We now drive computers on wheels.
Software and electronics are expected to make up to 30 percent of a vehicle’s total costs by 2030, increasing employment opportunities for high tech engineers.
In contrast, manufacturing is automating the standard mechanical parts of building motor vehicles, making many engineering abilities redundant.
Policies and tariffs are dynamic. The supply chain is in flux. And the skills required in the industry are evolving so fast that companies are struggling to upskill their current workers quickly enough.
These factors build an exciting but uncertain automotive future that sometimes leaves employees feeling like they’re driving without a destination in the sat nav.
To help talent acquisition and management in the automotive industry, we brought together a panel of automotive workforce transformation experts to discuss the rapid upheaval of skill needs in the automotive industry and the bold choices that companies will have to make to stay in pole position.
Here are their top predictions and urgent calls to action.
4 emerging automotive trends and their impact on talent
Change brings uncertainty, a messy middle, and huge opportunity.
Clement des Robert, CHRO of GBH Group, said, “In our companies, one of the big duties we have is to reorganise and to address those mega trends. But at the same time, to reassure and engage the workforce. All this is creating a very huge challenge.”
Here are the four trends you need to keep in mind, and their impact on the workforce, as you plan your workforce and lead your employees through the messy middle of the sector’s evolution.
Trend #1: Electrification, digitisation, and AI
Between the electrification of vehicles, the rise of automation in transport and manufacturing, and the use of AI, there’s been an explosive demand for highly technical software engineers.
But digitisation also covers the way cars are marketed and sold, with digital showrooms being the norm, alongside physical showrooms.
Plus, AI is also used to run predictive maintenance and diagnostic models to reduce downtime and repair costs. It’s also streamlining production lines, improving efficiency, and reducing human error.
This dramatically increases the need for high-skilled technical roles. But this comes at the cost of a lot of blue-collar jobs.
Digitisation brings a swathe of regulations that the automotive industry needs to navigate, from the NHTSA Whistleblower Program to the data protection acts like GDPR, FTC Oversight, and CCPA.
Automotive companies need to invest in data analysts and compliance managers to stay on top of the shifting legal demands and business opportunities around the data they are collecting on their customers, production lines, and the Internet of Things (IoT).
Trend #2: Environmental pressures
Governments are pressuring the automative industry to cut emissions and deliver vehicles that adhere to set limits. The Euro 7 standard and American CAFE standards are driving innovation and adoption of highly technical EVs, but are increasing vehicle costs as manufacturers invest in new technologies to comply.
The impact on talent includes hiring legal oversight to stay vigilant across the legislations that have enormous financial implications. Practically, companies need to invest in sustainability and circular economy specialists who can innovate and create green solutions. Plus, there’s a need for soft skills that smooth collaborations across teams and between competitor companies to broker shared CO2 deals in Emission Pools.
Trend #3: Transport is a solution, not a product
The rise in vehicle costs and changing attitudes to vehicle ownership are impacting consumer desires and automotive sales approaches.
Vehicles are now seen as a solution, not a product. So, they’re increasingly used on a rental, sharing, or subscription basis rather than purchased (referred to Mobility-as-a-Solution – MaaS). This has opened doors to disruptors in the market addressing new transportation needs and desires in the younger demographics, with the vehicle product less central to the sale, and more focus on the digital platform and services offered through it.
This emerging, digitally managed transportation model opens opportunities for developers who can build apps and systems to support the new model. Plus, sales teams will need to adapt to selling a service, rather than a product, for this adaption to be successful.
Trend #4: Supply chain volatility and reshoring
When global supply chains are the norm, and even single projects are conducted by teams spread across the world, cross-cultural communication is becoming an increasingly in-demand skill.
In addition, the supply chains are so impacted by geopolitical tensions and tariffs that automakers are strategically shifting their manufacturing to their home countries, or nearby – reshoring and nearshoring.
Commenting on the geopolitical landscape, des Robert said, “The environment is becoming even more uncertain and volatile. We recently saw a lot of debates on the tariffs between Mexico and US. We massively invested as an industry in Mexico in the past years, relocating a lot of activities to Mexico. If we cannot transport all those items from Mexico to the US, that’s going to be a big issue.”
Reshoring offers some resilience to the global fluctuations and enables companies to take advantage of government local manufacturing incentives and shorter supply chains to reduce carbon footprints and shipping costs.
