1. Ensuring Employee Well-Being is a Fundamental Human Responsibility
Amidst a rising trend of workplace stress, companies are increasingly focused on cultivating environments that promote employee well-being. Workplace stress not only affects individual employees, but also impacts their relationships with friends, family, and colleagues. The Surgeon General's recent report on Mental Health and Well-being highlights that 81% of workers intend to seek out workplaces that prioritize mental health support.
2. Companies are Embracing Skills-Based Hiring, Prioritizing Potential Over Degrees
According to recent research by Remote, skills-based hiring has increased by 63% over the past year, reflecting a growing emphasis on experience over academic qualifications among employers.
Skills-based hiring not only widens the pool of talent available to employers, but also helps to eliminate career and salary barriers for over two-thirds of American adults without bachelor's degrees. For employers, this approach speeds up hiring, enhances diversity of thought, and broadens the talent pool.
The trend toward skills-based hiring is gaining momentum, as an increasing number of professions, such as computer support and software engineering, do not require a degree. In fact, a Burning Glass Institute analysis of millions of online job listings found that the proportion of jobs requiring a college degree fell from 51% in 2017 to 44% in 2021.
As we enter 2023, the shift toward skills-based hiring is set to accelerate, as skills become the primary currency in the labor market.
3. Flexibility is Key to the Future of Work for All Employees
Flexibility in the workplace now encompasses more than just remote work, as it also entails the ability to choose one's work schedule. This can mean working longer hours over fewer days or working shorter hours over more days.
According to a study by Executive Networks Global Research, titled "The 2023 Future of Working and Learning Report," both knowledge workers and frontline workers value flexibility in when work is done over flexibility in where it is done.
For knowledge workers, asynchronous work requires a cultural shift that values work-life balance, trusts employees to perform outside traditional hours, and establishes guidelines for synchronous work.
Frontline workers can also benefit from flexible work schedules. For instance, Chick-Fil-A permits employees to work 13-14 hour shifts for three consecutive days at full-time pay, leading to higher retention rates.
Flexibility in work arrangements is now highly sought-after by workers across all sectors. It is no longer just a desirable perk in a competitive labor market. Instead, we need to consider how we can design new work routines that provide flexibility for all employees.
4. The Rise of Hybrid Learning Will Drive Companies to Reinvent Their Traditional Corporate Academies
What Began as a Temporary Measure for Online and Hybrid Learning Is Forcing Companies to Rethink the Purpose of Their Traditional Corporate Academies. As Vincent Maurin, e-Academy Lead at Arcelor Mittal, Explains, 'We're in an Experiential Mode, Reimagining the Physical Structure of ArcelorMittal University. We Envision Pop-Up Campuses, Allowing Learning to Take Place Wherever Employees Are. The Pop-Up Campus Concept Should Be Flexible, Ranging from Streaming Technology to Multiple Locations to a Live Studio Experience.'
These Innovations Suggest a Future Where Corporate Academies Will Be Omni-Channel, Providing Learners with Access to Learning Opportunities Regardless of Their Location - Whether That Is in-Person at a Corporate Headquarters, at a Satellite Office, in a Pop-Up Space, or Online.
5. ESG reporting is evolving from a compliance issue to a talent attraction tool.
Companies are increasingly recognizing the importance of ESG (environmental, social, and governance) reporting, as they face regulatory mandates, pressure from stakeholders, and demands from employees and consumers. In 2020, 92% of S&P 500 companies and 70% of Russell 1000 companies published sustainability reports, including Cisco's Purpose Report and Arrow Electronics' ESG Report, as per Governance & Accountability Institute.
ESG goals are now a factor in executive-level variable compensation, with one-third of companies including ESG metrics in their compensation plans, according to our research at Executive Networks. The new EU Corporate Sustainability Reporting Directive mandates regular disclosure of ESG impact and independent auditing and certification, leading to increased transparency of ESG performance. Some companies have even created the role of Chief ESG Officer in their C-suite.
For HR and business leaders, the social aspect of ESG will have heightened importance, as both regulations and boards of directors focus on talent issues such as talent acquisition and retention, diversity, next-generation talent development, and pay equity and transparency. Additionally, the importance of ESG reporting extends beyond the boardroom, with 48% of consumers and 83% of millennials caring about ESG, according to a study by Nielsen, and 9 out of 10 employees saying they would trade a portion of their earnings for greater meaning at work, according to a Harvard Business Review study.
