Topics:   Corporate Social Responsibility,Risk Management,Strategy,Technology

Topics:   Corporate Social Responsibility,Risk Management,Strategy,Technology

May 11, 2018

The Future-Ready Workforce: Lead the March

May 11, 2018

Some claim that seven million jobs will be lost, and more than half of jobs will be replaced. Others claim that 2.3 million jobs will be created, exceeding the 1.8 million that it will removed. These are just some of the forecasts pundits are making about the impact artificial intelligence (AI), automation, robotics, and more will have on jobs and the changing nature of work in the United States.

When taken together with many other forecasts, there is really only one conclusion. We really don’t know what the impact will be. What we do know is this: change is happening and it’s happening fast. And beware, we humans tend to underestimate the amount of change that will happen in the next 5 years. Don’t get caught. One of the single biggest questions the board needs to be asking of their CEOs is, “Is our workforce strategy built for the future of work?”

Despite all of the rhetoric about advanced and emerging technologies creating massive job losses, our economy will continue to function as the “human operating system” that will power organizations of all sizes. The most adept leaders will recognize advanced technologies as opportunities to unlock the full potential of humans rather than considering those technologies as simply a way to replace jobs and reduce costs. Our capacity for curiosity, customer devotion, empathy, problem-solving, relationship building, and more will be difficult to replace.

Technology, automation, robotics, AI, side-by-side with the human operating system, is the new currency in a workforce prepared for the future of work. Importantly, 62 percent of organizations rate themselves as ineffective at this type of workforce planning.

Board members in companies of all sizes should be asking, therefore, the following questions of the C-Suite.

What should our workforce look like in five and 10 years, and what is our plan to achieve that end state? So far, only one in five human resources leaders have begun implementing strategies to develop their workforce for tomorrow. While this figure is surprisingly low given the urgency with which company leaders need to act, it’s these leaders who are positioning their companies ahead of the curve and widening their competitive moat against those who choose to delay or take no action at all.

What are the external trends defining the future of work that we are harnessing for success? Which ones could prevent us from delivering on our goals? Mercer’s 2018 Global Talent Trends report is a good starting point to learn more.

Is the leadership team and workforce ready for the speed of change required to win? Only 18 percent of C-Suite leaders describe their organization as agile enough today to succeed through change.

Should we be measuring the long-term health of our company differently than just earnings or stock price given the changing nature of work? What are we doing to develop and retain talent? Does our mission statement reflect the need for customer devotion and a purpose-driven culture? How are we measuring whether or not we are delivering on our mission?

What are we doing to upskill and reskill our workforce to improve their digital literacy? Only 15 percent of company leaders consider themselves leaders a digital organization, with 53 percent reporting they have not yet begun their journey or have a long way to go. That makes it even more surprising that only 15 percent of C-Suite leaders believe that upskilling and reskilling employees for new and changed roles, driven by digital and technology, will make a sizable difference to business performance.

Today’s board members and leaders can’t afford to wait any longer. The technology innovation curve is a hockey stick and many believe we are about to hit the elbow as AI and other technology capabilities begin to approach and surpass human intelligence. Those leaders who embrace the pace with urgency will set themselves up for accelerating growth while those who don’t will find that the notion of being able to catch up has vanished.

No business is immune, and how the workforce will morph and adjust needs to be at the center of gravity in all board room discussions. Think about these facts from the World Economic Forum:

  • 35 percent of the core skills of today could change by 2020
  • 65 percent of the jobs our own children in elementary school will be doing in the future do not yet exist

These are just a couple of data points that capture the significant change ahead. Are you ready? If you believe your C-Suite is behind in developing a workforce strategy to compete in the digital age, now is the time to leap forward. If you believe they are ahead, it’s time to invest in accelerating their march.

Brian Baker is a Partner in Mercer’s New York office and the US Digital Workforce Leader. He is focused on helping business leaders determine and build their Workforce for the Future strategy and execution plans.

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