Two years of unprecedented disruption to labour markets has seen millions of people step away from the workforce since the start of the pandemic.
But as the world of work evolves beyond the ‘Great Resignation’, businesses that champion a strong corporate culture and harness technical innovation, such as automation and robotics, will soon gain a competitive edge over their market rivals.
That’s according to Citywire A-rated Habib Subjally, head of global equities at RBC Global Asset Management.
Speaking to Citywire Selector, Subjally said more investors will need to focus on how businesses treat their employees, and whether they take them for granted. ‘This is about corporate culture, and the values and priorities of business. By that, I mean their genuine values and priorities. Things that you can’t legislate for.’
Subjally said the current labour shortage is something businesses have not experienced for 30 years, adding that the lack of workers in industries, such as hospitality and logistics, is highly unusual.
‘If this continues, suddenly what you have is that one of the competitive advantages for a business relative to its competitors is going to be how to attract and retain employees. In this environment, your industry reputation within the community as an employer becomes a key focus.’
Subjally said businesses will need to respond nimbly to the changing needs of employees, customers, and suppliers. ‘What keeps me up at night is whether a business we have invested in takes their employees and stakeholders for granted.’
Innovation and automation
In addition to an authentic and competitive corporate culture, Subjally said innovation within industries is key. He said sectors such as the automotive industry have had to go from decades of experience in making internal combustion engines to electric cars.
‘Every industry is competitive, and those that can adapt will get ahead faster and are going to be the winners. We can see it very visibly in certain industries, but this is happening everywhere.’
In addition to product innovation, the robotics industry will also see some industries move toward a more automated workforce soon.
Allianz Global Investors’ Andreas Fruschki previously said virtually every industry is likely to become less labour-intensive in the future as machines will be incorporated into business models. ‘There are several industries where we see this trend is happening already, and quite rapidly.
‘Advancements in technology, computing power, data collection, and artificial intelligence are changing the fundamental structure of sectors across the globe.
‘Robotics applications can be found in virtually every industry, with particularly strong adoption in industrial manufacturing, warehouses and distribution centres, agriculture, healthcare, and automobile industries.’
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