Josh Bersin Company Research Finds Outdated HR Practices Threaten EV Transformation

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Sep 24, 2024, 09:00 ET

U.S. carmakers are pushing hard to meet Federal targets of 50% zero emission cars and trucks for sale inside 6 years
Sector capitalizes on record-high investments in automation and robotics to drive transition
Outdated hiring and HR practices pose risk to the biggest operational changes this $2.7 trillion industry has ever seen

OAKLAND, Calif., Sept. 24, 2024 /PRNewswire/ -- The Josh Bersin Company, the world's leading human capital advisory firm, today unveils research that exposes the real impact of the automotive industry's significant shift toward the transition to zero-emission.

To meet President Biden's 2021 Executive Order, which mandates at least 50% of all new American vehicles sold by 2030 be zero-emission, the automotive manufacturing industry requires a complete overhaul of manufacturing processes, supply chains, and partnership ecosystems.

Car makers must now adapt to building "computers on wheels," emphasizing digital design and assembly. This shift demands sweeping changes in how vehicles are designed, manufactured, used, sold, and regulated. Brands like Tesla, Rivian, and Lucid, with ambitious all-electric plans, are navigating the transition effectively, and outperforming rivals. But not all automotive manufacturers are at the same level of EV readiness.

Outdated HR and hiring practices threaten the industry at large, particularly due to a shortage of critical digital skills—the most significant gap the advisory group has so far seen in any vertical. The Josh Bersin Company warns that transitioning to an EV (electric vehicle) future requires a better approach to sourcing the skills needed. These findings come from a new study by The Josh Bersin Company, Automotive Manufacturing: Navigating the EV Metamorphosis, leveraging Eightfold.ai talent intelligence data.

The study revealed that declining roles such as technicians, mechanics, and mechanical engineers still dominate the workforce in terms of skills mix and job title. As a result, many manufacturers remain dependent on complex and manual technical processes, slowing down their EV transformation. In the meantime, they face workforce shortages on all fronts: U.S. carmakers now have 187,000 job openings, followed by Germany with 63,000, and the U.K. with 15,000.

This gap underscores the critical need for key roles like Product Managers, Robotics and DevOps Engineers, Data Scientists, and Cybersecurity Analysts—positions crucial for managing the connected vehicle experience, ensuring cybersecurity, and driving data-led strategies.

The encouraging news is that leading automotive companies are leveraging their advanced skills in technology, digital transformation, and electric vehicles to propel the shift to zero emissions. They are also utilizing cutting-edge tools, such as talent intelligence in HR, and developing clear career pathways that align employee competencies with future business needs.

This reskilling extends beyond back-office tech roles, like transitioning AutoCAD experts to CAE (Computer-Aided Engineering). Traditional front-line roles are also evolving, with sales associates being guided into new positions within direct-to-consumer (D2C) models, while still maintaining a customer-centric focus.

By expanding R&D capabilities and focusing on customer satisfaction, most progressive automotive companies are beginning to position themselves at the forefront of the EV revolution, setting new benchmarks for the industry. To succeed, they are prioritizing "systemic HR" solutions to foster the vast array of EV skills required for future growth. To become "systemic," automotive manufacturers are advised to establish cross-functional talent intelligence centers of excellence (COEs) that integrate people analytics, talent management, leadership development, and other HR functions to forecast and develop the skills needed for the future.

CHROs must also prioritize critical talent challenges, particularly in tech and EV-specific areas, and allocate resources to address them. Leveraging AI-powered talent intelligence tools will be key to analyzing roles, identifying skill gaps, and benchmarking in real-time against industry standards, ensuring that strategies remain data-driven and responsive to ongoing changes.

These conclusions come from a new Josh Bersin Company study of what car manufacturers are doing to smooth the path to electrification of transport via EVs (electric vehicles), Automotive Manufacturing: Navigating the EV Metamorphosis. It's the latest study in The Josh Bersin Company's on-going Global Workforce Intelligence (GWI) Project, which leverages more than 1.5 billion worker profiles and billions of associated data points collected by Talent Intelligence platforms analyzed and contextualized by Josh Bersin Company researchers and analysts.

Stella Ioannidou, industry analyst and Senior Research Director at The Josh Bersin Company, says:

"Some organizations in this sector were already operating at peak efficiency on their production lines, making it easier for them to quickly embrace new technologies. Even before the shift to EVs, many organizations in this sector had fully automated their manufacturing plants and were extensively utilizing industrial robots.

"As a result, they are fully justified in identifying as tech companies, having integrated advanced robotics, automation, and Artificial Intelligence into their core competencies. They are now capable of predicting not only what's happening within the car but also in its surrounding environment.

"These 'pacesetters' are also market leaders in creating a truly connected in-car driving experience. They are developing a new business model that is not only direct-to-consumer but also enables customers to specify exactly how they want their vehicles customized before having them delivered directly to their homes."

Josh Bersin, global industry analyst and CEO of The Josh Bersin Company, says:

"The auto industry's HR practices are well behind other fast-changing industries. New disciplines like skills-based hiring, internal academies, flexible work, and retention programs are needed. Many of these companies are trying to hire their way into the future, but they're relying on outdated recruitment tactics.

"As we've learned in other industries, EV transition is not just a problem of acquiring the specific skills needed; these companies need to transform their people practices to improve internal development, agile work models, skills-based talent mobility, and cross-industry sharing.

"Remember also that many of the new digital, electronics, and EV power skills are in high demand among other industries, forcing auto makers to modernize HR as they modernize their vehicles."

About the Global Workforce Intelligence Project

Automotive Manufacturing: Navigating the EV Metamorphosis is the latest in The Global Workforce Intelligence (GWI) Project. This initiative combines talent intelligence from The Josh Bersin Company, Eightfold AI, Lightcast, and Draup to provide HR leaders with real-time data and insights to tackle major talent challenges across various industries.

Previous reports have covered sectors such as Finance and Banking, Consumer Banking, CPG (Consumer Packaged Goods), and Healthcare.

For more on the GWI program, go here.

About The Josh Bersin Company
The most trusted human capital advisors in the world. More than a million HR and business leaders rely on us to help them overcome their greatest people challenges. Thanks to our understanding of workplace issues, informed by the largest, and most up-to-date data sets on workers and employees, we give leaders the confidence to make decisions in line with the latest thinking and evidence about work and the workplace. We're great listeners, too. There's no one like us, who understands this area so comprehensively and without bias.

We help CHROs and CEOs be better at delivering their business goals. We do that by helping you to manage people better. We are enablers at our core. We provide strategic advice and counsel supported by in-depth research, thought leadership, and unrivaled professional development, community, and networking opportunities.

We empower our clients to run their businesses better. And we empower the market by identifying results-driven practices that make work better for every person on the planet.

For more information, visit www.joshbersin.com or email [email protected].

About Eightfold AI
Eightfold AI's market-leading Talent Intelligence Platform™ helps organizations retain top performers, upskill and reskill their workforce, recruit talent efficiently, and reach diversity goals. Eightfold's patented deep learning artificial intelligence platform is available in more than 155 countries and 24 languages, enabling cutting-edge enterprises to transform their talent into a competitive advantage. For more information, visit www.eightfold.ai.

SOURCE The Josh Bersin Company