THE FUTURE OF WORK IS HERE - Liberty Global policy series March 2021
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THE FUTURE OF WORK IS HERE Liberty Global policy series March 2021
The Future of Work is here |
2021
The Future
of Work is here
1. Executive Summary
By stripping away bureaucracy, flattening hierarchies and streamlining processes,
the response to COVID-19 has given us a glimpse of how work could and should
change for the better. In fact, the pandemic is accelerating ongoing changes in
the nature of work, who does it and where. 61% of executives asked in a recent
Deloitte survey indicated to focus on re-imagining work in the next three years
(from 29% prior to the pandemic) 1. The profound shifts we are seeing are proving
to be productive for many and painful for others, potentially exacerbating existing
inequalities. That is one of the high-level conclusions from this discussion paper
which draws on interviews with 26 business leaders, policy-makers and researchers,
based on Deloitte’s expertise on the Future of Work.
Here are our key findings:
Call for greater transparent and consultative, to talent) and then design a bold,
trust and faster sustain the flatter hierarchies and
faster decision-making that have
engaging and inclusive employee
experience.
decision-making been hallmarks of organizations’
immediate response to the COVID-19 Businesses now compete on how
To enable organizations to prosper crisis. Such a shift would need to be quickly they can exchange information
in a fast-moving and unpredictable underpinned by a change in the way and make meaningful decisions.
environment, some of the interviewees organizations define and measure If they attempt to return to the old
called for a new kind of leadership ‘good performance’, placing greater work regimes, they will risk losing good
based on mutual trust and a shared emphasis on outcomes, rather than young people and market share to
sense of purpose across employers inputs, and employee well-being. more forward-looking competitors.
and employees. Rather than simply Organizations should identify the If they don’t adapt to the future of
dictating changes to employees, optimal workforce for a specific task work, businesses will lose the talent
leaders need to become more (be it workers on payroll or flexible war and ultimately die.
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Individuals will a danger that people will lose their
sense of belonging and cohesion
haves and have-nots. Meaningfully
closing the digital skills divide will
need to invest will suffer. To prevent that from
happening, businesses should
be impossible without greater
government investment.
in their futures overhaul their office and techno-
Setting a direction
logical capacity to support the
For their part, individuals will need to optimum mix of distributed working
invest in their own development and
be prepared to move from employer
and in-person collaboration in
physical workspaces. Although many
of travel
to employer as greater automation interviewees noted how productive
As well as capturing many of the ways
closes down some roles and opens people have been during the
in which work is clearly changing, this
up others. A university degree will pandemic, some also flagged signs
discussion paper identifies multiple
no longer be enough to guarantee of fatigue and frustration with
topics where there are divergence of
continued employment – people will remote working.
views. The impact that we will all face
need to develop their innately human
in the change is not yet well defined
skills, while keeping their digital To help people find a better balance
and set in stone. The leaders of the
acumen up-to-date. For white-collar between digital and in-person
businesses and institutions that
workers, a well-equipped home office interaction, offices should be
were interviewed do recognize that
with reliable, fast connectivity is now revamped to become collaborative
actions have to be taken to catch on
an absolute must. spaces where staff mingle to
to the current reality. Aligning the
exchange ideas and brainstorm,
work, workforce and workplace in a
The response to the pandemic has fueling innovation that will give the
completely new setting with different
demonstrated that a distributed business a competitive edge. It is
rules and cultural aspects is a huge
workforce can use digital tools and important to allow for the serendipity
task. In this respect, the paper will
connectivity to function effectively, of interaction, while harnessing
help frame the ongoing debate
opening opportunities for employers the broader benefits of distributed
among private and public sector
to recruit from a broader and more working, such as reduced commuting
stakeholders about how we should
diverse and dispersed talent pool. time, less congestion and a better
organize work going forward.
Even so, businesses should work with work-life balance for staff.
The outcome of that debate will
governments to enable more people
have enormous ramifications for
to develop the adaptability and soft
individuals and society as a whole.
skills they will need to be employable
and productive in a world in which
Governments
machines and computers take on need to step in
more and more responsibilities. As
technology takes over many traditional and step up
work tasks, organizations will have to
rethink what they pay employees to do. Although the progression of
technology is impacting almost all
kinds of work, some groups of people
A new purpose are better able to cope than others.
As a result, society is segmenting.
for offices and Some interviewees pointed to
growing political, social and economic
office workers inequality, as people get disconnected
from work and become increasingly
Yet, the shift to distributed working unemployable. Given the fundamental
will also require organizations to importance of connectivity and
double down on their efforts to create digital tools in the new world of work,
a shared sense of purpose among governments need to move now to
employees. Without that, there is narrow gaps between the technological
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2. Table of Contents
1. Executive Summary 2
2. Table of Contents4
3. Introduction5
• About this paper 5
• The past is a foreign country 6
• Trends shaping the future of work 6
• The three key dimensions: Work, Workforce and Workplace 7
4. Work - Prepare for a dramatic change in day-to-day tasks8
• How technology is upping the pace 8
• The search for innately human skills 9
• Beyond reskilling towards lifelong learning and resilience 10
• The deliberate redesign of ‘work’ and new forms of leadership 10
5. Workforce - Tapping a diverse and broad talent pool11
• From performance to purpose 12
• From monitoring to trust 13
• Flatter hierarchies, faster decisions 13
• Ensuring workforce well-being and belonging 13
• Societal shifts threaten to widen the economic divide 14
• Policymakers will need to intervene 14
6. Workplace - Redefining the role of physical space15
• Calling time on the commute 15
• There is a time and a place for remote working 17
• Changing definition of the workplace and purpose of the office 18
• Reshaping work and living locations 19
7. Connectivity - The unsung hero of the future of work 20
• The digital revolution is in full swing 20
• The future is here, but unevenly distributed 21
• Align technology with the future of work 21
• the hands of more people 22
8. Conclusion - Takeaways for Businesses, Individuals,
and Government 23
• Businesses – take a step back and reimagine work 23
• Individuals – new mindset and softer skills 24
• Governments – support reskilling and better infrastructure 25
9. Acknowledgements 26
10. About the authors 27
11. Sources 28
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3. Introduction
About this paper
Drawing on interviews with 26 business leaders, policymakers and researchers
conducted in the final two months of 2020 and Deloitte’s expertise and
experience, this paper explores the future of work – a hot topic for governments
and organizations across the world. Synthesizing insights from the interviews with
a theoretical backbone, the paper considers how the nature of work is changing
and the implications for the workforce and the workplace. It then explores
the critical role of connectivity and technology, before drawing conclusions for
businesses, individuals and governments.
