Status Of Reimagined Digital Transformation 2022

Executive Summary

Though the concept of digital transformation (DX) had been around for years, most organizations had only just begun digitizing their processes and experimenting with advanced automation when the COVID-19 pandemic hit in March 2022. In response to the upheaval created by this global crisis, organizations started to invest in digital technologies like never before.

According to KPMG, enterprises spent an extra $15 billion USD per week on technology to enable remote working.

Furthermore, technology adoption is only expected to increase over the decade.A research report created by Markets and Markets asserts that the digital transformation market will grow at a compound annual growth rate of 19.1%, from $521.5 billion in 2021 to $127.5 billion in 2026. Market intelligence firm IDC predicts that AI technology will be inserted into the processes and products of at least 90% of new enterprise apps by 2025. Last but not least, the global RPA market is expected to grow at a compound annual growth rate of 38.2% from 2022 to 2030 to reach USD 30.85 billion by 2030.

Despite these grand proclamations, there is one thing holding innovation back: a lack of qualified, skilled talent DX talent. Since 2016, the number of technology and science jobs in the United States has exceeded the number of qualified workers by millions. However, the events of the past two years have magnified this already worrisome trend.

In a survey conducted by Gartner , IT executives see the talent shortage as the most significant adoption barrier to 64% of emerging technologies surpassing implementation cost (29%) and security risk (7%). An eye-opening report released by Korn Ferry predicts that by 2030 there will be a global shortage of more than 85 million tech workers, representing $8.5 trillion in lost annual revenue.

As powerful as robotics process automation (RPA) and intelligent automation (IA) are at driving DX objectives, one of their drawbacks is the expertise required to successfully implement and scale these technologies. In addition to possessing robust programming skills, IA and RPA developers must also be experts in business process mapping/design, systems integration, data analytics, cyber security and so much more.

So, with this in mind, we at the Intelligent Automation Network (IAN) surveyed 200+ digital transformation leaders to find out how they are not only navigating the existing tech talent shortage but preparing for the challenges ahead. What we found is that, for many organizations, challenging times have served as a catalyst for change. However, there is still much work to be done.

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The State Of DX Talent In 2022

Despite the rapid adoption of digital technology, on average, digital transformation, RPA and intelligent automation teams have remained small and, all too often, under-resourced. A notable 59% of respondents stated that their teams included less than 10 people while 16% said their teams were larger than 150 people.

However, given the increasingly pivotal role digital technology and advanced automation play in driving business success, it’s unlikely that these teams will stay small for long. In fact, 65% of respondents said they expected their DX team to grow over the next year. Only a mere 2% stated they expected their teams to decrease in size.

How many IA, RPA and digital transformation workers does your organization currently employ?

Do you expect your budget for hiring, training and engaging IA, RPA and digital transformation talent will increase over the next year?

Do you expect this number to increase or decrease over the next year?

What is your annual budget for hiring, training and engaging talent?

Talent Shortage Deep Dive

Despite the optimism, the fact remains that our respondents reported significant skills gaps across all 16 IA, RPA and DX roles we inquired about with 13% selecting “all of the above.”

The specific areas where the talent shortage is most acute were Intelligent automation (30%) and RPA (29%) developers followed by RPA solution architect (28%).

Furthermore, it looks like these talent gaps are expected to grow going forward. When asked, where do you expect the talent gap to grow to increase the most over the next 5 years, 31% selected intelligent automation architect, 25% selected RPA solution architect and 23% chose RPA development.

In addition, while 24% of our respondents stated they were not currently experiencing a talent shortage, less than half that percentage (11%) said they did not expect talent shortages over the next five years.

In what area is your organization currently experiencing a talent shortage? Where do you expect the talent shortage to increase over the next five years?

While 67% of our respondents said that closing the RPA and IA talent gap is a strategic priority, where does one start? For many organizations, the struggle begins in the first stages of the stage of the employee lifecycle, the talent acquisition process. When asked to select the top 3 tech talent-related challenges they were facing, at 62%, finding people with the right technical skills was by far the most popular choice. The second biggest challenge? Finding people with adequate domain or industry knowledge (41%).

Is closing the RPA/IA talent gap a priority for your organization?

We’re not breaking any news here when we say that the modern recruitment process is, for lack of a better term, broken and, according to a recent SHRM study, 75% of HR leaders agree. Sadly, though many organizations have successfully reimagined and modernized many aspects of the employee experience, the recruitment process has been woefully neglected.

Time and time again, application tracking systems (ATS) have proven to be unreliable gatekeepers for sourcing new talent. While many recruiters invest the bulk of their time searching LinkedIn and Stack Overflow for passive candidates, this approach has proven to be highly inefficient and ineffective. In fact, only 11% of positions are filled with “individually targeted people” (i.e., passive candidates).

