The world of work and talent continues to evolve, especially in the face of global uncertainty. Over the past few years, enterprises have experienced a variety of “Future of Work accelerants” that have forever altered the ways they address how work is done. In the next edition of the Future of Work Exchange‘s exclusive infographic series, we present The Five Major Shifts Transforming Businesses today.
Try not to read that title aloud in a Jerry Seinfeld voice.
There’s no denying that recessionary fears are resulting in sometimes necessary cost-cutting strategies for businesses across the globe. And there’s no way around budgetary concerns when the economy is still at an unsettled point only three-and-a-half months into 2023. Layoffs are an unfortunate attribute of the corporate arena, in which headcount is reduced in mass quantities as a result of poor performance, market conditions (like we’re experiencing today), a global health crisis (hello, pandemic), and a slew of other reasons.
The world’s biggest and most popular fast-food chain will always weather whatever storm they face, but even McDonald’s has limitations on how they can operate in an uncertain economic climate. Alongside global organizations like Amazon, Goldman Sachs, Meta, Google, etc., the golden arches now faces their turn in the “let’s reduce headcount to save dough” game that so many other enterprises have faced over the past several months.
While layoffs can be heartbreaking and disruptive, they are a cost of business. No one would fault McDonald’s or any other large global entity for slashing their workforce in 2023’s rocky economic road. However, there’s a very, very fine line between a layoff and cruelty…a line that McDonald’s crossed just this past week.
We’re not lovin’ this. At all.
As stated above, yeah, layoffs sometimes need to occur for a business to move forward. Especially in the world we’re living in today. Although costs need to be front-and-center, there’s a right way to conduct layoffs and a completely, erratically wrong way to do so. Guess which way McDonald’s chose?
As reported by The Wall Street Journal:
“In an internal email last week, McDonald’s told U.S. employees and some international staff that they should work from home from Monday through Wednesday so the company could deliver staffing decisions virtually. McDonald’s asked employees to cancel all in-person meetings with vendors and other outside parties at its headquarters.”
McDonald’s U.S. employees were told to work from home for three days and await word on whether or not they would be laid off. Imagine working on a critical project for the fast-food giant; a worker now has the normal, everyday stress of their position while also anxiously anticipating word on whether that position would be cut.
Would anyone be surprised to take a peek at the productivity numbers for those three workdays and notice something off? Ardent Partners and Future of Work Exchange research has found that nearly 75% of businesses are currently experiencing workplace culture issues due to worker anxiety related to economic conditions. And this sentiment was in place before the McDonald’s anti-Future of Work, apathetic display earlier this month. Asking employees to work from home and await a catastrophic decision acutely contributes to this anxiety.
On top of all of this, McDonald’s rolled out sweeping cost-cutting measures (even as the company continues to herald new store openings across the world) such “allowing” employees to keep their jobs with reduced compensation and less bonuses and equity awards. Part of this restructuring also included changes of titles across the organization.
The bottom-line for all of this is all too clear: virtual layoffs, for some organizations, may be a necessity given available resources, however, this is still an area that flies in the face of our Future of Work movement…especially in an age when the candidate experience and the worker experience are supposed to be paramount.
Some may feel that organizations have no choice to deliver layoff news virtually because it’s part of the way we work today, maybe considered a dark side to the remote work boom. Others believe that life-changing news, particularly layoffs, should happen in-person as part of face-to-face meetings.
What’s missing in all of this is the human factor, that sense of empathy and emotional understanding that was such a positive outcome from working under pandemic conditions. Employees will have questions about severance, equipment, and other aspects of their roles; at their core, layoffs are very, very personal conversations that should not occur in a mass environment, let alone virtually.
McDonald’s will unfortunately join fellow corporate giants such as PepsiCo, Twitter, and Google as household brands that drew ire from the world of work for their emotionally-absent layoff methods. Layoffs are a woeful but necessary piece of business today and always, however, they are made much worse when the human factor is completely erased from the process.
There is no doubt that the way we work continues to change. From remote and hybrid work to major transformations across the business leadership spectrum, the “Future of Work” means many things to today’s forward-thinking organizations.
Ardent Partners and the Future of Work Exchange are excited to team up with Guidant Global for an exclusive webcast on April 26 (11am ET) that will unveil the five key workforce trends that all businesses should prioritize as they look to thrive in 2023…and beyond. I’m excited to speak alongside Guidant’s SVP of Client Relationships, Sara Gordon, and the solution’s Client Solutions Director, Joel Forrester, for what will be a memorable live event. Register now!