This discussion paper is designed to • Will office workers continue to work • Is there a risk that remote workers
trigger debate about the organizational from home, even after the pandemic? become alienated from their
changes that everyone is working organisations, losing their sense of
• Will a hybrid working environment
through today. The interviews tested belonging?
lead to a more international
hypotheses around a major shift in
workforce and create more diversity? • Will companies’ headquarters
the way we work, driven by a changing
completely disappear changing the
society and greater worldwide • Will the shift in the patterns of
face of city centres?
connectivity, data and automation. work open up new opportunities in
Such a shift would go well beyond the the value chain and allow for new • Are we in danger of creating a two-
recent rise of the global gig economy business models? tier society in which people with
and rapid growth in the number of self- the right mix of skills are in great
• Are we about to see a great leap
employed. In line with this theme, we demand, while many others are
forward in the digitization of work?
have sought to answer some thought- almost unemployable?
If so, how should governments and
provoking questions, such as:
businesses ensure the workforce
have the right skills?
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Technology is Seven AI, cognitive
everywhere Disruptors computing, robotics
6 billion+ smartphones affordability
in the world by 2020 $500,000 in 2008
Source: IHS Markit $22,000 today
Source: Deloitte
Tsunami of Explosion in
data contingent work
9x more in the last US contingent workers
two years 40% by 2020
Source: Deloitte Source: Intuit 2020 Report
Diversity and
generational Jobs vulnerable
Change in nature change to automation
of a career Millennials reaching 35% UK
2.5 - 5 years: Half-life 50% of workforce 47% US
of skills 77% China
Source: Deloitte Global
Source: Deloitte Millennial Study Source: WDR 2016
Figure 1:
The seven disruptive trends
shaping the future of work
The past is a foreign country effects, not just on how we work, but Trends shaping the future of work
These questions may not be keeping where we work, how we communicate Earlier Deloitte research identified
us awake at night just yet, but the and even on how cities are designed. seven disruptive trends that are
forces shaping the future are already shaping the future of work (see Figure 1).
at play and we cannot afford to be The COVID-19 pandemic has, perhaps, these trends can be grouped into two
caught off-guard. Although there are given us a kaleidoscopic glimpse of the categories: socio-demographic trends
many uncertainties to be resolved, future of work – such as in the case of and enabling technology trends. For
it is clear that work is changing the industrial equipment maker ASML example, the diversity of the workforce
fundamentally – we won’t go back pioneering new uses of augmented is increasing as we live longer and
to a traditional hierarchy-orientated reality technology 2. But the crisis has hence work longer 4.
office life, partly because younger also prompted a change in direction
employees would resist such a move. for others, such as retailer Walmart At the same time, the concept of
Yet most employers are not ready for a pulling back from replacing human a career is changing: employees
wholesale democratization of work. workers with robots 3. increasingly find climbing the
corporate ladder less appealing 5,
We believe trends should not be Although this paper does consider preferring project work and cross-
considered in isolation. Technology the role of COVID-19 as a contributing/ functional moves, as well as self-
and demographics are connected: accelerating factor towards some of employment and freelance work.
if technology takes over tasks now the changes, it is primarily concerned These shifts are compounded by
performed by people, what uniquely with the emerging societal, technology the expansion in connectivity,
human skills will become more and connectivity trends that are yet which is generating heaps of data
valuable? If the global workforce will to radically disrupt our work. As such, and boosting the development of
become more diverse, how will leaders our aim is to take a holistic approach artificial intelligence (AI), cognitive
need to adapt? More flexible work and build a directional view on decade- computing and robotics.
arrangements could have profound long trends.
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Naturally, we cannot ignore the effects workers and their requirements.
of the COVID-19 pandemic on these The changing nature of work The three key dimensions
trends. It has clearly accelerated will change the composition and
digitization of organizations and has expectations of the workforce.
had a significant impact on contingent Technology and connectivity will be
Work
workers, especially where employment a double-edged sword: on the one
laws don’t provide sufficient support. hand, they have the potential to break
What work
The global lockdowns in response to down barriers across geographies, will be done
the pandemic appear to have delivered languages and backgrounds, while and how?
the future of work to many of our on the other they can also sharpen
doorsteps. While the longer-term and widen the social divide between
effects are still uncertain, our research the digital haves and have-nots.
and interviews with experts point to
profound change ahead. The COVID-19 pandemic has thrown Workforce
a spotlight on the workplace and its
The three key dimensions: Work, future. With factory workers faced
Workforce and Workplace with the risk of contagion, office staff Who will
be doing
This paper considers three dimensions: working from home and storefront
the work?
