In recent years, mainframe automation has emerged as a hot and sometimes controversial topic in regulated industries, promising to revolutionize operations, save companies potentially millions of dollars, and address the ever-present challenge of maintaining a skilled mainframe workforce. While numerous initiatives in the mainframe space aim to recruit and train more young professionals – including ex-military personnel with one program – automation continues to play a significant role. As with any technological advancement, it brings both opportunities and challenges. While automation undoubtedly speeds up processes and increases efficiency, it also raises concerns about job security and the future of the mainframe workforce.

The Double-Edged Sword of Automation

Mainframe automation offers numerous benefits, including increased productivity, reduced human error, and the ability to complement the existing pool of mainframe experts. For many organizations, it’s a valuable tool in maintaining and expanding their mainframe capabilities. However, the very efficiency that makes automation attractive could also pose a threat to job security for many mainframe professionals.

The impact of automation extends beyond individual companies, affecting innovation across the tech industry. As businesses embrace AI and automation, many fear that jobs previously considered safe, might be at risk.

The Automation Reality of Recent Layoffs

Most recently, the tech industry has been hit hard by layoffs, with signals indicating that automation and AI have been playing a significant role. According to the CrunchBase Tech Layoffs Tracker, more than 191,000 workers at U.S.-based tech companies were laid off through job cuts in 2023.

While not all these layoffs are directly attributable to automation, the numbers highlight the volatile nature of employment in the tech sector. 2024 has been no different. A recently updated article on TechCrunch.com offers a comprehensive list of all the known layoffs in tech that have occurred in 2024.

The Cost of the Human Impact

Behind these numbers are people with careers, families, and aspirations. It’s crucial to remember that layoffs impact not only individual employees but also innovation within the industry. The loss of experienced professionals can lead to an industry “brain drain,” potentially slowing down innovation and progress in the long run. At a time when innovation is front and center with IBM Z, this can have a dramatically negative effect on enterprise service delivery and data/IP security.

The human impact extends far beyond the immediate financial consequences for affected individuals. When seasoned professionals are laid off, companies lose decades of accumulated knowledge and expertise that often isn’t fully documented or easily transferable. This tacit knowledge – the kind that comes from years of hands-on experience, problem-solving, and navigating complex systems – is invaluable and nearly impossible to replace.

Consider the following impacts:

  1. Loss of institutional memory: Long-term employees often carry with them a deep understanding of a company’s history, systems, and unique challenges. This institutional memory can be crucial for maintaining continuity and avoiding past mistakes. Loss of institutional memory can create gaps in skills and understanding that may take years to bridge.
  2. Increased pressure on remaining staff: As teams shrink, remaining employees often find themselves overwhelmed, trying to fill knowledge gaps left by departed colleagues while managing increased workloads.
  3. Impact on morale and company culture: Layoffs can significantly affect team dynamics and overall company morale. The loss of respected colleagues and the fear of future job cuts can lead to decreased productivity and increased turnover among remaining staff.
  4. Challenges in crisis management: In critical situations or system failures, the absence of experienced professionals who intimately understand the intricacies of legacy systems can lead to longer downtimes and more substantial business impacts.
  5. Innovation setbacks: Experienced professionals often drive innovation by applying their deep understanding of existing systems to new technologies. They also tend to be those in the organization who are comfortable providing feedback up the management chain for better, more informed decision-making. Their absence can slow the pace of meaningful, practical innovation.

Furthermore, the question arises: Where does all this knowledge go? While some companies attempt to implement knowledge transfer processes before layoffs, these are often rushed and inadequate. Documentation can capture some explicit knowledge, but the nuanced understanding built over years of in-person contextual experience is much harder to preserve.

In some cases, this expertise finds its way to competitors or consultancies, potentially strengthening rival organizations. In other instances, it simply dissipates, representing a net loss for the organization and ultimately, the industry as a whole.

As we navigate this era of rapid automation and organizational change, it’s vital to recognize the true value of human expertise and find ways to preserve and transfer knowledge effectively. This challenge underscores the importance of strategic workforce planning that balances the benefits of automation with the irreplaceable value of experienced human capital.

Enterprise Cybersecurity Concerns

An often-overlooked aspect of widespread layoffs, increased automation, and changing workforce dynamics is the potential impact on cybersecurity. As companies adjust their strategies, several factors come into play:

  1. Automation Risks: As organizations reduce their human workforce and rely more heavily on automated systems, they may inadvertently create new vulnerabilities if these systems are not properly secured and monitored.
  2. Workforce Transitions: In some cases, organizations may opt to replace experienced, higher-paid employees with less experienced talent to reduce costs. While this approach may seem economically advantageous in the short term, it can have unintended consequences for cybersecurity.
  3. Training and Awareness Challenges: New and less experienced employees may not be as well-versed in security protocols or as adept at identifying potential threats. Given that human error is a significant factor in many security breaches, this knowledge gap can increase an organization’s vulnerability.
  4. Adapting to New Technologies: As companies implement new automated systems or AI-driven tools, there’s a learning curve for all employees. During this transition period, misconfigurations or misunderstandings about new systems could potentially create security loopholes. There are also new AI governance mandates coming down the pike that need learning and comprehension. These mandates will need to be incorporated into daily workflows.

The increasing number of cyberattacks and data breaches across industries raises important questions about the relationship between workforce changes, increased automation integration, and data/IP risk. While automation and AI can certainly enhance security measures, they are far from (and probably never will be) perfect. The human element remains crucial in maintaining robust cybersecurity defenses.

Organizations must carefully balance their workforce strategies, considering not just immediate cost savings but also long-term data and intellectual property risk. Investing in comprehensive training programs, maintaining a mix of experienced and fresh talent, and ensuring knowledge transfer during transitions are all critical steps in maintaining strong cybersecurity postures in the face of technological and workforce changes.

Fostering a Culture of Continuous Learning

In this rapidly evolving landscape, adaptability is key. Motivating teams to stay ahead by fostering a culture of continuous learning and adaptation is crucial. This approach not only helps employees remain relevant in an automated world but also drives innovation and growth within organizations.

Infotel’s Approach: Valuing Human Resources While Embracing Innovation

At Infotel, we recognize the delicate balance between leveraging automation for efficiency and valuing our human resources. We believe that our employees are our greatest asset, bringing creativity, problem-solving skills, and invaluable experience to the table. While we embrace technological advancements, including mainframe automation, we do so with a commitment to supporting and developing our workforce.

Finding the Right Balance

As we navigate the future of mainframe technology, it’s crucial to find a balance between automation as a cost-saving measure and human expertise. Automation should be seen as a tool to augment human capabilities to better deliver services with minimal risk, rather than replacing humans entirely. By investing in employee training and development, companies can create a workforce equipped to work alongside automated systems, driving innovation and maintaining a competitive edge.

While mainframe automation is undoubtedly changing the landscape of our industry, its impact on jobs doesn’t have to be entirely negative. By approaching automation thoughtfully, valuing human resources, and fostering a culture of continuous learning, we can create a future where technology and human expertise work hand in hand to drive progress and innovation.

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