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The future of work
A journey to 2022
10,000 people in China,
India, Germany, the UK and the US
give their views on the future of work
and what it means for them
66% see the future of work as
a world full of possibility and believe
they will be successful
53% think technological
breakthroughs will transform the way
people work over the next 5 – 10 years
www.pwc.com/humancapital
Contents
A journey to 2022 2
Three worlds of work 4
The Blue World – corporate is king 10
The Green World – companies care 14
The Orange World – small is beautiful 18
A summary of people management
22
characteristics in 2022
Are you ready? 24
Appendix 26
Contacts 27
Foreword
Disruptive innovations are creating new industries and business models, and destroying old ones. New
technologies, data analytics and social networks are having a huge impact on how people communicate,
collaborate and work. As generations collide, workforces become more diverse and people work longer; traditional
career models may soon be a thing of the past. Many of the roles and job titles of tomorrow will be ones we’ve not
even thought of yet.
So how are these developments going to eight years. This includes setting out this study. Our thanks to all those who
affect the talent your business needs? How the recruitment, reward and employee kindly shared their perspectives.
can you attract, retain and motivate them? engagement strategies that are likely to
How is HR going to change as a result?’ be most relevant as these worlds evolve, No exploration of the future of work could
and what this means for businesses, ever be definitive. Indeed, one of the
The projections in this report build on the workforces and HR. defining characteristics of our age is its
work started in 2007 by a team from PwC ability to surprise and confound. However,
and the James Martin Institute for Science This report draws on a specially while things happen that we cannot predict,
and Civilisation at the Said Business School commissioned survey of 10,000 people in we can still be prepared.
in Oxford, who came together to develop a China, India, Germany, the UK and the US,
series of scenarios for the future of people who told us how they think the workplace
management. The result was three ‘worlds will evolve and how this will affect their
of work’, which provide a lens through employment prospects and future working
which to examine how organisations might lives. Further input comes from a survey
operate in the future. of almost 500 HR professionals across
the world, who share their insights on
In this report, we look to 2022 and consider how they’re preparing for the changes Michael Rendell
how the characteristics of these three ahead. Rohit Talwar, Global Futurist and Head of Human Capital Consulting, PwC
worlds of work are likely to be shaped the CEO of Fast Future Research, has also
by the changes coming up over the next contributed his cutting-edge thinking to
The future of work – A journey to 2022 1
A journey to 2022
2006 2007 2008 2009 2010 2011 2012 2013
Launch of Twitter Apple launches the Lehman Brothers Urban dwellers China overtakes the Global population Impact of resource Number of
iPhone files for bankruptcy become a majority of US as world’s largest passes 7 billion3 scarcity comes mobile devices
the global population manufacturer2 into sharp focus as and connections
for the first time1 prolonged droughts surpasses the
threaten blackouts in number of people on
Texas (power plants the planet5
are the largest users
of water in the US)4
1 Urban population growth, World Health Organisation (http://www.who.int/gho/urban_health/situation_trends/urban_population_growth_text/en/)
2 Economist, 10.03.12
3 Guardian, 31.10.11
4 Reuters, 30 April 2013
5 Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 2013–2018, Cisco, 05.02.14
2 PwC
2015 2016 2017 2018 2019 2020 2021 2022
Worker in Germany $10 tablet Assembly workers Analysts attend Doctor in China Rioting sweeps Licences granted for World’s first fully
says the “best is computer comes on in factory in Hanoi presentation by carries out ‘remote’ across university driverless cars automated and
yet to come” after to the market start wearing Fortune 500 Chief surgery on patient campuses as robot-served
celebrating 75 years’ sensors to gauge Performance in Ghana students lose hotel opens
service with the concentration, work Officer, who heads patience with
same firm rate and mood a combined Finance lack of job
and HR function opportunities
The future of work – A journey to 2022 3
Three worlds of work
Our scenario analysis
sees the expectations
of organisations and
the aspirations of
the people who want
to work for them
diverging into three
distinct ‘worlds’ of
work: Blue, Green
and Orange.
Blue World Green World
4 PwC
A major shift in management
practices to accommodate a rapidly
changing world of work and the
information workers that inhabit
this world [will have the single
biggest impact on the way we work
over the next 10 years]
Head of Talent, Information
Technology Sector, South Africa
Orange World
The future of work – A journey to 2022 5
Three worlds of work
Tremendous forces are radically reshaping Figure 1: What will transform the way people work over the next 5 – 10 years?