Work, Workforce and Workplace. businesses struggling with ever-
evolving pandemic regulations,
Work looks at the changes in the organizations are rethinking the
nature of work itself – a worker’s day- purpose of the physical workplace.
to-day tasks. What work will be done Workplace
in the future and how will it be done. The following chapters will zoom in
Automation and advanced technologies on each of the dimensions. Chapter 7
are changing day-to-day tasks and, then provides an overview of the role What is the
therefore, the required skillsets. of technology and connectivity, before future of the
chapter 8 draws conclusions for each workplace?
The workforce dimension considers stakeholder group.
who will be doing that future work,
both in terms of the nature of
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Demand for Combining human and
technical knowledge, Need for reskilling technological capabilities
such as AI skills and upskilling in the optimal way
4. Work
Prepare for a dramatic change in day-to-day tasks
What will work look like in the future? This chapter explores how the tasks performed
by workers are changing and the ramifications for skillsets and for society: Will more
digital tech mean more inequality, as more and more tasks are automated?
Although the changes described in experience and innovation. At the
this chapter predate the pandemic, same time, technology is changing • Many skillsets are
COVID-19 is accelerating a shift in the way we execute our work, becoming less relevant
the nature of work, by forcing the generally augmenting our human or even obsolete
digitization of tasks that had been capabilities and enabling us to
performed in-person 6. complete tasks faster.
• Organisations will look
How technology is upping the pace It isn’t a bed of roses however:
to employ people with
Technological advances are enabling technology can also inhibit produc- capabilities that can't
the automation of repetitive tasks tivity, for example if it has been easily be replicated by
and processes, allowing workers poorly designed or because people technology
to focus more on creativity, human don’t know how to use it (or both).
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“The human factor shows it takes behavioral change
and, therefore, time for people to catch up to
where technology is today. This prevents optimal
translation of bleeding edge technology deployments
into raw productivity.“
Martijn Roordink
Founder of Spaces
Andrew Bartels, Vice President described it as “exhausting”, adding: weight of numbers may mean more
and Principal Analyst at Forrester 7, “Productivity is up, but so is fatigue. presentations, less discussion and
pointed to data that shows that rising Mental health, work-life balance and fewer decisions.
technology investments have ceased the home office are true concerns that
to result in a proportional increase in have to be dealt with. Communication The search for
productivity, while other interviewees has become more formal with shorter innately human skills
also highlighted the time it takes for meetings and extreme information As the nature of work changes, the
people to adjust to new technologies. density.” While enabling interactions skillsets required by the workforce are
to be more efficient and transactional, changing. Many skillsets are becoming
The unpredictable pattern of the technology is giving people less time less relevant or even obsolete at
pandemic has also prompted to relax and reflect. For white-collar an accelerating rate 8. As you would
changes in organizational structures workers who pack their days with expect, demand for technical skills
and collaboration, according to Zoom calls, there is less scope for the is changing rapidly, leading to skill
some interviewees, who flagged small talk and personal conversations shortages in some disciplines, such
the need for faster decision-making that oil the wheels of in-person as artificial intelligence: 23% of AI-
and innovation. As a result, there meetings and build relationships adopting organizations report a major
is an apparent move towards between colleagues. gap between supply and demand of
flatter hierarchies. Jennifer Vink, AI skillsets 9. Organizational leaders
Head of Enterprise Sales at Google As meetings move online, they can now need sufficient digital knowhow to
Netherlands, noted how one “would accommodate more people than anticipate and mitigate such challenges.
be surprised how many good ideas physical rooms. That can have both
come from juniors and not from positive and negative impacts. While As the half-life of technical knowledge is
seniors.” facilitating employee engagement, continuously falling, it is hard to predict
there is a risk that staff attend virtual exactly which technical skills will be
Yet, the increased pace may be meetings they don’t need to join. required going forward. Organizations
unsustainable. One interviewee In the meetings themselves, the are increasingly prioritizing ‘soft skills’,
such as adaptability, resilience and an
appetite for life-long learning 10. Toby
Peyton Jones, who has a portfolio of
roles including Non-Executive Director
23%
for the Institute for Apprenticeships &
Technical Education and Ambassador
for Siemens UK, noted that these
soft skills are very unlikely to become
of AI-adopting organizations report a major gap obsolete. If anything, they are becoming
essential for navigating in a fast-
between supply and demand of AI skillsets changing world.
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“Serendipity interactions, which are crucial for
innovation, are missed in virtual ways of working.
Even though new technologies are created to replace
these kind of interactions I question if this will be a
solution as they fail to engage the emotions in a way
that is so integral to face-to-face encounters.“
Toby Peyton-Jones
Non-Executive Director in the Tech and Education Sector
As organizations become increasingly Capital Trends Report 2020 13. As jobs While the ultimate impact of
automated, they will look to employ disappear and new ones appear, technology on workers is unclear, one
people with innately human capabilities internal mobility for outplaced workers thing is certain: leadership itself will
that can’t easily be replicated by will also be crucial. have to undergo a profound change.
technology 11, supplemented by digital Leading by example, senior managers
literacy. As a consequence, a move Upskilling and reskilling are likely to be will need to embody the change
towards multidisciplinary skillsets a shared responsibility between the desired for their workforce.
could become the norm, fueling employee, the company and, to some As discussed in the next chapter,
out-of-the-box and cross-discipline extent, governments 14. new habits and a transformation of
thinking, creating agility and supporting leadership will be required to enable
interchangeability of skills and roles, Technology will be part of the true organizational agility.
according to Toby Peyton-Jones. solution. As technology and
connectivity become increasingly The challenge is to combine human
As leaders and teams collaborate in embedded in our daily lives, they can and technological capabilities in the
new ways (more virtual, more make lifelong learning and skilling optimal way. As they re-architect
dispersed) and as organizations pursue available to more and more workers. work itself and measure employee
agility, they will define and measure Connectivity enables collaboration, performance in terms of outcomes,
‘good performance’ differently, placing knowledge sharing, and learning to rather than inputs, organizations
greater emphasis on outcomes 12. be embedded in the flow of work and will find they have more freedom.
Jennifer Vink of Google noted that in the work technologies. However, As technology helps to strip away
transparency and a flat hierarchy can some interviewees cautioned that restrictions, they can focus on what
stimulate a culture of innovation. technology and connectivity cannot they really want human beings to do
provide a full substitute for face-to- with the time they spend working.
Beyond reskilling towards lifelong face co-creation, collaboration and
learning and resilience innovation.
Our research and interviewees suggest
a need for significant upskilling and The deliberate redesign of ‘work’
reskilling of segments of the workforce. and new forms of leadership
Secondly, an increased focus on Society, organizations and workers
lifelong learning: helping workers to themselves are not generally equipped
re-invent themselves and thereby to deal with continuous change.
become resilient to changing context. Workers and organizations may find
Soft skills, especially people skills and themselves in an intricate web of
the ability to effectively acquire new technologies and point solutions that
knowledge, can act as a fix point in the don’t save time but may in fact lead
midst of a fast-changing environment, to frustrations, workarounds, and
as reported by Deloitte in the Human detrimental behaviors.
10The Future of Work is here |
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Leadership has to Ensuring employees ' Need for adaptation
change and trust sense of belonging and consistently
wil be crucial and engagement learning new skillsets
5. Workforce
Tapping a diverse and broad talent pool
Who will do the work of the future? As work changes, skills need to change. Building
on the analysis of how work is changing in chapter 4, this chapter explores how the
relationship between organizations and their employees is evolving, what that means
for staff motivation and loyalty, and what organizations can do to build a fully engaged
and effective workforce.
When we embarked on this research, tasks. For employers, there is the
one of our hypotheses was that the potential to dip into a much broader • Increasing pressure
workforce will become significantly and more diverse pool of talent both on organizations
more international and diverse: at home and abroad. Tomasz Rudolf of to become a 'social
technology is enabling people to work The Heart (center for corporate start-up enterprise'
where and whenever they want (within collaboration) notes that as remote
some organizational limitations). As a work becomes mainstream, it opens up
• Organizations need
result, individuals could have access to opportunities “to leverage an uberized
jobs that may have seemed impossible workforce from local markets.”
to pay extra attention
before. Accurate speech recognition to workers' mental
software could help some disabled and physical well-being
people, for example, to take on new
11The Future of Work is here |
2021
“The Future of Work debate has accelerated the shifts
already underway: balancing how, when and where
we work most productively with the demands of our
home lives. At Liberty Global, we are listening and
learning. If one thing is clear, it’s that this moment is of
equal importance to employers, employees and new
talent considering how and where they want to work.
Clearer still is the need for open dialogue, a thoughtful
approach and the shared will to build on everything we
learned during COVID-19 about the way we work.“
Amy Blair
Chief People Officer, Liberty Global
In theory, at least, organizations will Workers increasingly expect
be able to recruit workers from all organizations to respond to society’s
over the world. However, in practice, biggest issues, such as climate change,
there will be major cultural and inequality, diversity and health care.
linguistic obstacles. Further, the Some interviewees argued that a
uneven distribution of technology workforce imbued with a shared
and connectivity could undermine purpose will eventually deliver a better
governments’ and businesses’ efforts business performance. “Employees
to boost diversity and inclusion. need to feel connected to the
organization, they need to
From performance to purpose feel a common purpose,” stressed
Even today’s workforce is far more Jeroen Lokerse, Head of Cushman
diverse than its predecessors: both & Wakefield Netherlands 16.
in terms of age and background, as
well as type of employment contract. Indeed, some businesses are hoping “The problem is the
That has given rise to a more diverse that a shared sense of purpose will expanding inequality
set of expectations towards employers. build staff loyalty, as opposed to the
Young people, in particular, expect idea that the next generation of workers
on all levels: politically,
to spend their careers with multiple will hop from company to company. economically and socially.
organizations, shifting from company “At VodafoneZiggo we try to reduce People get disconnected
to company to create a set of the contingent workforce - we want
‘employment experiences’. people committed to the purpose of from society. Groups
the organization and have a cultural are forming which are
Employees are increasingly looking fit, as that enables them to collaborate
for purpose and not just a brand to well together,” said Thomas Mulder,
dissatisfied on many levels.
work for. The increased worldwide Executive Director HR, VodafoneZiggo. It’s we against us. There is
connectivity and transparency provided no bigger ‘us’ anymore.“
by digital services, such as LinkedIn However, individual workers will have
and Glassdoor, are putting pressure different views on what purpose means Peter van der Maas
on organizationsto become a ‘social for them. Recognizing the complexity Program Lead for the OECD Institutions
enterprise’. That means a greater of this topic, organizations will need to for Open Societies and Future of Work
emphasis on culture, employee well- build a deep understanding of workers’
being and diversity & inclusion 15. drivers and needs.
