1. Geopolitical & economic
uncertainty
This increasingly multi-generational workforce has huge
implications for employers; how do you attract, retain and
manage employees of such widely differing ages, who are
likely to have different priorities, skills and preferences?
With Millennials and Generation Z very much in the
spotlight, many employers will be focussing on how to
cater to the needs of younger generations. They’ll want to
do their homework as they may feel unfamiliar with what
younger people want from their jobs and organisations.
However, the most radical change in terms of age in the
workplace is the fact that people are living and working
longer than ever before. The retirement age has risen
steadily over the past decade and will hit 67 by 2028.
We need this growing army of older workers; by 2022,
14.5 million jobs will be created, but only 7 million younger
workers will enter the workforce, leaving a gap of 7.5
million that will need to be filled. But a lot of talent
remains untapped because older people are not being
given access to the opportunities they deserve. All of this
means that employers must focus on the needs of every
generation and understand what it is that people really
want from their jobs.
2. The gig economy
Flexible working is becoming more popular almost
everywhere around the world. In the UK, 5 million people
earn some – or all – of their income from the gig economy.
Employers are recognising that in a rapidly changing
global economy, agility is key. Rigid models of workforce
organisation are giving way to more fluid structures that
emphasise having the right skills on demand. Meanwhile,
individuals are seeking greater variety and autonomy, now
often approaching careers as a portfolio of gigs, rather
than a linear succession of long-term jobs.
Before the end of the first quarter of 2020, flexible
working options, such as compressed work weeks, remote
working, and flexible hours were increasingly expected
by employees. Since then, COVID-19 has changed the
manner in which most gig economy driven organisations
operate, from no contact deliveries to increased numbers
of employees working from home – with 8 million people
currently working from home during the Coronavirus
lockdown. While many workers around the world are yet
to return to their offices, some of the big companies are
already talking about making work-from-home permanent
such as Google, Facebook, Microsoft, Mondelez,
Nationwide and Barclays. Reducing their real estate
footprint would not only cut their costs but also help make
flexible work the new norm in the post-COVID world.
The COVID-19 emergency has exposed a number
of shortcomings of the current gig economy system.
Companies must be more proactive in promoting flexible
work options so that employees are not afraid to use them
whilst also providing a higher level of assurance through a
more defined social contract. The result will be improved
employee experience and wellbeing, higher productivity,
and a greater ability to attract and retain talented people.
3. Skills imbalance
Talent scarcity is another clear outcome of the
megatrends, as rapid technological progress and an
ageing workforce combine to create a substantial skills
mismatche.
UNICEF reported that 31% of the 40,000 young people
surveyed believed that their education is not preparing
them with the skills they need to find work. The skills gap
is widening, and universities and schools are unable to
keep up with the pace of change. As a result, businesses
will have to invest more and more into reskilling and
upskilling of their employees. The switch to a fully digitised
learning landscape has also allowed employers to scale up
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