However, this causes huge job displacement in the countries they are leaving and new opportunities in the home countries. However, the jobs lost and the roles created are very different. This can leave those who have become unemployed unable to find new jobs as they haven’t been upskilled or reskilled for redeployment outside of the automotive company.
Strategic workforce planning demands transparency with employees
The messy middle of the industry’s evolution makes it hard to be strategic and even harder to plan how to adapt. But you need to be transparent about your vision and strategy with your workforce to bring them with you and help them understand their need to keep learning and adapting to stay useful.
Anne Donou, Regional Director at von Rundstedt, said of offering transparency to workers, “[Tell them] where is the company going? What is going to be the business model? Really explain in their own language or they don’t get the sense of urgency to reskill themselves and not wait until the company’s reskilling them.”
How to steer your automotive workforce and the critical skills to cultivate
Donou said, “The ideal would be to be able to work without jobs, work without title, and work only with competencies and transfer them from one position to another one. But it’s huge work and it’s not that easy because it also requires a complete change in the entire chain of the company.”
Given that’s not realistic, automotive companies need to make bold choices in talent management and recruitment to stay relevant. You cannot do everything, so pick your goals carefully and commit.
Upskill, reskill, and prepare for redeployment
des Robert observed, “As a manager in the automotive industry today, if you don’t manage to convince your people that they have to work on their own competencies because this is their own future, you’re missing the point.”
Georg Scheiber, Partner and Director at von Rundstedt, said, “We already saw here in Germany that some bigger, tier one suppliers invested heavily [in upskilling]. Their traditional engineers, who were working on combustion engine technology, were upskilled to be great in also developing parts for the electric vehicle.”
However, a key issue is that the industry is evolving in some areas faster than the companies can reskill their workers. This lays the responsibility of proactive training and talent acquisition planning on the companies.
Dean Jamson, Coach and Leadership Facilitator at 10Eighty, said, “They’re already looking at: what are the skills that are on the rise that we need, and how can we provide our workforce with those things? How can we be transparent about what our vision looks like – how we’re going to go forward? How can we help the people that are already within our organisation develop high levels of creative thinking and technological literacy?”
If you can’t upskill your employees fast enough, you need to be proactively preparing them for redeployment outside of the company. If you’re transparent about the vision and strategy of the company, this will be gratefully received by most employees.
Talent acquisition for the future: soft skills and technical talent
The skills and knowledge you will be looking for in new hires will be significantly different to what you have been recruiting for up until recently.
Soft skills
We need to place a higher value on soft skills as teams collaborate globally and will need to adapt to changing roles as the industry evolves. Look for, and train up, employees with increased resilience and the ability to be agile and flexible. This includes the adaptation to “co-intelligence” – working with AI as a coworker.
Jamson added, “Curiosity and lifelong learning is one of the skills that is on the rise and needs to continue to be on the rise for the individuals within the workforce so they don’t feel like they’re being left behind.”
Technical talent
As our cars morph into computers on wheels, there will be a new reliance on high-skilled technical workers. Look for:
- Software engineers and AI specialists with expertise in machine learning, AI, and embedded systems.
- Battery and energy storage experts with in-depth knowledge of EV battery chemistry, solid-state technology, and energy efficiency.
- Cybersecurity analysts who will work to protect connected and autonomous vehicles from hacking threats.
- Data scientists and analysts who will enhance the performance, safety, and user experience of automotives through clever use of data.
- Connected vehicle and IoT specialists who can develop vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication.
- Digital twin and simulation experts to optimise design, manufacturing, and maintenance with AI-powered simulations.
- Sustainability and circular economy specialists to innovate in recyclable materials, carbon neutrality, and sustainable sourcing.
- EV infrastructure and charging network engineers to expand and optimise charging networks for the business.
- Talent development and change management specialists to reskill employees and adapt them to the rapid transformation of the automotive industry.
Be the sat nav to your workforce
Your strategy and destination need clarification and to be communicated with all your employees regularly, so they have a sense of direction in this rapidly evolving industry.
Jamson summarised, “[You need to provide] high level of clarification of: this is where we are now; this is who we are. So that when you’re showing: this is where we want to be; this is where we are now; and how we’re going to get there; you’ve got really good clarification of the gap you’re trying to bridge. Otherwise, it’s like trying to start off in the car with the sat nav but not telling it the destination.”
Then you can rapidly put in place the upskilling and reskilling programs needed alongside a clear recruitment strategy to hire the new talent required to keep your automotive company relevant.