12The Future of Work is here |
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From monitoring to trust need to rethink how they measure conversely, they will need to trust their
As discussed in the previous chapter, performance and embed trust in the staff. In the absence of two-way trust,
organizations are moving to a more organizational culture – for that, new businesses will end up back with the
flexible performance evaluation model habits will be needed. outmoded workplace of old and losing
that is outcome driven 17. Accelerated ground to rivals that are reaping the
by COVID-19, this trend reflects the Flatter hierarchies, benefits of more innovative, dynamic
growing flexibility in work schedules faster decisions and distributed processes.
and locations (see next chapter on Reflecting on the early weeks of the
workplaces), as the workforce moves pandemic, some interviewees noted Ensuring workforce well-being
away from the 9-5 routine and looks a surge in innovation due to better and belonging
to design the workday around other collaboration and corporate flexibility, A more flexible work model will surely
responsibilities 18. For these new models with COVID-19 bringing a new sense impact employees’ sense of belonging,
to work, leadership skills will need to of what is possible when stripping away engagement, and overall well-being,
change to manage a highly distributed red tape, bureaucracy and according to several interviewees.
workforce – learning when to trust will long processes. There was a In the longer term, employees’ sense
be crucial. greater effort to collaborate within of engagement and belonging may
the organization, as well as in the weaken as they miss connection and
Indeed, the changing role of leadership ecosystems and value chain to simply social cohesion 20. Even though work
was a theme that ran through many of get things done, coining the term can be done from anywhere and the
our interviews. Building and infusing ‘speed over elegance’. At the same time, majority of the work does not need to
trust in the organizational culture is key there was a shift to more independent be executed in proximity to co-workers
in a world where managers don’t always working for many workers during the or the office, our research suggests
see work physically being performed pandemic 19. Ensuring that these new that face-to-face interactions will
in front of their eyes. The net result habits continue post-pandemic will be remain critical (see next chapter for
could be a flatter, less hierarchical, important, as rapid innovation will be more on this).
organizational structure. As workers are required to remain competitive.
given more independence and leeway, Social bonds can help people feel
interactions between leaders and Indeed, organizations need to grasp like they belong. Building such bonds
their teams could become less formal. that C-suite leaders can no longer simply will require organizations to enable
If the organizational culture allows, dictate changes that their employees interaction and social behavior that fits
junior staff could become a source of don’t support. Instead, they will need with flexible working patterns.
valuable new ideas. To that end, leaders to earn their employees’ trust and, To attract and retain the talent they
need, organizations will need to
become adept at bringing together
employees from various backgrounds,
72%
becoming a community or aggregation
of communities.
As they try to build an inclusive culture,
organizations may need to pay extra
of executives believe that re-skilling is important to attention to workers’ mental and
overcome future disruptions physical well-being. To attract the best
talent, organizations will also need to
listen to employees’ views - bringing the
voice of the workforce to the fore.
17% Societal shifts threaten to widen
the economic divide
Our research for this paper tested the
of executives say their workers are ready to adapt, following hypothesis: although the
reskill and assume new roles majority of the workforce in developed
13The Future of Work is here |
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“How about the people who don't have the skills
(data, network management etc.), what happens
to those? The people who work 8-5 on commodity
jobs and those who can't handle ambiguity, we
will lose them or their career path ends early.
Continuously re-skilling is very important now and
more so in the future.“
Sven Semet
Business Development Director and Thought Leader, IBM Watson
countries will be able to adapt, a the social and economic divide,
minority will struggle to remain widening the gap between the ‘haves’
employable, resulting in significant and ‘have nots’.
social and economical upheaval. This
contention resonated with some of Even if 60% of workers themselves
our interviewees, who flagged the real recognize the imperative to change 24,
danger of a two-tier society. the challenge for society will be to keep
individuals on board who may not be
Although the progression of intrinsically motivated to consistently
technology is impacting almost all learn new skillsets or who are simply
kinds of work, some groups are better not given opportunities to do so.
able to cope 21. As a result, society
is segmenting. People involved in Policymakers will need
physical labor (the traditional ‘blue- to intervene
collar’ category) often experience Governments and businesses will
“We all miss the social
the most upheaval 22. Physical work have to work together to narrow this interaction, the group
is essentially ‘moving upstream’, divide. Governments need to start meetings, the creativity,
involving technology that oversees thinking about how legislation and
and orchestrates machines. For taxation should evolve, above and free-flowing information
many blue-collar workers, the strict beyond the immediate reaction to exchange. For senior
delineation between personal current (pandemic) trends. Peter van
and professional time may blur, as der Maas called for greater awareness
executives, it's easier to
machines work around the clock. of this issue among policymakers work remotely. For juniors,
Indeed, 72% of executive respondents and business owners, while Stefan it's difficult to see what's
in the survey for the recent Deloitte’s Olsson, Director Employment at the
Human Capital 2021 trend report European Commission, warned that the
going on in the rest of
believe that re-skilling is important accelerated speed of change means it is the company and explore
to overcome future disruptions, very unlikely that the newly unemployed
other opportunities.“
while only 17% of workers are ready will be able to get the necessary skills
to adapt 23. In fact, there will be a fast enough to take up new jobs. “If this Manuel Kohnstamm
growing number of job vacancies, as happens over generations/decades - it's Chief Corporate Affairs Officer,
employers struggle to find people fine, but if the adjustment is over a span Liberty Global
with the right skillsets to enable of a year it becomes more difficult,”
organizations to apply technology he added. Alert to this issue, the
effectively. Far more than an Commission and EU Member States are
inconvenience, a wedge between beginning to intervene (see chapter 8).
supply and demand could increase
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More remote working Employees ' need for Change in purpose of
significantly decreasing physical presence and the office as hybrid work
the daily commute togetherness will persist models become popular
6. Workplace
Redefining the role of physical space
Where will we work in future? This chapter explores how the changing nature
of work will impact the physical workplace. It considers the role of the office
and how it could be revamped to better meet the requirements of both
organizations and employees, while examining the implications for where
people live and for cities and suburban areas.
