Study: Many office jobs are changing in Swiss companies due to IT automation.
Is job loss due to automation already underway in Switzerland? In fact, up to 11% of office jobs could be automated by technology in the coming years. Exxas, together with the Market and Social Research Institute LINK, conducted an extensive study across the entire German-speaking part of Switzerland to assess the current state of automation in SMEs. The results have now been published.
Artificial intelligence, cloud, automation and other technological achievements should simplify our lives and increase our productivity. As a result, our work will change or even disappear. Is the loss of jobs due to automation already underway in Switzerland? A study carried out by Exxas throughout German-speaking Switzerland shows the current level of automation in SMEs. In cooperation with the market and social research institute LINK, almost 500 senior employees were interviewed and the results were weighted representatively for the German-Swiss SME landscape. Up to 11% of jobs in office jobs can be automated with technology in the next few years. It particularly affects jobs in finance, IT and the back office.
There has been a lot of discussion and reporting on the use and consequences of artificial intelligence in recent months. But what effects do technological developments have on companies and employees in Switzerland? What is the state of automation in local offices? Where are savings achieved through technology? Exxas, in collaboration with the LINK Institute, investigated these and other questions in a large-scale study.
Exxas is a cloud platform for controlling and automating business processes in a company. As a Swiss company in the technology sector, Exxas is interested in determining the economic and social effects of automation and deriving recommendations for action from this. The study on automation shows that jobs are being lost and that tasks and occupations are changing. The people surveyed have a very differentiated picture of automation. When it comes to the effects on society, fears and concerns prevail. However, according to participants, the use of automation is a major advantage for companies themselves and is decisive for competitiveness. Respondents can save up to 11% of their own weekly working time with complete or partially automated solutions. Extrapolated to Switzerland, this is just under 465,740 of 4,234 million full-time equivalents, based on a survey by the Federal Statistical Office (FSO) for the quarter of 2023.
However, the study also shows that almost half of Swiss SMEs have considerable catching up to do in automation. The potential is far from being tapped. Interestingly, when it comes to the question about the state of automation, there is a significant difference in answer between senior executives of companies using Exxas and those using another solution.
Framework and objectives of the representative study
The present study was carried out in June 2023 by Exxas AG in collaboration with the market and social research institute LINK. The main objective of this study was to analyze the effects and challenges of automation in SMEs, regardless of their sector. At the same time, the current state of automation in the Swiss working world was recorded.
The survey was aimed at entrepreneurs and senior employees throughout German-speaking Switzerland. The senior employees belong to departments such as management, human resources, information technology, finance, customer service or administration. The companies surveyed generally had up to 250 employees. Thanks to this carefully selected target group, representative results were obtained for the state of digitization and automation in German-speaking Swiss SMEs.
Job loss and growing dependence on technology
Respondents' views on automation are very complex. While some recognize the benefits and potential of automation, fears and concerns prevail among many, particularly with regard to the social impact and situation of workers. The most common concerns relate to the potential risk of job loss, the disappearance of certain occupations, the associated pressure on wages and the growing dependence of companies on technology. Around a third of respondents view the effects of automation on society and employees with skepticism, if not extremely negative.
Stefan Dettwiler, managing director of Exxas, can understand the fears and explains: “We often feel these concerns in our customer projects. Employees feel uncertain as to whether their position is still needed after automating a process. These fears are understandable. However, experience shows that saved jobs in another area, such as marketing, customer service or IT, lead to expansion. Routine tasks are reduced, but employees can dedicate themselves to more conceptual, strategic and extraordinary tasks. The study also shows that in the past, around 10% of jobs were lost due to automation, but that 14% new jobs were created at the same time.”
Swiss companies are lagging behind technological change
The results of the study show that around half of the companies surveyed feel that their current state of automation and digitization is backward compared to other companies in the country. Around one in ten SMEs has hardly automated any processes so far. There is an interest in increased automation and is quite diverse. Around 55% of respondents expect an increase in productivity, while around half also expect an improvement in quality and around a third expect increased flexibility through automation. However, only around one in five respondents expects automation to open up new areas of business.
According to the study, lack of time, high expenditure and insufficient financial resources are the biggest obstacles to the introduction of new solutions. José Gerónimo, Deputy, agrees with this result. Managing Director of Exxas, about: “Management in SMEs is usually already fully utilized with day-to-day business and is confronted with several challenges at the same time. Large-scale, lengthy digitization projects are not included. Financial resources must be well distributed. SMEs are therefore looking for standardized solutions that can be implemented quickly and can be adapted to their requirements. For the introduction of Exxas, we have developed service packages and are taking over the data migration from the previous ERP and CRM system. Nevertheless, managers must clear up time slots for workshops.”
Estimates of potential time savings through automation vary. On average, men expect to save 25 hours per month, while women predict an average time savings of 12 hours per month. On average, however, small and medium-sized companies see significant potential to save 19 hours per month. This figure corresponds to just over two working days per month or a workload of 11%.
Changing tasks through automation
The changed tasks of employees due to automation are perceived by around two thirds of the interviewees as more demanding and responsible, albeit somewhat less creative. Fortunately, in half of the cases, process quality, company image and overall productivity have been improved as a result of automation and digitization. Niklas Schüler, team leader at Exxas, comments on these changes among employees: “I can only explain the fact that creativity at work is reduced by the fact that manual work with creative activities will probably also be eliminated. For example, if supplier invoices are automatically approved and processed, accounting employees can focus on improving management reporting. In this way, accountants also support the development and development of the company.”
The results of the study suggest that automation will continue to gain in importance in the Swiss economy. Around 60% of respondents believe that even more administrative tasks in the company will be automated in the future. One encouraging aspect is that every second senior employee states that their team has benefited from previous automations and that they have made everyday work easier.
Recommendations for action
Whether on construction sites, in restaurants or in the office; technology can be found in every job today. Employees should actively participate in the use of software, clouds, digital business models and process optimization in their companies and build up the necessary skills to do so. Every modern and successful company, regardless of industry, has or will develop into a tech company. Pure “users” run the risk of only taking on the remaining routine work.
Companies should constantly look for ways to optimize their processes and organization. This has been part of the standard repertoire of entrepreneurs for a hundred years. In order to be able to discover these opportunities, decision makers must know what is possible with new developments. Existing business models should also be critically scrutinized from the customer's point of view from time to time. The following thought process helps: “The patient doesn't want a doctor. He wants to be healthy.” Modern systems can not only speed up processes or enable new service offerings, but combined with the cloud, they also contribute to greater manageability and resilience of a company.
Swiss software manufacturers and technology providers should remember that their solutions can be easily implemented in an SME. The benefits of their solution must outweigh the costs. According to the study, in 26% of cases, the benefit does not justify the effort. SMEs need standard solutions that can be easily adapted to their needs. During implementation, manufacturers and service providers should ensure that as much knowledge as possible is transferred to the customer's employees. Customers understand business and industry requirements best and can continuously optimize their system with technological expertise.
