Continuum of job loss and job creation: Insights from automotive organisations in South Africa

Abstract

Orientation: The automotive sector in South Africa plays a crucial role in the country’s economic growth as an adopter of technology and developer of talent.

Research purpose: The study explores employee perceptions of job loss and job creation in the automotive sector within the context of Industry 4.0 based on selected demographic and organisational characteristics.

Motivation for the study: Globally, only 25% of employees indicate confidence in retaining their jobs because of Industry 4.0. This uncertainty has implications for talent management and skill retention.

Research approach/design and method: This article reports on a mixed-method study conducted in the South African automotive industry, with data collected from human resource management, engineering and production managers and employees selected through purposive, convenience and snowball sampling.

Main findings: Job loss and especially job creation were observed within organisations that have adopted Cobots. Job loss was associated with technological change and a lack of skill, and job gain with specialised skills.

Practical/managerial implications: Adopting advanced technologies in organisations is essential for leapfrogging Industry 4.0 and meeting sustainability goals. Automotive organisations in South Africa need to continue collaborating with government, educational institutions and SETAs to ensure a pipeline of employees with a set of hybrid skills. Employees must engage in lifelong learning and identify career opportunities in the changing world of work.

Contribution/value-add: This study sheds light on perceptions of employees of employment outcomes in the Industry 4.0 context and provides insights for automotive organisations.