The Workforce in Relation to Information Communication Technology

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1		Jong-chang Ahn	--	2674	2023-08-28 15:49:45	\|
2	only format change	Alfred Zheng	Meta information modification	2674	2023-08-29 04:31:38	\|

This entry is adapted from the peer-reviewed paper 10.3390/su151612338

Innovative technologies automation affects human labor or job positions, the development and consolidation of ICT, and advancements in artificial intelligence, robotic technology, and so forth. Adopting new technology, such as AI, causes skill shortages and skill mismatches among individuals in firms. Robots reduced global employment in the relevant sectors by five percent between 2005 and 2014. Depending on the degree of technological development, the impact on the labor market is different.

employability information communication technology importance item satisfaction item general skills technical skills

1. Introduction

The fourth industrial revolution (4IR) ^[1] and digital transformation (DT) ^[2]^[3] have been frequently discussed terms used since 2016 to analyze the influence of information technology (IT) or information communication technology (ICT) on employment. Most discussions involve unimaginable change and significant ripple effects in the future because of innovative technologies, automation, and their impact on human labor or job positions due to the development and consolidation of ICT and advancements in artificial intelligence, robotic technology, and so forth ^[4]^[5]^[6]. Adopting new technology, such as AI, causes skill shortages and skill mismatches among individuals in firms ^[7]. Carbonero et al. argued that robots reduced global employment in the relevant sectors by five percent between 2005 and 2014 ^[8]. Depending on the degree of technological development, the impact on the labor market is different. Webb measured the effects of AI exposure on occupational groups with various skills, arguing, "Whereas low-skill occupations are most exposed to robots, and middle-skill occupations are most exposed to software, it is high-skill occupations that are most exposed to artificial intelligence." ^[9].

Employment is based on the balance between the demand and supply of labor ^[10]. Employers and workers benefit from the bargain created through an improved job match ^[11]. Employment is a relationship between two parties regulating paid labor services. Usually, based on a contract, the employer, a corporation, a not-for-profit organization, a cooperative, or any other entity pays the employee in return for executing the assigned work ^[12]. Renewed emphasis on employability assumes a more significant role for markets to operate in skills and competence development. It implies a switch in focus from a demand-side approach to a supply-side approach in labor market policy ^[13].

2. The Workforce of Information Communication Technology

2.1. Automation and Job Problem

The 4IR and DT have been the predominant discussion points in the industrial sector, academic area, and governmental scope ^[14]^[15]. Automation and job problems have been discussed amid these processes, and several alternatives to these problems have been presented ^[16]^[17]. The main discussions include threats from robots to human job positions ^[4]^[5] and the possibility of replacing low-wage/skilled or simple jobs with automation. Researchers have focused on the possibility of changing tasks and enhancing efficiency by reducing the number of positions within organizations, reducing costs as essential indicators, and increasing wage and education levels.

There is a controversial discussion regarding the correlation between technology–jobs and technology–tasks and relationships between technology and employment. The 4IR has caused large-scale discussions regarding changes to employment structure due to technological innovation (computerization). There are some assumptions regarding the effects of technological innovation on employment. Computerization has led to a 47% decrease in US occupational employment with routine tasks ^[18]. This is associated with declining relative industrial demands for everyday manual and cognitive tasks and an increased relative demand for non-routine cognitive tasks ^[19]. Frey and Osborne ^[18] assume that technology automates whole occupations rather than single-job tasks. This might lead to an overestimation of job automation ^[20].

Latham and Humberd ^[21] noted that the previous studies and public discourse on automation did not consider risk level according to job type. They posited that a threat level for each automated job depends on what value is created by the job and how to provide it. These factors relate to two questions: (1) Can the job's core competence be substituted easily (the degree of threat to core competence)? (2) How many changes are there in the delivery method of the value of a job (the degree of threat to value type)? They coded 50 job types according to each one's value type and the competence utilized during the process. They presented a framework to determine the extent of the automation threat to each job. The study indicated four progressive directions for jobs: disrupted, displaced, deconstructed, and durable. They found that the value of jobs is the best predictor of job changes among various factors. For instance, the odds of a plumber losing their job are lower than those of a lawyer losing theirs, and this result is different from prior predictions ^[4]^[5]. The researchers stated that the acquisition of new technology or lifelong (continuing) education for all people because of the possibility of job threat owing to automation was not recommended ^[21].

Another prediction is that automation affects job positions depending on method ^[16]^[17]. However, Latham and Humberd ^[21] focused on jobs' "value creation" function and presented another interpretation of the factors that provoke change. Their research can contribute by responding to unpredictable changes in workforce demands irrespective of laborers' industry/job types, and people must pay attention to what type of workers can switch to other paths over time.

Reportedly, this is the first study that has used ranks of importance and satisfaction items in relation to ICT personnel's skills based on the perception of previous studies.