6. The Future of Work Requires Human Skills to Supplement Hard Skills
The labor market is undergoing a significant shift in required skills, known as the "great disruption." According to BCG and Emsi Burning Glass, over one-third of the top 20 skills listed in job postings for an average job have changed since 2016.
While business and HR leaders have always recognized the importance of human skills, there is now a greater demand for them as they are becoming the "new hard skills." These skills depend on human connections, the capability to lead others, and cannot be automated.
7. Hybrid Work Is the New Normal and Its Success Hinges on Clear Definition.
With hybrid working now a permanent feature of many workplaces, it's crucial for HR and business leaders to establish clear principles for success instead of imposing policies.
The first step is to define what "hybrid" means for the organization. It's more complex than simply deciding on the number of days an employee works remotely or in the office. Tiffiney Fort, Chief Orchestration Officer for Hybrid Strategy and Team Solutions at Cisco, recommends defining the continuum of the hybrid work model, which at Cisco includes hybrid on-site first, hybrid off-site first, and hybrid mixed, with both on-site and off-site work on a weekly or monthly basis.
Before an employee begins working in a hybrid model, the team leader and worker must agree on guidelines to ensure inclusivity, such as defining workspaces, necessary technology tools, team norms, core collaboration hours, and success rituals.
To start the conversation about hybrid working, Fort suggests focusing on how employees can balance their well-being, engagement, and productivity, rather than immediately discussing how many days per week they should work in or out of the office.
8. Offices of the future will seek to replicate the atmosphere and benefits of off-site workspaces.
As remote and hybrid work become more prevalent, traditional corporate offices are undergoing redesigns to accommodate the changing work landscape. Employees are seeking more flexibility, while employers still recognize the value of in-person collaboration. Recent research from Microsoft, based on billions of email exchanges and meeting interactions, shows that remote work strengthens immediate team interactions but may decrease interactions with secondary networks, leading to missed innovation opportunities and a need to entice employees back to the office.
With an estimated 20-40% of office space currently unused in the U.S., there is a growing need to reimagine the real estate function to prioritize employee experience and repurpose unused space. As a result, more heads of real estate are reporting to CHROs, and innovative uses for excess space, such as collaboration spaces and community event venues, are being explored. Phil Kirschner, Associate Partner at McKinsey & Company, believes this trend will continue to gain momentum.
9. The emergence of a blended workforce, consisting of both humans and bots, is shaping the future of work.
The concept of a blended workforce has evolved beyond the combination of full-time, part-time, and gig workers due to the growing use of automation. Executive Networks’ CHRO of the Future research has revealed a shift in the workforce composition towards less reliance on full-time employees and an increase in part-time and gig workers. The study also found that the use of digital automation assistance (bots) is expected to increase the most by 2025, according to the CHROs surveyed.
While HR automation can improve the hiring process and employee experience, it is essential to conduct regular audits of AI tools to avoid bias in algorithm-based decisions. Recently, New York City passed a statute requiring the audit of AI and algorithm-based technologies used for recruiting, hiring, or promotion to ensure impartiality. Transparency and explainability of AI are crucial aspects of this new blended workforce.
10. The issue of HR burnout is a crisis that demands attention and action.
Regular check-ins with your HR team members have become more important than ever. They have been at the forefront of managing significant changes in the workplace, including dealing with mental health and well-being issues, business continuity, return to office plans, furloughs, and remote work and learning. A recent survey of 726 HR practitioners in seven countries by SHRM found that 42% of HR teams are struggling with burnout.
It's no surprise that HR had the highest turnover rate in the past 12 months, even higher than sales, IT, and engineering, according to LinkedIn data. Executive Networks' 2023 Future of Working and Learning Report also reveals that 41% of HR professionals are likely to consider leaving their current employer in the next year, much higher than business leaders (29%), knowledge workers (19%), and frontline workers (22%).
The HR burnout crisis is a result of the increasing complexity, strategic nature, and cross-functional demands of the HR role. Just as CFOs expanded their scope since the financial crisis, HR has undergone a similar transformation over the past three years. Leaders must recognize the magnitude of the changes affecting HR and provide them with enhanced training, access to coaching, and recognition and appreciation for their vital role in the organization's success.
