A deep dive into the future of work

Some workers expect the workplace to look drastically different in 30 years, according to a poll conducted by Monster.com. They predict a four-day workweek, emails drafted by artificial intelligence and nationwide salary transparency.

Others, however, say they’ll still be working their usual 9-to-5 schedule, and perhaps facing increased burnout.

Below are those findings, as well as other highlights from workers’ predictions for workplace in coming decades.

 

2024 will be “the year AI at work gets real,” according to a report from Microsoft and LinkedIn. But employers may not be ready for exactly how real tech disruption may get, the report noted.

The big struggle for many enterprises is “moving from experimentation to tangible business impact,” especially as companies struggle to adopt an implementation plan for AI, Microsoft said. Of leaders surveyed, nearly two-thirds said they worry about quantifying productivity gains; a similar amount said their company lacks vision regarding how AI will be used.

But employees are not willing to wait for advice, the report said. Three in four knowledge workers surveyed said they use AI at work to help them save time and focus on important aspects of their jobs.

The report and a separate LinkedIn study also found a disconnect between companies’ desire for workers with AI skills and those companies’ willingness to train employees on the matter. While two-thirds of leaders told LinkedIn they wouldn’t hire someone without AI skills, less than 40% of LinkedIn users said they received AI training from their companies, and only 1 in 4 companies said they expect to offer it in 2024.

“Organizations that empower employees with AI tools and training will attract the best talent, and professionals who skill up will have the edge,” a press release about the report said.

HR is often left out of strategic planning on AI, according to McLean and Co, even though the department plays a key role in aligning people with guiding principles. Introducing AI can spike tension and highlight misaligned priorities between leaders — a big reason why HR needs to be involved, McLean said.

Companies also believe — potentially to their detriment — that they can hire AI-skilled talent in an already thin market, a report by The Adecco Group showed. Only 34% of C-suite executives surveyed said they planned to train workers internally on the topic, versus the other 66% that sought to hire workers externally. But a majority of leaders surveyed doubted their own C-suite’s ability to understand AI’s risks and potential — and only 50% of those surveyed said they provided any guidance to staff on how to use AI in their work.

But while many reports extoll the opportunities inherent in AI use, a survey by Littler Mendelson showed that employers may be more split on adoption in certain areas than others. Just over half of employers surveyed said they did not use generative AI for HR tasks, marking a nearly 50-50 split on the question.

Users were hesitant on AI usage in HR mostly for safety and compliance reasons, the report said.

Although 56% of workers worldwide consider themselves to be ambitious, 47% say they’re not focused on progression or climbing the ladder at their jobs, according to Randstad’s Workmonitor report. 

A new sense of “ambition” is emerging, the report authors noted, which emphasizes work-life balance, flexibility, equity, belonging and upskilling at the heart of workers’ career decisions.

“There’s no one-size-fits-all approach, as workers’ ambitions, motivations and priorities are becoming more fragmented and personalized,” Sander van ’t Noordende, CEO of Randstad, said in a statement.

“It’s crucial that employers communicate regularly with talent about their wants and needs, whether that be flexible work, career aspirations or learning and development opportunities,” he said. “Embodying a talent-first mindset and truly understanding their personal motivations and priorities will help set businesses apart.”

In a survey of 27,000 workers worldwide, 47% said they’re willing to stay in a role they like, even if there’s no room to progress or develop. In addition, 34% said they never want to take on a managerial role.

Instead, workers are more likely to value work-life balance (93%), schedule flexibility (81%) and mental health support (83%) over career ambition (70%).

In addition, 72% of employees noted the importance of training and development opportunities. Nearly a third said they’d quit a job if they weren’t offered opportunities to “future-proof” their skills, such as training around AI.

Workers also want a more equitable workplace where they feel they belong, according to the report. About half of workers said employers should bear the responsibility for improving equity in the workplace, and 45% said employers are liable for enhancing workplace culture.

However, despite these expectations, workers don’t appear to feel as confident about leaving if their priorities aren’t met, the report indicated. For instance, in 2023, 54% of workers said they’d quit a job if they felt they didn’t belong, which dropped to 37% for the most recent report. This shift could be driven by increased concern about layoffs, with 45% saying they’re worried about losing their job this year, as compared with 37% in 2023.