At the beginning of the century, the world of work. Economic shifts are
Ray Kurzweil, Futurist and Chief redistributing power, wealth, competition
53%
Technology breakthroughs
Engineer at Google, predicted that and opportunity around the globe.
Disruptive innovations, radical thinking,
39%
Resource scarcity and climate change
20,000 years of progress would new business models and resource
be crammed into the next 100.1 If scarcity are impacting every sector. Shifts in global economic power
anything, progress and change have Businesses across the world are beginning 36%
accelerated even faster than that. to understand that they need a clear and Demographic shifts
meaningful purpose, and mandate for the
decade ahead if they are to attract and
33%
Rapid urbanisation
retain employees, customers and partners.
Figure 1 sets out the trends people around
26%
None of these
the world believe will transform the way
people work over the next 5 – 10 years. 4%
Don’t know/not sure
It is important to reflect that the scale of 13%
expected change is not unprecedented.
PwC survey of 10,000 members of the general population based in China, Germany,
However, what is unique is the India, the UK and the US
pervasive nature of the change and its
accelerating pace.
Managing complexity as well as ambiguity [will have the
single biggest impact on the way we work over the next
10 years]
Head of HR. Energy, Utilities and Mining, India
1 The Law of Accelerating Returns, Ray Kurzweil, 07.03.01 (http://www.kurzweilai.net/the-law-of-accelerating-returns)
6 PwC
Competing forces Evolving priorities Changing role of HR
What cuts across these developments are The emergence of these three worlds is HR has been perceived by many as a Organisations will have to be
the push and pull of individualism versus going to create fresh challenges for HR. passive, service-oriented function. prepared to undergo new learning
collectivism and corporate integration Organisations currently grapple with the But given the demands of tomorrow’s cycles and adapt themselves to
versus business fragmentation. The realities of skills shortages, managing workplace and business environment, we
these new challenges, not only to
competition between these forces is people through change and creating an believe HR is at a crossroads and will go
creating what we’ve identified as three effective workforce. By 2022, the radical one of three ways: survive, but to succeed.
scenarios (‘worlds’) for the future of work: change in business models will mean that • With a proactive mindset and focused
• Large corporates turning into mini- companies will be facing further issues on business strategy, HR will take on a Head of HR, Healthcare, India
states and taking on a prominent role in such as: new wider people remit incorporating
society. • The need to create ever more and influencing many other aspects of
• Specialisation creating the rise of sophisticated people measurement the business.
collaborative networks. techniques to monitor and control • The function will become the driver
• The social and environmental agenda performance and productivity. of the corporate social responsibility
forcing fundamental changes to • Increasing importance of social capital agenda within the organisation.
business strategy. and relationships as the drivers of • The function will be seen as
business success. transactional and almost entirely
Most organisations are likely to be a mix • The boundary between work and outsourced.
of all three worlds of work. As we explore personal life disappearing as companies
in this report, it’s therefore useful to think assume greater responsibility for the In the coming sections of this report, we
about where your organisation might social welfare of their employees. explore the nature of these three worlds,
be positioned within these scenarios, what’s shaping them and how this will
the trade-offs this entails and what affect HR priorities, organisational design
implications this has for your people and wider business strategies.
management strategy.
The future of work – A journey to 2022 7
Three worlds of work
Fragmentation
Small is beautiful
ompanies begin
C
to break down
into collaboration
The networks of smaller
Orange organisations;
specialisation
World dominates the world
economy
Collectivism Individualism
Companies care Corporate is king
Social responsibility Big company
dominates the capitalism rules as
The corporate agenda The organisations continue
Green with concerns
about demographic
Blue to grow bigger and
individual preferences
World changes, climate World trump beliefs about
and sustainability social responsibility
becoming the key
drivers of business
Integration
8 PwCThere will be a major shift away from the
thinking that we learn one profession, have one
job and stay in it for decades.
Female, voluntary worker (aged 33 – 47),
Germany.
The future of work – A journey to 2022 9The Blue World – corporate is king
Where big company
capitalism reigns supreme
The globalisers take centre stage, consumer
preferences dominate, a corporate career
separates the haves from the have-nots.
