The way the world works has undergone tremendous changes, disruptions and innovations throughout the ages. At present, we have entered the fourth industrial revolution or industry 4.0, characterised by the integration of advanced technologies such as artificial intelligence, automation, and the Internet of things. These technologies are creating new job roles requiring specific skill sets. In this era, companies must adapt and evolve their talent acquisition strategies to attract, retain, and develop the right talent. This article explores the impact of the Fourth Industrial Revolution on India, with a special focus on talent acquisition, and highlights the key changes that HR teams need to make to stay competitive in this new environment.
What Is Industry 4.0 Of Cyber-physical Systems?
SAP clearly defines Industry 4.0 as ‘revolutionising automation, monitoring, and analysis of supply chains through smart technology’. It is specified by integration of cyber-physical systems, such as the Internet of systems, which include artificial intelligence, automation, cybersecurity, and robotics, into industrial processes. This integration is expected to revolutionise manufacturing, increase productivity, and drive economic growth.
A McKinsey global survey found that 70 per cent of manufacturing companies employ Industry 4.0 technologies, and the same study says the new revolution will create US$3.7 trillion in value by 2025. To leverage the power of Industry 4.0 in your business practices, organisations need to invest in and master the tools driving the new industrial era.
Technology is now driven by greater automation and data analytics and information. The manufacturing and service sectors are now greatly dependent on integrating the internet and cyber-physical systems.
India Embraces Fourth Industrial Revolution
Industry 4.0 has become a priority for an overwhelming majority of global businesses in the past few years. Like many other countries worldwide, India is amidst a transformational shift towards Industry 4.0. It has always been at the forefront of adaption of new technologies and is well-positioned to take advantage of the new revolution. The country has a large pool of skilled workers, a rapidly growing economy, and a thriving startup ecosystem. In recent years, the Indian government has also launched several initiatives to support the development of Industry 4.0, such as the Smart Cities Mission, the Digital India program, and the Atmanirbhar Bharat campaign. It is a leader in fintech and digital adoption.
A study by Research And Markets estimates that the Indian Augmented Reality and Virtual Reality market stood at US$ 1.83 billion in FY2020 and is forecast to grow at a CAGR of 38 per cent until FY2027. Experts at NASSCOM expect India to witness an eight-fold growth of US$16 billion by 2025 in data analytics from the current level of US$2 billion. This means it can capture more than one-fourth (32 per cent) of the global analytics market by 2025.
Digital twin technology is an area of focus for India. Here, a highly complex virtual model or twin of physical objects and processes is created. Digital twin technology in HR will help refine processes and workflows between different HR departments. Training plans, role designs and future requirements can be gauged and developed based on the data generated.
According to the Financial Express, the government wants to promote additive manufacturing in the country. Additive manufacturing, also known as 3D printing, is a part of the wider disruption that IR4.0 is bound to bring about in industry and manufacturing roles with its integration into related technologies like virtual reality, AI and robotics. New roles and business models will be thrown up requiring upskilling and leadership to understand the implications.
India aims to capture 5 per cent of the total global market share in 3D printing. The government estimates that this will add nearly US$1 billion to the national GDP by 2025.
Talent Matters In 4IR
The fourth industrial revolution significantly impacts talent acquisition and HR practices. Here are some ways the fourth industrial revolution is changing the talent landscape:
- Specialised technical skills such as data analysis, programming, and AI: HR teams need to keep up with the changing job landscape and identify the specific skill sets required to operate in the new tech-driven environment.
- Changes in recruitment methods: Traditional recruitment methods may need to be revised to attract candidates with the required skills. To reach potential candidates, talent acquisition teams need to use more innovative approaches, such as social media, job portals, and digital marketing.
- Remote work and flexible schedules: The post-pandemic era has shown the importance of remote work. Add to that the Great resignation and the difficulty in retaining talent. HR teams need to adopt flexible policies that allow employees to work from anywhere and at any time while maintaining productivity and communication.
- Focus on employee experience: Companies need to improve employee experience by creating a work environment that fosters innovation and creativity. This can be done by offering professional development opportunities, personalised benefits, and a positive culture.
- Upskilling and reskilling: The fast-paced nature of technological advancements means that skills become obsolete quickly. HR teams need to focus on reskilling and upskilling employees to ensure they have the skills necessary to operate in the new tech-driven environment.
Organisations need to be invested in employee capabilities to drive large-scale changes in their digital operations.
Catalyst Of Growth Or A Hurdle?
There are fears that the Industry 4.0 revolution will shrink job opportunities. A World Economic Forum report says that 50 per cent of companies believe that by 2022, automation will decrease their numbers of full-time staff, and by 2030, robots will replace nearly 800 million workers.
This is a knee-jerk reaction. Industry 4.0 is known to improve efficiency and profitability on scale by almost 90 per cent. There is improved knowledge sharing and collaboration. Additionally, it aids in improved decision-making based on all the data and analytics available. Operation costs go down due to the efficient use of resources and automation.
Both employers and employees have to rethink their roles in this disruptive environment. Changing job roles, upskilling, and the recent recession-related job losses are a reality across the world, and India is no exception.
Work from home is not a passing phenomenon. Flexible roles and work schedules, wider access to virtual talent, contract employees with dual jobs where moonlighting is no longer unethical are some of the present realities. Performance management systems will need to get more sophisticated beyond hours clocked to gauge employee value. HR will have to take a lead in creating new business enterprise models using the latest tech that fit the new environment and demands.
