Eight Futures of Work: Scenarios and Their Implications
By 2030, the nature and quality of work will be irrevocably altered. How? That depends on the rate of technological change, the evolution of learning, and the mobility of talent.
Human resources has long been evolving beyond its traditional—and outdated—role as a mere processor of administrative transactions. Today, HR is usually viewed as a strategic partner to the business. The intensity of competition and the pace of change demand that the HR function fulfill this mandate. HR leaders need a clear view of their current capabilities, a set of clear priorities linked to the business strategy, and a targeted approach to improve the most urgent problem areas.
To achieve these objectives, company leaders need to take a far more nuanced view of HR and its underlying activities. The HR function can be broken down into 27 constituent areas, ranging from leadership and talent management to strategic workforce planning, employer branding, social media, and diversity management. In each area, it is critical not only to realistically assess a company’s current capabilities—but also to understand the degree to which that activity will become important in the future. Using this insight, companies can specifically invest to improve the areas that matter most.
In this data-filled talk, Rainer Strack suggests that countries ought to look across borders for willing job seekers. But to do that, they need to first change the culture in their businesses.
From talent needs to digitalization, the pressures to transform the entire HR function are escalating. Organizations must formulate a new view of HR and forge a deeper partnership between HR and the overall business. And they must ensure that each employee is working at the right spot in order to maximize the benefit for the company and the employee. Doing so often requires a fundamental change in HR strategy and operations. Many companies face urgent HR challenges but have low capabilities in handling them.
The following 27 topics were identified in a recent survey as being the most critical HR topics, ranked in order of importance:
Creating People Advantage, BCG's leading HR survey conducted jointly with the World Federation for People Management Associations, reveals that getting HR right is more important than ever for competitive advantage. Here are the critical trends shaping HR and people management:
Companies that have strong capabilities in HR topics—such as talent and leadership; engagement, behavior, and culture management; and HR strategy, planning, and analytics—show significantly better financial performance than companies that are weaker in those areas.
HR leaders who want a role in strategic discussions with the business must be able to quantify workforce performance. This goes beyond “input” metrics, such as cost and head count, toward more sophisticated “output” indicators, such as productivity.
Even many high-performing organizations, which are generally more data driven, don’t use their KPIs systematically to formulate strategic actions. A clear prioritization and selection of KPIs and tools is needed to achieve the best results.
Many organizations need to invest in HR more strategically to build capabilities. Among the HR topics rated as most important, companies showed only average capabilities, and they weren’t specifically targeting their investments to improve those areas.
Non-HR respondents reported a strong need for action with regard to approximately 40% of HR topics, particularly in core HR capabilities, such as staff capabilities and communication.
Companies on Fortune’s “100 Best Companies to Work For” list have outperformed the S&P 500 in at least eight out of the past ten years.
By 2030, the nature and quality of work will be irrevocably altered. How? That depends on the rate of technological change, the evolution of learning, and the mobility of talent.
The labor market is changing, and to remain both employable and professionally fulfilled, workers must change with it. Companies, policymakers, and individuals all have a role to play.
Emerging trends in the world of work include the UK's decline as a destination and increased expectations everywhere for a better work-life balance.
As digital transformation continues to disrupt the workplace, companies must begin now to hire, train, and retain new pools of skilled digital talent.
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