To really harness and develop the Calling time on the commute
people and collaboration skills The response to the COVID-19 • Office space is an
discussed in the previous chapter, pandemic has revealed that a remotely important location for
organizations are likely to need a connected, digital workplace is a creativity, innovation
new kind of workplace. In our viable solution for companies to keep and social cohesion
interviews, we tested the hypothesis operating, and a feasible alternative to
that businesses will reduce their the traditional office space, at least in
• Organizations have a
real estate portfolio and make the short-term. Indeed, the pandemic
greater use of multipurpose/ triggered remote working at scale,
diverse set of options
flexible locations, such as high- dramatically accelerating an existing for reshaping work and
tech collaboration services and shift (38% of the Dutch workforce, for living locations
community-building facilities example, was working from home in
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“The biggest shift with hybrid working is that it becomes
about you as a member of your team(s). This means you
work together when, where and how is most effective
for you as a team. To make the new policy a success we
need to ensure a level playing field to make people feel
included. Also, clear guidelines need to be in place about
office attendance.“
Thomas Mulder
Executive Director HR, VodafoneZiggo
June 2020 25). Some interviewees noted European consumers in May and
that more distributed working is June 2020, opinion was divided on
yielding benefits for society, in terms whether working from home is a
of reduced congestion. good thing – 33% of respondents
said it is easier to work from home,
The crisis now looks set to have a while 34% said it is harder.
lasting impact on businesses and Whether workers do want to return
employees around the world. to the office en-masse may be
A US census study found that governed by a herd mentality.
34% of surveyed workers expect to
never return to daily commute 26, while Further, it is becoming clear that some
a Deloitte study of the financial sector manual work can be done digitally
shows that 77% of people surveyed and even remotely. For example, fully
expect to work from home office automated production lines within the
regularly after the pandemic 27. automotive industry are now being
“At an industry conference
monitored and calibrated by human - everybody goes because
This shift isn’t inevitable. In a workers via tablets and computers with everybody goes. There's a
Deloitte survey of almost 4,000 no need for a physical presence.
similar ethos in the office.
If I make the investment
to go travel for two hours,
34% I want to see people.
If I don't see half the
of workers surveyed in a US census study expect people I want, next time
to never return to daily commute I'm not going to bother.
You eventually hit a
negative spiral.“
77% Paul Lee
Global TMT Research
and Insights Expert, Deloitte
of people surveyed in a Deloitte study
expect to work from home office regularly after
the pandemic
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“We are entirely reshaping the working floors. 60% of
space will be collaboration space. We have hot desks
for the rest. Clearly one of the challenges is retail,
where we don't have the flexibility to work remotely.“
Robert Redeleanu
CEO UPC Central & Eastern Europe
To be sure, many forms of manual work, There is a time and a place need to connect with their colleagues.
such as construction, cleaning and for remote working Advances in telecom networks and IT
waste collection, can’t yet be detached As the pandemic forced most office infrastructures now enable distributed
from the physical workplace. workers to relocate their working workforces to interact with each other
A recent McKinsey study highlighted space to home, both the benefits and productively (see chapter 7), but
that about 50% of the workforce has limitations of this remote working some home workers have struggled
little or no opportunity for remote experience quickly became visible. with many aspects of virtual working.
work. You can argue about the number, Although many employees now Social interactions, building (new)
but not the fact that remote or hybrid recognize the benefits of remote relationships and co-creating in this
working will remain unattainable for working, such as a reduced commute mostly formalized world, with its
a large portion of the workforce. In and improved work/life balance, our seemingly endless Zoom calls, can
the long term, technological advances research found that some staff find be very difficult. A virtual working
might address some of the obstacles, working from home challenging. environment may not be conducive
but there is unlikely to be significant to creating a sense of belonging and
change in the next five years. Given Our interviews suggest that, even for some employees may fear being
this constraint, this chapter focuses office workers, the need for a physical marginalized.
primarily on where office work will be presence and togetherness will
conducted in future. persist – people have a deep-seated A recent global Deloitte survey 28 found
that 36% of European respondents
find it difficult not being able to talk
to clients and colleagues face-to-face.
In particular, the age group of 55+ is
36% struggling with remote work during
the COVID-19 pandemic 29. Some of our
interviewees echoed these sentiments.
of European respondents in a global Deloitte “Building people engagement is a much
bigger challenge in WebEx sessions,
survey find it difficult not being able to talk to
you don’t get the vibes you would
clients and colleagues face-to-face in a physical meeting,” said Robert
Redeleanu, CEO UPC Central & Eastern
Europe. In a similar vein, John Porter,
50% CEO of Telenet, added: “It is very hard
to curate a culture remotely. I also miss
the face-to-face connections. People
of the workforce has little or no opportunity get energy from talking to people.”