Driving goal How to compete Employee value
Profit, growth and Scale is the crucial proposition
market leadership. differentiator. It allows (the ‘deal’)
these mega-corporations Job security and
to reach out across the long-term service with an
globe and compete for organisation in return for
talent and resources – employee commitment and
constantly innovating flexibility.
and keeping pace with
customer demands.
10 PwCThe most important
Relentless pressure to perform The attractions include high rewards for
thing in a job for 44% of
high-flyers. This is a chance to be one of the
In the Blue World, big company capitalism people around the world is
44
‘haves’ in a world where stable employment
reigns supreme. Consumer preferences
and profit margins dominate in a model
built around flexibility, efficiency and
is less and less the norm.
% job security.
Employees also have access to the
speed to market. The relentless pressure
pensions, health and other benefits that
on performance isn’t just driven by
their host societies may not provide or be
competition from peers, but also aggressive
scaling back.
new entrants looking to lead innovation and
undercut existing players. Blue firms follow
Metrics and data are used to drive business
the money and go wherever the opportunity
performance through complex staff
is – their operating model enables them of people around the world
segmentation strategies which identify
to survive and thrive in both stable and believe that technology will
thousands of skills sets – creating precision
64
volatile economic conditions alike. improve their job prospects.
%
around sourcing the right candidates
for the right tasks, as well as on-the-job
The challenges include how to integrate
performance measurement and assessment.
talent from different markets into the
overall corporate culture. The need to lead
innovation and open up new opportunities
will also see them investing heavily in R&D
and acquiring smaller start-ups.
PwC survey of 10,000 members of the general population
based in China, Germany, India, the UK and the US
How to cater for flexibility with the right amount of trust
and technological support to still exceed the expectations
of clients [will have the single biggest impact on the way we
work over the next ten years]
Human Resource Director, Business Services, Kenya
The future of work – A journey to 2022 11health, with proactive health guidance and Leadership teams have a high focus on the
The Blue World of 2022 treatment to enable staff to perform more evolution of the corporate culture, with
People policies seek to lock in talent, but the efficiently, reduce sick leave and work for rigorous recruitment processes to ensure
top talent is still hard to attract and retain; more years before needing to retire. new employees fit the corporate ideal. New
many senior executives use personal agents staff are subject to compulsory corporate
to seek out the best deals. Blue firms have a network of relationships culture learning and development
with third-party research centres, programmes.
The data profiling that drives customer innovation firms and universities through
management will increasingly be replicated which they fund and source new product The ‘contract’ with employees is defined
among employees as screening and and process ideas. They use mechanisms by the handing over of data (e.g. health,
monitoring move to a new level. Sensors such as idea sourcing platforms, challenge performance, possibly even private life) in
check their location, performance and contests and seeding of venture funds return for job security. More than 30% of
health. The monitoring may even stretch and incubators to bring a constant flow of the participants in our global survey would
into their private lives in an extension of opportunity. While some of the ideas make be happy for their employers to have access
today’s drug tests. Periodic health screening it into core products and processes, many to their personal data. Younger people
gives way to real-time monitoring of are sold on or licensed to create a self- tend to be more open to this than older
funding innovation model. generations, so this kind of monitoring
could become routine in the years to come.
The speed of technological progress, such as the popularity
of the ‘Internet of Things’, will have a big impact on the way
we work over the next ten years.
Male, in permanent employment (aged 33 – 47), China
of HR professionals are
gearing their talent
31
strategies to pushing back
3 out of 10 % the borders of innovation
and possibility, employing
only the best and offering
of the participants in our global survey would long-term job security
be happy for their employers to have access to and reward.
their personal data.
PwC survey of 480 HR professionals from across the world
12 PwCChanging organisational Reward models include a strong
and HR demands performance-related element. A key
challenge for HR is convincing employees
The management of people within the
that the ‘price’ of data release and close
Blue World is a hard business discipline,
monitoring is worth paying. This includes
akin to finance within this scenario. In
developing the right balance between
addition to identifying and delivering the
the benefits (e.g. job security or health
talent needed to meet business objectives,
protection) and productivity gains of this
successful HR teams are developing the
personal data. It also includes building trust
ever more sophisticated measurement
through codes of conduct about how data is
and management techniques needed to
acquired, used and shared.
ensure that the workforce meets exacting
performance targets.
The machine will become fully intelligent and
The HR function evolves into a people and
performance unit, which is led by the Chief
have the ability to think independently.
