There are four ways organisations can mitigate issues associated with workforce transformation
There is a clear link between organisations that successfully transform their workforce and those that over-deliver on their strategic objectives, according to the survey of 200 executives across eight countries including Australia.
Ramy Ibrahim, Head of Portfolio, Digital Workplace Services for Fujitsu Australia and New Zealand, said the workforce of the future was already becoming a reality in many organisations.
“Technology is a key enabler for this, from providing optimised physical working environments to creating new ways for employees to securely collaborate,” said Ibrahim.
“Providing consumer-grade experience at enterprise grade security will be key to a successful workforce transformation. This process is currently rapidly occurring in many leading businesses.”
For most organisations, the CEO or CIO takes responsibility for workforce transformation, according to the research survey published by the Economist Intelligence Unit and sponsored by Fujitsu.
The most common measures undertaken in support of workforce transformation are new technology adoption (56%) and skills training (54%).
A significant amount (39%) are also looking to design or improve the employee experience. Tactical measures such as changing human resources policies or re-designing organisational structures are employed less frequently.
Hallmarks of the modern workforce include less reliance on people for mundane, repetitive tasks that can be automated, and increased expectation for humans to handle tasks that require higher-order thinking and creative problem-solving.
Consequently, this creates an environment where people are more fulfilled in their work and know that their contribution is meaningful.
Ibrahim added that organisations will need to decide what aspects of work can be automated and what this means for their workforce.
Shifting tasks to automated systems could mean that staff members need to be trained in new areas. Alternatively, the business may want to reconsider its mix of part-time and full-time workers.
The most important skills workers can possess in a transformed workforce are the ability to collaborate, innovate and creatively solve problems. It is important to note that a primary driver of workforce transformation is creating a positive working environment, which in turn leads to the creation of a better customer experience.
The research also revealed that the biggest changes were happening in organisations with knowledge workers (41% versus 29%), and 79% of organisations said their workforce transformation would accelerate in the next three years.
Only 22% of respondents in Australia and New Zealand said they had already transformed their workforce extensively, while 58% said they had done so ‘somewhat’. COVID-19 may well become known for significantly accelerating this workforce transformation in Australia and New Zealand.
However, there are potential costs and unwanted side effects of workforce transformation. Three-quarters of survey respondents cited one-off costs and increased employment overheads as negative consequences of workforce transformation. Increased staff turnover was also encountered by 70 per cent of firms.
Resistance to change was a common barrier to workforce transformation for 38% of respondents, followed by a lack of understanding of what constitutes the ideal workforce according to 35% of Australians surveyed.
This suggests a failure to think strategically about what transformation requires from the staff and how to communicate to employees the benefit to them of being part of the future workforce.
After the immediate threat of COVID-19 has passed (and to reduce future risks), organisations may find themselves looking to create a new type of workforce.
There are four ways organisations can mitigate issues associated with workforce transformation:
Let strategy inform the makeup of the workforce
Overarching strategic goals must drive decisions around skills needs and training, the use of temporary labour, or where staff should be located.
Develop and articulate a clear vision
Workforce decisions can’t be made at a department level; they must be made with the entire workforce in mind. The organisation-wide vision should be communicated clearly to gain staff buy-in.
Understand where digital and workforce transformation do not overlap
Digital and workforce transformation should be closely aligned but digital transformation should be seen as an enabler of workforce transformation, not its determinant. It’s essential to leverage non-digital factors to support workforce transformation.
Minimise the inevitable costs
Workplace transformation will incur costs in skills development and upgrading technology infrastructure, among others. However, it’s essential where possible to ensure that changes don’t unduly increase complexity or damage employee morale.
