The Josh Bersin Company, a leading human capital advisory firm, has released new research highlighting the automotive industry’s critical transition toward zero-emission vehicles. In light of President Biden’s 2021 Executive Order mandating that at least 50% of all new American vehicles sold by 2030 be zero-emission, automotive manufacturers must overhaul their manufacturing processes, supply chains, and partnership ecosystems.
Key Findings from the Research
The shift toward building “computers on wheels” necessitates substantial changes in vehicle design, manufacturing, usage, sales, and regulation. Brands like Tesla, Rivian, and Lucid are effectively navigating this transition and outperforming competitors, yet many manufacturers lag in EV readiness.
The Skills Gap
Outdated HR and hiring practices pose a significant threat to the industry, primarily due to a critical shortage of digital skills—identified as the most substantial gap across any sector. The report, titled Automotive Manufacturing: Navigating the EV Metamorphosis, highlights the need for a more strategic approach to sourcing essential skills. Leveraging Eightfold.ai talent intelligence data, the study reveals a workforce dominated by declining roles such as technicians, mechanics, and mechanical engineers. This reliance on outdated skill sets hinders manufacturers’ ability to adapt to the EV landscape, with U.S. carmakers currently facing 187,000 job openings, followed by Germany with 63,000 and the U.K. with 15,000.
Critical Roles in Demand
To thrive in the EV market, manufacturers must prioritize roles such as Product Managers, Robotics and DevOps Engineers, Data Scientists, and Cybersecurity Analysts. These positions are crucial for managing connected vehicle experiences, ensuring cybersecurity, and driving data-led strategies.
Positive Developments in the Automotive Sector
Despite the challenges, leading automotive companies are leveraging advanced skills in technology, digital transformation, and electric vehicles to facilitate the shift to zero emissions. They are employing cutting-edge HR tools, such as talent intelligence, and developing clear career pathways that align employee competencies with future business needs.
Reskilling Initiatives
Reskilling initiatives are not limited to back-office tech roles. For example, traditional front-line roles are evolving as sales associates transition into new positions within direct-to-consumer (D2C) models, all while maintaining a customer-centric approach. By enhancing R&D capabilities and focusing on customer satisfaction, progressive automotive companies are positioning themselves at the forefront of the EV revolution.
The Role of Systemic HR Solutions
To succeed, automotive manufacturers must prioritize “systemic HR” solutions to cultivate the wide array of EV skills required for future growth. Establishing cross-functional talent intelligence centers of excellence (COEs) that integrate people analytics, talent management, leadership development, and other HR functions is essential for forecasting and developing the skills needed in the future.
Prioritizing Talent Challenges
CHROs must focus on critical talent challenges, particularly in tech and EV-specific areas, and allocate resources effectively. Utilizing AI-powered talent intelligence tools will be pivotal in analyzing roles, identifying skill gaps, and benchmarking against industry standards, ensuring strategies remain data-driven and adaptable to ongoing changes.
Expert Insights
Stella Ioannidou, an industry analyst and Senior Research Director at The Josh Bersin Company, emphasizes that organizations operating at peak efficiency can more readily adopt new technologies. Many have already automated their manufacturing plants and extensively utilized industrial robots, justifying their identity as tech companies.
Josh Bersin, global industry analyst and CEO of The Josh Bersin Company, warns that the automotive industry’s HR practices lag behind those of other rapidly evolving sectors. He stresses the necessity for new disciplines like skills-based hiring, internal academies, flexible work arrangements, and retention programs. Automakers must modernize their HR practices to effectively respond to the high demand for digital, electronics, and EV power skills across industries.
As the automotive industry accelerates toward electrification, addressing talent gaps and embracing innovative HR practices will be paramount for success. The insights provided by The Josh Bersin Company’s latest study will be invaluable for organizations navigating this transformative period.