People Officer (CPO), who is a powerful
and influential figure within the leadership Male, in permanent employment
team of the organisation. (aged 48 – 66), UK
Those responsible for people management
increasingly need financial, analytical,
marketing and risk management skills
?
to measure the impact of human talent
on their organisation and retain the
best people.
Talent is managed alongside artificial
Questions for HR
intelligence in a hybrid model. HR will
How can you develop the more sophisticated human
develop real-time response to data feeds
capital metrics needed to constantly improve
as it evolves into a key part of the wider
performance?
performance team.
How do you develop a broader resource optimisation
approach in which machines, artificial intelligence
and human beings work side by side?
Where is the line between performance monitoring
and personal space and how can you make sure the
organisation stays within it?
The future of work – A journey to 2022 13The Green World – companies care
Where consumers and employees
force change
Companies develop a powerful social conscience and green
sense of responsibility. Consumers demand ethics and
environmental credentials as a top priority. Society and
business see their agendas align.
Driving goal How to compete Employee value
Socially and environmentally A social and environmental proposition (the ‘deal’)
beneficial good. conscience is demanded by Ethical values and work – life
customers and staff right balance in return for loyalty
through the organisation towards an organisation that
and its supply chain. The does right by its employees.
organisation must get it right in
order to survive and compete.
14 PwCBrands can rise and fall on the basis
Rethinking values and goals
of perceived green credentials, with
In the Green World, companies take government imposed corporate fines for
the lead in developing a strong social bad behaviour in this highly regulated
conscience and sense of environmental world. Corporate responsibility is not
responsibility. They are open, trusting, an altruistic nice to have, but a business
collaborative learning organisations and imperative. Employees are expected to
see themselves playing an important role in uphold corporate values and targets around
of people around the
supporting and developing their employees the green agenda.
world want to work for an
and local communities. Companies have
organisation with a powerful
65 %
strong control over their supplier networks The need to travel to meet clients and
social conscience.1
to ensure that corporate ethical values colleagues is replaced with technological
are upheld across the supply chain, and are solutions, which reduce the need for
able to troubleshoot when things go wrong. face-to-face contact. Employees’ carbon
In turn, the combination of ethical values, footprint is carefully monitored and built
support for the real economy and family- into performance targets.
friendly hours is an opportunity to create a
new employee value proposition that isn’t As society gravitates towards more
solely reliant on pay. sustainable living, the HR function
of HR professionals are
is forced to embrace sustainability
building their talent
and corporate responsibility as part
strategies around their
36
of its people engagement and talent
management agendas.
% organisations’ social and
environmental conscience,
which is intrinsic to the
brand and matches the
values and beliefs of
their people.2
1 PwC survey of 10,000 members of the general population based
in China, Germany, India, the UK and the US
2 PwC survey of 480 HR professionals from across the world
The future of work – A journey to 2022 15Rather than basic performance, the While our survey confirms that the
The Green World of 2022 emphasis is on using data to promote opportunity to work for organisations
?
Moves towards the Green World are being broader objectives, such as health and that share their values and beliefs is
bolstered by the need to use resources well-being, professional development, attractive to many of the best and brightest
in smarter and more efficient ways. flexible working and volunteering. The candidates, the overall incentive package
The disillusionment that has followed development of environmental best practice is still going to be important. Financial
in the wake of the financial crisis and is a key objective for employees, who are rewards can be augmented by the chance
Questions for HR
public anger over some corporations’ encouraged to create new and interactive to take up secondments on social and
How can you turn your values
environmental, social and tax policies is ways to share ideas and encourage people environmental projects.
into a compelling element of your
forcing ever more companies and workers to take them up.
employer brand?
to question the very nature and purpose of Further challenges include how to ensure
their business. Changing organisational and that strict compliance with laws and
Is your function set up to work with
HR demands standards doesn’t inhibit flexibility and
people who want a greater say in
Customers look to Green firms to introduce enterprise. In a caring organisation, there
The CEO drives the people strategy for the designing their working responsibilities
innovative ideas and practices and is also the question of how to keep people
organisation, believing that the people and rewards?
influence their own behaviour – often in employment if there is a downturn in the
in the organisation and their behaviours
setting challenges around ways of working market or wider economy. Working closely
and role in society have a direct link to the How can you monitor the desired ethics
which can be transferred back into the with employees and other stakeholders, HR
organisation’s success or failure. and behaviour most effectively?
customer’s own environment. Customers will be expected to come up with innovative
are proud to support Green firms and the solutions to these challenges.
