Open your Facebook newsfeed and there is no escaping the heartfelt calls to ‘say no to single-use plastics’, tear jerking ‘save the orangutan’ petitions, awe-inspiring videos of cities of the future and mouthwatering meat-free Monday recipes. You’d be hard pressed to deny that, as a society, we yearn for a more sustainable lifestyle and a cleaner, kinder world. Partially born out of necessity, and partially out of idealism, concepts such as co-housing, zero-waste economy and vertical farming are becoming household terms rather than abstract notions exclusively reserved for new age hippies and idealistic millennials. But is a brand new world truly taking shape? Are we really going to make lasting changes, or will ‘corporate’ win out? And what about this Industry 4.0 stuff? PwC decided to investigate the competing forces that are shaping our world today for a snapshot view of our workforce of the future and arrived at four potential new worlds of work. We bring you an abridged version of the report.
“The pace of change is accelerating. Competition for the right talent is fierce. And ‘talent’ no longer means the same as ten years ago; many of the roles, skills and job titles of tomorrow are unknown to us today.” - Carol Stubbings
The Forces Shaping the Future
“The pace of change is accelerating. Competition for the right talent is fierce. And ‘talent’ no longer means the same as ten years ago; many of the roles, skills and job titles of tomorrow are unknown to us today,” says Carol Stubbings, Global Leader People and Organisation, PwC, in her foreword. “How can organisations prepare for a future that few of us can define? How will your talent needs change? How can you attract, keep and motivate the people you need? And what does all this mean for HR? The ‘Four Worlds of Work’ for 2030 report aims to kickstart your thinking about the many possible scenarios that could develop, and how to best prepare for the future. Remember that your starting point matters as much as your destination; the best response may mean radical change, or perhaps just a few steps from where you are today.”
The megatrends are the tremendous forces reshaping society and with it, the world of work: the economic shifts that are redistributing power, wealth, competition and opportunity around the globe; the disruptive innovations, radical thinking, new business models and resource scarcity that are impacting every sector. Businesses need a clear and meaningful purpose and mandate to attract and retain employees, customers and partners in the decade ahead. How humans respond to the challenges and opportunities which the megatrends bring will determine the worlds in which the future of work plays out.
∞ Technological Breakthroughs
Automation, robotics and AI are advancing quickly, dramatically changing the nature and number of jobs available. Technology has the power to improve our lives, raising productivity, living standards and average life span, and free people to focus on personal fulfilment.
∞ Demographic Shifts
With a few regional exceptions the world’s population is ageing, putting pressure on business, social institutions and economies. Our longer life span will affect business models, talent ambitions and pension costs.
∞ Rapid Urbanisation
By 2030, the UN projects that 4.9 billion people will be urban dwellers and, by 2050, the world’s urban population will have increased by some 72%. Already, many of the largest cities have GDPs larger than mid-size countries.
∞ Shifts in Global Economic Power
The rapidly developing nations, particularly those with a large working-age population, that embrace a business ethos, attract investment and improve their education system will gain the most. Emerging nations face the biggest challenge as technology increases the gulf with the developed world.
∞ Resource Scarcity and Climate Change
Demand for energy and water is forecast to increase by as much as 50% and 40% respectively by 2030. New types of jobs in alternative energy, new engineering processes, product design and waste management and re-use will need to be created to deal with these needs.
HOW WILL THESE MEGATRENDS SHAPE OUR WORLD?
■ The Red World: a perfect incubator for innovation with few rules
New products and business models develop at lightning speed, far more quickly than regulators can control. Big business is outflanked in a digital-enabled world that’s teeming with small entrepreneurial companies. Digital platforms match worker with employer, skills with demand, capital with innovator, and consumer with supplier. This allows serial entrepreneurs to reach far beyond their size in terms of influence and scale. Anxious to compete, larger employers fragment to create their own internal markets and networks to cut through old-style hierarchies. Specialism is highly prized in the Red World and a career, rather than being defined by an employer or institution, is built from individual blocks of skills, experience and networks. The most sought-after skills mean the biggest reward package and workers move frequently, staying only as long as the project or business lasts.
■ The Blue World: capitalism reigns supreme
In the Blue World, companies see their size and influence as the best way to protect their prized profit margins against intense competition from their peers and aggressive new market entrants. Corporations grow to such a scale, and exert such influence, that some become more powerful than nation states. Workforces are lean and exceptional talent is in high demand – employers secure a core group of pivotal high-performers by offering excellent rewards but otherwise buy in flexible talent and skills as and when they’re needed. Human effort, automation, analytics and innovation combine to push performance in the workplace to its limits; human effort is maximised through sophisticated use of physical and medical enhancement techniques and equipment, and workers’ performance and wellbeing are measured, monitored and analysed at every step. A new breed of elite super-workers emerges.
■ The Green World: companies have to care
In the Green World, corporate responsibility isn’t just a nice-to-have – it’s a business imperative. Companies are open, collaborative organisations that see themselves as playing an essential role in developing their employees and supporting local communities. Reacting to public opinion, increasingly scarce natural resources and stringent international regulations, companies push a strong ethical and green agenda. This is characterised by a strong social conscience, a sense of environmental responsibility, a focus on diversity, human rights and fairness of all kinds and a recognition that business has an impact that goes well beyond the financial. Employees enjoy family-friendly, flexible hours and are encouraged to take part in socially useful projects.
■ The Yellow World: we’re all in this together
In the Yellow World, workers and companies seek out greater meaning and relevance in what they do. A strong desire for ‘fairness’ in the distribution of wealth, resources and privilege drives public policy. Workers find flexibility, autonomy and fulfilment, working for organisations with a strong social and ethical record. This is the collective response to business fragmentation; the desire to do good, for the common good. Technology helps by lowering barriers to entry by providing easy access to crowdfunded capital and a worldwide market. The Yellow World is the perfect breeding ground for the emergence of new worker Guilds that develop in order to protect, support and connect independent workers, often providing training and other benefits that have traditionally been supplied by employers.
WHAT DOES THIS MEAN FOR JOBS?
PwC’s Four Worlds of Work are each markedly different, but through each runs the vein of automation and the implications of robotics and AI. It’s clear that automation will result in a massive reclassification and rebalancing of work. Some sectors and roles, even entire sections of the workforce will lose out but others will be created. Automation will not only alter the types of jobs available but their number and perceived value. By replacing workers doing routine, methodical tasks, machines can amplify the comparative advantage of those workers with problem-solving, leadership, EQ (Emotional Intelligence), empathy and creativity skills. This view is supported by business leaders worldwide who responded to PwC’s most recent CEO survey. While CEOs are keen to maximise the benefits of automation – 52% told us that they’re already exploring the benefits of humans and machines working together and 39% are considering the impact of AI on their future skills needs – the majority (52%) were also planning to increase headcount in the coming 12 months. Finding the skills they need has become the biggest threat to their business, they say, but the skills they’re looking for are particularly telling: problem-solving, adaptability, collaboration, leadership, creativity and innovation top the list.
For the full report, please visit the PwC website: