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:
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
-
Understanding the Future of Work:
- To comprehend the future of work, organizations should consider three interconnected elements:
- The Nature of Work: Understand how the organization generates revenue and conducts work, aligning these answers with strategic priorities.
- The Workforce of the Future: Assess the current workforce and identify future talent needs to bridge skill gaps.
- 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.
- To comprehend the future of work, organizations should consider three interconnected elements: