【FoM Report Series】Future mobility to reshape workforce-Industry

Auto OEMs and suppliers

As they explore new business models, alliances, and technologies, this frenzy of activity may also create change and friction within the workforce. New autoworker roles, with different skills and needs, could emerge alongside new organizational constructs such as crowdsourcing and flexible internal talent markets. Catering to these new roles would invariably affect how companies engage and retain the legacy workforce that has defined the automotive industry for decades. The chal­lenge is likely to create a forward-thinking talent model that meets the evolving need to attract, retain, and develop a new digital work­force, while balancing the resulting cultural and operational shifts with the broader needs of the organization.

While automotive companies pursue autonomous vehicles and new business models centered on ridesharing and mobility services, they should also think through the skills they need to capitalize on these big plays. Many have turned to acquisitions as a quick way to build out their ranks in critical areas, but retaining that purchased talent means that automotive companies must cater to a tech-focused talent market that values flexibility, purpose, and experiences.

Integrating new types of workers, skills, and capabilities into a legacy tried-and-true model is of­ten no small feat. Simply adopting the trappings of tech play­ers is unlikely to be sufficient. Automotive companies will likely need the right infrastructure to support this potentially new type of worker and to create the experi­ences that enable success. Ultimately, middle managers may have to create a new culture of “always on” learning and development through engaging experiences to transform today’s tal­ent model into a flexible and open talent mar­ket that can effectively accommodate emerging talent needs.

Even as their talent pool shifts and expands, automakers will likely continue to rely on man­ufacturing-line veterans and the front offices that have kept the lights on for decades. Even there, however, the numbers and skills of those workers could shift as both the types of vehicles being built and their volumes could change. These workers, just as critical to automakers’ success in the future of mo­bility, often have a different definition for career develop­ment, and auto companies would need to balance these different perspectives as they seek to get the talent equation right. That means both build­ing on the rich history already in place and creating a very clear vision for the future—an exciting future that is technology-enabled and customer-focused.

Human resources organizations have a big role to play in driving a new workforce-planning mind-set. The need to forecast skills require­ments around analytics, robotics, artificial in­telligence, and beyond requires longer-term thinking about how technology could shift the way that work gets done; when new and emerg­ing skills will likely be needed to enable these shifts; and where these skills might sit in the organization. Creating a more flexible model to “right speed” HR to support a changing spec­trum of needs can be critical for organizations, as the pace of change is only expected to accelerate.

Managers and HR leaders can start by:

• Unleashing networks of teams. Con­sider leveraging start-up thinking and breaking down functional silos by building organizational ecosystems through focused, autonomous, and less hierarchical teams that may more quickly incubate targeted and cross-functional outcomes.

• Rethinking your hierarchy. As organi­zational networks replace traditional hier­archies, consider revisiting the meaning of “career” and what it takes to develop one by exploring multi-role, flexible career paths rooted in ongoing learning. This can be particularly applicable for parts of the or­ganization engaged in exploring innovative mobility opportunities.

• Developing digital leaders. Risk-taking seems to have become one of the most im­portant drivers of high-performing lead­ership cultures, and leaders not learning new digital skills are six times more likely to leave their organization within the next year. That can make it somewhat criti­cal to develop bold leaders who are com­fortable with new tools and management approaches across digital mediums and virtual platforms.

• Pulsing your people. Consider using internal crowdsourcing and hackathons to collect ideas for how to organize and ap­proach performance management, engage­ment, and rewards to build a compelling employee experience.

• Creating a culture of real-time measurement. Consider investing in ap­plications that provide real-time metrics on engagement, recruiting, and turnover to help your organization make informed and in-the-moment talent decisions.

• Recognizing learning is everyone’s job. Learning has become an imperative that must be embedded seamlessly in each part of the organization. Through formal and informal knowledge sharing, consider creating a learning culture to foster an environment in which employees want to continue their development journey.

This is a challenging and exciting time for au­tomakers, as the next generation of talent has the opportunity to reshape an industry defined by iconic global brands. It seems to be time for the auto industry to break with the past, apply grit and dedication, and start a new chapter for the future autoworker.

Trucking

There is perhaps no other industry that the future of mobility could more visibly and dramatically affect than the extended transportation sector. Since the 1980s, the trucking industry has experienced a high degree of voluntary turnover, much of it attrib­uted to low wages, an aging workforce, and the deleterious health effects associated with long-haul driving. Absent significant changes to its business model and talent pool, it can be difficult to see how the trucking industry could attract enough new drivers to meet rising demand.

The advent of autonomous vehicle (AV) tech­nology could improve or eliminate many of these labor issues. Much of the impact will depend on whether future vehicles are only partially autonomous, employing driver-assist technologies, or truly driverless, with no need or expectation that a human will be in the cabin.

Further in the future and as AV technology could begin to penetrate the trucking indus­try, fully autonomous systems may allow the “driver” to be completely absent from the truck, perhaps instead providing remote oversight over several trucks from a central operations center, or in the lead vehicle in a platoon of trucks but focused on planning and logistics while in motion. Duties that require human intervention—such as client relationship man­agement, equipment management, route plan­ning, and cargo management—could gain new importance.

