Web <2020> Exhibit <2> of <5> Exhibit 2 Automation will have a significant impact on skill requirements Automation will have a significant impact on skill requirements. Skill shift in US and Western Europe by category, % of time spent asic €iger Social and ysical and manual cogniti­e cogniti­e emotional ecnological 01 48 12 17 12 12 –„% –1„% …†% …‚‚% …‡ˆ% 0‚0 35 10 21 16 1 100% Note: Figures may not sum to 100%, because of rounding. Source: McKinsey Global nstitute analysis to address emerging skill gaps (Exhibit 3). Across required for the digital era, and 80 percent say industries, our latest survey data indicate that these at least half of all new roles should be filled by problems persist today. reskilling existing workers. That question reveals some important geographical differences, however. Among European respondents, 94 percent think The central role of reskilling that the balance between hiring and reskilling would Companies can use several different approaches be either equal or tipped in favor of reskilling, but to address skill gaps. They can look outside the the equivalent figure is only 62 percent among US organization, hiring new staff with the right skills. executives. That may reflect differences in local They can build skills internally, retraining their employment cultures and legal provisions. existing workforces to prepare people for new roles. Or they can take a hybrid approach, including using a To make good on their large-scale reskilling skilled contract workforce to fulfil short-term needs aspirations, most organizations will need to while developing the necessary skills internally. significantly ramp up their employee training and capability-building efforts. A number of Most organizations are likely to adopt a mix of those large organizations have already begun to do so. models. They may look to the external market to fill Global retailer Walmart, for example, is investing certain specialized, highly technical roles such as $4 billion over four years to help staff in frontline data scientists, while aiming to fill new frontline roles, and back-office jobs transition to new customer- such as robot controllers and production-exception service-oriented roles. E-commerce giant Amazon handlers, from their existing workforces. We believe has pledged to spend $700 million on technology that ongoing shifts in societal attitudes will increase training by 2025 to help employees move to the expectation that companies do more to retain higher-skill jobs. Professional-services company and retrain their current workers wherever possible. ManpowerGroup has entered a partnership with education company Pearson and others to upskill Executives in our survey are broadly united in the 130,000 workers over the next five years. view that their organizations have a significant role to play in the skill transition. Two-thirds of It may take several years for these global reskilling respondents think that corporations should take programs to pay back, but they are visible and the lead in the development of the new skills important investments. Some companies are Building the vital skills for the future of work in operations 69