The Great Asian Talent Transition: Big Dreams for the Digital Future

In Philip K Dick’s seminal dystopian sci-fi novel Do Androids Dream of Electric Sheep?—the source material for the Bladerunner films—robots and humans are virtually indistinguishable. While the answer to the titular question for our current reality is no (and not for a long time), it’s hard not to be astounded by today’s pace of digitalization and automation, which has only been catalyzed by the COVID-19 pandemic.

It’s likely that that the use of automation technology to minimize physical movement and interaction will continue to pick up steam in the next 18 to 24 months. However, Asia’s diverse demographic and economic mix means that changes will not be uniform everywhere. That said, even for a country like Malaysia, where automation is not expected to be as prevalent, about 60 percent of jobs will have at least some aspects that will be automated.

Widespread automation will inevitably displace jobs even as it creates new ones. According to the McKinsey Global Institute, 78 million workers across China, India, and Japan will have to adapt to the proliferation of automation technologies, advanced data analytics, and other forms of AI-driven innovation. Repetitive, manual tasks and functions requiring only basic cognitive skills such as data input and processing are most at risk of becoming obsolete. As anyone who has ever lost a job would know, the experience can be quite traumatic.

Meanwhile, the skills that will be most important going forward are those that are not easily replaced. These include technology skills, basic computer and digital skills, advanced cognitive skills, quantitative and statistical skills, and problem-solving skills. Asia is a leader on this front; three quarters of all STEM graduates hail from the region. Interpersonal skills will also become more critical. For instance, as self-service kiosks become more commonplace in banks, a bank teller’s role may evolve to helping customers troubleshoot problems, doing some cross-selling, or cultivating client relationships.

Thus, it’s imperative that reskilling becomes an integral part of future planning, an endeavor that requires collaboration and coordination from multiple levels: governments, companies, and individuals.

The Future of Upskilling

Governments in Asia are already thinking beyond offsetting job losses and looking at the transition as a way to generate new jobs. The two main areas to pay attention to are communications infrastructure and inclusive and accessible education. Having comprehensive low-cost, high-speed internet would help create an inclusive digital environment where most of the population can contribute productively. Governments are also introducing initiatives that help workers transition to new roles. Malaysia’s MyDigital blueprint could help around three to four million workers find new jobs, while Singapore’s SkillsFuture program helps workers acquire new skills.

Companies, too, could take on more responsibility to upskill their employees to help them adapt to technological advances and rely less on external hires. The prize is greater agility, productivity and empowerment of the workforce.

When evaluating whether a candidate is fit for a role, employers can avoid the trap of basing their decision on traditional degrees or limiting themselves to time- and cost-intensive ways of education. Instead, they could approach reskilling in an agile way, leveraging digital technologies to offer workers specific programs.

Business leaders may want to focus on employee groups such as women, new joiners, and those with fewer formal qualifications, who may be hidden drivers of value. Women, for instance, have been disproportionately disadvantaged by the COVID-19 pandemic, even though they have the potential to make significant positive impact. Take Indonesia, as an example. A disproportionate number of women are spearheading the micro-, small- and medium-enterprise segment in country’s tech landscape.

Likewise, companies could pay more attention to lower-skilled functions, such as delivery jobs which have grown in prominence with the rapid rise of e-commerce. Companies could investigate ways to equip this segment with the professional qualifications needed to perform these jobs well and, making sure that credentials are recognized as workers move from job to job.

Learning to Learn

Finally, employees and workers have to recognize that they’re due for a mindset shift when it comes to their careers. Research reveals that millennials change jobs more than four times in the first decade of their careers—more than double the rate of their parents’ generation. Another seismic change is on the horizon: employees today will have to fundamentally overhaul their skill set several times for each job they hold to keep pace with changing requirements. The ultimate skill that will gird an employee for success? The ability to learn to learn.

All this can seem daunting, but similar shifts in history have led to positive outcomes. Workers have been empowered to become more productive, do less repetitive work, and ultimately earn more. There’s no reason to believe this isn’t still the case. Until androids are able to dream of electric sheep, automation enables humans to add greater value in their work, derive more fulfilment in what they do, and, yes, dream bigger.

This article is based on a discussion between McKinsey senior partner Oliver Tonby, Anu Magdavkar, a partner at the McKinsey Global Institute, and Li-Kai Chen, McKinsey’s managing partner in Malaysia.