The next workforce frontier - Capita
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Contents 4 Foreword 6 Introduction: Re-imagining the workforce 12 Hybrid on the horizon 18 Challenges of the Human to Hybrid journey 24 The benefits of a hybrid workforce 28 The three levers of the Human to Hybrid shift 38 Conclusion - Human to Hybrid is no longer the future; it’s the present 40 The Capita People Solutions perspective 44 About Capita People Solutions 47 About Human to Hybrid
Contents 4 Foreword 6 Introduction: Re-imagining the workforce 12 Hybrid on the horizon 18 Challenges of the Human to Hybrid journey 24 The benefits of a hybrid workforce 28 The three levers of the Human to Hybrid shift 38 Conclusion - Human to Hybrid is no longer the future; it’s the present 40 The Capita People Solutions perspective 44 About Capita People Solutions 47 About Human to Hybrid
#Human2Hybrid Foreword More than ever before, it is people that will be crucial to Our research puts three strategic pillars firmly in the We are living in an age of monumental technological business success in the future. In an economy where all spotlight – digital, data and people. This cements the change. As a society, technology continues to organisations have fast, scalable and affordable access to notion that achieving a fully optimised workforce reshape, redefine and re-imagine the ways in which Digital - The role of changing technologies technology to handle operational processing tasks, it will depends on more than technology alone. we interact with each other, and perform even the and their impact on the whole be the skills, creativity and ambition of people that will most fundamental daily tasks. And with the inception employee experience At Capita we have the unique advantage of being able truly differentiate brands, drive innovation and deliver and adoption of new technologies such as Artificial to look at this changing world of work from every growth. Technology in itself should not be viewed by Intelligence (AI), automation and machine learning, Data - Unlocking the power of data angle. Our experience and expertise spans business businesses as the key to future success; instead it should the shift towards a fully tech-enabled state only and analytics to guide future decisions be regarded as a powerful enabler, giving people the strategy and leadership, technology and the entire continues to gain momentum. employee lifecycle – from recruitment and learning support, time and confidence to take on higher value, People -Focusing on the skills, culture and development, through to employee engagement Arguably, we’ve only scratched the surface in terms strategic work, and to fulfil their potential. and leadership needed to thrive in the and retention. By taking a holistic view, we can enable of realising the potential of these technologies to new hybrid workforce This is what we mean when we talk about the shift organisations to create a clear vision of the type revolutionise our understanding of what it is to be a from a Human to Hybrid workforce – a future workforce of workforce that will allow them to thrive in the human living in a digital world. With a myriad of impact where humans work seamlessly and harmoniously future, ensuring every part of the organisation and points across our personal lives, we must also consider To date, most studies into the ‘future of work’ have alongside technology, understanding and appreciating employees themselves are invested in throughout the subsequent implications of this changing landscape focused primarily on the role and impact of technology. one another’s role and recognising each other’s the transformational journey. on our working lives. They explore how businesses can reap the benefits of strengths and weaknesses. AI, robotics and automation within the workplace, to Our goal is to help organisations in the UK prepare Undoubtedly, new technologies, combined with drive efficiencies, streamline processes and speed up Throughout 2019, we will be presenting a and build a workforce that can compete and deliver changing working behaviours and more agile corporate service delivery. Other studies have looked specifically comprehensive study of current and future workforce better outcomes in the future economy. A workforce structures, promise to effect significant change on at the changing skills requirements within the workforce, dynamics in the UK, providing businesses and HR leaders that is built around people, but supported, enabled and the future world of work. We can expect to see new predicting how organisations will need to train and with deep insight into the impact of these dynamics on empowered by technology, data and insight. dynamics in the relationship between employer and develop their people to prosper in the future. the employee lifecycle. We’ll be revealing the attitudes, employee, and changes to the way that organisations concerns and aspirations of business leaders, employees resource ‘work’ between human and digital labour. Of course, both of these approaches have merit but and HR professionals when it comes to changes within they fail to grasp the sheer scale and complexity of the workforce and where organisations need to look for But the transition to a ‘hybrid state’ – where humans the changes that are already happening within UK greater alignment between employee expectations and work seamlessly alongside technology – needs direction. workforces today. In addition, most reports have business needs. We believe that this journey relies on three strategic approached the transformation of resourcing models levers that business leaders must recognise in their Erika Bannerman, and structures from a ‘technology first’ perspective, transformation initiative: digital, data and people. Executive Officer, focusing on digital adoption, but severely neglecting This paper shows that 72% of business the ‘people’ aspects of these changes. Capita People Solutions leaders see the transition to a hybrid workforce as the biggest challenge they face over the next five years. It’s clear that a strong vision and focussed plan will be vital, especially as more than half of employees will leave their organisations if they don’t manage the transition effectively. 4 | Foreword Foreword | 5