for remote work
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“The office becomes more relevant than ever. The more
we are connected via mobile, the more we want to see
each other face to face. The office has to compete with
home offices, so the office has to become better.“
Jeroen Lokerse
Head of Netherlands, Cushman & Wakefield
Indeed, over half of the interviewees collaboration and co-creation in are unable to work remotely due to
noted that the office space is an multidisciplinary teams is becoming personal situations, offices are likely
important location – for creativity, a key differentiator. This requires to be at their best when used as a
innovation, social cohesion, while physical togetherness and interaction, place of innovation, co-creation, social
physical togetherness is key to suggesting the office now needs to be engagement, teaming and celebration.
innovation and competitive advantage. a space that encourages people to talk Indeed, some interviewees contended
Although further technological to each other. that offices need to be redesigned
advances - with higher resolution to explicitly support collaboration,
screens, cameras, lighting and overall The first step could be to take a critical connection and the sharing of ideas in
better set-up – will make it easier for look at the type of work performed a way that the home office cannot.
remote workers to interact each other, by workers, and arrange a workplace
a video call can’t yet provide a full (digital or physical) based on these The role of a physical workspace
substitute for physical meetings. requirements. Indeed, a much more in sustaining company culture
rigorous use of workspace would Although some experts forecast a
Changing definition of reduce risk, save on capital expense major shift to distributed working,
the workplace and purpose and improve productivity 30. There others predict that offices will
of the office are essentially two guiding principles remain the go-to workplace for most
Still, the changes in the nature of work to consider – the actual location (real organizations. Indeed, views vary
and the workforce (described in the estate footprint) and the use of space across our interviewees on whether
previous two chapters) are set to lead (in terms of design, capacity and traditional office space will shrink
to major changes in how a physical commercial model). dramatically. Some of our experts
workplace is configured. foresee a marginal change, up to 5%,
Although some office capacity will have as companies maintain offices as
In a world where many tasks and to be allocated to workers who need connection hubs. Others see a shift
processes can be automated, access to specialized equipment or to satellite offices and co-working
spaces, bringing office space nearer to
workers’ living locations. One approach
is for employees and their immediate
33% 34%
managers to decide where they will be
most productive on any given day.
Organizational and national cultures
of respondents of a say it is harder will help determine the extent and
Deloitte study in Europe speed of these changes, with different
believe it is easier to approaches in different parts of
Europe. Living space will also be an
work from home important factor. “Some regions will
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want to be in the office as much as Reshaping work
possible,” noted Brandi Galvin Morandi, and living locations
CHRO of Equinix. “In Hong Kong, for The need to be present in centralized
example, we have some team members office locations has dictated the way we
with multiple generations of people live. This requirement has determined
living in a tight space, so they can’t wait people’s choice of living space, driven
to return to the office to enhance their hour-long commutes and the dedication
productivity and overall well-being.” of specific cubicles to individual
employees. But now organizations have
Some interviewees stressed that a much more diverse set of options,
a company’s physical buildings are from employer-sponsored home offices
generally a reflection of its corporate to distributed co-working locations.
culture: the office needs to be a The “push” model, wherein employees
place that solidifies the significance would relocate and adjust their lives
of being a part of something bigger around an office location, may give “The workplace will always
than yourself. “When you walk through way to a “pull” approach, in which the be important. Especially
a door with a logo on it, that means location of employees’ homes governs
for employees with more
something,” noted Thomas Mulder of where work is done.
VodafoneZiggo, which is based in a tenure, they need the
futuristic landmark building in Utrecht. Now, the main attraction becomes the workplace as a grounding
location ecosystem: other businesses,
Indeed, some interviewees such as shops and cafes, connectivity
place for where the
believe building and sustaining an infrastructure, such as high-speed organizational culture
organizational culture and employer internet, or environmental factors, such comes from. It's about
brand is becoming more challenging in as reduced noise and air pollution, or
a world where the office may no longer social cohesion elements, such as living sharing moments and
act as a melting pot. If employees close to family and friends. Rather than collaborating.“
are dispersed across regions (maybe working alongside colleagues, people
countries) and only meet at occasion, may simply want to be surrounded by Monica Santana
organizations will need to create a like-minded and driven people, notes Lecturer Strategic Human
virtual/physical workplace that can Martijn Roordink, Founder of Spaces. Resource Management,
support the desired organizational University of Pablo de Olavide
culture. Indeed, flexible co-working spaces allow
remote workers to share an office space
However, other experts argue that a with people from other organizations.
clear purpose can effectively create a As more workers capitalize on the
sense of belonging and loyalty across benefits of hybrid work models,
a distributed workforce. Location and the purpose of cities will change,
loyalty don’t always go hand-in-hand – maintaining their social and cultural
some people are fiercely loyal to sports importance, but potentially less
teams on the other side of the country, attractive as a business destination.
for example.
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Connectivity is vital for Upskilling and more High importance of
competitiveness and equal distribution of digital security and
advanced technologies technology will be crucial reliable internet access
7. Connectivity
The unsung hero of the future of work
Society now runs on connectivity as the combustion engine runs on petrol fuel.
The pandemic has accelerated an existing trend in which most office workers must
be online to get their jobs done. For many people today, no connectivity means a
major drop in productivity. This chapter considers the fundamental importance of
reliable connectivity to the future of work.
The digital revolution is for example, continues to rise 35,
in full swing despite the tendency of businesses
• Giga networks and
The amount of data flowing through to cut costs during the pandemic.