Green firm pioneers avoid hierarchy and
broader societal goals they are pursuing.
opt for flexible, flat and fluid organisational
Technology and the internet play a critical
structures. Everyone in a Green firm has
role in providing total transparency of the
the opportunity to participate in decision-
firm’s environmental, social and ethical
making and feels responsibility for the
impact and performance across all of
organisation’s success.
its activities.
A distinctive feature of Green firms is the
HR and corporate social responsibility fuse The need for economic and environmental
as organisations embrace sustainability and efficiency [will have the single biggest impact on
practice of co-creation – engaging with
support for socially valuable ‘good growth’.
customers, partners, external agents and the way we work over the next ten years]
the local community to create new products
HR helps to foster close collaboration
and services that benefit the customer, the
company and the broader community
between employer and employee in Male, self-employed (aged 48 – 66), UK
designing jobs around aspirations and
lifestyles. Reward models will be highly
Diversity and work – life balance are viewed
flexible as part of this personalised design.
as sources of strength and competitive
advantage. Staff are encouraged to forge
links with the community and to take part
in socially useful projects.
16 PwCCrowded urban centres will necessitate
‘anywhere working’ aided by technology.
VP Human Resources, Financial
Services, USA
Greater emphasis on work – life balance – more
employees wanting work that fits around their
life rather than focusing on a specific career path
[will have the single biggest impact on the way we
work over the next ten years]
Human Resources Manager, Engineering
and Construction, Australia
The future of work – A journey to 2022 17The Orange World – small is beautiful
Where big is bad, for business, for
people and for the environment
Global businesses fragment. Technology empowers a
low impact, high-tech business model. Networks prosper
while large companies decline.
Driving goal How to compete Employee value
Maximising flexibility while Embracing the rise of the proposition (the ‘deal’)
minimising fixed costs. portfolio career, hiring a Flexibility, autonomy and
diverse mix of people on an varied challenges in return
affordable, ad hoc basis. for working on a short-term
contractual basis.
18 PwCThe chance to take control
of their career, what they
do and when is what 29%
29 % of people around the world
most want from a job.1
Seeking out fresh opportunities The Orange World desire for autonomy is
strongest in China, especially among young
In the Orange World organisations
people, indicating a generational shift
fragment into looser networks of
towards greater freedom, entrepreneurship of HR professionals expect at
autonomous, often specialised operations.
and specialist skills in this rapidly evolving least 20% of their workforce
Technology helps to bring these networks
46
economy. Over half of participants in China to be made up of contractors
%
together, often on a task-by-task basis, with
believe that traditional employment won’t or temporary workers
social media heightening the connectivity
be around in the future. Instead, people will by 2022.2
upon which this world depends.
have their own ‘brands’ and sell their skills
to those who need them. The belief that
Supply chains are built from complex,
the future lies in a contingent model is also
organic associations of specialist providers,
strong among graduates, though people
varying greatly from region to region
with fewer qualifications anticipate much
and market to market. Looser, less tightly
less change in their working arrangements. 1 PwC survey of 10,000 members of the general population based
regulated clusters of companies are seen to
in China, Germany, India, the UK and the US
work more effectively than their larger and
potentially more unwieldy counterparts. 2 PwC survey of 480 HR professionals from across the world
Moves towards the Orange World have been
bolstered by the rise of the portfolio career.
Many people have come to realise that they
could enjoy more flexibility and varied
challenges by working freelance or as a Contract employment will be king. Full-time People’s increasing need for diversified careers, mobility and
contractor for a number of organisations. jobs will be become obsolete. flexibility [will have the single biggest impact on the way we
work over the next ten years]
Male, retired (aged 48 – 66), US
Human Resources Manager, Asset Management,
South Africa
The future of work – A journey to 2022 19The Orange World Changing organisational and Workers are categorised and rewarded
HR demands for having specialist expertise, which will
?
of 2022 HR manages bidding processes as part
create increased demand for people to have
a personal stake in the organisation’s or
Big business will be outflanked by a of an open market for assignments in
project’s success. Options such as project
vibrant, innovative and entrepreneurial which people from within and outside
delivery-related bonuses are therefore
middle market. A core team embodies the the organisation apply and compete for
going to become more common.
philosophy and values of the company. The postings and projects. Questions for HR
rest come in and out on a project-by-project How can you identify and attract the
A key challenge is ensuring that the people
basis. Some firms compete on quality Recruitment becomes largely a sourcing contract staff needed to meet different
being hired genuinely have the expertise
and specialisation, while others offer function, which is often merged with objectives?
required or claimed. This demands a
commoditised price-dependent support. the management of the huge number of
combination of effective verification and
Telepresence and virtual solutions allow contracts and price agreements required How can you verify the authenticity of
watertight contractual agreements, possibly
for greater remote working and extended for each company’s network of partner the data being used to select staff and
with penalties for poor and non-delivery.
global networks. organisations. associates?
