Future-proofing work: Key drivers and strategies for work transformation

Key drivers of work transformation

Artificial intelligence (AI) and digital technologies

AI and digital technologies are reshaping the workplace. 35% of work will be done by automation in three years, almost twice as much as three years ago. Employees must adapt to new tools and ways of working.

Changing demographics

Shifts in demographics, like aging populations, are influencing work transformation by altering the composition and expectations of the workforce. Organizations need to adjust their strategies to manage a more diverse workforce with varying needs and skills.

Shifts in labor force participation

Changes in labor force participation, such as varying employment rates and the rise of part-time and freelance work, are creating a more fluid job market. 52% of employers expect to see opportunities to create value through new sources of talent. This shift demands that businesses adopt more flexible employment practices and integrate a broader range of employment types into their workforce planning.

Challenges facing organizations

• Cost pressures and high inflation: Organizations are operating under significant financial stress due to continued high inflation, which impacts operational costs and overall budgeting.
• Talent shortages: There’s a critical shortage of talent, especially individuals who have the necessary skills to interact with new technologies and adapt to new ways of working. This shortage makes it imperative for organizations to strategically place the right talent in the right roles.

Organizations need to keep pace with current work requirements while forecasting future requirements

But fewer than 2 in 5 respondents are prepared to deal with the effects of new technologies and digital tools or reskilling of employees.

Current actions around work transformation

Already taken action

1. Talent attraction, retention and engagement
2. Diversity, equity and inclusion
3. Scaling for growth

Currently taking action

1. Work efficiency and effectiveness
2. Talent attraction, retention and engagement
3. Diversity, equity and inclusion (DEI)

Planning or considering taking action

1. Reskilling
2. Technologies and digital skills
3. Addressing climate change

5 steps to effectively navigate the challenges of work transformation

1. 01

   Identifying critical talent requirements

   Develop strategies for talent acquisition and retention, along with HR programs and policies to meet these critical talent requirements.

2. 02

   Understanding market dynamics

   Conduct research to understand the market dynamics by geography to ensure actions align with market needs. Utilize external providers and benchmarks for a tailored approach.

3. 03

   Evaluating the organization’s technology landscape

   Compare your current technology landscape with emerging technologies to identify necessary talent and workforce management interventions, enhancing efficiency and supporting growth.

4. 04

   Assessing specialized internal capabilities

   Evaluate the readiness of specialized units like HR and business partners to support organizational design needs, ensuring they understand and can implement new work models that align with evolving business models.

5. 05

   Measuring readiness for work transformation

   Measure the organization’s readiness for change by identifying success factors, using external insights and benchmarks to develop action plans that facilitate effective communication and training for change leaders and managers.

The dynamics of work are truly changing, and this will likely mandate greater flexibility, adaptation and innovation in the way we work.

Ready to transform your organization? Contact one of our experts today to harness the full potential of your workforce and drive strategic change.

Contact

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Khaleel Albiss

Director, Work, Rewards & Careers

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