Effects of Developments in Technology on Staffing Needs (VCE SSCE Business Management): Revision Notes
Effects of Developments in Technology on Staffing Needs
Introduction to technology and staffing
Technology has fundamentally changed how businesses operate and the types of employees they need. The widespread adoption of automation, robotics, artificial intelligence, and cloud computing has created new jobs while transforming or eliminating others. Understanding these changes is essential for businesses planning their staffing requirements.
Key terms:
- Robotics: the study, design, construction and operation of technology relating to robots and automated technology
- Automation: the use of automated technology to fulfil functions or processes rather than humans
Understanding the relationship between technology and staffing is crucial for business planning. As technology continues to evolve, businesses must anticipate how their workforce needs will change and adapt accordingly.
Benefits of technology for businesses
Increased productivity and reduced costs
When businesses implement technology, they typically experience two major benefits. First, productivity increases because automated systems can work faster and more consistently than humans. Second, labour costs decrease because fewer employees are needed for routine tasks, or existing employees can focus on higher-value work.
Competitive advantage for small businesses
Technology has levelled the playing field between small and large businesses. Small businesses can now compete more effectively with larger competitors because they can respond to changes faster. A small business with modern technology can adapt to customer needs more quickly than a large organisation with complex decision-making structures.
The democratization of technology means that even businesses with limited resources can access powerful tools that were once only available to large corporations. This creates opportunities for innovation and competition across all business sizes.
Limitations of automation
Despite technological advances, automation has clear limitations. Understanding what machines cannot do effectively is just as important as understanding their capabilities.
Machines and automated systems are not effective at:
- Creative work: developing original ideas, designs, or solutions
- Problem-solving: addressing complex, non-routine challenges
- Interpersonal skills: working effectively with customers, teams, or clients
- Leadership roles: inspiring and guiding other employees
- Sales activities: building relationships and understanding customer needs
This means businesses still need employees with high emotional intelligence (EQ). These human skills are becoming increasingly valuable as routine tasks become automated.
Job creation through technology
Design and publishing technology: Canva
Technology doesn't just eliminate jobs—it also creates entirely new industries and employment opportunities. Canva, an Australian business established in 2013, demonstrates this principle.
Worked Example: How Canva Created New Jobs
Background: Previously, if a business needed brochures, flyers, or promotional materials, they had to hire external graphic design and printing companies. This process was expensive and time-consuming.
Innovation: Canva developed online design and publishing tools that allow businesses to create their own marketing materials without specialised skills or external providers.
Staffing impact: Rather than eliminating design jobs, Canva created new employment opportunities. The company now employs more than 1000 people worldwide. These employees need creative flair to contribute to the product, showing that technology creates demand for human creativity even as it automates routine tasks.
Customer data software: Dovetail
Dovetail, a Sydney-based start-up, provides another example of technology creating jobs. The company uses cloud-based software to help businesses make sense of customer conversations and store customer data for collaboration.
Case Study: Dovetail's Growth
Key clients: Porsche, Canva, Harvard University, and IBM use Dovetail's services, demonstrating the value of this technology across different sectors.
Growth and staffing: Dovetail is experiencing rapid growth and expected to more than double its employee numbers in 2022. This shows how new technology creates employment opportunities in software development, customer support, and business services.
Job transformation through technology
Communication changes
Technology has transformed how businesses communicate, which has significantly affected staffing needs.
Traditional process: In the past, business communication required multiple people and steps:
- A manager would dictate a letter to a typist or secretary
- The secretary would type the letter
- The letter would be sent through the postal system
- The recipient would eventually receive and respond to it
Modern process: Information technology, particularly email, has streamlined communication:
- Managers can write emails directly without secretarial support
- Messages arrive instantly rather than in days
- Responses can be immediate
Staffing consequences: The role of secretary has been made redundant in many businesses. However, this hasn't simply eliminated jobs—it has transformed them. Employees now perform broader roles as personal assistants to managers, combining administrative support with more strategic responsibilities.
Flexible workplace arrangements
Technology enables businesses to create flexible workplaces, which affects both costs and staffing structures.
How it works: Employees with laptop computers, tablets, or mobile phones with internet connections can work from anywhere. They don't need to be physically present at the workplace to conduct business.
Cost savings: Businesses can reduce expenses by:
- Eliminating dedicated office spaces for employees who work remotely
- Implementing hot-desking (employees use any available desk when at the workplace)
- Reducing overhead costs like utilities and office supplies
Modern relevance: This became particularly important during the COVID-19 pandemic, when remote work became the preferred option for many businesses. The technology infrastructure that enables flexible work arrangements has proven essential for business continuity.
Retail automation
The retail sector demonstrates how technology transforms traditional roles.
Barcode scanning: The introduction of barcodes that are scanned to record stock sales has changed retail staffing in two ways:
- Some cashiers have lost their jobs due to automation
- Other cashiers have been freed up to perform different duties that add more value
Self-service checkouts: Automated checkouts allow customers to scan and pay for items themselves, further reducing the need for traditional cashier roles.
While self-service technology reduces the need for cashiers, it often creates new roles in customer service, technology support, and inventory management. The retail workforce shifts rather than simply shrinks.
Bookkeeping automation
Financial record-keeping has been transformed by technology, demonstrating how skilled work can be automated.
Traditional approach: Bookkeeping tasks were done manually by employees with specialised knowledge. Financial reports required employees with even greater expertise to prepare.
Modern approach: Computer applications like Xero and MYOB now handle:
- Routine bookkeeping tasks automatically
- Generation of financial reports
- Real-time financial tracking and analysis
Staffing impact: This doesn't eliminate the need for financial expertise entirely, but it does reduce the number of employees needed for routine financial tasks.
Case study: Woolworths and the human element
Brad Banducci, CEO of Woolworths, provides valuable insight into how a major retailer balances technology with human skills.
Case Study: Woolworths' Approach to Technology and Staffing
Technology's transformative role
According to Banducci, technological advances in automation, predictive analytics, artificial intelligence, and digital tools are:
- Transforming core retail processes
- Driving the industry forward
- Helping meet customers' changing needs
- Changing the fundamental nature of day-to-day work
Shifting employee responsibilities
Banducci explains that over time, Woolworths team members will:
- Do fewer manual and repetitive tasks (these are automated)
- Do more work requiring judgement, creativity, and interpersonal skills (these cannot be automated)
New roles created
The fastest-growing role at Woolworths is the online personal shopper. These employees hand-pick orders for customers who shop online. This role:
- Didn't exist before online shopping technology
- Requires human judgement and customer service skills
- Shows how technology creates new jobs even as it automates others
- Demonstrates the continuing importance of the human element in retail
The Woolworths case study demonstrates a crucial principle: technology doesn't simply replace humans—it changes what humans do. The most successful businesses recognize that technology and human skills are complementary, not competing forces.
Key Points to Remember:
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Technology creates dual effects: some jobs are created while others are transformed or eliminated. It's not simply about job losses.
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Automation has limitations: machines cannot effectively handle creative work, complex problem-solving, interpersonal relationships, or tasks requiring high emotional intelligence.
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Cost and productivity benefits: technology typically increases productivity while reducing labour costs, giving even small businesses competitive advantages.
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Key examples of job creation: Canva (design technology) and Dovetail (customer data software) show how new technologies create entirely new industries and employment opportunities.
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Transformation over elimination: roles like secretaries haven't disappeared—they've evolved into broader positions like personal assistants. The work changes rather than vanishing entirely.