FUTURE OF WORK. Consumer Technology Association (CTA) 2018 Survey

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1 FUTURE OF WORK Consumer Technology Association (CTA) 2018 Survey

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3 EXECUTIVE SUMMARY For the second year, the Consumer Technology Association (CTA) surveyed tech industry leaders on current and future workforce issues. The survey was completed by 293 business leaders who identify as part of CTA membership or CES attendees. The results show that tech companies, both large and small, need more employees with technical skills and need to be able to anticipate challenges in finding and retaining qualified people over the next five years. Therefore, companies are focusing on strategically recruiting and retaining for a skilled workforce. FUTURE OF WORK CTA 2018 Survey Job Skill Requirements Almost all respondents (92 percent) say they will need more employees with technical skills. Ease of Finding Skilled Candidates Roughly three-quarters of respondents (74 percent) say it is difficult to find candidates with the right skills and abilities. Of the tech skills listed, most respondents believe software development (59 percent), data analytics (53 percent), engineering (49 percent), and AI/machine learning (46 percent) are in high demand at their company. Recruitment Efforts The top three tools and strategies used by respondent companies to recruit new talent are internships (58 percent), advertising on social media (56 percent), and online job portals (54 percent). Training and Development Programs The majority of respondents say the top training and development programs their companies currently offer include conference and event opportunities (69 percent), and internal training classes (58 percent). Displaced/Current Workers About one-third (37 percent) of respondents anticipate their company will displace workers due to technological advances such computer software applications, artificial intelligence, and/or robotics in the next five years. Of those, more than half (52 percent) plan to reskill and retain workers at the company. On the other hand, about half (48 percent) of respondents do not anticipate displacing workers due to technological advances. 1

4 JOB SKILL REQUIREMENTS Almost all respondents say they will need more employees with technical skills (92 percent). Most agree they will hire more employees to work remotely (66 percent), and will conduct more job interviews remotely (64 percent) within the next five years. Four out of five respondents in the tech industry do not believe their full-time workforce will decrease over the next five years. What is your level of agreement with the below statements pertaining to future job skills requirements at your business within the next five years? (n=232) Job Skill Requirements within the Next Five Years Strongly Agree & Agree [% NET] We will need more employees with technical skills. 92 We will conduct more job interviews remotely (e.g., video chat or phone conference). 66 We will hire more employees to work remotely. 64 We will hire more employees to work onsite. 63 We will automate certain job functions to remain competitive. 60 We will hire more part-time or contract workers. 50 We will shift more work outside the U.S. if we can t hire the employees we need here. 38 We will seek to hire more foreign-born workers who have higher technical job skills. 27 We will hire more employees who live in rural areas. 23 Our full-time workforce will be smaller. 21 2

5 AUTOMATED JOB FUNCTIONS Six in ten (60 percent) say most or some job functions will be automated in the next five years, while 10 percent of respondents say no job functions will be automated. Of the types of jobs listed to respondents, more than half anticipate back office operations will be automated in the next five years. What types of jobs do you anticipate being automated in the next five years? Select all that apply.(n=193) % of Respondents Back office operations 52 How much will job functions at your business become automated in the next five years? (n=227) % of Respondents ANY [NET] 88 MOST/SOME [SUBNET] 60 Most 5 Some 55 Very few 28 No functions will be automated 10 Don t know/refused 2 Warehouse operations 42 Customer Relationship Management (CRM) 41 Manufacturing 37 Customer support 36 Accounting 34 Operating machinery 32 Human resources (i.e., vetting candidates and resumes) 23 Preparing fast food 15 Truck driving 14 Mortgage origination 13 Paralegal work 11 Other (specify) 11 None of the above 4 3