It seems that everywhere we turn, there are new return-to-office (RTO) mandates making headlines. Amazon’s CEO, Andy Jassy, recently mandated employees return to the office three days a week beginning in the spring. The same day of the mandate, over 14,000 employees joined a newly-created Slack channel to voice their displeasure with the ruling.
Disney’s executives followed a similar path, only much earlier in January, and, with four mandated days-in-office rather than the three dictated by Amazon. Salesforce CEO Marc Benioff mandated three days in office in the midst of the company sunsetting its Future Forum consortium, which, SOMETHING enough, found that flexible working environment were incredibly conducive to productivity and employee engagement.
And, yeah, we all know Elon Musk’s feelings on remote work during his tumultuous time thus far at Twitter. There’s also this nugget from a recent Fortune article:
“But the latest data suggests that partially empty office towers — a feature of city-centers with the rise of remote work — may remain that way. Data from security firm Kastle Systems show that office occupancy in major US cities is only about half of the pre-Covid level.”
Ardent Partners and Future of Work Exchange research has discovered that 82% of businesses relied more on remote and hybrid workplace models in 2022 than they did in 2021, a statistic that proves flexibility is a continued pandemic-era accelerant that has become a permanent fixture of the world of work.
So, in the face of more intrusive RTO mandates, where does this leave the most critical component of the modern enterprise, it workforce?
Well, it’s a complicated quandary, for sure. As the tail end of 2022 swayed more and more towards a likely economic downturn, workers became more focused on keeping their jobs in lieu of the continual quest for flexibility and other benefits. However, that specific focus has seemed to settled a bit; while layoffs are regular news across most industries, the backlash to household CEOs’ RTO mandates proves one major thing: remote work and employee engagement are inherently linked, and more importantly, shouldn’t be separated.
The modicum of control here, the very level of pervasive oversight…it’s all archaic. While it is easily understood that every executive leader desires some semblance of authority over their workforce (which leader wouldn’t?), there is a major difference between control-for-the-sake-of-control and a balance between control and trust. If anything at all, the past three years have proved that remote and hybrid work models are effective in maintaining (and boosting!) productivity,
There is an ongoing war for talent and there will always be a war for talent, no matter the economic, social, or political background of any business era. Simply put: a company’s talent is what propels it into innovation and success. So, then, doesn’t it make sense that every business leader do all that they can to actively engage their workers and ensure a positive, consistent workforce experience?
“When it comes to our talent acquisition strategy, we’re not completely opening the doors for every request from every candidate,” one SVP of Talent Acquisition told me last week. She added, “However, our executive team realizes that we’re not going to compete without the right talent across our many global locations, so, we do what we can to prioritize the candidate experience and ensure that flexibility is embedded into as many roles as possible. We value interoffice collaboration and understand that it’s vital to who we are as an organization…it’s just that we know how much the world has changed and how critical attributes like remote work are for the engagement of our workforce.”
Many leaders and professionals alike typically equate “employee engagement” with growth opportunities and enhanced communication; while these are indeed cornerstones of the overall worker experience, in a talent-driven world as such we live in today, businesses have traverse beyond these aspects to attract and maintain high-quality talent. Workers crave autonomy and flexibility, two pillars of the remote or hybrid workplace model. Professionals want to be trusted in their environments to be productive and to have the flexibility required for better work-life integration. These two attributes together? They are, in essence, the foundation of worker happiness.
And, as we know, happy workers are the ones that are satisfied with their roles and careers and feel much more engaged with their leaders, peers, colleagues, and organization. The link between remote/hybrid work and employee engagement is one that cannot, and will not, be broken.
The Future of Work is a topic that has been discussed for by Ardent Partners for many years, particularly with technology rapidly evolving and transforming industries. Today, we offer a poem that takes a creative and fun approach to imagining what the future of how we work might look like.
With rhyming couplets and vivid imagery, we’ve tried to paint a picture of a world where AI machines take on mundane tasks, leaving more time for worker creativity and exploration. The idea of virtual offices and collaboration without borders adds a sense of excitement and wonder to the future of work as we envision a world where the limitations of physical space and language barriers no longer exist. Ultimately, the poem encourages us to embrace the future with open arms, as it holds endless possibilities for growth and innovation.
