2021 AUTOMOTIVE TALENT STUDY - RESEARCH DATA CENTER - Automotive News
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RESEARCH&DATA CENTER
2021 AUTOMOTIVE
TALENT STUDY IN ASSOCIATION WITH
Are automotive companies considering
freelance talent strategies to
win the war for talent? FEBRUARY 2021W
RESEARCH&DATA CENTER
INTRODUCTION
*O
an
The war for talent in the automotive industry is enter- companies try to balance their businesses’ needs
ing a new phase as companies navigate a number with efforts to cut costs. Uncertainty still looms as
of complex challenges that may ultimately affect the industry continues to manage against absentee-
their ability to compete in the market. Consider the ism while also navigating the speed, scale and timing
following: of rebounding production and sales.
• Automakers and suppliers face a skills gap in These complex trends create the business case for
emerging areas of innovation that are scaling con- on-demand talent strategies in areas that require highly
nected, autonomous, shared and electrified (CASE) advanced skills. Moreover, because where people sit
technologies. Simply put, traditional automotive may no longer be as important of a hiring criterion,
companies are having a hard time attracting soft- companies considering on-demand strategies are
ware engineers, data scientists and others with increasingly able to find the best talent for the job at
highly advanced skills and capabilities they need to hand regardless of where an individual may live.
compete as the future of mobility unfolds.
Still, perceptions of on-demand talent strategies
• While the technology has existed for decades, in the automotive industry need to be overcome.
COVID-19 has accelerated companies’ efforts to To better understand those perceptions and the
create digital working environments that allow interest, willingness and plans of companies to con-
employees to do their jobs, collaborate and net- sider on-demand talent strategies, Toptal and the
work virtually. Where people physically sit may no Automotive News Research & Data Center surveyed
longer matter as much in the future as a result of Automotive News subscribers and readers repre-
how companies created virtual work environments in senting automakers, suppliers, dealers and others
response to the pandemic and the lessons and best working on the future of mobility.
practices learned that could be permanent changes
In the following pages, we share the findings our
to organizations’ talent and HR strategies.
survey of executives throughout the industry and
• The economic impact of the coronavirus pan- offer recommendations for how automotive compa-
demic has been catastrophic, often manifesting itself nies should approach on-demand talent strategies to
in the form of layoffs and workforce reductions as support their most important business goals. l
TASO DU VAL STEVE SCHMITH
Chief Executive Officer Executive Director,
Toptal Custom Research & Data Strategy
Automotive News
Sourc
Resea
© 202
2 all righWho participated in the survey? Similar
experience
31% 30%
among
25% respondents
working as
10%
4% a freelance
employee
Supplier Professional Automaker Dealer Other*
Services Have you ever worked
*Other includes mobility providers, financial institutions, policymakers as a freelance or
and aftermarket retailers. contract employee?
-
Respondents
52%
Yes
44%
r
y
representing the
C-suite and other senior
48%
executive levels (e.g.,
SVP, EVP, AVP).
t
s No
-
e Significant work experience
d
-
among respondents*
-
32
Years of work
15
Years at current
10
Years in current
experience employer position
*Average years among respondents.
Source: Automotive News
Research & Data Center
© 2021 Automotive News,
all rights reserved RESEARCH&DATA CENTER 3KEY INSIGHTS AND TAKEAWAYS
The business case for adopting freelance
1
talent strategies is strong and despite
some mixed perceptions, most have trust
and confidence in working with freelance
employees on strategic efforts.
Regardless of trust and confidence in
freelancers, views vary regarding the
2 ability of freelancers to integrate with an
organization’s culture and build rapport
with others. Most say working remotely
makes integration more difficult.
Looking ahead, most believe their organizations
3
have access to the highly skilled talent they
need today but lack confidence and focus to
attract talent with the skills needed to fill the
CASE-related jobs of tomorrow.
Source: Automotive News Sourc
Research & Data Center Resea
© 2021 Automotive News, © 202
4 RESEARCH&DATA CENTER all rights reserved all righ“Automakers can’t continue to rely on traditional
methods of finding talent. Today’s top talent craves
autonomy and flexibility and is more likely to be pursuing
work as a remote freelancer or a consultant than in years
past. Organizations have to reassess their approach
to talent to ensure they are able to access the
advanced skills and capabilities they need.”
—————
SEAN MIDDLETON
Chief Revenue Officer
Toptal
News Source: Automotive News
Center Research & Data Center
News, © 2021 Automotive News,
erved all rights reserved RESEARCH&DATA CENTER 5Most respondents say using freelance talent in their
organizations today is somewhat limited but also believe
the impact of the coronavirus may change that.