#Human2Hybrid Foreword More than ever before, it is people that will be crucial to Our research puts three strategic pillars firmly in the We are living in an age of monumental technological business success in the future. In an economy where all spotlight – digital, data and people. This cements the change. As a society, technology continues to organisations have fast, scalable and affordable access to notion that achieving a fully optimised workforce reshape, redefine and re-imagine the ways in which Digital - The role of changing technologies technology to handle operational processing tasks, it will depends on more than technology alone. we interact with each other, and perform even the and their impact on the whole be the skills, creativity and ambition of people that will most fundamental daily tasks. And with the inception employee experience At Capita we have the unique advantage of being able truly differentiate brands, drive innovation and deliver and adoption of new technologies such as Artificial to look at this changing world of work from every growth. Technology in itself should not be viewed by Intelligence (AI), automation and machine learning, Data - Unlocking the power of data angle. Our experience and expertise spans business businesses as the key to future success; instead it should the shift towards a fully tech-enabled state only and analytics to guide future decisions be regarded as a powerful enabler, giving people the strategy and leadership, technology and the entire continues to gain momentum. employee lifecycle – from recruitment and learning support, time and confidence to take on higher value, People -Focusing on the skills, culture and development, through to employee engagement Arguably, we’ve only scratched the surface in terms strategic work, and to fulfil their potential. and leadership needed to thrive in the and retention. By taking a holistic view, we can enable of realising the potential of these technologies to new hybrid workforce This is what we mean when we talk about the shift organisations to create a clear vision of the type revolutionise our understanding of what it is to be a from a Human to Hybrid workforce – a future workforce of workforce that will allow them to thrive in the human living in a digital world. With a myriad of impact where humans work seamlessly and harmoniously future, ensuring every part of the organisation and points across our personal lives, we must also consider To date, most studies into the ‘future of work’ have alongside technology, understanding and appreciating employees themselves are invested in throughout the subsequent implications of this changing landscape focused primarily on the role and impact of technology. one another’s role and recognising each other’s the transformational journey. on our working lives. They explore how businesses can reap the benefits of strengths and weaknesses. AI, robotics and automation within the workplace, to Our goal is to help organisations in the UK prepare Undoubtedly, new technologies, combined with drive efficiencies, streamline processes and speed up Throughout 2019, we will be presenting a and build a workforce that can compete and deliver changing working behaviours and more agile corporate service delivery. Other studies have looked specifically comprehensive study of current and future workforce better outcomes in the future economy. A workforce structures, promise to effect significant change on at the changing skills requirements within the workforce, dynamics in the UK, providing businesses and HR leaders that is built around people, but supported, enabled and the future world of work. We can expect to see new predicting how organisations will need to train and with deep insight into the impact of these dynamics on empowered by technology, data and insight. dynamics in the relationship between employer and develop their people to prosper in the future. the employee lifecycle. We’ll be revealing the attitudes, employee, and changes to the way that organisations concerns and aspirations of business leaders, employees resource ‘work’ between human and digital labour. Of course, both of these approaches have merit but and HR professionals when it comes to changes within they fail to grasp the sheer scale and complexity of the workforce and where organisations need to look for But the transition to a ‘hybrid state’ – where humans the changes that are already happening within UK greater alignment between employee expectations and work seamlessly alongside technology – needs direction. workforces today. In addition, most reports have business needs. We believe that this journey relies on three strategic approached the transformation of resourcing models levers that business leaders must recognise in their Erika Bannerman, and structures from a ‘technology first’ perspective, transformation initiative: digital, data and people. Executive Officer, focusing on digital adoption, but severely neglecting This paper shows that 72% of business the ‘people’ aspects of these changes. Capita People Solutions leaders see the transition to a hybrid workforce as the biggest challenge they face over the next five years. It’s clear that a strong vision and focussed plan will be vital, especially as more than half of employees will leave their organisations if they don’t manage the transition effectively. 4 | Foreword Foreword | 5
#Human2Hybrid Introduction: Re-imagining the workforce ‘Work’ today has become almost unrecognisable Much has been written about the impact that these new from what it was two generations ago. Seismic changes technologies will have on the world of work, and a great in working patterns and behaviours as technology deal of the narrative has been negative, focusing on the and the internet have changed the way businesses potential for mass job displacement due to automation, engage and transact with their customers. We’ve seen increased unemployment and bleak descriptions of increased talent mobility, a rapid rise of the gig economy, humans working alongside or subservient to robots, demand for new digital skills outstripping supply, and with little of the personal interaction, culture and an employee-driven labour market where organisations collaboration which characterises workplaces today. battle to source the talent they need. But the changes to However, there are growing signs that the picture date will pale into insignificance with the transformation is changing as the real opportunities and limitations we’re likely to experience over the next 10 years. of emerging technologies become clearer. Professor Klaus Schwab predicts that the coming years will be “characterized by a range of new technologies that are fusing the physical, digital and biological worlds, impacting all disciplines, economies and industries, and even challenging ideas about what it means to be human.”1 This much-anticipated set of events is set to change everything about the way we live, work and communicate with one another over the coming years, due in large part to widespread adoption of technologies such as AI, Machine Learning and the Internet of Things. 1 Professor Klaus Schwab , ‘The Fourth Industrial Revolution’, 2016 6 | Introduction: Re-imagining the workforce Introduction: Re-imagining the workforce | 7
