The Outsourcing Week in Review (Future of Work): June 23, 2023

Welcome to Inside Outsourcing: The Outsourcing Week in Review

THE WEEK IN REVIEW

Before the weekend hits, let’s take a quick tour through the groundbreaking headlines in AI and workplace culture. From updates to the Great Resignation to the Era of Upskilling – you don’t want to miss these stories:

Consulting firm PwC‘s 2023 Global Workforce Hopes and Fears Survey revealed that one in four employees is contemplating a job change in the upcoming year, up 19% from the prior year. The worldwide survey, encompassing 54,000 workers across 46 countries, reveals a financially strained global workforce. PwC added that 21% of global employees now hold multiple jobs, mostly for extra income. This notion corresponds with a recent analysis by online media company BizReport, warning of AI automation’s potential threat to 64% of the global workforce. Among the 85 nations evaluated, 82 had over half of their workforce at high risk of automation. Singapore emerged as the least threatened, while jobs within the African region appear to be the most vulnerable to AI.

The impact of AI on workers’ psychological well-being has also been highlighted in a study published in the Journal of Applied Psychology. The research, which involved more than 800 professionals from various industries, reported that frequent use of AI systems could increase loneliness and insomnia among employees, particularly those with high attachment anxiety. To alleviate loneliness, the study’s lead author, Dr. Pok Man Tang, stressed the importance of limiting AI use, promoting social opportunities, and employing AI for mundane tasks while leaving socially interactive roles to human agents.

Although it remains a controversial topic, AI could also bring positive changes. For instance, some senior software engineers have seen a 12% salary increase due to their AI and machine learning knowledge. According to industry tracker Roger Lee, young engineers are shifting towards AI, viewing it as a more secure and lucrative career path. Other tech professionals also see AI-related roles as a beacon of hope for tech professionals, especially in the turbulent job market.

Amit Jagga, Country Head of Concentrix Philippines, said their firm encourages employees to upskill and reskill, and the company is still actively hiring despite concerns about the workforce being replaced by AI. In an interview with CNN Philippines, Jagga noted that the business growth driven by AI would necessitate new skills and work types in every industry. He added that applying generative AI doesn’t necessarily mean job losses; instead, it could create new employment opportunities worldwide.

OpenAI’s ChatGPT is also revolutionizing human resources (HR) by reducing recruiters’ workloads by an average of 70 minutes per week. According to a report by B2B Reviews, ChatGPT is instrumental in automating tasks like interview scheduling and candidate follow-ups. Nearly 70% of tech HR employees surveyed indicated their companies are backing them with the required resources to make positive changes in HR practices via AI tools like ChatGPT. While 44% of small business owners expressed concerns about AI reducing hires, a separate FreshBooks survey revealed two-thirds were not threatened by AI job impact, with a quarter already employing or testing AI tools like ChatGPT, underscoring the importance of a balanced approach in AI integration.

Even layoffs present a rainbow of opportunities, as 13 of 100 laid-off tech employees have started their own ventures! A recent BizReport study said there is an entrepreneurial wave due to job cuts. Layoffs from tech giant Meta resulted in the highest percentage of startup creation, with one-third of its ex-employees becoming entrepreneurs. Software engineers were also likely to turn to entrepreneurship post-layoff, while former managers and directors comprised 44.4% of new company founders.

Quiet quitting reportedly costs the global economy a striking US$8.8 trillion. According to analytics firm Gallup, this recent type of employee disengagement is attributed to work stress, layoffs, and economic uncertainties. However, Gallup suggests that quiet quitters present opportunities for organizational growth if employers would be open to changes in their managerial practices and culture. Addressing employee concerns and enhancing work-life balance could also convert many quiet quitters into productive team members

Meanwhile, the hiring platform Greenhouse said that flexible work policies and pay transparency are the keys to retaining and attracting employees in the United Kingdom (UK). In its latest report, the firm said that 77% of surveyed employees would seek new opportunities if their employers rolled back flexible work options. At the same time, 40% refuse to apply to jobs that lack their preferred work model. Greenhouse EMEA General Manager Colm O’Cuinneain said that organizations should adapt to the “new era of recruitment conditions” if they don’t want to miss out on the country’s top talent.

With the rising industry changes and shrinking labor market, various experts believe that more businesses are now focused on upskilling their existing employees to stay competitive. PwC Partner Gerard McDonough said that the culture of continuous learning is paramount, as today’s skills might not suffice for tomorrow’s challenges. Professor Joe Peppard of UCD Michael Smurfit Graduate Business School added that additional training develops problem-solving skills, critical thinking, and digital competencies beyond specific work tasks.

New skills mean new opportunities!

The future of work stories this week​..

21 June 2023

• UK workers seek flexible work, salary transparency – read article…
• Inflation drives ‘Great Resignation,’ says PwC survey – read article…
• 64% of global workforce vulnerable to automation – read article…

20 June 2023

• BairesDev wins multiple Globee Awards for AI efforts – read article…
• ChatGPT use saves recruiters 70 minutes per week, says study – read article…
• Older Japanese workers break away from lifetime employment – read article…

19 June 2023

• Mass tech layoffs spur startup wave, says BizReport – read article…
• CEOs divided over AI’s potential threat to humanity – read article…
• AI workplace use linked to loneliness, insomnia – read article…

16 June 2023

• Concentrix foresees expansion, hiring surge with AI – read article…
• Samsung adopts 4-day workweek to retain talent – read article…
• Upskilling is key to empowering employees, experts say – read article…

15 June 2023

• U.S. employees anticipate tech advancements amid leadership lags — EY – read article…
• Quiet quitting costs global economy $8.8 trillion, says Gallup – read article…
• AI-skilled engineers receive 12% pay rise – read article…