Employee experience programs may face significant cutbacks and budget restrictions in 2024, according to a Forrester report. The advisory firm, which previously anticipated declines in employee engagement and “culture energy” in 2023, predicted an “upcoming EX recession” will affect diversity, equity and inclusion programs in particular.

HR leaders also report waning optimism around engagement and retention, according to a report from The Conference Board. In response, most said their main human capital management priorities for 2024 are focused on employee experience, organizational culture and leadership and workforce capabilities. 

Even as retention and labor market concerns proliferate, hiring intentions remain stable for 2024, according to a Robert Half report. More than half of managers said they plan to add new permanent positions during the first half of the year, and nearly 40% said they plan to hire for vacant positions.

In the ever-elusive quest for work-life balance for workers, some countries are legislating slamming that laptop shut for the weekend. 

Increasingly more nations, including France, Argentina, Ireland and recently Australia, have passed what are known as “right to disconnect” laws, giving workers the legal right not to respond to that email after hours — and not face negative repercussions. 

It’s a shift that’s come on the heels of advancing technology that allows employees to be connected around the clock — and workers’ reprioritization of their personal lives accelerated by the COVID-19 pandemic. 

In some cases, like in Chile and Mexico, the laws only apply to remote workers, but in others, they are universal. 

“It’s a double-edged sword. It’s nice to be able to work and not be at your desk, but then people can always reach you,” Tom Spiggle, an employment lawyer and owner of The Spiggle Law Firm, told HR Dive. 

While a few states and at least one city — including Washington, California and New York City — have considered the right to disconnect, the U.S. doesn’t have any such legislation on the books, Spiggle said. 

“It’s interesting [these laws] haven’t passed in some of these states that are worker-friendly,” Spiggle said. “There isn’t the political will. … If I’m a betting man, these don’t pass, but I could be surprised.” 

That doesn’t mean U.S. workers are completely without protections when it comes to their time. The Fair Labor Standards Act requires that nonexempt, hourly workers be paid overtime if they work more than 40 hours, and the Family and Medical Leave Act prevents employers from contacting workers, for the most part, while they’re on leave. 

A cultural shift

A right to disconnect movement in the U.S. likely will be led by individual organizations, followed by states, Alan King, president and CEO of Workplace Options, a global employee well-being company, told HR Dive. The American system of government, with its confluence of state and federal law, makes it more difficult to pass legislation like this than in other countries, King said. 

“We have so much changed into a society that never shuts off; we’re always connected. I think some form of rules that help structure that is a good thing. I say that, in part, because these are rights to disconnect; they are not forced disconnections. They put the onus on the employer and the individual,” King said. 

Workplace Options has employees in every time zone and, as such, is held to right to disconnect laws around the world. But, instead of changing its policies only in those countries, the company is undergoing an overall cultural shift, King said.

“Ultimately, you have a law that is about the culture of an organization. If an employee feels like they’re going to be penalized for not doing something, that’s about that company’s culture,” King said. 

In response, King’s company is changing its approach to meetings. Whereas before, calls were scheduled at times that were favorable to the majority of employees, they are now slotted for windows where everyone is “equally advantaged or disadvantaged,” King said. And the company is reducing its reliance on meetings. 

“We have way the hell more meetings than we need to. Way more things could be an email or an asynchronous chat that delivers on time,” King said. “When we do have to have those conversations together, we do it at a time that’s as convenient for everyone as possible, Or, if it’s inconvenient, we share the burden of time. … It’s not always on the onus of the employees in a different time zone to bend to you.” 

That means having open communication with workers to figure out solutions together, he explained. Ultimately, it’s about adhering to the spirit of the law and asking employees’ boundaries and for their permission to work in certain situations. 

“This is about how people engage with each other and how you engage with them,” King said. 

Anthony Horton, CEO of Corporate Relocation International, a relocation management company, said the issue “really boils down to setting boundaries in our perpetually connected world.”

“I question whether it is a thing that needs to be legislated since, really, it is us, as leaders of corporations, who need to be listening to the evolving needs of employees and ensuring we understand the impacts” of technology, different work arrangements and evolving standards for employee well-being, Horton told HR Dive via email. “I think responsible companies will do this on their own.” 