#Human2Hybrid Introduction: Re-imagining the workforce ‘Work’ today has become almost unrecognisable Much has been written about the impact that these new from what it was two generations ago. Seismic changes technologies will have on the world of work, and a great in working patterns and behaviours as technology deal of the narrative has been negative, focusing on the and the internet have changed the way businesses potential for mass job displacement due to automation, engage and transact with their customers. We’ve seen increased unemployment and bleak descriptions of increased talent mobility, a rapid rise of the gig economy, humans working alongside or subservient to robots, demand for new digital skills outstripping supply, and with little of the personal interaction, culture and an employee-driven labour market where organisations collaboration which characterises workplaces today. battle to source the talent they need. But the changes to However, there are growing signs that the picture date will pale into insignificance with the transformation is changing as the real opportunities and limitations we’re likely to experience over the next 10 years. of emerging technologies become clearer. Professor Klaus Schwab predicts that the coming years will be “characterized by a range of new technologies that are fusing the physical, digital and biological worlds, impacting all disciplines, economies and industries, and even challenging ideas about what it means to be human.”1 This much-anticipated set of events is set to change everything about the way we live, work and communicate with one another over the coming years, due in large part to widespread adoption of technologies such as AI, Machine Learning and the Internet of Things. 1 Professor Klaus Schwab , ‘The Fourth Industrial Revolution’, 2016 6 | Introduction: Re-imagining the workforce Introduction: Re-imagining the workforce | 7
#Human2Hybrid The World Economic Forum estimates that globally by 2022, 75 million current job roles will be displaced by the shift in the division of labour between humans, machines and algorithms, but 133 million new job roles may emerge at the same time.2 2 World Economic Forum, ‘Future of Jobs Report, 2018’ 8 | Introduction: Re-imagining the workforce Introduction: Re-imagining the workforce | 9
#Human2Hybrid The World Economic Forum estimates that globally by 2022, 75 million current job roles will be displaced by the shift in the division of labour between humans, machines and algorithms, but 133 million new job roles may emerge at the same time.2 2 World Economic Forum, ‘Future of Jobs Report, 2018’ 8 | Introduction: Re-imagining the workforce Introduction: Re-imagining the workforce | 9
#Human2Hybrid Without doubt, our roles and the type of work that we do will change extensively over the coming years, meaning that the skills required to perform most jobs What is Human The research defined ‘Human to Hybrid’ The workforce of will shift considerably. But perhaps even more significant will be the need for us to adapt to a new cultural as ‘’the new dynamic where humans will the future will involve environment in which we can operate effectively and work in a fully digitised and technologically- to Hybrid? harmoniously alongside these new technologies in a way optimised environment, and increasingly a blend of human that enables us to become more efficient, productive and fulfilled in our work. work alongside robots and AI, over the next ten years”. labour and technology. As business leaders, we’re all aware that we are standing Organisations that are on the edge of a period of monumental change and recognise the need to re-imagine every part of our able to successfully organisations, particularly how our operations are Research Methodology resourced and ‘work’ is carried out. manage the transition However, faced with such a huge, unprecedented Capita People Solutions undertook comprehensive, independent research amongst both business leaders and employees, comprising of: from a human to hybrid challenge, knowing how to manage this shift, and where to start, is an entirely different matter. workforce over the To date, academic contributions and research studies • Interviews with 500 business leaders (board directors, senior directors and heads of departments) within organisations in the UK. All respondents worked for organisations with in this field have almost exclusively focused on the future coming years will be of work through the prism of ‘technology-first’, more than 100 employees and 75% worked for organisations with more than 500 employees. Respondents came from a representative sample of industries centring on how organisations can utilise technology the ones that thrive. to drive efficiencies and re-think their resourcing models. • Interviews with 2,031 employees within organisations in the UK. All respondents worked for With this study, we have looked to take a ‘people-first’ approach to the future of work. This stems from the organisations with more than 100 employees and 68% worked for organisations with more belief that it is people and skills, rather than technology, than 500 employees. which will continue to differentiate brands and Respondents came from a representative sample of industries and job roles/ functions determine success in the future. All research was conducted by Insight Avenue in November/December 2018 and January 2019. Certainly, technology will become an ever- more critical enabler for people, there The research reveals that both business leaders and This paper highlights the need for business leaders to support and empower workforces to employees in the UK are fully aware of the changes to recognise the Human to Hybrid challenge and adapt and thrive in an unpredictable future that are set to impact the world of work over the to carefully consider what this shift means for them environment. But it will be the ability of coming years and they are positive about the shift and for their organisation. It calls for business leaders organisations to develop highly skilled, agile from a human to hybrid workforce. However, despite to develop clear strategies to manage this transition recognising the need to transform their organisations over the coming years. Leadership and vision must come and engaged workforces, and to maximise and their workforces to pave the way to a hybrid from the very highest levels of the organisation, with the creativity, vision and ambition of their workforce, business leaders remain uncertain about how CEOs and Board Directors taking ownership, and working people, that will make the difference. to approach this shift and many are lacking the vision, alongside HR, IT and operational directors to develop strategy and support to drive change. a joined-up, holistic approach. Unsurprisingly, employees continue to have concerns The shift to a hybrid workforce is arguably the most about how the workplace will evolve over the coming significant challenge and most exciting opportunity years and their own role within it. Whilst open to change for organisations today. Business leaders that manage and optimistic about the future, workers feel uncertain the transition successfully can set their organisations up about their own prospects and are looking to their to prosper in the future. employers to provide the reassurance, learning and opportunities they need to prepare themselves. 10 | Introduction: Re-imagining the workforce Introduction: Re-imagining the workforce | 11
