“How can you identify the limits when you're aiming to enhance efficiency through digitalisation, automation, and other advanced technologies within a company—without alarming staff or undermining their talents? In other words, how much efficiency can one afford to sacrifice in favour of the ‘human factor’?”
Our expert, Dr Mathias Bauer, Managing Director of Blue Advisory GmbH, responds:
This is undoubtedly a very relevant question that more employees and companies are addressing nowadays (and must continue to address).
Recognising the limits where implementing digitalisation, automation, and other advanced tools might intimidate employees or hinder their abilities requires a comprehensive review of the processes involved and a look at the company's culture.
Employee readiness for change is crucial to the success of digital transformation processes. However, if changes are too rapid or too extensive, they can cause uncertainty and resistance. It's vital to manage the change process gradually and transparently, ensuring early and thorough employee involvement.
Any review should at least consider the necessary level of human interaction, as some industries or roles depend heavily on personal interaction. It's also important to assess potential impacts on health and safety (think autonomous robots in hazardous environments). Furthermore, potential effects on job security and the possible consequences for affected employees require careful consideration.
When it comes to determining how much efficiency should be compromised for the sake of the ‘human factor’, there is no one-size-fits-all answer. However, it is crucial for companies to strike a balance between efficiency and safeguarding and supporting their employees. A collaborative approach, where employee concerns and perspectives are factored into decision-making, can be beneficial here.
Enhancing Efficiency through Digitalisation: Approach for Employee Involvement and Corporate Culture Adjustment
To start addressing the efficiency issue, I would first conduct a thorough analysis of the current business processes and systems to identify opportunities for digitalisation, automation, and other technologies. This includes accounting for the impact on employees and their skills.
As previously mentioned, it's crucial during the implementation of these technologies that the company involves its employees early on to consider their concerns and views. This can be done through workshops.
When identifying limits, it is also important to consider the company's culture. For instance, if a company has a long-standing tradition and strong attachment to existing work processes and systems, this might lead to resistance to change. In such cases, it’s vital to develop a gradual and transparent change strategy that includes employees.
Finding Balance: Cost-Benefit Analysis and Collaborative Approach to Optimise Efficiency and Employee Satisfaction
Regarding how much efficiency should be compromised for the ‘human factor’, I would recommend performing a careful cost-benefit analysis to assess the impact of technologies on employees and the company overall. A collaborative approach with employees can help strike a balanced approach between efficiency and employee satisfaction and successfully implement technologies.
(Source: B4B-Schwaben)