Amidst a rising trend of workplace stress, companies are increasingly focused on cultivating environments that promote employee well-being. Workplace stress not only affects individual employees, but also impacts their relationships with friends, family, and colleagues. The Surgeon General's recent report on Mental Health and Well-being highlights that 81% of workers intend to seek out workplaces that prioritize mental health support.
2. Companies are Embracing Skills-Based Hiring, Prioritizing Potential Over Degrees
According to recent research by Remote, skills-based hiring has increased by 63% over the past year, reflecting a growing emphasis on experience over academic qualifications among employers.
Skills-based hiring not only widens the pool of talent available to employers, but also helps to eliminate career and salary barriers for over two-thirds of American adults without bachelor's degrees. For employers, this approach speeds up hiring, enhances diversity of thought, and broadens the talent pool.
The trend toward skills-based hiring is gaining momentum, as an increasing number of professions, such as computer support and software engineering, do not require a degree. In fact, a Burning Glass Institute analysis of millions of online job listings found that the proportion of jobs requiring a college degree fell from 51% in 2017 to 44% in 2021.
As we enter 2023, the shift toward skills-based hiring is set to accelerate, as skills become the primary currency in the labor market.
3. Flexibility is Key to the Future of Work for All Employees
Flexibility in the workplace now encompasses more than just remote work, as it also entails the ability to choose one's work schedule. This can mean working longer hours over fewer days or working shorter hours over more days.
According to a study by Executive Networks Global Research, titled "The 2023 Future of Working and Learning Report," both knowledge workers and frontline workers value flexibility in when work is done over flexibility in where it is done.
For knowledge workers, asynchronous work requires a cultural shift that values work-life balance, trusts employees to perform outside traditional hours, and establishes guidelines for synchronous work.
Frontline workers can also benefit from flexible work schedules. For instance, Chick-Fil-A permits employees to work 13-14 hour shifts for three consecutive days at full-time pay, leading to higher retention rates.
Flexibility in work arrangements is now highly sought-after by workers across all sectors. It is no longer just a desirable perk in a competitive labor market. Instead, we need to consider how we can design new work routines that provide flexibility for all employees.
4. The Rise of Hybrid Learning Will Drive Companies to Reinvent Their Traditional Corporate Academies
What Began as a Temporary Measure for Online and Hybrid Learning Is Forcing Companies to Rethink the Purpose of Their Traditional Corporate Academies. As Vincent Maurin, e-Academy Lead at Arcelor Mittal, Explains, 'We're in an Experiential Mode, Reimagining the Physical Structure of ArcelorMittal University. We Envision Pop-Up Campuses, Allowing Learning to Take Place Wherever Employees Are. The Pop-Up Campus Concept Should Be Flexible, Ranging from Streaming Technology to Multiple Locations to a Live Studio Experience.'
These Innovations Suggest a Future Where Corporate Academies Will Be Omni-Channel, Providing Learners with Access to Learning Opportunities Regardless of Their Location - Whether That Is in-Person at a Corporate Headquarters, at a Satellite Office, in a Pop-Up Space, or Online.
5. ESG reporting is evolving from a compliance issue to a talent attraction tool.
Companies are increasingly recognizing the importance of ESG (environmental, social, and governance) reporting, as they face regulatory mandates, pressure from stakeholders, and demands from employees and consumers. In 2020, 92% of S&P 500 companies and 70% of Russell 1000 companies published sustainability reports, including Cisco's Purpose Report and Arrow Electronics' ESG Report, as per Governance & Accountability Institute.
ESG goals are now a factor in executive-level variable compensation, with one-third of companies including ESG metrics in their compensation plans, according to our research at Executive Networks. The new EU Corporate Sustainability Reporting Directive mandates regular disclosure of ESG impact and independent auditing and certification, leading to increased transparency of ESG performance. Some companies have even created the role of Chief ESG Officer in their C-suite.
For HR and business leaders, the social aspect of ESG will have heightened importance, as both regulations and boards of directors focus on talent issues such as talent acquisition and retention, diversity, next-generation talent development, and pay equity and transparency. Additionally, the importance of ESG reporting extends beyond the boardroom, with 48% of consumers and 83% of millennials caring about ESG, according to a study by Nielsen, and 9 out of 10 employees saying they would trade a portion of their earnings for greater meaning at work, according to a Harvard Business Review study.
