The productivity dilemma: Examining the truth behind automation’s impact on employment, and the mediating role of augmentation

Abstract

This paper provides a comprehensive review of the literature examining the relationship between automation and employment, with a focus on understanding the debates of automation displacement and enablement, and the mediating role of employee augmentation in driving organisational productivity. Design/methodology/approach: A semi-systematic literature review was conducted across the areas of automation, work-design, and employee skills over the past 3 years. Findings: The academic literature was found to still be in its infancy, with empirical evidence in an organisational setting scarce. However, research suggests that automation does not cause job displacement or a negative impact on employment. In contrast, data suggests that automation leads to new job creation, task enlargement and skills enhancement. The findings suggest that organisations should employ augmentation alongside automation to drive productivity, in a way that promotes strong work-design, builds trust, and leverages human creativity. A further recommendation is made for organisations to focus on continuous upskilling to combat the shortening shelf-life of skills and adapt to the constant change brought around by advances in automation. Originality/value: Through a synthesis of diverse perspectives and academic evidence, this paper contributes to the nuanced understanding of the complexities surrounding automation and its impact on employment. This literature review underscores the need for organisational strategies that leverage augmentation to harness productivity savings, alongside a renewed focus on widespread employee skills enhancement. In addition to creating new recommendations for practitioners and organisational leaders, this paper also furthers the research agenda through a list of research gaps for scholarly attention.