The phrase “Future of Work” can be confounding. It’s become an oft-leveraged, relied-upon, and catch-all phrase to describe the ideal future state of how work is addressed and accomplished. Here at the Future of Work Exchange, our definition revolves around the tenets of the talent revolution, the impact of next-generation technology and innovation, and the complete transformation of business leadership and business thinking to evolve alongside the human factors within the contemporary enterprise.
When the Future of Work is discussed, it is imperative to remember that external market pressures and global indicators are what influences the way workers work and the way businesses operate. And, that could not be more apropos than right now in 2023.
The Economic Factor
Call it a “soft recession” or a “light downturn,” but no matter what, there will be some economic challenges ahead for the global marketplace. That in and of itself will impact how businesses optimize their workforce and their workplace; in fact, Ardent Partners and Future of Work Exchange research finds that nearly 75% of enterprises believe that anxiety over recession fears is actively impacting the workplace.
Inflation and global economic uncertainty translates into shaky financial ground for both people and professionals. Cost-of-living factors shape the way workers think about their current roles, while specific industries will face the burden of layoffs and shrinking headcount in the months ahead. With this, a giant question remains: will it mean that “power” shifts back to the employer after two-plus years of historic “Great Resignation” quits?
No matter the outcome, this much is clear: there are dozens of scenarios that could result, including:
- Leaders having new leverage to force workers to return to the office.
- Great Resignation-era professionals rethinking their choices.
- A greater utilization of external talent and contingent labor, and;
- Business leaders pumping resources, time, and energy into retaining talent.
That last point is especially critical, as the candidate experience is a foundational element of the Future of Work in 2023, as no matter how many cost-cutting processes are in place to balance a recession, these leaders must still double-down on the workplace, workforce, and culture improvements they implemented over the past two years.
The Education Factor
On the surface, there may not seem to be a link between today’s youth, lasting COVID implications, and the workforce of the future, however, the changes in how regions invest in education has a butterfly-like effect on future skills gaps.
In the past, organizations such as the American Action Forum estimated that there could be nearly $1.2 trillion in lost economic output as a result of gaps and shortfalls in education across the country…and this was before COVID. Quarantines and lockdowns were a necessary measure to combat the spread of the nefarious virus in its first year; the remote learning/school that was forced to happen as a result was devastating for children and adolescents who experienced a dearth of consistent schooling well into 2021.
If over a trillion dollars could be lost in economic measures before this all happened, then losses directly related to COVID (regarding skills gaps) is easily double or triple that number when all is said and done. Early-age learning is a foundational element of how humans progress throughout their lives, and, the bumps experienced during the pandemic will certainly show later this decade (and into the 2030s) when workers are dealing with new challenges and issues in a world yet unknown.
The Future of Work impact here: will 2020 and 2021’s inconsistent schooling result in a global skills shortfall in a future age when new, digital, and advanced expertise is required?
The Environmental Factor
Although recent news that the earth’s ozone layer may recover to its natural state sometime in the 2040s globally, there is still incredible concern over human-led damage to the environment and its impact on climate change.
This has resulted in a renewed focus on “green energy” that is sustaining and healthier for the planet. To achieve this goal and eschew carbon emissions and traditional energy sources, however, there will be a great need for new and advanced skillsets well into the future. According to the International Renewable Energy Agency, 12.7 million people now work in the global renewable energy sector.
In this insightful piece from the World Economic Forum, this number could blossom to over 38 million within the next seven years. An additional 25 million or so jobs created within this evolving sector would mean that innovative positions that require new skillsets would be developed. Considering the exciting developments in the wind power, liquid biofuel, solar photovoltaic, and hydropower industries, this translates into fresh crop of roles that may not even exist today.
New jobs require new talent that can drive new technology. A blend of brand new skillsets will be needed, as well as the best talent that already maintain strong digital and personal skills. As governments around the globe invest more resources into renewable and sustainable energy, it will determine how this global industry opens new possibilities for the Future of Work movement.
