Are you ready for the new world of work?

The challenges are, broadly, three-fold: Keep up with regulations and requirements, optimise the existing workforce to make sure its efficient and meets the business’ needs, and try to anticipate the future to understand what the business will need in five, 10 or even 15 years’ time.

Predicting future trends, of course, isn’t easy. But the World of Work to 2030 by Russell Beck outlines several key trends shaping the future of work over the next few years. We can expect significant advancements in technology, particularly automation and artificial intelligence (AI), which will transform job roles and skills required in various industries. The emphasis will be on adaptability and continuous learning, as employees will need to reskill frequently.

There is much debate about the push by some organisations to get employees back to the office. However, what works for some large multi-nationals may not work for smaller organisations. In fact, even within the same organisation the right policy for one department could be detrimental to another. Therefore, it’s crucial for each organisation to carefully consider their unique needs and circumstances when developing their return-to-office strategies.

Diversity and inclusion will also be prioritised, with organisations striving to create more equitable environments. While small improvements are often celebrated, and rightly so, a concerted effort will be needed to truly level up the playing field. Organisations need a clear view of how long it will take to reach their ambitions and, will need to consider what recruitment and retention policies will be needed to get them there.

Additionally, sustainability will influence business practices, with companies expected to adopt greener policies and socially responsible initiatives. Overall, Beck says the workplace will become more dynamic, interconnected, and focused on employee well-being and adaptability.

These trends will all play out against a wider backdrop of shifting demographics, talent shortages, new employment laws and economic uncertainty. These are patterns we’re seeing already, and organisations understand that they must respond to these challenges quickly, robustly and with confidence.

Keeping you safe

In the Autumn Budget 2024, the Chancellor confirmed the introduction of new legislation aimed at enhancing worker rights and modernising workplace practices. This includes increased protections from unfair dismissal, safeguards against bullying, strengthened maternity and paternity leave, and flexibility from day one. Additionally, there will be an increase to the National Living Wage to account for the cost of living, changes to the National Minimum Wage rate to create a single adult wage rate over time, and an increase in employer National Insurance Contributions, including changes to thresholds.

These changes are intended to address insecure work, low pay, day-one rights, and the exploitation of workers. Businesses must ensure they have robust systems in place to comply with their obligations and avoid costly pitfalls and mistakes. They need to understand the impact of these and any new employment laws on their operations and what steps they need to take to comply.

Keeping you moving

The ongoing skills shortage is one of the most pressing problems facing organisations today. As competition for skilled candidates remains strong, business leaders must ask tough questions around the cost of training staff versus hiring in talent at a higher cost.

Understanding any underlying issues behind headline numbers - such as attrition rates - can reveal areas to focus on to ensure businesses are doing all they can, to keep hold of their best people. For instance, while the statistics may initially appear acceptable, a deeper analysis might uncover increasing attrition rates, high recruitment costs in specific areas, or limited diversity at senior levels. This lack of diversity can result in a shortage of role models for junior team members from diverse backgrounds.

Keeping you ahead

For businesses to thrive they need to be ready to respond to disruption and chart new paths. They face macroeconomic issues, technological advances such as AI, changing customer demands – and the speed at which things change is accelerating.

Being able to react quickly, efficiently and comprehensively will be the difference between those who thrive, those who survive and those who don’t do either.

To be able to successfully navigate these challenges, your workforce strategy must align closely to your wider strategies for growth. You need to tap into data to inform your workforce planning and resourcing – this could include data on the performance of new hires, or the effectiveness of retention initiatives. 

However, many organisations are overlooking this invaluable evidence-based approach. The Chartered Institute of Personnel and Development (CIPD) research shows that just 38% of organisations collect data to identify skills gaps within the organisation and less than a third attempt to identify future skill requirements or retention issues. Around one in five assess the availability/supply of talent in the market, the cost of replacing talent internally versus externally, or the cost of investing in technology to automate. When it comes to organisations with more than 1000 employees, the data suggests that only 20% collect any data around skills gaps in their workforce.

This is a missed opportunity to gain visibility into the data that’s needed to drive decision-making – both now and in the future. 2030 is not that far away, and organisations must act now if they are to successfully navigate the business landscape – and the workplace of the future – in just five years’ time.

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