The future of work

 

McKinsey Global Institute conducted research into trends and what the future of work will look like, and here is a summary of the main findings from the latest report on the future of work:

  1. Occupational Shifts: By 2030, approximately one in 16 workers, which equates to over 100 million workers across eight economies studied, may need to change their occupations. The pandemic accelerated these workforce transitions.
  2. Job Growth: Job growth is expected to be concentrated in high-skill professions like healthcare and STEM fields, while middle- and low-skill jobs like food service, production, and office support roles may decline.
  3. Specific Job Categories: Some job categories are likely to experience more growth, including warehouse workers due to the rise of e-commerce, wind turbine technicians in the green economy, healthcare professionals due to aging populations, and teachers and training instructors.
  4. Job Risks: Certain jobs may be at risk, such as clerks in grocery stores as self-checkout becomes more common and office workers as automation and AI are used for routine paperwork.
  5. Trends Accelerated by the Pandemic: The pandemic accelerated three key trends: continued remote work and virtual meetings, significant growth in e-commerce and digital transactions, and the faster adoption of digital technologies like automation and AI.
  6. Remote Work: Remote work is expected to persist, with 20 to 25 per cent of workforces in advanced economies able to work from home three to five days a week, a significant increase from pre-COVID levels.
  7. Limitations of Remote Work: More than half of the workforce has limited or no opportunity for remote work due to job requirements, such as on-site work or specialized machinery. Many of these low-wage jobs face risks from automation and digitization trends.
  8. Understanding the Future of Work:

    • To comprehend the future of work, organizations should consider three interconnected elements:
      1. The Nature of Work: Understand how the organization generates revenue and conducts work, aligning these answers with strategic priorities.
      2. The Workforce of the Future: Assess the current workforce and identify future talent needs to bridge skill gaps.
      3. The Workplace of the Future: Recognize that the workplace is evolving, with a potential shift towards flexible and remote work arrangements.

    9. HR’s Role in the Future of Work:

    • HR is transforming from a support function to a strategic partner in business success. Expectations for HR’s future role include:
      • We are leveraging digitization to automate routine tasks and use data for decision-making.
      • We are promoting agility by rethinking traditional HR models and quickly deploying talent.
      • We are shifting HR’s focus from administrative tasks to advising top management.
      • We are creating HR practice groups to tackle strategic HR priorities.
      • We are prioritizing the employee experience throughout their journey.

    10. Diversity, Equity, and Inclusion in the Future of Work:

    • Addressing social and economic inequality is vital for sustainable growth.
    • Emphasizing diversity, equity, and inclusion (DE&I) can lead to better company performance.
    • Challenges exist, including the disproportionate impact of job losses during the pandemic on diverse populations.
    • Organizations must consider the unique needs of various demographic groups, such as Black Americans, Latinos, Asian Americans, and LGBTQ+ employees.
    • Intersectionality is crucial, as it highlights the multiple identities individuals may have.
    • Three broad actions for organizations: prioritize diversity, challenge biases, and improve inclusivity.

    For more detailed information, refer to the cited articles from McKinsey.