Technology worries are high on the list of the 104 U.S. CEOs interviewed in the recent PriceWaterhouseCooper CEO survey. These worries have particular impact on the credit union industry. Moreover, these concerns have increased dramatically over the last five years. Only 8% of CEOs cited cyber-threat worries in 2013, but by 2017 it rose to 50% and in 2018 a whopping 63%. Concerns about the speed of technological change rose from 11% in 2013 to 44% in 2018, and apprehension about availability of key skills rose from 11% to 32%. On a positive note, the economic uncertainty concern did decrease over these five years to 17% from 53%. Addressing concerns that advances in technology bring is increasingly important for managing your talent pool, especially as improvement in the economy further accelerates the rate of technological change.
PwC projects that artificial intelligence and automation can contribute an additional $16 trillion to global GDP by 2030. Yet this benefit will most likely come with a cost to those companies and those employees who cannot meet the challenges these dramatic transformations will bring. Although PwC projects that job losses from artificial intelligence and automation may be offset by new jobs in different areas in the long run, that does not help the employees negatively impacted by the change.
The challenges of the digital world create anxiety in the employee base that can disrupt organizational culture if not addressed. Employees fear they could lose their technological edge, and may be replaced by AI or automation, with good reason. PwC found a reduction in headcount because of technology was expected for 28% of CEOs surveyed, yet only about half of the U.S. CEOs (53%) felt they had a responsibility to re-train affected workers for new positions. Contrast the U.S. philosophy to that of other major economies, where CEOs feel an obligation to re-train and re-skill those affected: Germany (85%), China (84%) and Japan (71%).
It seems that CEOs in other advanced economies are ahead of their U.S. counterparts in understanding that to maintain a healthy culture, leaders must be attuned to their employees concerns and take concrete actions to address them. As we reported last month, according to data collected by IBM, companies that outperform their peers in the digital race paid the closest attention to their culture.
When the culture supports employees through re-training and improvements to relevant skills, the anxiety level diminishes, as does turnover. When the culture fails the employees, anxiety and turnover increase. Additionally, leaders must be vigilant, as other organizations are looking to hire away your highly skilled staff with superior digital skills and a creative work ethic. PwC reports that 63% of U.S. CEOs are planning to hire, but are finding it more difficult to find qualified staff.
Companies that are clear on how to effectively use AI and automation are most likely to succeed in this competition for talent, with the added critical benefit of improving the customer experience. Yet, within the financial services industry, only 44% of CEOs surveyed were clear on how technology could improve the customer experience. Data confirms the importance and efficacy of developing personnel through continuous learning programs in both retaining employees and developing them to face the future. Yet, only 44% of CEOs were implementing such programs to retain and attract talent.
One of our clients is a case study in successfully navigating these waters of technological change and skill development. This major healthcare provider saw multiple shifts in technology over the last several years that required continuous up-skilling of their employees. Leadership guided its teams through transitions from telephonic call centers, to computer assisted service, to digital apps and websites, and preparation for the coming eVisits and virtual appointments – all designed to make the experience for employees and customers painless and convenient. Each step meant taking employee engagement to a new level. Continuous learning made employees confident in their abilities to handle and master the continuous change in technologies. Dedicated employees made sure they understood the complexity of emerging models of patient customer service. The leaders made sure that the employees were trained effectively and had the tools needed to maintain their continued value to the patients, each other and the organization. In financial services as in healthcare, it is vital to have a reputation as a technologically advanced organization that delivers a higher level of quality service. The results are better outcomes and better member satisfaction.
The challenge is clear. Companies that reinvent their own talent will gain an edge.
Stuart R. Levine is Chairman and CEO for Stuart Levine & Associates and EduLeader LLC. He can be reached at 516-465-0800 or [email protected].
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