6. The Future of Work Requires Human Skills to Supplement Hard Skills
The labor market is undergoing a significant shift in required skills, known as the "great disruption." According to BCG and Emsi Burning Glass, over one-third of the top 20 skills listed in job postings for an average job have changed since 2016.
While business and HR leaders have always recognized the importance of human skills, there is now a greater demand for them as they are becoming the "new hard skills." These skills depend on human connections, the capability to lead others, and cannot be automated.
7. Hybrid Work Is the New Normal and Its Success Hinges on Clear Definition.
With hybrid working now a permanent feature of many workplaces, it's crucial for HR and business leaders to establish clear principles for success instead of imposing policies.
The first step is to define what "hybrid" means for the organization. It's more complex than simply deciding on the number of days an employee works remotely or in the office. Tiffiney Fort, Chief Orchestration Officer for Hybrid Strategy and Team Solutions at Cisco, recommends defining the continuum of the hybrid work model, which at Cisco includes hybrid on-site first, hybrid off-site first, and hybrid mixed, with both on-site and off-site work on a weekly or monthly basis.
Before an employee begins working in a hybrid model, the team leader and worker must agree on guidelines to ensure inclusivity, such as defining workspaces, necessary technology tools, team norms, core collaboration hours, and success rituals.
To start the conversation about hybrid working, Fort suggests focusing on how employees can balance their well-being, engagement, and productivity, rather than immediately discussing how many days per week they should work in or out of the office.
8. Offices of the future will seek to replicate the atmosphere and benefits of off-site workspaces.
As remote and hybrid work become more prevalent, traditional corporate offices are undergoing redesigns to accommodate the changing work landscape. Employees are seeking more flexibility, while employers still recognize the value of in-person collaboration. Recent research from Microsoft, based on billions of email exchanges and meeting interactions, shows that remote work strengthens immediate team interactions but may decrease interactions with secondary networks, leading to missed innovation opportunities and a need to entice employees back to the office.
With an estimated 20-40% of office space currently unused in the U.S., there is a growing need to reimagine the real estate function to prioritize employee experience and repurpose unused space. As a result, more heads of real estate are reporting to CHROs, and innovative uses for excess space, such as collaboration spaces and community event venues, are being explored. Phil Kirschner, Associate Partner at McKinsey & Company, believes this trend will continue to gain momentum.
9. The emergence of a blended workforce, consisting of both humans and bots, is shaping the future of work.
The concept of a blended workforce has evolved beyond the combination of full-time, part-time, and gig workers due to the growing use of automation. Executive Networks’ CHRO of the Future research has revealed a shift in the workforce composition towards less reliance on full-time employees and an increase in part-time and gig workers. The study also found that the use of digital automation assistance (bots) is expected to increase the most by 2025, according to the CHROs surveyed.
While HR automation can improve the hiring process and employee experience, it is essential to conduct regular audits of AI tools to avoid bias in algorithm-based decisions. Recently, New York City passed a statute requiring the audit of AI and algorithm-based technologies used for recruiting, hiring, or promotion to ensure impartiality. Transparency and explainability of AI are crucial aspects of this new blended workforce.
10. The issue of HR burnout is a crisis that demands attention and action.
Regular check-ins with your HR team members have become more important than ever. They have been at the forefront of managing significant changes in the workplace, including dealing with mental health and well-being issues, business continuity, return to office plans, furloughs, and remote work and learning. A recent survey of 726 HR practitioners in seven countries by SHRM found that 42% of HR teams are struggling with burnout.
It's no surprise that HR had the highest turnover rate in the past 12 months, even higher than sales, IT, and engineering, according to LinkedIn data. Executive Networks' 2023 Future of Working and Learning Report also reveals that 41% of HR professionals are likely to consider leaving their current employer in the next year, much higher than business leaders (29%), knowledge workers (19%), and frontline workers (22%).
The HR burnout crisis is a result of the increasing complexity, strategic nature, and cross-functional demands of the HR role. Just as CFOs expanded their scope since the financial crisis, HR has undergone a similar transformation over the past three years. Leaders must recognize the magnitude of the changes affecting HR and provide them with enhanced training, access to coaching, and recognition and appreciation for their vital role in the organization's success.