2.2. Employability Concept

It is difficult to define "employability" explicitly. If an ability is essential, competence suitable for employment can be justified. If a worker's virtue is considered necessary, employment suitability is possible. If used as an index/indicator, it can be expressed as the degree of employment suitability. All definitions of employability come down to an individual's (perceived) ability to obtain and maintain employment throughout their career ^[22]. This study defines employability as the "ability to be employed." Employability results from interactions related to work, which are carried out comprehensively by the user's requirement condition and supplier's qualifications. Although the definition of employability has been discussed since 1990, various researchers or institutions have provided different purposes.

The human resources development concept dictionary of the Korean Society for Learning and Performance (KSLP) defines employability as the possibility of being employed. The KSLP defined and explained employability as follows ^[23]: "The possibility or potential to be employed through practice and development. As the personnel supplied by the market are more than those needed by a business or public institution, unemployment has become a social issue. Therefore, not only individuals but also those at a national level are interested in the potential employability of competent personnel. In addition, during 1980–1990, employability was transferred from a temporary worker to a regular worker under businesses' structural downsizing environment. Individual employability emerged as an important issue. Factors that increase an individual's employability include a personal qualification (including knowledge, skills, attitude), the ability to market the self, to express the self, and to utilize personal qualification suitably."

The Confederation of British Industry ^[24] defines employability as "A set of attributes, skills, and knowledge that all labor market participants should possess to ensure they can be effective in the workplace–to the benefit of themselves, their employer, and the wider economy." This definition entails several composite abilities, such as self-management, teamwork, the perception of the business and customer, problem-solving, communication, repair, and utilizing IT.

Hillage and Pollard ^[25] defined employability as "having the competency to get the first job in life, the competency to preserve the job, and the competency to find a new job as needed." Individuals' assets, denoted by K (knowledge), S (skills), and A (attitudes), include the way individuals utilize these assets and how efficiently they express them to employers, and crucially, the context for this in work for their employers to see. Hillage and Pollard defined employability as de facto equated with gaining and retaining a fulfilling career.

Fugate et al. ^[26] added the new direction of "pro-active adaptability" to employability, including career identity, personal adaptability, and social and human capital. An asset can be classified as a "baseline asset" (essential unique attribute and fundamental skill of trust), "intermediate asset" (general or core skill including job-specific skills, communication, problem-solving ability, and core personal attributes of initiative and motivation), and "high-level asset" (skill to help support an organization's productivity such as teamwork, self-management, and commercial perception). Each asset's importance depends on the person or group's relationship with the labor market ^[27].

Although the literature presents various definitions of employability, the core concept is related to the capacity of individuals (including students) to obtain a job. Most explicit and implicit purposes constitute a part or many parts of core elaborate or cross concepts ^[28]. This concept incorporates a type of job, timing, recruitment attributes, further learning, and employment-related skills (sometimes specified as a critical skill). Even if an advanced education system accepts a measurement of employability, it is vital to evaluate its impact. Various factors can reasonably contribute to employability irrespective of the opportunities provided for learners in a university's curriculum. Harvey ^[27] presented nine factors: the type of higher education institution, academic (learning) type (the problem considering part-time undergraduates), students' place and mobility, academic subject, former job experience, age, ethnic group, gender, and social class. Considering these factors, there is explicit contrary evidence for assuming employers' recruitment is rational. This study intends to use Harvey's definition of employability ^[27].

It is not easy to find a proxy variable to investigate the causality of a social phenomenon, such as the measurement of employability, because a job seeker's simple attributes do not determine employment. A job provider's requirements are determined organically according to multidimensional criteria under changing employment conditions according to the state of a period or economic environment.

A job seeker can either find a job (employment) after graduation or select a higher level of school or a practical institution's practice to acquire enhanced competency. Employability is attained as a development opportunity by a higher level of school, and employment after graduation is transferred to a complex process required by the demand side (employer). It is described as an alternative and more complex model; however, the model's application possibility is reversed by recruiters' irrational activities for graduates. This renders any employability indicator based on the proportion of graduates obtaining a job ineffective.

Even if job seekers have competitiveness in software engineering, they need further abilities relating to team tasks to maintain their competitiveness in the labor market. Technical communication is among those abilities because team tasks are experienced the most in the workplace. In practice, specialized laborers are involved in discussion/communication at a proportion of approximately 30% and in conducting team tasks more than 50% of the time. If they have technical ability, then technical communication and leadership are the factors that distinguish them from others ^[29].

2.3. Previous Research Related to Employability

Marks and Huzzard ^[13] discussed the context and nature of employability in the Scottish ICT sector. They examined employees' experiences in four Scottish technology firms, explored the roles of both entry-level and on-the-job employability, and contrasted the employability requirements of employers with the employability needs of employees. They concluded that there was a considerable gap between policy-level rhetoric on employability and day-to-day work practices, as there was limited progress in technology and skills in the ICT sector ^[13]. Andrews and Higson analyzed the graduate and employer perspectives on graduate employability in four European countries (UK, Austria, Slovenia, and Romania) ^[28]. The Australian government's initiative to enhance graduate employability shed light on the relationships between university language programs, state policy, and local communities. In October 2020, the Australian Parliament passed legislation known as the Job-Ready Graduates Package, and one of the aims of the legislation was to produce "job-ready" graduates who met the needs of employers and the future workforce in response to the economic imperatives brought about by the COVID-19 pandemic ^[30].

