The evolution of work

In his book The Fourth Industrial Revolution, Klaus Schwab,[1] founder and executive chairman of the World Economic Forum, the International Organization for Public-Private Cooperation, discusses four distinct periods of industrial revolution throughout history, including the one the world is experiencing now. Schwab defines an industrial revolution as the appearance of “new technologies and novel ways of perceiving the world [that] trigger a profound change in economic and social structures.”
Per Schwab’s definition, the first globally recognized industrial revolution introduced steam power, completely changing the way humans approached transportation and, importantly, trade. The age of science and mass-production followed as the Second Industrial Revolution, and then came the Digital Revolution. Now, we are beginning another phase of dramatic technological expansion and social change: the Fourth Industrial Revolution (4IR).
The Fourth Industrial Revolution is centered around the idea that manufacturing technologies and processes make way for automation, data, the Internet of Things, cloud computing and artificial intelligence (AI).
Industrial revolutions provide a helpful context for the evolution of work — or what might be more clearly described as the “evolution of the employee.” Jacob Morgan described the concept of our current working world in his 2014 book, The Future of Work,[2] this way:
“It’s important to note that when discussing these industrial revolutions, we’re discussing the modern age. The evolution of the working human in recent decades has been remarkable, and is only continuing to accelerate.
“In fact, we have never seen work or the working human evolve this fast — ever. This rapid shift in work practices presents the greatest opportunity in human history for an organization’s people leaders to keep up with and influence major change.
Digital transformation is an infinity loop
What can the C-suite do?
HR is only part of the C-suite. The rest of the C-suite must immediately understand the applications and implications of generative AI, the most important technological advance in decades. Generative AI has the potential to disrupt industries and jobs, promising both competitive advantage and creative destruction. It can unlock productivity, creativity and skills, transforming how we all work. Hypothetically, AI could replace the equivalent of 300 million jobs, so organizations need to factor its advance into their talent and business sustainability plans. They can do this by understanding the use cases that will make a difference in their organizations or industries, knowing how this will impact their organizational structure and talent, and establishing guardrails and legal protections in their business policies.
Considering and alongside the AI revolution, there must be a collective effort to identify and activate hidden and untapped pools of talent in a shrinking global labor market. A major component of this will require flipping talent management on its head and finally sorting out a skills strategy. Again, intelligence, automation and experience design will be vital to unlocking the digital advantage.
What can vendors do?
Workforce technology vendors can drive incredible innovation. However, to best serve the human evolution and digital disruption of work, software and service providers should align product development to organizations learning how to be digital. Software for the sake of software will do nothing to evolve work; the digital transformation of work means work should look different when it’s done. And, importantly, it’s never done.
Partnership is key. Stop delivering products and features, and start delivering solutions and programs. A transformation journey must be sequenced and prioritized for long-term success and sustainability. So too must your solution delivery and measures of success.
What is Mercer | Leapgen doing?
Mercer | Leapgen provides digital HR strategy services to enterprises to connect each of these dots. We must build our transformation and change muscle to unlearn and rethink how we approach work, talent and technology. We teach enterprises how to be digital, not just do digital. We leverage human-centered design thinking, a whole-person approach to workforce experience and solution design, and changefulness to help enterprises create digital advantages.
We also provide analyst, research, advisory and marketing services to vendors to ensure the digital conversation is two-sided. Innovation requires fresh thinking by enterprises and strategic alignment with their technology and deployment partners. We teach workforce technology solution providers how to align digital solutions with the broadest business challenges they face. This work translates into more relevant market positioning, value-based storytelling and increased market share. This is the digital advantage gained by HR tech vendors that stop implementing software and start deploying digital capabilities for the enterprise.
Conclusion and wrap
Change is the strategy, not the enemy. It’s up to us — all of us — to act.