The ‘Future of Work’ is already here. Organizations that successfully navigate this increasingly volatile, uncertain, and ambiguous world are the ones that will thrive in the post-pandemic economy.
The pandemic opened many organizations’ eyes to new possibilities. In turn, this has renewed focus on the various ‘Future of Work’ trends that are bound to take center stage in the upcoming year. Any forward-thinking organization wishing to navigate the increasingly volatile, uncertain, complex, and ambiguous world cannot afford to ignore these imminent changes. Below, we highlight key trends affecting the workplace and how this will shape your business in 2021.
Flexible working arrangements are here to stay
When it comes to remote working, 91 percent of Singaporean employees like the new digital changes, and 45 percent said it is now essential for their companies to guarantee remote work. In response, businesses will have to rethink office spaces. With fewer employees working from the office, consider downsizing by relying on coworking spaces, which offer a shorter lease and a lower upfront financial commitment. Better yet, you could save up to ~$24,200 (S$32,600) per month by opting for hot-desking instead of office space (assuming 100 square feet of office space per employee)!
How much money can small businesses save with flexible working arrangements?
The rapid shift from activity measures to outcome measures
As the pandemic has proven, activity measures are not always accurate indicators of employee performance. This means organizations must implement a shift to outcome-based structures, instead of associating achievement with time spent in the office. With new work arrangements, businesses would benefit from investing in digital tools that help remote teams organize, track, and manage their work.
Employee health and wellbeing, above all else
Organizations worldwide are increasingly more aware of how mental health can impact employees, and by extension, the organization as a whole. For instance, a depressed employee can cost an employer 20 percent of their time. This means business owners pay 100 percent of their salary for only 80 percent of output. Thus, businesses need to double down on efforts to expand health benefits (i.e. mental wellbeing programs), so employees can work to their best abilities.
Increasing reliance on automation in HR decision-making
Recruiters in the HR department need to find ways to increase efficiency – while also keeping costs low. This is where AI-based recruitment solutions that can think intuitively and make intelligent decisions based on vast data come in. Examples include PeopleStrong, Skillate, Koru, and Beamery, amongst others. If you need more incentive to make the switch to AI recruitment, it’s reported that IBM has already seen almost $1 billion in savings since integrating AI in their HR department.
Employees’ growing desire to work for organizations with aligned cultural values
Employees increasingly want to work for organizations where the cultural values align with their own. Thus, business leaders will have to respond by becoming more vocal about today’s social issues, including gender inequality, environmental concerns, and inclusivity as a whole.
Growing emphasis on internal talent development and mobility
It’s expensive to interview, hire, and train a new employee. To reduce the financial impact on the corporate bottom line, a business in today’s world should focus on upskilling current employees. As a bonus, this helps a company save at least $3,125. Not to mention, it also boosts the morale of existing employees.
Demand for AI-powered training platforms is increasing
Fact: 94 percent of business leaders expect employees to pick up new skills on the job. To keep up with this increased demand, AI will have to play a critical role in automating the reskilling process. Data can give immediate feedback on an employee’s knowledge gap and potentially map out long-term skills development.
The gig economy and contract hiring to fill the skills gap
It’s likely that organizations can’t reskill their existing workforce’s capabilities fast enough to meet their changing needs. These companies are expected to turn to contract-hiring for a short period to meet the skill needs they’re facing. Since there’s no need to pay for employee benefits, contract workers can turn out to be a more affordable option than reskilling. For instance, you could expect to save up to ~$875 (S$1,176) in the annual cost of paying for an employee’s sick leave.
Businesses should harness the tremendous opportunities for growth and innovation
No matter which industry you operate in, it’s essential to see these uncertain times as an opportunity to grow and innovate. Companies that embrace adaptability, flexibility, and a commitment to lifelong learning will significantly boost their chances of succeeding in the post-pandemic economy.
Duckju (DJ) Kang is the founder and CEO of ValueChampion. He covers the financial services industry, consumer finance products, budgeting and investing. He previously worked at hedge funds such as Tiger Asia and Cadian Capital. He graduated from Yale University with a Bachelor of Arts degree in Economics with honors, Magna Cum Laude. His work has been featured on major international media such as CNBC, Bloomberg, CNN, the Straits Times, Today and more.
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