HR Changing Gears: The Future Workplace 

Technological upheaval is driving the need for a change-agile culture. The thriving businesses of tomorrow will be adept at organizational (re) design to imagine new business models, while remaining mindful of the environmental and social impact of these models. Indeed, according to Mercer’s latest research, 73% of executives predict significant industry disruption in the next three years - up from 26% in 2018. The organization of the future will be less rigid, and teams will be streamlined and nimble in response to evolving strategic priorities.

As talent moves between teams that ramp up — or wind down — quickly, HR systems will have to be as agile as the business itself. Organizational design expertise will be essential for HR, but the ability to form — and reform — both teams and cultures is even more critical. Achieving this culture depends in part on hiring people who can adapt and learn, and on cultivating a mindset for experimentation throughout the organization.

The gig economy is raising expectations of what is possible in the world of work. Some 82% of surveyed employees say they would consider working on a contract basis, partly because of the opportunity to earn more. A platform mentality is taking hold where organizations are the epicenter of a shifting talent ecosystem of core, contingent and crowdsourced workers. Companies will thrive by valuing access to skills (not ownership), by genuinely understanding people’s motives and interests and by fostering connections across their network.

HR’s horizons are being broadened by the need to accommodate diverse groups of people, evolving skillsets and changing business needs. Data are HR’s best friend in sourcing talent, matching people’s passions to business demands, and indicating when to hire from within or outside. But while analytics can forecast skill gaps and human capital risks, it will be the decisions around future workforce size, shape and skills that will accelerate transformation.

Realizing global growth while being agile creates a dilemma. So how will companies stay ahead? Leading firms are aligning change efforts to a few anchor points where they believe future value will be generated – be it new products, new partners, new critical skills, or new operating models. Yet tensions remain between the efficiency of global operations and the relevance of local solutions. To square the circle, organizations are striving to develop talent who think globally, encourage an agile workforce and balance global consistency with local needs.

Companies will increasingly depend on building organizational and employee agility rather than relying on periodic change initiatives. They need the capacity to attract, develop and retain top-notch talent in emerging markets and nimble ways to expose talent to different business models. Online approaches to employee development and cultural immersion will ensure hard and soft skills are learned in context.