6 EASE OF FINDING SKILLED CANDIDATES Three-quarters of respondents (74 percent) say it is difficult to find candidates with the right skills and abilities today, and only 7 percent believe it will become easier to fill positions with qualified candidates in the next five years. Of the tech skills listed, most respondents believe software development (59 percent), data analytics (53percent), engineering (49 percent), and AI/ machine learning (46 percent) are in high demand at their company. What tech skills, if any, do you believe are in high demand at your company? Select all that apply. (n=219) % of Respondents Software development 59 Data analytics 53 Engineering 49 Artificial intelligence/ machine learning 46 Systems architecture 36 Cloud computing 35 Cybersecurity 33 Computer networking 26 Accounting/financial services 18 Automation (i.e., Advanced Manufacturing Technician) 14 Machine/equipment repair services 11 Machine/equipment operators (i.e., Drone Operators) 9 Administrative/secretarial jobs 8 Other (specify) 16 None of the above 3 How do you expect finding qualified candidates to fill positions at your company will change in the next five years? (n=219) % of Respondents It will become easier 7 Stay the same 27 It will become more difficult 59 Don t know/refused 6 Thinking about your current business requirements, finding candidates with the right skills and abilities today is: (n=220) % of Respondents EASY [NET] 9 Easy 1 Somewhat easy 8 Neither easy nor difficult 16 DIFFICULT [NET] 74 Somewhat difficult 39 Difficult 35 Don t know/refused 1 4

7 RECRUITMENT EFFORTS The top three tools and strategies used by respondent companies to recruit new talent are internships (58 percent), advertising on social media (56 percent), and online job portals (54 percent). Other practices include working with professional associations as well as in-person recruiting referrals, word of mouth and networking events. What hiring practices are you using to find qualified candidates? Select all that apply. (n=218) % of Respondents Internships 58 Advertising on social media (i.e., LinkedIn) 56 Using online job portals (i.e., Indeed, Zip Recruiter, Monster.com) 54 Working with professional associations 35 On campus recruiting with universities and community colleges 34 Hosting or participating in job fairs 28 Apprenticeships 22 Train-to-hire programs 20 Hiring more veterans 18 Sponsor STEM learning opportunities in K-12 years 17 Working with vocational schools 15 Co-create curriculum with four year universities 11 Co-create curriculum with community colleges 9 Co-create curriculum with technical schools 9 Working with labor unions 1 Other (specify) 11 None of the above 4 5

8 NON-SALARY BENEFIT IMPORTANCE Respondents believe that traditional non-salary benefits such as health insurance (91 percent), incentive compensation or bonuses (88 percent), paid time off (87 percent), and flexible work arrangements (86 percent) will be the most important benefits in retaining employees over the next five years. Additionally, technical and high-skills training (80 percent), retirement plans (78 percent) and professional development programs to hone soft skills (74 percent) are mentioned as being important among respondents. How important will each of the following non-salary benefits be in retaining employees at your company in the next five years? (n=213) Very Important & Important [% NET] Health insurance (e.g., dental, vision) 91 Very Important & Important [% NET] Professional development programs to hone soft skills 74 Incentive compensation (bonuses) 88 Wellness programs (e.g., gym membership, weight management programs) 46 Paid time off (PTO) (e.g., vacation time, sick leave) 87 Stock options 45 Flexible work arrangements (e.g., scheduling, working remotely) 86 Tuition reimbursement 44 Technical and high-skills training 80 Transportation subsidies 29 Retirement plans (e.g., 401k) 78 Charitable gift matching 20 CONTRACTED & PART-TIME EMPLOYEES Three-quarters of respondents surveyed (75 percent) say their company employs workers on a contractual basis. Slightly less than half (46 percent) do not think they will replace full-time positions with part-time or contract positions within the next five years. However, approximately three-in-ten (31 percent) say this will depend on government policy and business conditions. Does the company you work for now employ workers on a contractual basis? (n=213) % of Respondents Yes 75 No 23 Don t know/refused 2 Do you think more of your company s full-time positions will be replaced with part-time or contract positions in the next five years? (n=213) % of Respondents Yes 18 No 46 It depends on government policy/business conditions 31 Don t know/refused 6 6

