THE IMPACT OF AUTOMATION ON WORKFORCE DEVELOPMENT BY TONI LAPP, SENIOR EDITOR I was recently in a car collision, which proved to be an enlight-ening experience in unexpected ways. Although I was able to drive away from the wreck, I had to fi le an insurance claim for damages. Rather than send me to an offi ce to have the damage assessed, the insurance company sent me an app for my phone. Now, I am barely on speaking terms with Siri, so I wasn’t totally on board with this. But once installed, step-by-step in-structions enabled me to capture images of my car from about 20 diff erent angles — and get my claim processed faster than if I waited for an appointment with an adjuster, the insurance fi rm assured me. Clearly, the job of claims adjuster is among those that could be replaced by automation. Indeed, one-third of U.S. jobs could be replaced by technology by 2030, according to a recent re-port from PwC. Th ere are probably jobs at your bank that will become obsolete; AI-powered chatbots are already being em-ployed — no pun intended — at many big banks to speed up the resolution of queries. Against this backdrop is a trend toward worker disengage-ment. A recent Gallup report found that 21 percent of millen-nials have changed jobs within the past year, more than three times the number of non-millennials who report changing jobs. Gallup estimates that millennial turnover costs the U.S. economy $30.5 billion annually. Such factors make workforce development more important than ever. Meagan Johnson, author of Generations Inc., has made a living of studying workforce development, and says that highly regu-lated industries such as banking are often averse to change. Th is is unfortunate because the industry can benefi t from having the status quo challenged, which younger workers tend to do. “Banking has more potential to show millennials the diff er-ence they can make,” Johnson said, recounting how a millennial banker enthused to her about how she was able to help a cus-tomer break the cycle of living paycheck-to-paycheck by getting a low-interest loan. What’s more, millennials, being tech natives, are more open to automation. Millennials have a more positive view of how technology aff ects their lives than any other generation, accord-ing to a recent Nielsen poll, which found that more than 74 percent feel that new technology makes their lives easier, and 54 percent feel new technology helps them be closer to their friends and family. Th is will be important as more banks transition their custom-er-facing roles to universal banker posts. As long as cost, quality, safety or service are not compromised, banks should be open to change, Johnson said. Which brings me back to the experience of documenting the damages to my car via app. Yes, it took time out of a Saturday morning, but on the fl ip side, it put the claim on a fast track to having my car repaired more quickly. So while I initially grumbled Gen-X style, I must admit that I could be converted to doing more things via app. Have you heard about the app that fi nds your car keys? S CREDIT RISK HIGHER FOR MANY NEW BUSINESSES employer fi rms, for nearly all net new job creation and for al-most 20 percent of gross job creation — according to outside research as of 2014. “Startups are the primary drivers of U.S. job growth and their success is essential to a healthy economy,” said Claire Kramer Mills, assistant vice president and community aff airs offi cer at the New York Fed. “Although fi nancing is important for all companies, it’s especially critical to these young fi rms who need funds to weather initial costs and grow. Despite startups’ strong demand for fi nancing, their problems are more acute than other fi rms, with most facing shortfalls and many discouraged from even applying.” Other key fi ndings in the Report on Startup Firms include: — Startups were much more optimistic than mature fi rms about future revenue and/or employment growth. — Startups were more likely than mature fi rms to apply for fi nancing (52 percent versus 42 percent), but tended to apply for smaller amounts (63 percent versus 49 percentsought $100,000 or less in fi nancing). — Startup applicants were more likely than mature appli-cants to face fi nancial shortfalls (69 percent versus 54 percent). tartup fi rms are twice as likely as mature small employer fi rms to be adding jobs and growing revenues but more likely to be higher credit risks, according to the 2016 Small Business Credit Survey: Report on Startup Firms issued by the Federal Reserve Bank of New York. Th is is the second in a series of reports that examines the results of an an-nual survey of small business owners. Th e Report on Startup Firms focuses on startups with employees — defi ned here as small businesses that were fi ve-years-old or younger and had full-or part-time employees in 2016. Relative to mature fi rms, startups are more likely to apply for fi nancing, and when they do, typically seek smaller amounts of credit. Despite this, startups were more likely to face fi nancial shortfalls. Also, these startups — especially medium/high credit risk fi rms — were most successful in getting fi nancing approval at online lenders but were the least satisfi ed with them. Th ese diffi culties with securing suffi cient fi nancing were particularly acute for early stage (0-2 year-old) startups, and they have a higher rate of failure than second stage (3-5 year-old) startups. Th ese fi ndings are particularly salient for the U.S. macro-economy because startups account for 34 percent of all U.S.