Kim et al. ^[31] derived the result of future skill forecasting (study of national skills outlook) utilizing the job's fundamental ability (Table 1). This result was extracted using the Delphi survey and quantitative forecasting methods to predict the future. People can refer to the essential fundamental abilities required in the service industry from the research.

Table 1. Degree of the future importance of the manufacturing and service industry.

Category	Fundamental Job Ability	Degree of Future Importance	Category	Fundamental Job Ability	Degree of Future Importance
Manufacturing	Problem-solving	62.1	Service	Problem-solving	60.2
	Community Ethics	59.7		Community Ethics	57.2
	Technology (application)	58.0		Technology (application)	49.5
	Technology (understanding)	54.3		Technology (understanding)	48.5
	Teamwork	50.1		Teamwork	48.5

The standard generic abilities required in manufacturing and service were presented as problem-solving, community ethics, and teamwork. Specifically, the right people in the future labor market can be described as workers with ethical consciousness capable of problem-solving based on collaboration. Owing to the demand for more such requisite skills in the future, a generic skill involving the capability to learn and cooperate rather than a specific skill is preferred ^[24].

Harvey ^[27] explored an alternative approach based on an audit of employability development in the system and described a methodological risk. Harvey ^[27] stated that the employability audit indicates the process and when/how this process can be improved rather than a simple output measurement. The audit process provided feedback regarding institutions in Wales, which promoted enhancements and provided an indicator for enhancement/improvement as a goal. It has a significance that an output measurement of the employment rate cannot bring about.

Employability evaluation should focus on internal improvement rather than ranking institutions (universities). A list of achievements of the employment rate does not provide any guidelines for employment improvement. Benchmarking based on comparing institutions can mislead and be counterproductive. The evaluation of employability distinctly needs to focus on improvement. In addition, such an evaluation can be conducted with internal and longitudinal benchmarking by comparing and evaluating the results over time (employment of graduates) of input and process (an effort to develop employability opportunities) ^[32].

Zaharim et al.'s ^[33] study provided a background of employers' interests and focused on a potential engineer's employability when affected by a significant increase in unemployment among Malaysian engineering graduates. The study intended to answer the following questions: (1) What workplace skills and abilities are required? (2) How do the government and higher education overcome these requests? Zaharim et al. ^[33] investigated the engineering skills needed for new engineers in four countries: Malaysia, Japan, Singapore, and Hong Kong. Additionally, the study presented a list comprising requisite skills and compared similarities and differences. Zaharim et al. ^[33] concluded that engineering graduates should acquire and maintain generic communication, problem-solving, and interpersonal skills. The employers of the four countries agreed that excellent communication skills were more important than problem-solving abilities and interpersonal skills. The abovementioned skills are more critical than most hard skills. Moreover, IT, lifetime learning, and self-management skills were considered. Table 2 shows the skills required for a new engineer to succeed. In Hong Kong, possessing English and Chinese skills is essential; therefore, it differs from other countries. It can be comprehended as a phenomenon related to regional/economic characteristics of an intermediate/transit trade.

Table 2. Employability skills of engineering workforce ordered by employers in Malaysia, Japan, Singapore, and Hong Kong.

No.	Malaysia	Japan	Singapore	Hong Kong
1	Communication effectively	Communication skills	Workplace literacy and numeracy	Work attitude
2	Competent in application and practice	Problem-solving skills	Information communication technology	Interpersonal Skills
3	Interpersonal or team working skills	Goal-setting skills	Problem-solving and Decision making	Analytical and problem-solving skills
4	Engineering problem-solving and decision-making skills	Personal presentation skills	Initiative and enterprise	English language proficiency
5	Apply knowledge of science and engineering principles	Visioning skills	Communication and relationship management	Numerical competency
6	Competent in a specific engineering discipline	IT and computer skills	Lifelong learning	Information technology literacy
7	Understand professional, social, and ethical responsibilities	Leadership skills	Global mindset	Management skills
8	Lifelong learning	Self-assessment skills	Self-management	Chinese language proficiency
9	Engineering system approach		Workplace-related life skills
10	Knowledge of contemporary issues		Health and workplace safety

Saad et al. ^[34] used a 13-item scale to measure engineering employability skills via a questionnaire. The study was based on a survey of employers related to students of engineering and ICT in Malaysia. It explored employers' perceptions regarding requisite employability skills for technology-related students and the student's degree of satisfaction with their employability. Among the required skills for students, problem-solving, ability to handle tools, and presentation skills were perceived as more essential for employees. The study presented the rank of importance or satisfaction based on each item's average and standard deviation. Saad et al.'s ^[34] study provides a limited explanation because there needs to be a gap analysis of the degree of importance and satisfaction.

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