Increasingly, hiring organizations are embracing new, innovative ways of identifying, assessing and acquiring new tech talent. As you’ll see later on in this report, 22% of our respondents have developed relationships with universities to ensure they engage with potential new hires before they enter the workforce. In addition, 33% said they were investing in upskilling non-tech talent, a sometimes challenging but rewarding (both financially and culturally) endeavour.

Pamela Mattsson, SVP People and Organizational Development at Outreach (a sales engagement platform), advises, “find talent that not only “meets” your hiring requirements but ‘broadens’ them. We are innovating and sometimes innovation calls for very different thinking and ways of working. We are open to people who may have a unique technical background, or who come from a different company than the larger ones who may have similar ways of working.”

She also emphasizes the need for organizations to continuously revaluate their interview process and train hiring managers to do the same. As she explained, “Make sure you review the interview structure and the questions being asked so they are relevant and inclusive. Work with hiring managers to ensure that they know that if they have a brain, they have bias, and ways to question their own assumptions and interrupt that bias.

We also have to understand that the landscape has changed - it’s a candidate market at the moment. It’s a good reminder to show the value of the company, share what the candidate will learn, and what they can teach those around them as equally as they are selling themselves.

ALSO READ: 5 steps to building a scalable, economical and secure hybrid cloud strategy

Everyone (recruiter or hiring manager) is at their present company for a reason - right now is a good time to get very clear with the ‘why’ and be able to articulate that to candidates. Don’t fall back on what you’ve learned or done in the past - keep innovating and look for culture adds. We want people who are curious and have deep technical talent and have adjusted our interviewing practices to find the signals for those things, we look for potential over pedigree.”

However, while focusing on hiring external candidates for tech roles may be a viable option for large organizations and tech companies flushed with cash, except in certain situations, it’s not a viable strategy for most organizations. As the cost of replacing an individual employee can range from 50% to 2X the employee’s annual salary, by and large most organizations are far better off nurturing and upskilling existing tech talent.

What are the top 3 challenges you face when it comes to successfully recruiting, training, and retaining appropriately educated and skilled employees?

Turnover Rates

Unless you’ve been hiding under a rock this past year (and, honestly, who could blame you if you did), chances are you’re already well familiar with “great resignation.” Long story short, more people are quitting their jobs than ever before and, though this rise in voluntary turnover began more than a decade ago, the pandemic certainly amplified its effects.

In fact, 40% of our respondents said their turnover rates for RPA and intelligent automation employees are under 10%. Only 11% of respondents conceded to having turnover rates of 25% or above.

However, even relatively low levels of turnover can have an outsized economic impact. As mentioned in the previous section, the cost of replacing an individual employee can range from 50% to 2X the employee’s annual salary, and, as IA and RPA salaries average out well into the six figures, these losses can add up fast. Furthermore, as these technologies are engines of efficiency, productivity and cost-savings, every time a project is delayed it literally costs companies money.

What is your annual turnover rate for RPA and intelligent automation employees?

Engaging DX Talent

It’s one of the greatest mysteries of our time: what do technology workers want? Higher salaries? More manageable workloads? Flexible hours? More opportunities for growth? All of the above?

According to a 2021 report conducted by Gallup, upskilling has become one of the most sought-after benefits. In fact, “65% of workers say the opportunity to participate in an upskilling program was an “extremely” or “very” important factor in deciding to take a new job, and 61% cited it as important when weighing the decision to remain at their current job.” In fact, Amazon, J.P. Morgan, L’Oréal and many more have already invested hundreds of millions of dollars into large-scale upskilling programs.

The importance of upskilling to both employee satisfaction and strategic success has not been lost on our respondents. In fact, 52% confirmed they were investing in upskilling existing tech workers, 33% are currently upskilling non-technical employees and 19% are leveraging new educational programs/platforms to enhance employee skills.

28% of our respondents also confirmed that they’re expanding their remote work options. As many workers have grown to enjoy working from home, remote work options are becoming increasingly in-demand. Furthermore, remote work allows companies to hire employees outside of their immediate geographical areas. Not only does this mean increased access to highly skilled workers all across the globe, but the ability to offer location-based, and often more modest, compensation packages.

However, managing remote workers is not without its challenges, especially when it comes to employee engagement and collaboration. Chris Savage, CEO and co-founder of Wistia, told us, “New hires expect flexibility, but typically want the ability to connect with their co-workers – even in a hybrid setting. While it can be difficult for tech companies to hire and retain workers, companies need to look within to align their values that empower existing employees and appeal to prospects.

For example, having a strong DE&I vision and placing it at the center of everything your company does, not only helps with hiring, but it ensures that everyone is respected, treated equally and celebrated for who they are. Focusing heavily on DE&I alongside other company goals and objectives also sets companies up for long-term learning and improvement.

ALSO READ: how intelligent automation and RPA are transforming HEIs

Companies should ensure that their work model empowers employees to make choices that allow them to perform at their best, whether that’s making the office their primary work station or being fully remote.