55% 40% 78% 53%
Say less than Believe use of Say their Feel their
10% of their freelancers within organizations organizations are
organization’s their organizations are expecting to more willing to
workforce today will increase enable remote consider remote
comprises because work into 2021. freelance talent.
freelancers. of COVID-19.
What’s driving interest in freelance talent?
Find the ability to use
65% 75%
Report hiring freezes as a
freelancers to quickly scale
result of the coronavirus
to the needs and objectives
and economic uncertainty.
of the business appealing.
* Does
remain
Neithe
Source: Automotive News Sourc
Research & Data Center Resea
© 2021 Automotive News, © 202
6 RESEARCH&DATA CENTER all rights reserved all righOpinions regarding the quality of talent
available in the freelance workforce are mixed,
but most have trust and confidence in freelance
employees working on strategic projects.
Mixed views on the quality …the majority have trust and confidence
of talent available in the working with freelancers.+
freelance workforce, yet…
The quality, skills and
capabilities of talent
Trust and Confidence
available in the freelance
workforce are lagging
compared to direct-hire
employees.*
66% 58%
41%
Disagree or
Strongly disagree I would have confidence in the I would trust a freelance
ability of a freelance employee employee to work on one
vs.
to succeed while working on of my organization’s most
one of my organization’s most strategic projects.
strategic projects.
56% 52%
28%
Agree or
Strongly agree
We would hire a freelance The level of comfort hiring a
employee to help lead one freelance employee to help
of my organization’s most lead one of my organization’s
strategic projects. most strategic projects will
increase as we become more
experienced and comfortable
* Does not total 100% because working remotely.
remaining respondents selected
Neither agree nor disagree.
News Source: Automotive News
Center Research & Data Center +
Respondents who selected
News, © 2021 Automotive News, Strongly agree and Agree for
erved all rights reserved RESEARCH&DATA CENTER each statement. 7“There’s a whole world of untapped talent out there.
If there’s any silver lining to the COVID-19 pandemic, it’s
that it has shown us digital working environments can
succeed and that we no longer need to limit ourselves
geographically when looking for the best fit.”
—————
SEAN MIDDLETON
Chief Revenue Officer
Toptal
Source: Automotive News Sourc
Research & Data Center Resea
© 2021 Automotive News, © 202
8 RESEARCH&DATA CENTER all rights reserved all righNearly all respondents say they would hire a freelancer
if the individual had the best skills for the job and have
little concern about managing performance.
I would consider a freelance candidate if the individual delivered the best advanced
skills, capabilities and experience needed to achieve the objectives of the business.
78% 49%
29%
13%
5% 4%
Very likely Likely Neither likely Unlikely Very unlikely
nor unlikely
It would not be difficult to manage the performance of a freelance employee.
61% 42%
19% 20%
16%
3%
Strongly agree Agree Neither agree Disagree Strongly
nor disagree disagree
News Source: Automotive News
Center Research & Data Center
News, © 2021 Automotive News,
erved all rights reserved RESEARCH&DATA CENTER 9However, despite respondents’ willingness to hire freelance
talent, views consistently vary regarding remote freelance
employees’ ability to integrate with an organization’s
culture and build rapport with teammates.
Cultural integration and rapport- Working remotely as a result of
building would be difficult for the coronavirus pandemic would
a freelance employee.* make cultural integration and
rapport-building difficult for
a freelance employee.*
43% vs. 33% 62% vs. 21%
Agree or Disagree or Agree or Disagree or
Strongly agree Strongly disagree Strongly agree Strongly disagree
A senior executive (e.g., SVP, EVP, A senior executive (e.g., SVP, EVP,
AVP) hired using a freelance talent AVP) hired using a freelance talent
model would be able to effectively model would be able to effectively
lead a team of direct-hire employees.* help lead the business alongside
other senior executives.*
42% vs. 35% 46% vs. 28%
Agree or Disagree or Agree or Disagree or
Strongly agree Strongly disagree Strongly agree Strongly disagree
Source: Automotive News Sourc
*Does not total 100% because Research & Data Center Resea
remaining respondents selected © 2021 Automotive News, © 202
10 Neither agree nor disagree. RESEARCH&DATA CENTER all rights reserved all righe “Dynamic, on-demand talent strategies can give
automakers the flexibility they need to explore new ideas
and drive innovation without overextending themselves.