Ultimately, leaders who make sure employees feel they have the right to disconnect and that their well-being is prioritized will see a positive impact both on their workers and on their business, Laura Lomelí, a principal executive advisory consultant at BetterUp, a coaching and human transformation company, told HR Dive via email. 

But, she cautions to ensure that right to disconnect policies be tailored to a company or an industry. 

“The underlying premise and motive of the policy should be embraced. Yet, a policy like this should not be viewed as a one-size-fits-all and instead should be customized to the industry and company culture,” Lomelí said.

Headlines indicate a variety of global talent trends: Inflation’s strain on workers’ wallets, their desire for more pay to keep up with the cost of living and the continued impact of AI. Employers and employees also still spar over new work models. 

But, in a webinar cracking open a recent report, Mercer’s Global Talent Advisory Leader Kate Bravery said there’s more uncertainty on the horizon. “But at the same time,” she said, “we've also seen greater convergence in views this year across generations and geographies.”

Mercer’s report — which polled 12,200 HR professionals, as well as executives, employees and investors — identified a few key trends that will shape the future of work.

Artificial intelligence demands different human talent

Many employers polled mentioned looking at AI as a matter of product integration. But generative AI is becoming a part of the fabric of work in general.

Mercer noted 20 priorities for HR leaders in 2024; no. 5 was “Redesigning work to incorporate AI and automation.” This means 40% of HR professionals polled by Mercer have AI workflows on their people agenda. (Also in the top 10 HR pro priorities were enhancing EX, improved health benefits, workforce planning and people analytics.)

In covering the report, Bravery noted the significance of the AI at work conversation. Referencing Mercer’s approach to researching humans in a “machine-augmented world,” Bravery said, “We know that it's humans [who] will effectively unlock AI’s real potential.” 

More than 50% of executives polled by Mercer expressed their belief that their businesses won’t survive past 2030 without “embracing AI at scale.” 

What are gold standard C-suites doing to successfully embrace AI? They prioritize human-centric productivity, foster trust, ensure equitable work practice and lean into a “digitally-infused future,” the report found.

“As risks become more connected and less predictable, [organizations that outpace their competitors] understand that a new level of risk awareness and mitigation is essential to building a ready and resilient workforce,” researchers said in the report.

As new work models emerge, EX should be re-examined

“I don't think you'll be surprised, but HR’s top concerns this year are rising labor costs, and ensuring new work models — flex, gig, short-term work models — are really delivering long-term value,” Bravery said. 

A whopping 98% of employers are planning “work design changes” for 2024. The main goal is to tweak workflow to increase productivity; Mercer identified the concept of fixed roles, flex roles or “agile roles that benefit from skills-based planning and credentialing.”

Hybrid work continued to reign as a key factor in productivity. “While it may seem that employers have finalized return-to-office plans and codified their post-pandemic flexible working policies, in fact 41% are planning further changes this year,” researchers said in the report.

Mercer broke down flexible work into “six dimensions:”

• Where, as in location and infrastructure;
• When, as in hours and scheduling;
• What, as in job content and sharing;
• Who, as in alternative workforce and automation;
• How, as in scaling and technology; and
• Why, as in mission and purpose.

The idea of value was persistent across the webinar. For one, more workers said they were sticking with their employer this year — which is poignant, given that panelists acknowledged the Great Resignation and how it changed the work landscape.

Bravery also highlighted, “More employees shared that their needs are not being met — especially older workers and Gen Z. We've got work to do there.” 

Engagement will be an area that stakeholders “need to watch out for this year,” across the board, Bravery said.

As the AI revolution rolls along, employers are looking at what skills their future workforces will need, and how to get from here to there.

And it’s not just a few companies here and there: it’s just about the entire working world. According to a recent report from PeopleScout and Spotted Zebra, about 90% of HR leaders believe that up to half their workforce will need to be reskilled in the next five years.

But what does that actually mean? It depends on the company and the work that needs to be done, but whatever the process, it’s important for employers to keep the employee in mind. That means communicating to them what this future holds, addressing any fears and making sure they’re getting the skills they need as AI adoption continues, experts said.