It’s also going to require a high degree of
Many companies will be too small to have
relationship building and business trust.
Efficient systems and processes are the key HR hiring teams and will look to technology How do you effectively manage non-
Many contractors and partners will adopt
to success of Orange companies. Maximum or dedicated agents to supply needs. owned resource?
‘eBay-style’ ratings of past performance to
operational flexibility, lean staffing models,
help land the next contract.
collaborative partnerships and minimal People are more likely to see themselves as
fixed costs are critical enablers of Orange members of a particular skill or professional
firms. These companies make extensive network than as an employee of a
use of technology to run their businesses, particular company.
coordinate a largely external workforce
and support their relationships with third Orange pioneers will give a new lease of
parties. They take advantage of disruptive life to professional guilds, associations and
technology when appropriate and stay trade bodies – relying on them for training,
abreast of new developments to ensure they development and innovation.
are up to speed in their sector.
People are more likely to see themselves as
The development of networks and members of a particular skill or professional
relationships with contingent staff network than as an employee of a
is critical. Technology tracks their specific company.
applicability, location and availability.
20 PwC2 out of 5
People around the world believe that
traditional employment won’t be around
in the future. Instead, people will have their
own ‘brands’ and sell their skills to those
who need them.1
31 %
of HR professionals are building their talent
strategies around the rise of the portfolio
career, hiring a diverse mix of people on an
affordable, ad hoc basis.2
1 PwC survey of 10,000 members of the general
population based in China, Germany, India, the
UK and the US
Managing a diverse, heavily matrixed and virtual 2 PwC survey of 480 HR professionals from
organisation [will have the single biggest impact on the across the world
way we work over the next ten years]
Vice-President for Human Resources, Retail and
Consumer, Switzerland
The future of work – A journey to 2022 21A summary of people management
characteristics in 2022
Corporate is king: Companies care: Small is beautiful:
Blue World Green World Orange World
How organisations source Organisations compete to find and Green World companies seek like- Technology provides the solution to
and attract talent secure the best talent available and minded individuals to extend their finding and evaluating contractors as
use extensive search and evaluation corporate family, taking great care suppliers of key skills. Commercial
methods to find the stars of tomorrow. to only select talent with the right terms are offered for a specific task.
behaviours and attitudes.
Talent is attracted by the potential for A company’s reputation within networks
high earnings, job security and status. Talent is attracted to Green World and online recruitment markets is
brands, their values and their culture. crucial in attracting talent.
Reward and performance Reward is based on finely tuned Organisations focus on total reward, Contract-based pay for projects is the
performance metrics. which recognises corporate citizenship norm. Results-based or buy-in contracts
and good behaviours alongside are also common. Negotiation skills
performance. are vital.
Learning and Individuals build skills and experience Personal and professional development Individuals develop their own skills.
development's role to adapt to changing business needs. fuse in areas such as volunteering. Professional guilds will re-emerge and
Learning and development is closely certify skills alongside online references
aligned to objectives and performance and performance rankings.
measures.
The role of HR HR uses advanced analytics to predict HR acts as guardian of the brand. There HR focuses on sourcing contractors and
future talent demands and to measure is a strong focus on creating the right negotiating the contracts, along with
and anticipate performance and culture and behaviours and on guarding performance management and project
retention issues. against sustainability and reputational economics.
risk across the supply chain.
Role of technology in Sensors and data analytics to measure Helping people to build work into their Creating virtual collaboration.
managing people and optimise performance. lives and minimise their environmental
impact.
22 PwCThe future of work – A journey to 2022 23
Are you ready?