The ability to scale up or down quickly in response
to changing circumstances is a major benefit
in these uncertain times.”
—————
SEAN MIDDLETON
Chief Revenue Officer
Toptal
%
ree
Interesting insight:
More than half (52%) of respondents felt the
brand strength of a freelance candidate’s
previous employer would strongly influence
the decision to hire that individual.
%
ree
News Source: Automotive News
Center Research & Data Center
News, © 2021 Automotive News,
erved all rights reserved RESEARCH&DATA CENTER 11Most respondents agree their Yet, more than half are not
companies have access to confident their organizations
critical talent needed to meet have access to talent needed
today’s business objectives. to fill the jobs of tomorrow.
My organization has access to the strategic My organization has the strategic talent with
talent with advanced skills and capabilities the skills we need to succeed in advanced
necessary to achieve its business objectives. areas like CASE technologies.
59% 42%
51%
31%
28%
24%
17% 14% 18% 18%
3% 5%
Strongly Agree Neither Disagree Strongly Strongly Agree Neither Disagree Strongly
agree agree nor disagree agree agree nor disagree
disagree disagree
Most say the auto industry is
challenged to attract the talent
needed to fill those jobs.
71%
Believe the automotive industry is challenged to
attract strategic talent with advanced skills and
capabilities needed to succeed in advanced
areas like CASE technologies.
Source: Automotive News Sourc
Research & Data Center Resea
© 2021 Automotive News, © 202
12 RESEARCH&DATA CENTER all rights reserved all righThe good news is that most agree the skills they need to
s succeed are available in the freelance workforce and that
d their organizations would or already do consider freelance
. talent to help meet their critical talent needs.
ith The strategic talent with the How likely would you consider
d skills we need is available in the freelance talent to gain access to
freelance workforce. the skills you need?
% 54% 71% 45%
40%
29%
26%
14% 15%
12%
9%
5% 5%
Strongly Agree Neither Disagree Strongly Very likely Likely Neither Unlikely Very
agree agree nor disagree likely nor unlikely
disagree unlikely
We would consider freelance talent
to succeed in CASE-related areas.
60% 41%
25%
19%
10%
5%
Strongly Agree Neither Disagree Strongly
agree agree nor disagree
disagree
News Source: Automotive News
Center Research & Data Center
News, © 2021 Automotive News,
erved all rights reserved RESEARCH&DATA CENTER 13Interestingly, when asked which advanced skills and
capabilities are most important to achieving strategic
business objectives, CASE-related jobs
ranked toward the bottom.
What departments, positions or advanced skills and
capabilities do you feel are most important to helping your
organization achieve its strategic business objectives?
Jobs for today vs. Jobs of tomorrow
Top Five Bottom Five
Business management and Artificial intelligence specialist*
35% strategic planning 18%
Engineering and product Cybersecurity specialist*
28% development 18%
Manufacturing and plant Battery/electric vehicles specialist
25% operations* 14%
Marketing, communications Data engineer/scientist
25% and sales* 13%
Project and program Finance and business operations
25% management* 12%
Augmented/virtual reality
7% specialist
CASE-related jobs
* Tied among survey respondents
Source: Automotive News Sourc
Research & Data Center Resea
© 2021 Automotive News, © 202
14 RESEARCH&DATA CENTER all rights reserved all righRecommendations on how automotive
companies should think about, leverage
and integrate freelance talent into
their workforce strategies.
BY
Interesting insight: Almost two-thirds (65%) of
respondents felt it would help ease their concerns with
freelance talent if a third party rigorously vetted candidates
to assess whether their skills, experience and personality
match the need of the organization and position.
st
d jobs
dents
News Source: Automotive News
Center Research & Data Center
News, © 2021 Automotive News,
erved all rights reserved RESEARCH&DATA CENTER 15A NEW FRONT IN THE WAR
FOR AUTOMOTIVE TALENT
The 2020s are expected to be a period of sig- ripple effect across the industry, impacting sup- T
nificant, disruptive change in the automotive pliers and retailers that must also shift their busi- t
industry. While much has been written about ness models to address the changing dynamics. p
the potential impact of connected, autonomous, u
shared and electrified (CASE) mobility in recent While these investments are indicative of estab- p
years, we are now beginning to see national gov- lished automakers’ commitment to addressing s
ernments moving quickly to pass legislation to these important trends, the situation is compli- r
encourage and accelerate the adoption cated by an influx of new entrants that v
of these new technologies. Socie- are unburdened by capital-intensive I
tal changes — in how and where cost structures and existing distri- a
people work and live and in bution channels. While GM and f
their attitudes toward travel,
transportation, and the envi-
“To drive VW were making their plans,
several startup electric vehi-
T
m
innovation and avoid
ronment — are also fueling cle companies went public, m
the need to radically rethink
falling behind as the signaling to the market that n
how the automotive indus- industry evolves, auto- the automotive space is
try positions itself. By the makers and their suppliers potentially ripe for disrup- H
end of the decade, CASE tion. Consumers may soon p
need to take bold steps have a bevy of options to a
could very well go from an
acronym to the very essence to attract, evaluate and choose from, presenting a t
of transportation. The future integrate the best threat to legacy brands.