#Human2Hybrid Without doubt, our roles and the type of work that we do will change extensively over the coming years, meaning that the skills required to perform most jobs What is Human The research defined ‘Human to Hybrid’ The workforce of will shift considerably. But perhaps even more significant will be the need for us to adapt to a new cultural as ‘’the new dynamic where humans will the future will involve environment in which we can operate effectively and work in a fully digitised and technologically- to Hybrid? harmoniously alongside these new technologies in a way optimised environment, and increasingly a blend of human that enables us to become more efficient, productive and fulfilled in our work. work alongside robots and AI, over the next ten years”. labour and technology. As business leaders, we’re all aware that we are standing Organisations that are on the edge of a period of monumental change and recognise the need to re-imagine every part of our able to successfully organisations, particularly how our operations are Research Methodology resourced and ‘work’ is carried out. manage the transition However, faced with such a huge, unprecedented Capita People Solutions undertook comprehensive, independent research amongst both business leaders and employees, comprising of: from a human to hybrid challenge, knowing how to manage this shift, and where to start, is an entirely different matter. workforce over the To date, academic contributions and research studies • Interviews with 500 business leaders (board directors, senior directors and heads of departments) within organisations in the UK. All respondents worked for organisations with in this field have almost exclusively focused on the future coming years will be of work through the prism of ‘technology-first’, more than 100 employees and 75% worked for organisations with more than 500 employees. Respondents came from a representative sample of industries centring on how organisations can utilise technology the ones that thrive. to drive efficiencies and re-think their resourcing models. • Interviews with 2,031 employees within organisations in the UK. All respondents worked for With this study, we have looked to take a ‘people-first’ approach to the future of work. This stems from the organisations with more than 100 employees and 68% worked for organisations with more belief that it is people and skills, rather than technology, than 500 employees. which will continue to differentiate brands and Respondents came from a representative sample of industries and job roles/ functions determine success in the future. All research was conducted by Insight Avenue in November/December 2018 and January 2019. Certainly, technology will become an ever- more critical enabler for people, there The research reveals that both business leaders and This paper highlights the need for business leaders to support and empower workforces to employees in the UK are fully aware of the changes to recognise the Human to Hybrid challenge and adapt and thrive in an unpredictable future that are set to impact the world of work over the to carefully consider what this shift means for them environment. But it will be the ability of coming years and they are positive about the shift and for their organisation. It calls for business leaders organisations to develop highly skilled, agile from a human to hybrid workforce. However, despite to develop clear strategies to manage this transition recognising the need to transform their organisations over the coming years. Leadership and vision must come and engaged workforces, and to maximise and their workforces to pave the way to a hybrid from the very highest levels of the organisation, with the creativity, vision and ambition of their workforce, business leaders remain uncertain about how CEOs and Board Directors taking ownership, and working people, that will make the difference. to approach this shift and many are lacking the vision, alongside HR, IT and operational directors to develop strategy and support to drive change. a joined-up, holistic approach. Unsurprisingly, employees continue to have concerns The shift to a hybrid workforce is arguably the most about how the workplace will evolve over the coming significant challenge and most exciting opportunity years and their own role within it. Whilst open to change for organisations today. Business leaders that manage and optimistic about the future, workers feel uncertain the transition successfully can set their organisations up about their own prospects and are looking to their to prosper in the future. employers to provide the reassurance, learning and opportunities they need to prepare themselves. 10 | Introduction: Re-imagining the workforce Introduction: Re-imagining the workforce | 11
#Human2Hybrid Hybrid on the horizon The transition from a Human to Hybrid workforce is both imminent and urgent. The research reveals that business leaders are fully aware of the scale of the Human to Hybrid challenge and most claim to have a good understanding of what this shift will mean for their organisation and workforce over the next five years. 72% of business leaders see the transition to a hybrid workforce as the biggest challenge that businesses are facing over the next five years and 93% believe that they need to start proactively managing this shift over the next 12 months. 12 | Hybrid on the horizon Hybrid on the horizon | 13
#Human2Hybrid Hybrid on the horizon The transition from a Human to Hybrid workforce is both imminent and urgent. The research reveals that business leaders are fully aware of the scale of the Human to Hybrid challenge and most claim to have a good understanding of what this shift will mean for their organisation and workforce over the next five years. 72% of business leaders see the transition to a hybrid workforce as the biggest challenge that businesses are facing over the next five years and 93% believe that they need to start proactively managing this shift over the next 12 months. 12 | Hybrid on the horizon Hybrid on the horizon | 13
Poor #Human2Hybrid 7% Understanding of Excellent 33% Human to Hybrid Fair 18% This fear is fully justified. and the impact on In our survey of UK organisation and employees, more than workforce half (51%) reported How would you describe your level of that they will choose to understanding of Human to Hybrid and what this shift may mean for your workforce leave their organisation / organisation over the next five years? Good if it doesn’t manage the 41% transition to a hybrid *Figures may sometimes sum to 99% or 101% due to rounding. workforce properly. Don’t know 9% The shift to a hybrid workforce is being driven by a wide More of a Perception of Human threat 31% and varied range of factors, both inside and outside the organisation. One of the leading factors is the need to Hybrid as a threat to reduce costs whilst increasing output, as the UK continues to struggle with poor productivity in relation or opportunity to other economies. There is also a strong desire to exploit technological Overall, currently do you see the shift advancements, particularly within AI and automation, from Human to Hybrid as a threat or an to become more innovative and to meet increasingly opportunity to a business like yours? high customer demands. Interestingly, business leaders also cite difficulties in recruiting permanent staff as a key driver for transitioning to a hybrid workforce. They acknowledge the role that AI and automation More of an will increasingly play in resourcing more mundane and opportunity repetitive high-volume tasks within their organisation, 60% freeing up their existing workforce to focus on higher value work. 67 of business leaders fear The majority of business leaders (60%) feel positive about this shift to a hybrid workforce, although almost that their organisation a third (31%) believe that it presents more of a threat % will become irrelevant if it than an opportunity. Indeed, this is likely to be linked fails to move to a hybrid to the fact that business leaders appear to be acutely aware of the implications of failing to effectively manage workforce over the next the transition to a hybrid workforce. five years. 14 | Hybrid on the horizon Hybrid on the horizon | 15
