The future of work and the role of HR

The future of work and the role of HR

Innovation is creating new industries and the need for different business models. New technology and social networks are having a huge impact on how people communicate, collaborate and work. Workforces will become more and more diverse with multi-generational, multicultural, and multi-located employees, and will be very challenging to manage. The key question you should be asking is how these changes will affect the way you attract, retain and motivate talent in your organisation and how your Human Resources function needs to change.

To understand future trends, PwC conducted a scenario analysis of the workplace in 2022. The result was "Three Worlds of Work", based on the expectations of organisations and the aspirations of the people who want to work for them.

The Blue World

People: The people are dynamic, ambitious and hard-working. They are career-oriented and demand the best pay and benefits, but are happy and motivated to work hard in return.

Characteristics: Big-company capitalism rules. There is a profit-driven focus with a model built around flexibility, efficiency and speed to market. Metrics and data will drive business performance, with complex staff segmentation strategies that identify thousands of skill sets -- precisely selecting the right candidates for the right tasks, as well as on-the-job evaluation.

HR demands: The HR function evolves into a people and performance unit, led by the Chief People Officer (CPO), who is a powerful and influential figure within the corporate leadership team.

Those responsible for people management will need financial, analytical, marketing and risk management skills to measure the impact of human talent on their organisation and retain the best people. High-quality candidates will be well rewarded, and job security will be a key advantage to attract talent.

The Green World

People: Loyal and committed employees want to belong to an organisation that shares their beliefs and has a strong sense of corporate responsibility, with ethics and environmental credentials a priority. They aren't motivated solely by salary and are keen to incorporate charity or social/humanitarian work into their life.

Characteristics: Companies take the lead in developing a strong social conscience and environmental responsibility. They are open, trusting, collaborative learning organisations that see themselves playing an important role in developing their employees and local communities.

Corporate responsibility is not an altruistic add-on but a business imperative. It's important to make profits in a responsible way. Employees are expected to uphold corporate values and targets related to a green agenda.

HR demands: HR and corporate social responsibility will be combined to support the organisation's sustainability. HR helps to foster a close collaboration between employer and employee in designing jobs around aspirations and lifestyles. Reward models will be highly flexible.

The Orange World

People: Flexible, fast operators who prefer to work on their own terms, often for multiple employers at a time. They are highly tech-savvy and have strong social, business and collaborative networks, which they manage online. They aren't contained by the 9-to-5 culture, but prefer to work whenever and wherever it suits them, and among a diverse mix of people. They pick and choose projects or companies and negotiate the best deals possible.

Characteristics: The organisational structure transforms into a network of specialists to deliver outputs. Business will revolve around innovation, breakthrough technology and entrepreneurship. A core team will uphold the philosophy and values of the company, but the rest will come and go on a project-by-project basis. Virtual meetings allow for greater remote working, and extended global networks also provide freedom for employees.

The Orange World is the desired environment of a young generation with entrepreneurship and specialist skills in a rapidly evolving economy.

HR demands: The HR manager needs to work closely with business leaders to provide the right specialist for each assignment or project. HR hiring teams will make use of professional social networks to find the desired skills.

Changing role of HR

Human Resources has long been perceived by many as a passive, service-oriented function. But given the demands of tomorrow's workplace and business environment, we believe HR is at a crossroads and will go one of three ways:

with a proactive mindset and focused on business strategy, incorporating and influencing many other aspects of the business;

as the main promoter of the corporate social responsibility agenda within the organisation;

as transactional and almost entirely outsourced.

So what does the future hold for HR? In the Blue World, it will be at the centre of a hugely influential, metric-driven strategy and performance function. In the Green World, the role could be much more diffuse, helping employees to shape their work around their values and outside lives. In the Orange World, we will see a much narrower recruitment and tendering role, with many other aspects outsourced.

How can organisations plan for the future of people management? They will need to consider and answer the following questions:

Which world is the organisation heading towards: Blue, Green or Orange?

Where you are now and what do you have to do to get to the world that you want?

How will your organisation change in terms of resources, talent management, employee engagement, rewards, or learning and development?

This article was prepared by Dr Pirata Phakdeesattayaphong and Pitchpop Piamthipmanas of PwC Consulting Thailand. We welcome your comments at leadingtheway@th.pwc.com

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