What is the future of work? Preparing for the new frontier

Key trends informing the future of work

From tighter budgets to potential job losses due to automation, there are plenty of challenges on the horizon. But, the good news is, the future of work is also set to become more employee-centric. As employee satisfaction takes center stage, workers will increasingly find themselves in the driving seat of their own careers.

Some of the trends shaping what's being called the 'Fifth Industrial Revolution' include:

Virtual reality promoting connection and collaboration

With 36.2 million people in the US alone expected to work from home by 2025, it's safe to say that hybrid and remote work are here to stay¹. Virtual reality, augmented reality, and holograms are set to revolutionize the way dispersed teams stay connected. For example, VR spaces in the metaverse may bring together remote workers for virtual training, conferences, and meetings.

Increased focus on employee wellbeing

With workplace burnout on the rise, the physical and mental wellbeing of employees can no longer be an afterthought². In one 2022 survey, 51% of employers reported that the mental health of their employees had affected their business in the last year³. This indicates an urgent need for greater work-life balance. Increasingly, organizations are offering wellness initiatives such as coaching as part of their employment packages to meet this need.

From roles-based to skills-based hiring

Gone are the days when you were hired solely based on the job title on your CV. As business leaders are forced to become more resourceful and flexible, skills-based hiring is on the rise. According to a TestGorilla report, 76% of employers utilize skills-based hiring to find new talent, and almost 55% use skills tests as part of the recruitment process⁴. As such, it's never been more important to identify the potential you already have in your organization – and identify where development is needed.

The rise of automation and artificial intelligence

By 2025, it's predicted that automation will disrupt 85 million jobs across 15 industries worldwide⁵. AI and machine learning are set to automate a multitude of repetitive tasks and business processes. Rather than trying to fight against the robots, savvy organizations must make soft skills their new currency.

Transform your leadership and culture to prepare for the future

These workplace trends will inform how companies approach leadership and culture. The onus will be on business leaders to future-proof their organization through agile and scalable processes. Key areas of focus will include:

Adapt to new ways of working in a remote and hybrid workplace

With 56% of companies allowing remote work, it's safe to say it has become mainstream⁶. But, this shift is impacting more than just work location. With teams no longer required to be in the same room to work together, innovative new ways of working have emerged. These include:

Small, cross-functional teams

During COVID-19, organizations were forced to move fast by leveraging diverse skill sets. This has led to the rise of cross-functional teams: where small groups across different departments collaborate on projects. By bringing together different areas of expertise and perspectives they are able to solve complex problems faster.

Some organizations call these tribes, others call them pods. Either way, the evidence indicates they may be the future of teamwork, with Deloitte data showing a 53% improvement in performance when using cross-functional teams⁷.

To build effective cross-functional teams, it's crucial to understand who you're putting together. Leveraging a tool like F4S can help you understand the motivations and communication preferences of your team members. It also gives you quantitative predictions on how harmonious your group is likely to be so you can make more informed teaming decisions.

Self-managed teams

With the rise of remote work, self-managed teams are also becoming more common. These are small groups of employees that are responsible for the delivery of a product or service. Rather than having one designated manager, they rely on a system of peer feedback and collaboration. In self-managed teams, all members, including junior employees, are empowered to make decisions.

Research shows this autonomous approach provides employees with greater motivation, job satisfaction and empowerment⁸. However, it's key to note that not all workers are suited to this work style. F4S' work style assessment can help you identify those self-motivated employees within your workforce.

An evidence-based approach to work configuration

Not everyone has the same attitude toward remote work. This not only varies among age groups (people aged 18 to 29 are the most pro-hybrid group⁹), but also between regions.

For example, research from Ifop found that only 29% of French workers work remotely at least once per week.¹⁰ That's compared to 51% of Germans, 50% of Italians, 42% of Brits and 36% of Spaniards. Other regions leading the way for remote work include the US, Australia, and Nordic countries.

If your organization operates across multiple regions, it's wise to take an evidence-based approach to work arrangements. F4S' work style assessment can provide insight into whether your employees do their best work at home, in the office, or a combination of the two.

Understand generational differences in the workplace

In the past, many organizations have taken a one-size-fits-all model to people development. However, with younger generations now comprising more of the workforce, this cookie-cutter approach no longer suffices. There are key generational differences in workplace attitudes. For example, Gen Z are significantly more likely to have multiple jobs than older workers¹¹ — perhaps a side effect of the gig economy. They also tend to have a more casual or informal approach to work. Without mutual understanding in place, this could easily cause friction with older, more conservative colleagues.

Why young and middle-aged workers are less motivated

Research shows that after the pandemic, 40% of young and middle-aged workers are less motivated to work¹², compared to just one-third of older workers¹.It goes without saying that this does not come down to laziness or a bad attitude. The COVID-19 crisis wreaked havoc on the mental health of people worldwide — and young people were the most severely affected.

From mass job cuts to long periods without human interaction, they've experienced major career disruptions early in their careers. It's no surprise that workplace attitudes have shifted, and many are feeling more apathetic about their daily work. The good news is, with a more targeted approach to professional development, you can re-engage these employees.

How to determine what motivates your workforce

Not all employees are motivated by the same things. For example, research shows that Gen Z values work-life balance, remote work, and flexible leave above salary when looking for a new job¹³. Understanding what drives your people is key to getting the most out of them. And, luckily, you don't have to be a mind reader to gain these insights.

The F4S work style assessment is up to 90% accurate at pinpointing employee motivations, strengths, and blind spots. This evidence-based test is based on 15 years of research by Michelle Duval, the F4S founder. She specifically commissioned this research to understand the attitudes and motivations of highly successful business owners. By sharing the free assessment with your team, you can understand and better leverage their inner drives.