Poor #Human2Hybrid 7% Understanding of Excellent 33% Human to Hybrid Fair 18% This fear is fully justified. and the impact on In our survey of UK organisation and employees, more than workforce half (51%) reported How would you describe your level of that they will choose to understanding of Human to Hybrid and what this shift may mean for your workforce leave their organisation / organisation over the next five years? Good if it doesn’t manage the 41% transition to a hybrid *Figures may sometimes sum to 99% or 101% due to rounding. workforce properly. Don’t know 9% The shift to a hybrid workforce is being driven by a wide More of a Perception of Human threat 31% and varied range of factors, both inside and outside the organisation. One of the leading factors is the need to Hybrid as a threat to reduce costs whilst increasing output, as the UK continues to struggle with poor productivity in relation or opportunity to other economies. There is also a strong desire to exploit technological Overall, currently do you see the shift advancements, particularly within AI and automation, from Human to Hybrid as a threat or an to become more innovative and to meet increasingly opportunity to a business like yours? high customer demands. Interestingly, business leaders also cite difficulties in recruiting permanent staff as a key driver for transitioning to a hybrid workforce. They acknowledge the role that AI and automation More of an will increasingly play in resourcing more mundane and opportunity repetitive high-volume tasks within their organisation, 60% freeing up their existing workforce to focus on higher value work. 67 of business leaders fear The majority of business leaders (60%) feel positive about this shift to a hybrid workforce, although almost that their organisation a third (31%) believe that it presents more of a threat % will become irrelevant if it than an opportunity. Indeed, this is likely to be linked fails to move to a hybrid to the fact that business leaders appear to be acutely aware of the implications of failing to effectively manage workforce over the next the transition to a hybrid workforce. five years. 14 | Hybrid on the horizon Hybrid on the horizon | 15
#Human2Hybrid Factors driving the need for a Human to Hybrid strategy To what extent do the following drive the need for a Human to Hybrid strategy in your organisation? To a great extent To some extent Not at all Pressures to reduce costs 60% 32% 8% / manage productivity Technological advancement 45% 43% 12% / increasing automation / AI Need to innovate and resource new 42% 46% 11% business initiatives Changing customer demands 42% 43% 15% / expectations Difficulties finding 40% 41% 19% permanent staff Increased competition 38% 51% 11% / disruption in the market Skills shortages in 37% 47% 16% our organisation Changing employee expectations 36% 51% 13% of what work means / improving employee experience Growth of the gig economy / 36% 46% 19% increasing numbers of freelancers etc. Increased availability 36% 47% 16% of HR data Economic uncertainty 36% 47% 17% (e.g. Brexit) Multi-generational 35% 52% 13% workforce Everyone else is doing it 34% 53% 13% / fear of falling behind 33% 52% 15% Industry regulation *Figures may sometimes sum to 99% or 101% due to rounding. 16 | Hybrid on the horizon Hybrid on the horizon | 17
#Human2Hybrid Factors driving the need for a Human to Hybrid strategy To what extent do the following drive the need for a Human to Hybrid strategy in your organisation? To a great extent To some extent Not at all Pressures to reduce costs 60% 32% 8% / manage productivity Technological advancement 45% 43% 12% / increasing automation / AI Need to innovate and resource new 42% 46% 11% business initiatives Changing customer demands 42% 43% 15% / expectations Difficulties finding 40% 41% 19% permanent staff Increased competition 38% 51% 11% / disruption in the market Skills shortages in 37% 47% 16% our organisation Changing employee expectations 36% 51% 13% of what work means / improving employee experience Growth of the gig economy / 36% 46% 19% increasing numbers of freelancers etc. Increased availability 36% 47% 16% of HR data Economic uncertainty 36% 47% 17% (e.g. Brexit) Multi-generational 35% 52% 13% workforce Everyone else is doing it 34% 53% 13% / fear of falling behind 33% 52% 15% Industry regulation *Figures may sometimes sum to 99% or 101% due to rounding. 16 | Hybrid on the horizon Hybrid on the horizon | 17
#Human2Hybrid Challenges on the Human to Hybrid journey The research uncovers a wide variety of challenges that business leaders are facing when approaching the shift from a Human to Hybrid workforce. 98% of business leaders One major challenge is overcoming employee resistance and anxiety around what a hybrid workforce will mean cite problems with for them personally and their job function more widely. Many respondents felt that media coverage of the the transition to potential impact of AI and automation on the jobs market has created a sense of unnecessary fear amongst a hybrid workforce. the working population. This is something that business leaders will need to confront and overcome over the next year. Business leaders also acknowledge the challenge they face in re-skilling their people to operate productively in a hybrid workforce and in optimising technology to ensure it can deliver effectively. 18 | Challenges on the Human to Hybrid journey Challenges on the Human to Hybrid journey | 19
#Human2Hybrid Challenges on the Human to Hybrid journey The research uncovers a wide variety of challenges that business leaders are facing when approaching the shift from a Human to Hybrid workforce. 98% of business leaders One major challenge is overcoming employee resistance and anxiety around what a hybrid workforce will mean cite problems with for them personally and their job function more widely. Many respondents felt that media coverage of the the transition to potential impact of AI and automation on the jobs market has created a sense of unnecessary fear amongst a hybrid workforce. the working population. This is something that business leaders will need to confront and overcome over the next year. Business leaders also acknowledge the challenge they face in re-skilling their people to operate productively in a hybrid workforce and in optimising technology to ensure it can deliver effectively. 18 | Challenges on the Human to Hybrid journey Challenges on the Human to Hybrid journey | 19