1
of mobility may be closer than
previously imagined.
talent... ” Creating an Adaptable
Approach to Talent
I
w
According to a survey by Deloitte, Before there can be a war for t
global electric vehicle sales will grow market share, however, there must s
at a compound annual rate of 29% over the first be a war for talent. Engineers, software —
next 10 years as the automotive industry ramps developers, project managers and designers a
up production to meet both the projected con- — those with the skills required to tackle the p
sumer demand and the demands of regulators challenges involved in scaling CASE technol- n
seeking to phase out the internal combustion ogies — are sure to be in high demand. Talent i
engine.* General Motors alone has committed will also have a bevy of options to choose from, e
$27 billion to the development of all-electric and it’s not clear that established brands will r
and autonomous vehicles through 2025 and have the upper hand. In our survey, more than t
announced in January 2021 its plan to sell only 70% of respondents said they believe the auto- a
electric vehicles by 2035. Volkswagen Group motive industry is challenged when it comes to n
intends to spend $34 billion during the same attracting strategic talent with the experience c
period, aiming to launch as many as 70 new and capabilities needed to succeed in develop- o
electric models by 2028. This is sure to have a ing CASE technologies. w
* https://www2.deloitte.com/us/en/insights/focus/ * http
future-of-mobility/electric-vehicle-trends-2030.html Docum
Source: Automotive News Sourc
Research & Data Center Resea
© 2021 Automotive News, © 202
16 RESEARCH&DATA CENTER all rights reserved all righTo drive innovation and avoid falling behind as organizations won’t have a complete view of
the industry evolves, automakers and their sup- the talent landscape.
pliers need to take bold steps to attract, eval-
2. Be Open to Flexible Work Arrangements
uate and integrate the best talent, people who
Today’s top talent isn’t looking for an employer;
possess the skills that will give them the neces-
they’re seeking a partner who understands their
sary edge in this increasingly competitive envi-
needs and respects them enough to provide
ronment. According to a recent report by Har-
them with the autonomy and flexibility they crave.
vard Business School and the BCG Henderson
According to our survey, a significant number of
Institute, companies that create an adaptable
respondents — 55% — work for an organization in
approach to talent can benefit from “a dynamic
which less than 10% of the workforce is made up
force that improves their competitive strategy.”*
of freelancers or contract workers, indicating that
To accomplish this, automakers must adopt new
there’s room to grow in this regard.
methods of finding, hiring and managing talent,
methods every bit as revolutionary as the tech- Organizations need to offer more flexible work
nologies they are seeking to develop. arrangements to their talent and create the infra-
structure to support a blended or hybrid work-
Here are three ways automakers and their sup- force, in which permanent, freelance, in-office,
pliers can build a more robust talent strategy and remote workers collaborate seamlessly. By
aimed at attracting the best and brightest to prioritizing the needs of talent, organizations
their organizations: can unlock greater productivity and spur inno-
vation. Furthermore, embracing remote work
1. Develop a Total Talent Strategy
as an essential and regular part of an organiza-
In order to access the right skills, automakers
tion’s talent strategy opens up a world of possi-
will need to cast a wide net and embrace a
bilities — literally. By removing the geographical
total talent strategy. By utilizing multiple talent
barriers to work, an organization is no longer
sourcing channels in concert with one another
limited to local talent and can access a wider
— permanent, contingent, SOW, on-demand
pool of expert talent from all over the world.
and freelance — organizations will be better
positioned to obtain the talent they need when 3. Seek Out Knowledgeable Partners
needed. Talent, particularly those with special- According to our survey, more than half of
ized, in-demand skills (AI specialists, data sci- the respondents said that they believe the
entists and cybersecurity experts, for example), advanced skills they need can be found in the
recognize that they have significant leverage in freelance talent market; yet, almost the same
this competitive job market. Increasingly, they amount said that their organization predom-
are less inclined to pursue traditional, perma- inantly uses this channel to staff for admin-
nent roles, opting instead to chart their own istrative needs. Why are automakers not uti-
course as a freelancer or consultant. With- lizing this channel to source strategic talent?