9 TRAINING AND DEVELOPMENT PROGRAMS Regardless of company size, a majority of respondents say the top training and development programs their companies currently offer include conference and event opportunities (69 percent) and internal training classes (58 percent). Of the 44 percent who said their companies offer external training classes, respondents (n = 62) commonly mentioned that the external classes are job specific; have subject matter geared for management, leadership, negotiation and technical skills; may consist of online courses or guest speakers; and are often industry sponsored or affiliated. Of the 34 percent who said their company offers certification programs, respondents (n = 40) commonly mentioned that the certification programs are job specific, are intended for specific platforms (i.e., Google, Facebook, Microsoft, Lean, etc.), and costs are often reimbursable by the employer. What types of training and professional development programs does your company currently offer to prepare new employees and retain experienced workers? (Select all that apply.) (n=210) % of Respondents Conferences and events 69 Internal training classes 58 Mentor programs 45 External training classes 44 Executive coaching 40 Certification programs 34 Tuition reimbursement for higher education 28 Working with vocational and trade schools 10 Other (specify) 2 None of the above 10 Don t know/refused 2 DISPLACED/CURRENT WORKERS About one-third (37 percent) anticipate their company will displace workers due to technological advances such as computer software applications, artificial intelligence, and/or robotics in the next five years. Of those, more than half (52 percent) plan to reskill and retain workers at the company, slightly less than half (47 percent) will offer severance packages and roughly one-third (31 percent) will offer external job placement strategies. Do you anticipate that your company will displace workers due to technological advances such as computer software applications, artificial intelligence, and/or robotics in the next five years? (n=209) % of Respondents Yes 37 No 48 Don t know/refused 15 What actions, if any, does your company currently take when workers are displaced or have lost jobs due to advancements in technology? Select all that apply. (n=77) % of Respondents Yes Reskill and retain workers at the company 52 Offer severance package (i.e., lump-sum settlement, monthly payments, etc.) 47 Offer external job placement services 31 Other (specify) 4 None of the above 16 7

10 STAFF DEDICATED TO WORKFORCE Slightly less than half of respondents (46 percent) indicate that their company has dedicated staff in the area of talent acquisition. One in five (21 percent) companies has a dedicated staff person responsible for upskilling current workers. EMERGING CORPORATE LEADERSHIP (N = 193) Fifty-four percent of companies we surveyed had an emerging corporate leadership team dedicated to one or more of the following focus areas: innovation diversity and inclusion workforce development data privacy education future of work In which of the following areas, if any, does your company have dedicated staff person(s) responsible to help identify, hire and retain high skilled workers? Select all that apply. (n=196) % of Respondents Talent acquisition 46 Workforce development 24 Upskilling current workers 21 Veteran hiring 8 Other (specify) 4 None of the above 40 METHODOLOGY CTA s Future of Work study conducted in two waves, May 21, 2018 through June 11, 2018 and July 9, 2018 through July 24, 2018 aimed to gain knowledge about tech industry leaders views on jobs and hiring issues for their respective companies. Of the survey respondents, 69 percent comprised of smaller companies with fewer than 100 full-time U.S. workers. 8

11 CASE STUDY IBM s P-TECH Schools Offer a New Way into the Tech Workforce for America s Youth According to CTA s Future of Work survey, 27 percent of companies actively offer, sponsor or directly support STEM learning in high schools. IBM is growing this number with a six-year program that bridges the gap between high school and college to help students earn a degree that prepares them especially well for jobs in the 21st century economy. Developed with the New York City Department of Education and The City University of New York, IBM s Pathways in Technology Early College High (P-TECH) schools aims to reform the public school system by addressing poverty and our nation s skills gaps. The first school launched in 2011 in Brooklyn with a cohort of primarily low-income black or Latino students. It achieved a 53 percent graduation rate more than four times the U.S. average for all community college students (13 percent) at the time. P-TECH schools span from ninth grade to two years after high school, enabling students to graduate with a high school diploma and an industry-recognized associates degree in STEM fields. The students can also participate in mentorships and paid internships. Particularly significant: Not one P-TECH student has taken a remedial education course by contrast, roughly half of students entering community colleges take at least one non-credit bearing remedial course. Graduates are prepared with the skills required to continue their education at traditional four-year institutions or be first in line for the tech job of their choice. Since 2011, the model has expanded to 110 schools across eight U.S. states - Colorado, Connecticut, Illinois, Louisiana, Maryland, New York, Rhode Island and Texas as well as Australia, Morocco and Taiwan. To date, more than 185 students have graduated from P-TECH schools. IBM is working with state policymakers and educators and investing $5 billion over the next 10 years to grow its apprenticeship and retraining programs to replicate the P-TECH model on a state-by-state basis. For students such as Radcliffe Saddler, four-year degrees are not economically feasible. Only nine percent of students in the lowest income quartile complete a bachelor s degree. Saddler, however, graduated from P-TECH Brooklyn in 2015, earning both a high school diploma and associaties degree in four years. 9