#Human2Hybrid Problems associated with Employee concerns about working moving to a hybrid workforce as part of a hybrid workforce What do you see, or have you seen, as problems associated What are your concerns about working as part of with moving to a hybrid workforce in your organisation? a hybrid workforce? 34% Employee resistance / fear 46% Lack of human interaction at work Potentially losing my job 30% Need to re-skill our workforce 41% to a machine Lack of knowledge / understanding Accountability – if things go wrong, 30% of how to best manage this shift 32% where does the responsibility lie? My skills, talents and characteristics 29% Need to overhaul processes 28% will go unnoticed Lack of confidence in the Reduced opportunities to progress within 28% technology 26% the organisation / more competition for jobs Company culture Uncertainty and general 28% / reluctance to change 24% employee discontent Finding appropriate balance of Potentially being managed 28% human and automated resource 23% by a machine Lack of leadership / ownership Might create a less inclusive, 28% of the Human to Hybrid transition 22% less diverse workforce Worries about redundancies Not clear on reasons why this 28% as a result of more automation 20% is happening / the bigger picture Change in risk profile 26% / accountability 5% Don’t know 24% Poor or outdated technology 1% Other Need to re-evaluate the measurement 24% of outputs such as productivity 6% None of the above / no concerns 50 40 30 20 10 0 1% Other 2% No barriers The research shows that business leaders understand At either end are those who are either highly positive 35 30 25 20 15 10 5 0 that employees are experiencing a whole range of or highly negative about the changes, whilst in the different feelings about the prospect of working as middle is a third group which is partly engaged and part of a hybrid workforce, ranging from optimism interested in the prospect of a hybrid workforce and Interestingly, business leaders are also having to address The research highlights that employee and excitement, through to fear and scepticism. the benefits that it might bring, but who still have and account for external dynamics which are wholly concerns around the prospect of working Interestingly, business leaders feel that when it comes a level of concern about their job security and remain beyond their control. For instance, the sheer speed in a hybrid workforce extend far beyond to overall attitudes to being a part of a hybrid workforce, somewhat resistant to change. and scale of current technological advancements are their employees divide evenly into three camps. simply losing their job to a robot. presenting a real challenge in preparing for and moving towards a hybrid workforce over the next ten years. Organisations are facing some important questions 86% of business leaders feel that it’s impossible to around the impact that a hybrid workforce will forecast the technology that we will be using in 2030 have on workplace culture and collaboration, and many business leaders are struggling to keep pace reward and recognition, diversity and inclusion and to adapt their workforce strategies in such and on talent mobility. a dynamic, fast-moving environment. 20 | Challenges on the Human to Hybrid journey Challenges on the Human to Hybrid journey | 21
#Human2Hybrid Problems associated with Employee concerns about working moving to a hybrid workforce as part of a hybrid workforce What do you see, or have you seen, as problems associated What are your concerns about working as part of with moving to a hybrid workforce in your organisation? a hybrid workforce? 34% Employee resistance / fear 46% Lack of human interaction at work Potentially losing my job 30% Need to re-skill our workforce 41% to a machine Lack of knowledge / understanding Accountability – if things go wrong, 30% of how to best manage this shift 32% where does the responsibility lie? My skills, talents and characteristics 29% Need to overhaul processes 28% will go unnoticed Lack of confidence in the Reduced opportunities to progress within 28% technology 26% the organisation / more competition for jobs Company culture Uncertainty and general 28% / reluctance to change 24% employee discontent Finding appropriate balance of Potentially being managed 28% human and automated resource 23% by a machine Lack of leadership / ownership Might create a less inclusive, 28% of the Human to Hybrid transition 22% less diverse workforce Worries about redundancies Not clear on reasons why this 28% as a result of more automation 20% is happening / the bigger picture Change in risk profile 26% / accountability 5% Don’t know 24% Poor or outdated technology 1% Other Need to re-evaluate the measurement 24% of outputs such as productivity 6% None of the above / no concerns 50 40 30 20 10 0 1% Other 2% No barriers The research shows that business leaders understand At either end are those who are either highly positive 35 30 25 20 15 10 5 0 that employees are experiencing a whole range of or highly negative about the changes, whilst in the different feelings about the prospect of working as middle is a third group which is partly engaged and part of a hybrid workforce, ranging from optimism interested in the prospect of a hybrid workforce and Interestingly, business leaders are also having to address The research highlights that employee and excitement, through to fear and scepticism. the benefits that it might bring, but who still have and account for external dynamics which are wholly concerns around the prospect of working Interestingly, business leaders feel that when it comes a level of concern about their job security and remain beyond their control. For instance, the sheer speed in a hybrid workforce extend far beyond to overall attitudes to being a part of a hybrid workforce, somewhat resistant to change. and scale of current technological advancements are their employees divide evenly into three camps. simply losing their job to a robot. presenting a real challenge in preparing for and moving towards a hybrid workforce over the next ten years. Organisations are facing some important questions 86% of business leaders feel that it’s impossible to around the impact that a hybrid workforce will forecast the technology that we will be using in 2030 have on workplace culture and collaboration, and many business leaders are struggling to keep pace reward and recognition, diversity and inclusion and to adapt their workforce strategies in such and on talent mobility. a dynamic, fast-moving environment. 20 | Challenges on the Human to Hybrid journey Challenges on the Human to Hybrid journey | 21
