Top leaders have a lack of focus on, or confidence in, the value of the people in their organizations, according to a global study of CEO perceptions released by executive search firm Korn Ferry International (KFY: NYSE). They instead are putting a higher value on technology and tangible assets.

Korn Ferry conducted in-depth interviews with business leaders in multi-million and multi-billion dollar global organizations on their views concerning the value of people in the future of work. Two-thirds of the CEOs believe technology will be their firm’s greatest competitive advantage, and nearly half said robotics, automation and artificial intelligence will make people “largely irrelevant.”

“Leaders may be facing what experts call a tangibility bias,” said Jean-Marc Laouchez, global managing director, solutions, Korn Ferry. “Facing uncertainty, they are putting priority in their thinking, planning and execution on the tangible — what they can see, touch and measure, such as technology investments. Putting an exact value on people is much more difficult, even though people directly influence the value of technology, innovation and products.” 

Key findings of the study include:

• 63% say that in five years, technology will be the firm’s greatest source of competitive advantage.
• 67% say that technology will create greater value in the future than people will.
• 44% say the prevalence of robotics, automation and artificial intelligence will make people “largely irrelevant” in the future of work.

The study also found that when asked to rank what their organization’s top five assets will be five years from now, the company’s workforce did not make the list. The top five assets named by the CEOs, in order, are:

1. Technology (product, customer channels)
2. R&D/innovation
3. Product/service
4. Brand
5. Real estate (offices, factories, land)

“While the critical role and pervasive nature of technology in tomorrow’s workforce is clear, no one is saying people are going away altogether,” said Alan Guarino, vice chairman, CEO and board services, Korn Ferry. “Soft skills such as the ability to lead and manage culture, will become critical factors of success for companies in the future of work as they seek to maximize their value through their people.”

Korn Ferry interviewed 800 business leaders in multimillion-dollar global organizations. The survey was conducted in August and September, 2016, and the leaders were in the United Kingdom, China, the United States, Brazil, France, Australia, India, and South Africa.