The pace at which the industry adopts AV tech­nologies will likely depend heavily on levels of investment, changes in regulations, and the emergence of supporting infrastructure that would allow the trucking industry to see tan­gible benefits. That said, the industry likely needs to begin preparing its workforce today. To address a world of partially autonomous vehicles, truck­ing companies should consider:

• What are the economics of incorporating autonomous systems into their fleets? De­pending on the distance and complexity of a carrier’s routes, its predominant type of freight, and the nature of its labor chal­lenges, investing in partially autonomous vehicles may not make sense. We expect the technology’s biggest payoffs to come from reduced driver fatigue, fewer accidents, and improved fuel economy (via platooning) during long-haul trips.

• Will this influence the owner-operator labor model and affect contract terms and con­ditions, including the heavy debt burden that independent contractors traditionally incur? In the short term, partially autono­mous vehicles may allow owner-operators to drive farther and longer.

• For large carriers, what is the most effec­tive way to train a widely dispersed pool of drivers on new technologies? Companies should consider various e-learning options as a starting point, or look to capitalize on natural workforce turnover to bring aboard those familiar with the latest systems.

• Will this impact the compensation model so that trucking companies can increase what they pay employees? If new licensing or technical competencies are required to operate partially autonomous trucks, labor costs could rise.

Over the longer run, as fully autonomous sys­tems may begin to replace drivers altogether, carriers would need to radically reshape their labor forces. Key questions to consider:

• How can employers attract the high-skill, highly educated workforce that would be required to maintain, operate, and oversee a fleet of self-driving trucks?

• What becomes of owner-operators? With­out the need for a driver, the viability of the business model for small owner-operators— and the trucking companies that rely on them to haul freight—could be in doubt.

• How will organizational structures adapt? If erstwhile drivers assume dispatch or opera­tions roles, they could affect companies’ as­set mix and geographic footprint, potential­ly requiring new operations hubs to house them—or even a shift to a virtual workforce. 

Eldercare

Consider the eldercare sec­tor, where the future of mobility could also have a profound impact on the way seniors choose to live. Traditionally, a critical turning point for seniors has been the day they lose their driver’s license. This equates to a loss of personal inde­pendence that many seniors dread. The result­ing dependence on loved ones to shuttle them to social events, shopping excursions, or doc­tor’s appointments has a significant impact on many seniors’ sense of self, sense of autonomy, and sense of happiness. This transition to “de­pendent mobility” often leads seniors and their families to make the move to assisted-care liv­ing. Yet the vast majority of seniors say they would prefer to stay in their own homes.

With the advent of convenient and cost-effec­tive ridesharing services, seniors now have the ability to stay in their homes despite the loss of personal driving abilities. With easy-to-use apps, a no-hassle ride experience, and the abil­ity of family members to schedule rides for their loved ones from anywhere, today’s ride-hailing providers have improved upon many of the challenges seniors have long faced in uti­lizing traditional taxis.

In parallel, new ways of bringing products to seniors’ front doors with speed and con­venience often eliminate the need to drive to the store or pharmacy. Mobility solutions that more easily bring goods and services to home-bound seniors are likely to increase in demand, and jobs involved in maintaining and operat­ing these types of delivery services could grow.

How might this dynamic impact the work­force? Beyond the potential boon to rideshar­ing providers and the increase in demand for home delivery services, there might also be a corresponding rise in de­mand for home-based care for seniors who do not need constant attention, yet would benefit from occasional help. These roles exist today but in limited numbers, as fixed, institutional roles dominate.

As another result of slackening demand for residential senior care, we may see tradition­al nursing care and integrated care facilities reconfiguring their services to try to attract seniors who may not need to move to an as­sisted-care facility but who could be attracted by a more connected community experience, increased social activities, or other character­istics that these facilities can offer. Residential care facilities may choose to team with mobility services to bring seniors to their facilities on a daily basis. This may open up new or expanded job opportunities as these operators could seek to expand on the “customer experience.” These facility operators could add or expand roles in marketing, sales, promotion, community rela­tions, communications, digital outreach, or di­recting social programs.

Ultimately, like many other sectors, eldercare is poised for disruption as a result of dramatic changes in personal mobility: New jobs could emerge, and many current jobs will likely shift or change their focus or manner of delivery. For eldercare, the opportunities for employment growth are already there, given current demographics, and the shortage of la­bor in this space. So the impact is potentially a win-win, resulting in either a better-enabled eldercare workforce with more opportunity to choose a workstyle that fits their preferences, or an increase in job opportunities in the elder­care sector as new business models offer differ­ent and expanded types of jobs.

Making the future of mobility work

History shows that new technologies often lead to increases in workforce participation for impacted sectors. Fa­mously, since the introduction of ATMs in the late 1970s, the number of bank tellers and bank branch employees has actually increased—but the nature of the work and the tasks they per­form have changed. The real challenge for workers may lie not in being replaced by a ma­chine but, rather, in how to reskill to work side-by-side with the new tools and capabilities that advanced technologies bring.

The labor implications of the new mobility eco­system could be profound, and this article only scratches the surface. Deloitte plans to contin­ue exploring the myriad ways that the future of work and the future of mobility might intersect to shape tomorrow’s workforce.

Related Articles:

• 【FoM Report Series】Securing the future of mobility
  

• 【FoM Report Series】Future of mobility: What’s next? —Strategy
  

• 【FoM Report Series】Future of mobility: What’s next? —Opportunity

• 【FoM Report Series】Future mobility to reshape workforce-Trends

  
  

For enquiries, please contact:

Nickie Wang

Auto Industry Program Senior Manager
Email: [email protected]

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