12 CASE STUDY AT&T s Culture of Continuous Learning With 37 percent of respondents anticipating their company will displace workers because of technological change, CTA s survey results can present a challenging outlook. However, companies such as AT&T are looking ahead for ways to reskill their current workforce and retain top talent. AT&T is committed to reskilling its 250,000-person strong workforce as part of a $1 billion effort that includes online courses and collaborations with universities to prepare workers for new jobs and career advancement. AT&T s internal research revealed that about half of its workers did not have the technical skills to keep up with AT&T s new digital services. Rather than seek new talent, AT&T launched a significant effort, now known as Future Ready, to engage and reskill employees and to inspire a culture of continuous learning. As part of the effort, the company collaborated with online learning platform Udacity in 2014 to create a series nanodegree credentials in areas including web development, data analysis and programming. Three years later, Fortune said the company s Future Ready initiative may be the most ambitious retraining program in corporate American history. Internal applicants for management jobs in AT&T s Technology and Operations group who have completed this training are now more than twice as likely to obtain a new job within the company. In fact, as of 2018, almost 60 percent of its management employees enrolled in reskilling programs provided or subsidized by the company. In 2018 alone, almost half of AT&T s tech job openings were filled by re-skilled employees. Before joining AT&T as a senior data scientist, Melissa Lee cared for her family as a stay-at-home mom. After 11 years out of the workforce, Lee went back to school to pursue a bachelor s degree in mathematics, followed by a master s degree in statistics. In July 2018, Lee completed a degree in Udacity s artificial intelligence nanodegree program with help from AT&T s tuition reimbursement program. We all tell our kids, You can do or be anything you want if you work hard. So, early on, one of the biggest reasons why I worked so hard for this career, and in this career, has been to actively show my kids that statement is absolutely true, said Lee. 10

13 CASE STUDY Amazon Web Services Apprenticeship Taps into Underserved Veteran Talent The U.S. military has one of largest, most highly-talented, talent pools in the world, yet many veterans face difficulties finding quality jobs after leaving the service. Twenty-two percent of companies use apprenticeships to recruit new talent, while only 18 percent say they seek out veterans, according to CTA s Future of Work survey. Amazon Web Services (AWS) new Veteran Technical Apprenticeship program aims to clear the roadblocks veterans face transitioning from the field to an office, tapping into their military experience to nurture skills for a new career in tech. As a part of Amazon s larger plan to hire over 25,000 veterans for high-skilled jobs in tech by 2021, AWS is investing more than $7 million in apprenticeship trainings for 10,000 service members. The apprenticeships located in Atlanta; Austin, TX; Chicago; Dallas; Herndon, VA; Portland, OR; and Seattle primarily focus on cloud computing and IT support using the AWS Educate certification program. Veterans train full time for eight to 24 weeks, depending on the technical skills they re learning. Afterward, veterans can earn up to a one year worth of paid, hands-on experience alongside AWS cloud computing experts and the opportunity to join the team full-time. In spring 2017, Amazon announced it hired 17,500 veterans 70 percent of its 2021 goal. In the fall 2018, five veterans graduated the inaugural apprenticeship class in Seattle. The AWS program currently has over 150 veterans participating in its apprenticeships nationwide. United States Marine Corps veteran Torian Crane trained in cloud computing at AWS s Herndon, Virginia, location. She says the AWS apprenticeship allowed her to bridge the gap between the knowledge I had gained in the military and the real-world experience I would need to grow in the field. 11

14 ABOUT CONSUMER TECHNOLOGY ASSOCIATION: Consumer Technology Association (CTA) is the trade association representing the $377 billion U.S. consumer technology industry, which supports more than 15 million U.S. jobs. More than 2,200 companies - 80 percent are small businesses and startups; others are among the world s best known brands - enjoy the benefits of CTA membership including policy advocacy, market research, technical education, industry promotion, standards development and the fostering of business and strategic relationships. CTA also owns and produces CES - the world s gathering place for all who thrive on the business of consumer technologies. Profits from CES are reinvested into CTA s industry services. This document is copyrighted by the Consumer Technology Association (CTA) and may not be reproduced, in whole or part, without written permission. Federal copyright law prohibits unauthorized reproduction of this document by any means. Requests to reproduce text, data, charts, figures or other material should be made to CTA. Requests should be made to cta@cta.tech or by calling or Any general questions should be directed to research@cta.tech. 12

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