5G networks are
businesses is increasing at an
exponential pace 31. Employees In the connectivity market, Giga significantly enhancing
now have an Internet connection networks and 5G networks are throughput speeds
in the palm of their hand: there are significantly enhancing throughput and reducing latency
about six billion smartphones in use speeds and reducing latency, while
worldwide 32. Our interviewees flagged allowing organizations to build • Advances in connectivity
both companies’ growing dependence their own private networks. These
are paving the way
on digital technologies 33 and their advances in connectivity are paving
disruptive power 34. Investment in the way for advanced technologies,
for technology
cloud infrastructure and services, such as Blockchain, cloud, AI, and
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digital reality technologies, that Moreover, access to technology
circumvent the limitations of the is unequally distributed across
digital workspace 36. They are both geographies, economic classes and
disrupting how business is done, education levels. As research firm
and attracting major investments 37. Gartner notes: “The impact of the
digital divide on society has been
Connectivity, and the digital services fully exposed as a result of the
it enables, has become a vital pandemic.” The high-speed low-
source of competitiveness. Deloitte latency connectivity required to
research 38 has found that more support a hybrid work environment
and more organizations are using simply isn’t available to many
digital technologies to design highly communities in Europe.
customized experiences around
the behaviors, preferences, and As described in the previous
“Most organizations have emotions of individual users. For chapters, excessive remote working
traditionally focused on example, AI capabilities, such as voice can have negative impacts on
stress analysis and micro-expression people’s well-being. In some cases,
planning for physical and detection tools, are enabling there is a mismatch between the
operational resilience companies to inject emotional technology and the needs of its
intelligence into their systems to help users. Another concern is that some
only. COVID has shown
intuit a user’s mood and engage in a new technologies may be flawed or
companies that planning more human manner. raise ethical issues. “Every algorithm
for organization and is a manifestation of a human - AIs
The future is here, have biases, too,” noted Paul Lee
people resilience can but unevenly distributed of Deloitte.
be equally, if not more The mass shift to distributed working
important.“ in the wake of the pandemic has Align technology with
proven the agility of existing networks the future of work
Adam Spearing and IT infrastructures to deal with Creating an effective digital
EMEA Field CTO & SVP increased demand. But the digital workplace that provides employees
Solution Consulting platforms that people use to connect with a seamless experience across
UKI Salesforce and collaborate still need to improve, situations, locations and devices
and many employees still lack the will require employers, telecoms
digital skills to work effectively operators and equipment vendors
remotely. A joint Deloitte and MIT to work together. They need to
survey 39 found 90% of companies fully integrate the hardware and
believe yearly upskilling is required software that we use to connect and
to enable employees to keep up collaborate with remote colleagues,
with technological advances. while also bolstering cyber and
information security.
Several of our interviewees
highlighted the need for immediate
90%
action to improve security. IDC, for
example, stressed the importance
of securing worldwide peer-to-
peer connections encompassing
of companies believe yearly up-skilling is distributed employees, supply chain
required to enable employees to keep up with partners and even clients/end-users.
technological advances Meanwhile, Gartner has called
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for executive leaders to increase policymakers to overcome the digital
customer trust by building “a holistic divide and broaden the workforce. In
and adaptive privacy program across many cases, government intervention
the organization, and be proactive and investment, supplemented by
instead of responding to each public-private partnerships, will be
jurisdictional challenge.” required to drive wider broadband
coverage. As digital platforms and
Organizational action could also infrastructure scale, the private sector
address some of the downsides could reciprocate by supporting
of distributed working. Targeted governments’ efforts to bring digital
data and AI tools could help drive technologies and educational tools to
engagement across a workforce people at risk of being excluded from
that is becoming more dispersed the digital revolution.
and diverse, but controls will be
important to prevent misuse. If key stakeholders work together,
they can put powerful digital tools
Putting digital tools in in the hands of more people. Having
the hands of more people identified the COVID-19 pandemic
The pandemic has highlighted how as a significant driver of societal
technology can open up opportunities digital divide , Telenet in Belgium, for
to an extended labor pool and help example, is working with various social
to reduce the inequalities in society. organizations to “help shape digital
Therefore, reliable broadband inclusion.” Telenet is now offering
Internet access has to be a high a subsidized connectivity product
priority for employees, employers and (“Telenet Essential Internet”) to bring
governments. Indeed, the business basic Internet to vulnerable groups at
community will need the help of a fixed monthly rate of €5.
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8. Conclusion
The changes in work, the workforce and the workplace, described in the preceding
chapters, are happening across the economy and across the world. Although there
are cultural differences between different countries, a lot of businesses, individuals
and governments will be impacted: They need to prepare for both transformation
and disruption. This chapter outlines the key implications and considerations for
these three sets of stakeholders.
Businesses – take a step back Indeed, businesses recognize the
and reimagine work importance of reskilling. In the 2021
Digital capabilities (encompassing Deloitte Global Human Capital Trends
Businesses secure infrastructure) and organi- survey40, almost three quarters of
zational agility (built on delegated executives identified “the ability of
decision-making) are more important their people to adapt, reskill, and
than ever. After all, the digital transition assume new roles” as one of the two
is an arms race: organizations compete most important factors to navigate
on the basis of their ability to exchange future disruptions. Yet only 17% say
information and make meaningful their workers are very ready to adapt,
Individuals decisions – their digital infrastructure reskill, and assume new roles. Both
needs to be both easy-to-use and employers and employees need to
failure proof. be aware that many soft-skills will
need to be developed through in-
At the same time, organizations person interactions, rather than
clearly need to develop robust from behind a computer screen.
skilling capabilities to keep up with To holistically rethink what work
Governments technological advances, while also needs to be done and how, we
designing a blend of physical and digital advise organizations to take a step
workplace that balances the need for back and reimagine the way work
collaboration and the need for flexibility. will be done going forward.
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