“When we introduced machinery into agriculture a couple of centuries ago, it changed the work within the farm from one day to the next,” said Helen Poitevin, distinguished VP analyst in Gartner’s human resources practice. “Look at how AI gets introduced in just about every industry, in every workflow. It’s very incremental.”

Teaching employees how to work with AI

Part of that reskilling is helping employees work alongside AI, especially now as it starts to enter more parts of daily life. According to a 2023 Gartner survey, 79% of functional leaders will begin or continue to implement generative AI across the next 12 months.

“When you introduce AI into the way people are working, there’s an immediate need for learning the new ways of working,” said Poitevin.

With that comes addressing fear surrounding the technology, whether concerns about the technology itself, working with it, or that it will be taking their jobs — a fear that’s not unfounded as, in the same Gartner report, leaders said they expect generative AI to reduce head counts between about six and 10 percent.

Just making workers are aware of AI, and the opportunities it offers, “is very low impact, but it’s very easy to do,” Poitevin said.

How — and who — to upskill

Because the technology is still new, and these changes are incremental, it might not be obvious what kind of reskilling employees will need, said Poitevin. It’s important for employers to “set themselves up to monitor and capture the cases where jobs don’t make sense anymore, so they can be redesigned.”

Employers can shift from “thinking about what jobs will go away” to thinking instead about the work that will need to be done, she added.

HR managers should not be identifying current employees for upskilling — or job candidates — solely based on technical know-how, because that’s not necessarily needed to learn new skills to work with AI, said Steve West, head of global talent acquisition at Verizon. “It’s a behavioral element of having the ability to learn, and coachability, that you can adapt to using these new ways of working and not necessarily have to be a programmer to code AI,” he said.

It's also important to keep the person at the center of the process, and consider why this is good for them first. “We’re not upskilling people just to upskill them. We’re upskilling them to ultimately make them better to make us better,” he said. “These are skill areas that are going to be delivering or critical capabilities to drive our strategy.”

Employees want to be reskilled, if employers help them

Actively working with employees can also set an employer apart. That same PeopleScout and Spotted Zebra report found that only 7% of HR leaders noted an active investment in their reskilling program, and 45% said they had no plans to undertake a workforce transformation initiative.

“Skills-based talent strategies are essential, and the clock is ticking for employers across all regions and industries,” Nick Shaw, founder and chief customer officer of Spotted Zebra, said in a statement. “Without future-focused skills strategies for both hiring and development, organizations will suffer lost revenue and productivity when critical jobs are left unfilled.”

Acknowledging the reality that is coming, and preparing workers for it, also can be important in retaining talent. “Pretending like it’s not happening is never good. You can diminish trust,” said Poitevin. “But also encouraging people to focus on what’s to be done and seek out the opportunities in using AI to help make a difference or to work in different ways is key.”

As the pace of digital demands from customers, employees and businesses continues to accelerate,  organizations are investing more heavily in digital technologies. CHROs feel overwhelmed by the changing nature and are struggling to define their role in digital initiatives. In fact, Gartner data found that more than half (58%) of CHROs say their technology solutions and strategy do not match their current and future business needs. 

Given HR’s vast scope, which impacts all employees, strong digital leadership is crucial for organizational performance. To successfully lead a digital transformation of HR, CHROs must optimize their role as digital leaders, with 69% of CHROs agreeing they should be responsible for leading digital transformation initiatives, according to an April 2023 Gartner survey.  

Despite CHROs knowing they must step into digital leader roles, only 17% of CHROs consider themselves to be digital vanguards - defined as an executive leader that co-leads and resources digital delivery teams end to end. This low digital proficiency is a problem as CHROs have reported feeling responsible for a broad range of digital leadership initiatives ranging from core HR functions, such as improving the employee experience to processes often conducted by IT like fostering technology-enabled innovation.  

Given that CHROs will step into the role of managing digital initiatives for the foreseeable future, they must work to bridge the gap between confidence and capabilities to successfully lead their HR functions into the future. Here, we highlight recommendations for CHROs to take to become digital vanguards and maximize the value of their digital investments.  

