Article: Over 90% of organizations are not prepared for the future of work

#FutureOfWork

Over 90% of organizations are not prepared for the future of work

The need for flexibility and the meeting the growing tech talent gap are the major challenges for businesses today, finds a study.
Over 90% of organizations are not prepared for the future of work

The Future of Work is already here. Robots are changing the operations of factories and offices, AI and machine learning are starting to shape company processes and the gig economy is revolutionizing HR and recruitment. The 7 Drivers Shaping The Future of Work Report by Talent Alpha – a B2B Human Cloud company, finds that the need for flexibility and the growing tech talent gap are the major challenges of today, yet over 80 percent of the world’s digital potential remains untapped. Only nine percent of Chief Human Resources Officers agree that their organization is ready for the future of work, finds the study.

Technology transformation, changing company culture, transforming processes, new skills, emerging new business models, workplace transformation, and last but not least, changes in policy – are seven major drivers that are shaping the future of work, according to the report. 

“What the future holds in the long term is still in question, but technology is creating significant opportunities both for businesses and employees. The fourth industrial revolution will create more jobs than it will eliminate. Up to 85% of the jobs that will exist in 2030 haven’t even been invented yet,” – Przemek Berendt, Cofounder and CEO of Talent Alpha.

A new reality

According to the World Economic Forum, automation will displace 75 million jobs by 2022. In Shanghai, JD.com’s 40,000 sqm warehouse is operated by robots and a mere five people. Ericsson is to open its fully automated factory next year and Tesla's goal is to run all factories without human intervention as soon as it is possible. On the flipside, 133 million new roles may emerge due to new business opportunities all around the world. 

Hyper-connectivity and cloud computing platforms allow us to work and collaborate from anywhere in the world. The vast variety of as-a-Service solutions enable flexibility, freedom of choice and support for the development of the gig economy. Voice and facial recognition, IoT, and wearables help to track our activity and support HR and recruitment processes. In two years, nearly 20% of US citizens will use some kind of wearable or activity tracker. All these trends are fundamentally shaping the future of work.

“There is absolutely no doubt that for an organization to survive the fourth industrial revolution and succeed in the future of work, they need to radically transform their processes,” comments Tony Saldanha, Fortune 100 advisor, CEO of Transformant and former P&G VP.

Skills needs will drive changes

New business dimensions and opportunities are putting new demands on the market. This is why for example, the Tech Talent gap, which is already close to ten million globally, is forcing new management and recruitment strategies as well as new processes and intensive re- and upskilling. This shortfall is also having an impact on company culture.

“The skills gap places employers under increasing pressure and forces them to widen their search for talent in new regions and demographic groups, meaning organizational cultures of the future will have to focus on diversity and inclusion” stresses Sandra Henke, Group Head of People & Culture, HAYS.

Companies searching for access to huge global talent pools will have to be open to new models of engagement with specialists. According to Accenture, in the next five years, on-demand labor platforms will emerge as one of the primary drivers of economic growth. Staffing Industry Analysts state that they now see the Human Cloud rapidly expanding upmarket into the enterprise, as large companies pursue greater workforce management flexibility and access to immense global talent pools, particularly those in regions most affected by talent shortages.

However, it is the individual who will have to face the biggest challenges. According to Ade McCormack, President of The Digital Readiness Institute, one of the key skills of surviving or thriving in the digital age, is being ‘street smart’.

Topics: #FutureOfWork, Strategic HR

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