What's in Store for the Future of Work?
The concept of the future of work has evolved significantly over time, mirroring the transformations of the world itself. This term encapsulates an understanding of how employment trends may evolve in response to technological advancements and other macro-level changes. It also involves strategizing how employees and workplaces can gear up for impending changes.
When envisioning the future of work, people's imaginations can run the gamut, from robot-filled factories to office spaces remarkably similar to today's. While it's impossible to foresee the future with complete accuracy, the trends and shifts affecting the workforce and workplaces can provide a sneak peek into what lies ahead.
The McKinsey Global Institute provides an insightful perspective on the possible future of work, examining potential labor demands, occupational mixes, and required workforce skills. The Institute's analysis encompasses eight diverse countries (China, France, Germany, India, Japan, Spain, the United Kingdom, and the United States), accounting for almost half of the global population and over 60% of the world's GDP.
Here are some key findings from the Institute's recent report:
As per the forecast, one in every 16 workers might need to change their occupation by 2030. This means over 100 million workers across the analyzed economies may have to undergo professional transitions, a trend further accelerated by the pandemic.
Job growth is likely to focus on high-skill jobs such as healthcare, science, technology, engineering, and math (STEM) fields, while middle- and low-skill jobs may experience a decline.
Certain job categories might see more growth than others due to various factors, from the rise of e-commerce and the green economy to aging populations in many developed countries. However, some job types, like grocery store clerks and certain office roles, might be at risk due to automation and digitization.
The future of work was already on a transformational path before COVID-19 disrupted lives and livelihoods worldwide. The pandemic merely accelerated three broad trends, reshaping the work landscape:
The prevalence of remote work and virtual meetings is likely to persist post-pandemic, albeit at a lower intensity than during the crisis's height.
E-commerce experienced exponential growth, and other virtual transactions such as telemedicine, online banking, and streaming entertainment also gained momentum. This digital shift also stimulated job growth in delivery, transportation, and warehouse sectors.
The crisis catalyzed the adoption of digital technologies, including automation and AI, to control costs or mitigate uncertainties. These technologies have been deployed in various settings, including warehouses, grocery stores, call centers, and manufacturing sites, to manage workplace density or meet soaring demand.
Understanding these macro trends is vital for any organization's future planning. One of the primary questions arising from these shifts is the future of remote and hybrid work. McKinsey's analysis suggests that 20 to 25 percent of workforces in advanced economies could work from home three to five days a week, which is four to five times more than the pre-COVID-19 period. However, this isn't feasible for all job roles, especially those requiring specialized machinery or physical presence. Also, certain activities like negotiations, brainstorming, and providing sensitive feedback may be less effective when done remotely.
Hybrid work setups, where some work happens on-site and some remotely, are likely to become a norm. To sustain performance and health in such a scenario, organizations will need to focus on strategic clarity, coaching, empathy, outcome-based management, increasing talent velocity, adopting new collaboration methods, and speeding up technology adoption.
Any future-of-work analysis should consider three interdependent elements: the nature of work, the future workforce, and the future workplace. Understanding these elements can help organizations balance their unique contexts and prepare for upcoming changes.
Human Resources (HR), once considered a mere support function, will play a significant role in navigating the future of work. As per the McKinsey report, HR departments will be crucial in managing the future workforce, necessitating a shift from traditional practices to more strategic roles. Some key areas of focus for HR include:
Reskilling and upskilling: As job roles transform and new ones emerge, HR will need to spearhead employee training initiatives to match the evolving skill demands.
Talent acquisition: The rise of remote work broadens the talent pool for companies. HR should adapt to this reality, looking beyond geographical boundaries in their hiring practices.
Employee well-being: In a hybrid work model, employee mental health and well-being become paramount. HR will need to establish support systems to ensure employees maintain a healthy work-life balance.
While the future of work can seem daunting, it also presents numerous opportunities for growth and innovation. Companies that adapt and evolve in line with these changes will be better positioned to thrive in the future. It's clear that the world of work is not what it used to be, and the McKinsey report provides an essential perspective on navigating this new landscape.
Of course, every organization's journey will be unique, influenced by its specific circumstances, such as its industry, geography, and workforce. Nonetheless, understanding these broader trends can help businesses and their leaders make informed decisions, ensuring they are well-prepared for the coming shifts in the world of work.
