By George Waggott, founder, and Roberto Fonseca-Velazquez, summer law student, George Waggott Law
An article published earlier this year in the Harvard Business Review discusses nine trends that have been impacting workplaces and will continue to do so into the future. In the current business and economic climate, organizations are having to navigate significant disruptions including inflation, generative AI advancements, geopolitical turmoil, labour disputes, and evolving diversity, equity, and inclusion (DEI) landscapes. The trends discussed below seem poised to continue exerting their influence for a long time to come.
1. Creative Employee Benefits Plans: With the shift towards remote and hybrid work, employees increasingly expect employers to bear the costs associated with returning to the office. 60% of employees feel that the costs of commuting outweigh the benefits. According to a survey by the management consultant Gartner, more than 48% of employees surveyed say that they are finding return-to-work mandates to be more about leadership's desires than employee needs.
To retain talent, employers will have to offer innovative benefits, such as housing subsidies, caregiver support, and financial wellness programs. These benefits aim to reduce the tangible and intangible costs of work, making it more appealing for employees to return to the office.
2. AI and Workforce Opportunities: While many employees fear that AI will replace their jobs, Gartner predicts that AI will primarily redesign roles rather than eliminate them. By 2025, AI tools are expected to be involved in 70% of text- and data-heavy tasks. Business leaders will need to collaborate with Human Resources colleagues and practitioners to adapt roles and workflows to integrate AI, ensuring that employees are equipped to handle new responsibilities. Additionally, organizations should reevaluate their hiring strategies, focusing on the skills required to work effectively with AI tools.
3. Four-Day Work Weeks: The four-day workweek, once considered radical, is becoming more mainstream as organizations look to improve talent outcomes and business efficiency. Gartner's research shows that a majority of candidates view a four-day work week as a top innovative benefit. As organizations experiment with this model, they will need to rethink work schedules, ensuring that collaboration and focus time are optimized within a shorter work week.
4. Conflict Resolution: Rising geopolitical tensions, labour disputes, and other crises are leading to a perception of increased conflict in the workplace. A majority of managers feel responsible for resolving team conflicts, yet many lack the training to do so effectively. Organizations will need to prioritize upskilling managers in conflict resolution, offering dedicated training and recognizing conflict management skills during performance reviews.
5. AI Implementation Risks: The rapid adoption of AI comes with significant risks, including governance issues, quality control, and managing expectations. As AI tools become more integrated into business processes, organizations must retain control over who as access to what data and establish file classification policies to prevent misuse of sensitive information. Training employees to exercise good judgment in using AI tools will be crucial to mitigate these risks.
6. Skills-Based Hiring: The traditional emphasis on university degrees is giving way to skills-based hiring. A number of major companies are removing degree requirements from job postings, recognizing the value of workers who are described as being Skilled Through Alternative Routes (STARs). This shift allows organizations to tap into a broader talent pool and invest in developing in-house expertise through tailored credential programs and apprenticeships.
7. Climate Change Benefits: As climate change continues to impact workforces worldwide, organizations are incorporating climate-related protections into their employee benefits. These may include proactive disaster response plans, compensation for affected employees, and expanded mental health support. Such benefits will be particularly important for organizations operating in regions prone to natural disasters or other impacts of climate change.
8. Embedding DEI: The importance of diversity, equity, and inclusion is generally affirmed across most major organizations. In 2024, organizations will continue to embed DEI into all aspects of business operations. This approach will see DEI values integrated into business objectives, daily operations, and organizational culture, ensuring that diversity and inclusion are not just siloed initiatives but core components of how companies achieve high performance. A related emerging issue is some level of backlash against DEI and its proponents.
9. Evolving Career Paths: Traditional career trajectories are being replaced by more flexible and non-linear paths. As more employees take career breaks, shift industries, or engage in contingent work, organizations must adapt their talent management strategies. This includes offering job sharing, gig work, and returnship programs, as well as recognizing the value of expertise regardless of tenure. Companies will need to prepare for the retirement of experienced workers by redesigning work to facilitate knowledge transfer and cross-training.
Organizations that proactively address these trends will gain a competitive advantage in attracting and retaining talent, as well as achieving their strategic goals.
For more information about George Waggott Law, please see: www.georgewaggott.com, or contact: george@georgewaggott.com
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