Wistia’s hybrid work model allows employees to make choices that suits their lifestyle: we currently have 33% HQers (people who go into the office regularly), 33% Day Trippers (people who come in 2-6 times a month), and 33% Jet Setters (people who come in 2-6 times a year).

Companies also need to understand that the key to productivity is a strategic ‘losses’ of productivity that energizes employees and gives them the mental break they need to perform even better. To build a strong company culture, give employees the opportunity to do more fun, non-work things virtually – such as having virtual happy hours or giving employees Meta Quest 2 headsets to hang out, like we did. Businesses that put their values on display and give employees greater flexibility will be in a better position to hire talent and build a strong company culture.”

Another option is automation (18%); a little of which can go a long way. As Chris Nicholson, data science hiring manager at Clipboard Health explains, “When you can’t find talent to do the work, you have to automate. And automating usually means buying more software. A lot of it is fairly cheap, a few hundred dollars a year, but it can make a huge difference and help lighten the load for small teams.”

How is your organization working to close the RPA/IA talent gap?

Another major issue facing tech workers is burnout. As demand for new digital solutions soars, so do IT workloads. In fact, 52% of respondents confirmed that burnout is somewhat of an issue amongst RPA and IA employees. An additional 12% said burnout was a major issue.

A notable 79% of our respondents are actively addressing employee burnout in one way or another. Amongst the most popular approaches are mitigating overwhelming workloads (47%) and train managers to more effectively identify/ address burnout (46%).

In addition, 39% of respondents are increasing flexible work options, a perk that, like remote work options, has become increasingly in demand.

Is employee burnout a major problem for IA/RPA employees?

How is your organization addressing employee burnout?

Organizational Design

Is employee burnout a major problem for IA/RPA employees?

When it comes to driving long-term success, is it better to embed DX talent into functional areas or build a centralized transformation team, a.k.a. an innovation center of excellence (CoE)?

A notable 52% of respondents have opted for the latter, embracing the CoE model of innovation. An additional 14% plan to build a digital innovation CoE within the next year.

While every organization is different, CoEs have long been a popular organizational model for those looking to drive long-term, sustainable innovation. Morgan Stanley, Walmart(hyperlink), P&G, Estée Lauder and Kraft Heinz are just a small fraction of the companies that have adopted the CoE model.

A well-considered CoE is more than just a collection of RPA, automation and digital technology experts, it’s an engine of change. Not only are these individual technology implementation experts, but they should also be experts in identifying opportunities for automation/digitization, prioritizing DX projects, building business cases for tech investments, upskilling, driving adoption and scaling innovation across the enterprise.

Show Us The Money

One of the most challenging conundrums of business process automation is that while it may reduce the need for some low skill, low pay workers (i.e., data entry), it also increases the need for highly skilled, high pay workers such as IT developers, engineers and programmers. Compounding this issue in recent months is the demand for higher wages from workers at all levels as inflation rates and the cost-of-living increase globally.

Though organizations are rethinking compensation across the board(hyperlink), tech wages seem to be growing the fastest as demand for IT talent expands and supply remains stagnant. In fact, according to staffing firm Mondo(hyperlink), salaries for cloud architects increased by 25% between 2020-2022, while average salaries for software engineers rose 11% over the same period. As of April 2022, the average salaries for experienced RPA and intelligent automation(hyperlink) talent well surpass the six-figure mark.

One thing to keep in mind is that, while initial job offers are high, salary raises for existing employees still remain low. This creates a vicious cycle where existing employees continually exit (often to competitors) for more money and companies have to continually replace them (again, often luring them away from competitors) at a much higher cost. As such, it’s critical that employers envision long-term salary growth for employees that incentivises them to stay long-term. However, as only 12% of our respondents said they were increasing salaries, it seems that few organizations have broken out of this pattern.

Are Collaboration Tools The Key To Engaging Talent?

As work environments become increasingly global and digitized, collaboration tools can help workers communicate in ways that are similar to in-person. In addition, they can also help workers in all types of work environments more effectively organize, track and manage projects.

While Slack and GitLab reign supreme in this area, there are a number of rising stars especially when it comes to immersive, AR/VR collaboration technologies. While only a handful of organizations are leveraging these technologies now, 46% of respondents said they were considering implementing InVision, an “online whiteboard meets productivity platform,” and 42% said they were interested in MeetinVR, VR-powered virtual meetings platform.

Do you currently use or plan to use any of the following workplace collaboration tools?

Do you currently use or plan to use any of the following VIDEO collaboration tools?

Do you currently use or plan to use any of the following IMMERSIVE collaboration tools?

How would you rate your current collaboration tools?

Are collaboration tools included in your budget?

Respondent Demographics

The 200+ RPA, intelligent automation and digital transformation leaders we surveyed come from all across the globe and represent a wide range of functions, industries and maturity levels.

Job Titles

Business Strategy: 24%

Data: 7%

Digital Transformation: 14%

Finanace/HR: 7%

IT: 13%

Operations: 13%

Read the Report Here