Build your relationship with your CIO 

CHROs should prioritize meeting with their organization’s CIO on a regular basis to better align HR’s technology roadmap with IT’s strategy. These meetings will allow CHROs to build transparency across functions and collaborate on activities with IT such as vendor selection, HR technology strategy design, roadmap reviews and portfolio discussions. CHROs can also use these meetings to co-create plans to strengthen HR’s independent digital delivery capabilities. 

CHROs should use this time with CIOs to discuss how HR can support CIOs learning and development whilst communicating the HR function’s desire to develop more autonomy in managing digital technologies, freeing up capacity for IT. This sustained effort to collaborate with the CIO helps CHROs access the expertise needed for successful HR digital transformation. 

Secure commitment to digital transformation from the C-suite 

The path to becoming a digital vanguard CHRO starts with partnerships across all functions of the C-suite. Beyond just collaborating with IT, CHROs must work towards securing a shared commitment from the entire C-suite. To do this, CHROs can position themselves as the human-centric digital expert, leveraging their expertise to foster a collaborative culture among executives and ensure a joined-up approach to digital initiatives.  

Relevant human expertise areas for CHROs such as change management and employee experience give CHROs a chance to add their unique value and point of view when collaborating with these cross-functional digital steering groups throughout the C-suite. One example of how CHROs can share their expertise is by establishing working norms, such as a shared leadership manifesto, for the C-suite to follow on large-scale digital initiatives. Through mutual learning and shared commitment to new ways of working, organizations can better align values to execute large-scale digital transformation.  

Create fusion teams between HR and IT 

To enable digital experimentation in HR, CHROs must look beyond the C-suite and support close collaboration between HR and IT through fusion teams, defined by Gartner as a multidisciplinary team that blends technology or analytics with business domain expertise and shares accountability for business and technology outcomes. Instead of organizing work by functions or technologies, fusion teams are usually organized by the cross-cutting business capabilities, business outcomes, or customer outcomes they support.  

A fusion based approach to collaboration is also a great way to develop technical talent in HR, providing HR leaders with experiential opportunities to learn new skills. CHROs should implement fusion teams for initiatives where HR capabilities are needed alongside IT’s expertise, Overall, these teams are an efficient and effective way for IT and HR to combine their skill sets and work to deliver key business outcomes, compared to using traditionally siloed project structures. 

Engage the HR workforce in digital transformation  

In-demand digital skills have rapidly evolved, prompting organizations to question and rethink talent strategies. From the explosion of generative AI to data science and machine learning, organization’s skills needs are changing. The problem is, over half (54%) of HR leaders say they don’t know which skills to invest in developing. This becomes an issue as organizations navigate competition for in-demand talent.  

To meet these evolving digital skills needs, CHROs building digital capabilities in HR need to focus on developing sustainable talent solutions, rather than solutions tailored to just current in-demand skill sets.  

Dedicating resources to these four key areas can help sustain a digital HR workforce:  

• Recognize new skills: CHROs can motivate their HR employees to learn digital skills through visibility, recognition and formal channels that support career growth. One example of this is digital badges, which serve to validate the achievements of your employees as they go through their learning pathways.  

• Democratize development: Open development opportunities to all HR talent, regardless of role. By allowing anyone that demonstrates a willingness and commitment to learning and applying digital skills the option to participate in these development activities, you will inevitably expand your digital workforce. 

• Foster ambition: To generate ambition in the HR workforce that sustains growth and upskilling, you must drive cultural transformation. This can take the shape of employee-led growth experiences, which allow you to create a culture of growth by empowering employees to adapt career experiences to suit their personal interests.  

• Welcome flexibility: Implement a skills-based approach to assigning and completing work that enables HR employees to develop and apply new skills to meaningful work, opens new talent pools and expands the organization’s capabilities.  

A path forward 

Digital transformation is notoriously difficult to get right. For example, 67% of CFOs report that digital spending underperforms expectations. With HR technology spending on the rise, CHROs must become successful digital leaders to ensure they maximize returns on their investments.

To remain relevant and integral to the C-suite, CHROs must become digital vanguards. CHROs are faced with the opportunity to drive digital transformation through active collaboration, fostering a culture of digital leadership, and ensuring the workforce is well-equipped with the right digital tools and technology. As organizations continue to invest in digital functions, now is the time for CHROs to become digital leaders to ensure the HR function is actively shaping and contributing to the future of a successful work environment.