#Human2Hybrid Employee mindsets in regards Personal and company readiness to the hybrid workforce for a hybrid workforce What proportion of your workforce do you think How would you rate your personal readiness for a hybrid is likely to fall into the following categories within workforce (excitement and interest in humans working a hybrid workforce? alongside increasing technology, including robots and AI, and understanding how this can best work in a company like yours?) How would you rate your company’s readiness for a hybrid workforce (strategy and planning around integration Disengaged and highly sceptical of humans with increasing technology, including robots and about the value of a hybrid Fully engaged and open to workforce and their role new possibilities that a hybrid AI, and a clear vision of how this can best work?) / purpose workforce brings 32% 36% Personal readiness Not at all ready 8% Extremely ready 26% Not particularly ready 23% Partially engaged but worried about the future of their job and employability 32% Company readiness Not at all ready Given the level of complexity and variety of problems Interestingly, when thinking about their own personal 9% they are encountering, it’s unsurprising that only readiness as business leaders in a hybrid workforce, Extremely ready a quarter (26%) of business leaders regard their the findings very closely mirror attitudes towards organisation as ‘extremely ready’ for the transition to company readiness. Once again, 26% report extreme 26% Quite ready a hybrid workforce. Most feel somewhat ready but readiness, whereas most think they have a good 43% acknowledge that they have more to do over the level of understanding and focus in these changing Not particularly coming months and years to ensure a smooth journey workforce dynamics but acknowledge that they could ready to a hybrid workforce. be making improvements. 25% Quite ready 40% 22 | Challenges on the Human to Hybrid journey Challenges on the Human to Hybrid journey | 23
#Human2Hybrid Employee mindsets in regards Personal and company readiness to the hybrid workforce for a hybrid workforce What proportion of your workforce do you think How would you rate your personal readiness for a hybrid is likely to fall into the following categories within workforce (excitement and interest in humans working a hybrid workforce? alongside increasing technology, including robots and AI, and understanding how this can best work in a company like yours?) How would you rate your company’s readiness for a hybrid workforce (strategy and planning around integration Disengaged and highly sceptical of humans with increasing technology, including robots and about the value of a hybrid Fully engaged and open to workforce and their role new possibilities that a hybrid AI, and a clear vision of how this can best work?) / purpose workforce brings 32% 36% Personal readiness Not at all ready 8% Extremely ready 26% Not particularly ready 23% Partially engaged but worried about the future of their job and employability 32% Company readiness Not at all ready Given the level of complexity and variety of problems Interestingly, when thinking about their own personal 9% they are encountering, it’s unsurprising that only readiness as business leaders in a hybrid workforce, Extremely ready a quarter (26%) of business leaders regard their the findings very closely mirror attitudes towards organisation as ‘extremely ready’ for the transition to company readiness. Once again, 26% report extreme 26% Quite ready a hybrid workforce. Most feel somewhat ready but readiness, whereas most think they have a good 43% acknowledge that they have more to do over the level of understanding and focus in these changing Not particularly coming months and years to ensure a smooth journey workforce dynamics but acknowledge that they could ready to a hybrid workforce. be making improvements. 25% Quite ready 40% 22 | Challenges on the Human to Hybrid journey Challenges on the Human to Hybrid journey | 23
#Human2Hybrid The benefits of a hybrid workforce Without doubt, business leaders see the overall benefits of moving towards a hybrid workforce - striving for greater operational efficiency, increased revenue, skills enhancements and better decision making. The optimal end state is one that delivers tangible benefits for both organisations, and individuals alike - and whilst the aim is transformational, achieving this balance relies on the successful implementation of a number of smaller shifts across the employee lifecycle. 24 | The benefits of a hybrid workforce The benefits of a hybrid workforce | 25
#Human2Hybrid The benefits of a hybrid workforce Without doubt, business leaders see the overall benefits of moving towards a hybrid workforce - striving for greater operational efficiency, increased revenue, skills enhancements and better decision making. The optimal end state is one that delivers tangible benefits for both organisations, and individuals alike - and whilst the aim is transformational, achieving this balance relies on the successful implementation of a number of smaller shifts across the employee lifecycle. 24 | The benefits of a hybrid workforce The benefits of a hybrid workforce | 25
#Human2Hybrid The business benefits of Employees - the benefits of being a hybrid workforce part of a hybrid workforce What do you expect to see as the benefits of What do you see as the benefits that working as part of a hybrid workforce from a business perspective? a hybrid workforce could bring you personally? Increased operational efficiency 37% / reduced operational costs 44% Opportunity to learn new skills More flexibility to work where 36% Increased revenue / sales 40% and how I choose Skills enhancement / increased Would free up my time at work to focus 35% engagement amongst staff 32% on more interesting, creative tasks Opportunity to work on greater variety 35% Speed and quality of decision making 28% of tasks / projects with different people More time to focus on strategic Company seen as cutting-edge 33% / creative activities and innovation 28% / innovative Good experience to improve my 33% Fresh insights and more innovation 27% employability elsewhere Greater legal / regulatory compliance Creating a safer working 31% and safer working environment 20% environment Good for our image Better, more personalised 30% / market reputation 18% employee experience Enhanced customer satisfaction Reduce interpersonal issues 29% / reduced churn 17% / conflicts with managers or colleagues 28% More inclusive / diverse workforce 15% Don’t know 50 40 30 20 10 0 3% None of the above 40 35 30 25 20 15 10 5 0 Whilst on the one hand some employees have a certain amount of resistance to change and anxiety around the future, many can see that working with a hybrid The transition from a Human to Hybrid workforce also workforce will enable them to take on more creative involves a huge number of smaller initiatives which and fulfilling work. They recognise that technology will can drive improvements in every area of the employee increasingly take over many of the more mundane and lifecycle, in a tailored and personalised way. This repetitive administrative tasks that they undertake, and includes attracting and retaining high quality candidates, free them up to focus their efforts on more meaningful, identifying and addressing skills gaps, supporting impactful work. They welcome the idea of developing workforce agility, promoting employee wellbeing and their own skills in order to do this, boosting their own creating strong cultures of learnability. Encouragingly, development and future employability. employees also recognise significant benefits in being part of a hybrid workforce, believing that it will provide increased opportunities to learn new skills, greater flexibility, and more interesting and varied work. 26 | The benefits of a hybrid workforce The benefits of a hybrid workforce | 27
#Human2Hybrid The business benefits of Employees - the benefits of being a hybrid workforce part of a hybrid workforce What do you expect to see as the benefits of What do you see as the benefits that working as part of a hybrid workforce from a business perspective? a hybrid workforce could bring you personally? Increased operational efficiency 37% / reduced operational costs 44% Opportunity to learn new skills More flexibility to work where 36% Increased revenue / sales 40% and how I choose Skills enhancement / increased Would free up my time at work to focus 35% engagement amongst staff 32% on more interesting, creative tasks Opportunity to work on greater variety 35% Speed and quality of decision making 28% of tasks / projects with different people More time to focus on strategic Company seen as cutting-edge 33% / creative activities and innovation 28% / innovative Good experience to improve my 33% Fresh insights and more innovation 27% employability elsewhere Greater legal / regulatory compliance Creating a safer working 31% and safer working environment 20% environment Good for our image Better, more personalised 30% / market reputation 18% employee experience Enhanced customer satisfaction Reduce interpersonal issues 29% / reduced churn 17% / conflicts with managers or colleagues 28% More inclusive / diverse workforce 15% Don’t know 50 40 30 20 10 0 3% None of the above 40 35 30 25 20 15 10 5 0 Whilst on the one hand some employees have a certain amount of resistance to change and anxiety around the future, many can see that working with a hybrid The transition from a Human to Hybrid workforce also workforce will enable them to take on more creative involves a huge number of smaller initiatives which and fulfilling work. They recognise that technology will can drive improvements in every area of the employee increasingly take over many of the more mundane and lifecycle, in a tailored and personalised way. This repetitive administrative tasks that they undertake, and includes attracting and retaining high quality candidates, free them up to focus their efforts on more meaningful, identifying and addressing skills gaps, supporting impactful work. They welcome the idea of developing workforce agility, promoting employee wellbeing and their own skills in order to do this, boosting their own creating strong cultures of learnability. Encouragingly, development and future employability. employees also recognise significant benefits in being part of a hybrid workforce, believing that it will provide increased opportunities to learn new skills, greater flexibility, and more interesting and varied work. 26 | The benefits of a hybrid workforce The benefits of a hybrid workforce | 27
#Human2Hybrid The three levers of the Human to Hybrid shift Evidently the Human to Hybrid transition is extremely challenging and there are no easy answers. However, business leaders are in agreement that efforts to move from a traditional workforce model to a hybrid 88% of business leaders workforce must focus around three key levers: Digital (technology capability); Data (workforce believe that they need to insights); and People (skills, culture and leadership). focus on digital, data and Interestingly, whilst digital, data and people are identified as important strategic levers to build and people in the transition benefit from a sustainable hybrid workforce, initiatives in these areas are enjoying varying degrees of success. from a human to hybrid Business leaders feel that they are making significantly more progress when it comes to digital (and digital workforce. These transformation) than they are in the other two areas, particularly data, where 45% of business leaders levers are set to deliver acknowledge they have made the least progress. better experiences and outcomes for employees, which in turn will drive better performances and outcomes for businesses. 28 | The three levers of the Human to Hybrid shift The three levers of the Human to Hybrid shift | 29
#Human2Hybrid The three levers of the Human to Hybrid shift Evidently the Human to Hybrid transition is extremely challenging and there are no easy answers. However, business leaders are in agreement that efforts to move from a traditional workforce model to a hybrid 88% of business leaders workforce must focus around three key levers: Digital (technology capability); Data (workforce believe that they need to insights); and People (skills, culture and leadership). focus on digital, data and Interestingly, whilst digital, data and people are identified as important strategic levers to build and people in the transition benefit from a sustainable hybrid workforce, initiatives in these areas are enjoying varying degrees of success. from a human to hybrid Business leaders feel that they are making significantly more progress when it comes to digital (and digital workforce. These transformation) than they are in the other two areas, particularly data, where 45% of business leaders levers are set to deliver acknowledge they have made the least progress. better experiences and outcomes for employees, which in turn will drive better performances and outcomes for businesses. 28 | The three levers of the Human to Hybrid shift The three levers of the Human to Hybrid shift | 29
#Human2Hybrid The Three Levers of Human to Hybrid In which area of the Human to Hybrid transition have you made the most progress to date? Most progress 2nd most Least progress DIGITAL 46% 29% 26% (technical capability) DATA 27% 27% 45% (workforce insights) PEOPLE 27% 44% 29% (skills, culture, leadership) *Figures may sometimes sum to 99% or 101% due to rounding. 30 | The three levers of the Human to Hybrid shift The three levers of the Human to Hybrid shift | 31
#Human2Hybrid The Three Levers of Human to Hybrid In which area of the Human to Hybrid transition have you made the most progress to date? Most progress 2nd most Least progress DIGITAL 46% 29% 26% (technical capability) DATA 27% 27% 45% (workforce insights) PEOPLE 27% 44% 29% (skills, culture, leadership) *Figures may sometimes sum to 99% or 101% due to rounding. 30 | The three levers of the Human to Hybrid shift The three levers of the Human to Hybrid shift | 31
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