The effectiveness with which your Forward-looking HR teams are already Most of the HR professionals in our survey
considering a range of different scenarios don’t believe they’re prepared for meeting
organisation plans people management for the future as part of their business the needs of a workforce that demands
for the long-term will be critical to its planning (see Figure 2), but few are taking more freedom, autonomy and flexibility.
a sufficiently longer term view to deal Only around 20% report that they’re
long-term viability, ensuring you have with them. ready to embrace the role of technology
the right people, with the right skills, in and automation in replacing knowledge
the right places to realise your evolving workers, even though most recognise this is
something they should consider.
goals. Think too much in the short-term
and you may find yourself on the back Figure 2: Planning ahead – How far does HR in your organisation look into the future?
foot, unable to catch up with sudden
shifts in your marketplace. 21% 56%
Short-term: Medium-term:
The future is moving so fast I anticipate a lot of change and
that it is very hard to predict am building possible future
how things will change scenarios into our current
talent pipelines
24%
Long-term: I am actively
considering the evolving and multiple
visions of the future as part of our
long-term business planning
24 PwC PwC survey of 480 HR Professionals from across the world.Figure 3: How can organisations plan for the future of people management? As Figure 3 outlines, our three worlds can
provide a starting point for judging the
opportunities, risks and evolving demands
Which world are you heading on HR across different areas of your
towards: Blue, Green, Orange or organisation. But no one model will prevail
something else entirely? and even within them, it will be important
to manage competing demands.
What are the scenarios for your
organisation?
How will your organisation’s culture What do you need to do to get there?
respond to an environment of constant Better understand where you are now
change? What will be the role of through use of evaluation techniques,
leadership? What behaviours will benchmarking and measurement.
be most valuable to the organisation
and how will the organisation need
to communicate with and engage all
employees?
How will your organisation need
to change...resourcing, talent
management, employee engagement,
reward, learning and development...
what else?
The future of work – A journey to 2022 25So what does the future hold for HR? In the Blue World, it will be at the centre of a hugely influential metric-driven strategy and performance function. In the Orange World, it is set to have a much narrower recruitment and tendering role, with many other aspects of the function outsourced. In the Green World, HR’s role could be much more diffuse, helping employees to shape their work around their values and outside lives. Whatever path your function follows, it’s going to look very different in 2022. 26 PwC
Blue World Green World Orange World
The future of work – A journey to 2022 27Appendix
The potential break-up of large
businesses and the risk of
Creating the three worlds collaboration networks
We worked with the James Martin
Institute to think about the factors that
iness fragmentation
were affecting business and those that we Bus
believed would grow in importance in the Allowing technology into almost The free-market trend prevails as
e Gl
future. We mapped these around a matrix every part of a person’s life sm ob trade barriers disappear
rol al
and developed a number of scenarios: on is
yc
plausible futures around each.
at
og
io
n
ol
hn
We started our research by examining the
Tec
forces that were affecting global business
and were likely to have significant impact
on the future. While there are many social,
Individualism
The common good prevails over Focus on individual wants;
Collectivism
environmental, religious and demographic personal preference, e.g. collective
a response to the infinite choices
factors that have a significant influence,
we chose to focus on the global forces
responsibility for the environment
over individual interest Global forces available to consumers
that we feel have the greatest impact on
people management.
y
Re
og
ve
ol
rs
hn
eg
ob
ec
lt
l
al
isa tro
tio on
Protectionist policies begin to rebuild n Ic A yearning for the human touch
barriers to free movement of people minimises the personal impact of
and goods Cor technology on consumers
p o r a te i n t e g r a t i o n
BIg business rules all
28 PwCContacts
Michael Rendell North America Central & Eastern Europe India
Human Resource Services Scott Olsen Zsolt Szelecki Padmaja Alaganandan
Global Network Leader +1 646 471 0651 +44 20 7804 1710 +91 80 4079 4001
+44 20 7212 4945 scott.n.olsen@us.pwc.com szelecki.zsolt@uk.pwc.com padmaja.alaganandan@in.pwc.com
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Global marketing & business development, bhushan.sethi@us.pwc.com +971 4304 3981 +61 (2) 8266 2402
Human resources services david.suarez@ae.pwc.com jon.williams@au.pwc.com
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The future of work – A journey to 2022 29www.pwc.com/humancapital PwC helps organisations and individuals create the value they’re looking for. We’re a network of firms in 157 countries with more than 184,000 people who are committed to delivering quality in assurance, tax and advisory services. Tell us what matters to you and find out more by visiting us at www.pwc.com. This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. © 2014 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. Design Services 28665 (05/14).
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