out a strategy for sourcing the expert talent Perhaps because there’s a lack of confidence
who have chosen this less-traditional path, when it comes to properly evaluating and
ocus/ * https://www.hbs.edu/managing-the-future-of-work/
0.html Documents/Building_The_On_Demand_Workforce.pdf
News Source: Automotive News
Center Research & Data Center
News, © 2021 Automotive News,
erved all rights reserved RESEARCH&DATA CENTER 17vetting expertise in these advanced skill sets; and sustain remote work programs. However,
65% of survey respondents indicated that they a closer look at those past initiatives indicates
would find it helpful if a third party assisted in that it wasn’t remote work itself that was the
the vetting of candidates to properly assess problem — it was a culture that failed to support
their skills and experience. the needs and interests of its remote employees.
As new technologies and more advanced skills When transitioning to remote work, companies
become critical to success, it can be difficult need to do more than just grant their employ-
for organizations to keep up with trends and ees permission to work remotely. To be success-
best practices. A poor understanding of what ful, they must build a culture of trust, account-
expertise looks like in these fields could result ability and transparency that empowers their
in bad hires, which could hamper progress workers and encourages them to develop
and undermine morale. A knowledge- the habits necessary to be productive
able partner, one that understands in this new environment. Strong
these technologies, can eval- organizational cultures aren’t
uate talent in a systematic built through micromanage-
way and provide a stamp of ment or surveillance. They
approval that gives hiring “
To be successful, are built on a foundation
managers the confidence [companies] must of trust that’s fostered
to take action. Organiza- through direct communi-
build a culture of
tions that forge such part- cation, specific goals and
nerships will realize a sub- trust, accountability objectives, clarity of own-
stantial advantage over and transparency that ership and accountability
their competitors. empowers their of outcomes.
Building a Culture of
Trust
workers... ” These values should be at
the core of everything compa-
To successfully implement this nies do. They should inform the
more adaptable approach to choices we make: whom we hire,
talent, automakers need to seriously what software we use and the way
assess their organizational cultures to we interact with one another on a daily
determine whether they are equipped to handle basis. Companies need to take every opportunity
the demands of a more flexible total talent to reinforce these values and demonstrate their
strategy, particularly when it comes to manag- commitment to them so their employees have a
ing blended or hybrid teams. clear sense of what matters to the organization.
Our survey revealed that while 78% of respon- Real, long-term trust isn’t established by brief
dents expect their organizations to continue interactions in the hallway or sitting next to
enabling remote work in 2021, there is still some someone at a conference table. What builds
degree of anxiety around how best to integrate trust is showing workers that you respect their
such workers into the corporate culture; 62% of knowledge, decision-making abilities and work
respondents said they felt that it would be diffi- ethic, and by being transparent about the
cult to build the necessary rapport with remote expectations they must meet. People are the
or freelance employees. most important element of any company, and
the companies that invest in making sure their
This attitude is not surprising. Historically, large people understand that they are valued will be
organizations have struggled to implement best equipped for success. l
Source: Automotive News
Research & Data Center
© 2021 Automotive News,
18 RESEARCH&DATA CENTER all rights reservedRESEARCH&DATA CENTER
CONTACT: CONTACT:
Steve Schmith Sean Middleton
Executive Director, Chief Revenue Officer
Custom Research & 917-720-7745
Data Strategy sean.middleton@toptal.com
313-399-3080
Veda Paruchuri
steve.schmith@crain.com
Director, Consumer Products & Services
757-746-3618
veda.paruchuri@toptal.com
ABOUT TOPTAL
Toptal is an exclusive network of the top freelance software developers, designers, finance
experts, product managers and project managers in the world. Top companies hire Toptal
freelancers for their most important projects. To learn more, visit www.toptal.com.
ABOUT CUSTOM RESEARCH FROM THE AUTOMOTIVE NEWS
RESEARCH & DATA CENTER
The Automotive News Research & Data Center is partnering with the industry to
create custom research initiatives to deliver data-driven insight and perspectives
pertinent to their businesses. For more information about our custom research
capabilities, contact Steve Schmith, executive director of custom research and data
strategy, at steve.schmith@crain.com.
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