Stop me if you’ve heard this idea before: a grizzled executive decides that remote work was just a fad and it’s time for all workers to return to the office. He or she believes that the pandemic was an anomaly and any changes associated with corporate operations because the crisis was meant to stay within the confines of this short, confusing, and challenging era.
These are the CEOs and executive leaders that made news throughout 2021 and 2022 by saying, collectively, “It’s time to go back (to the office).” These are the leaders, many of whom control very large and household brands, that still believe that most, if not all, necessary collaboration between workers must happen within the physical presence of an office.
It seems that James Gorman, CEO of financial giant Morgan Stanley, fits squarely into this bucket. “They don’t get to choose their compensation, they don’t get to choose their promotion, they don’t get to choose to stay home five days a week,” he said in an interview with Bloomberg while in Davos. “I want them with other employees at least three or four days.”
More from the Fortune article:
The investment bank CEO has been vocal about wanting his employees back in the office since the summer of 2021, when he said at a conference that it was time bank employees in New York made it back to the office. He also said he would be “very disappointed” if employees didn’t return in person by September of that year.
Then came the Omicron variant, throwing many companies’ well-laid plans out of balance. It forced many banks to adopt a softer stance on when they wanted employees to come back to working in person, especially in their New York offices, including Morgan Stanley. “I thought we would be out of it by Labor Day, past Labor Day. We’re not,” Gorman told CNBC in an interview in December 2021.
Gorman has continued to push this year for employees to start returning back to the office. During an event in March 2022, he noted that many people had adopted a mindset of “Jobland” where employees just showed up to work to do the job, versus “Careerland,” in which employees learned and developed skills from in-person interactions.
Enbridge’s Eric Osterhout, the company’s Senior Specialist, Category Management – Contingent Labor, put it perfectly on LinkedIn recently, saying, “Workers can decide to work remotely and can certainly choose their compensation. They can leave you and go to other organizations that do not have archaic thinking such as you demonstrate with your statement. Like it or not, the world has been forever changed and workers will leave go to companies that embrace flexibility and recognize that being a destination of choice for workers translates to competitive advantage in the war for top talent.”
It’s not fair, however, to peg Gorman as just an old-fashioned leader who wishes remote work would fade away (Gorman even admitted that we’ll never go back to five days in the office). There is much truth in the notion that more and more workers will be heading back to the office in 2023, especially as the emergency phase of the COVID-19 pandemic is in the rear view. There is nothing inherently wrong or unmoral, as an executive, to want the workforce to spend more time at the office. It’s the attitude that Gorman portrays that signals the same old problem that existed before the pandemic: a lack of trust and faith in the concept of flexibility and its link to the ultimate respect for workers.
Ardent Partners and Future of Work Exchange research finds that 82% of businesses leveraged more remote and hybrid work models in 2022 than in 2021, a powerful stat that also takes into account that the past year brought less pandemic-fueled disruptions (as well as powerful antiviral and an updated vaccine). This proves that flexibility is now an inherent attribute of the modern enterprise.
More and more workers will return to the office in 2023, regardless of the “normalcy” that we’ve recaptured. However, this does not mean that workers should trudge back to hours-long commutes, wasted time in meetings, and missing out on crucial family time as a result.
The question of productivity over the past three years has been answered. Both business leaders and workers alike understand that remote and distributed teams can drive value no matter where the work is taking place. And, to boot, the added sheen of flexibility means that workers are also happier with malleable arrangements, something that Gorman seems to be missing. It doesn’t matter if a leader allows its workforce to work two days a week from home or four; if the appreciation, empathy, or trust isn’t there, talent retainment won’t be, either.
Remote work is linked to flexibility, which is inherently linked to the trust in the workforce. It’s a lesson that we’ve learned time and time again over the past few years. Talent is what separates one organization from another; without access to top-tier skills and expertise, businesses cannot thrive in these dynamic times. If the modern enterprise wants to retain talent and become a destination of choice, aspects like remote work, flexibility, and, critically, trust, be embraced.
Digital workspaces are increasingly becoming powerful additions to the realm of remote and hybrid work. In the simplest of terms, these digital spaces allow employees to work remotely or from anywhere with an internet connection, rather than being tied to a specific physical location.
In recent years, the adoption of digital workspaces has been accelerated by the COVID-19 pandemic, which has forced many companies to adopt remote work policies. However, even before the pandemic, the trend towards digital workspaces was already on the rise, driven by factors such as the increasing availability of advanced communication and collaboration technologies, the rising costs of real estate, and the desire for greater flexibility and work-life balance.
Ardent Partners and Future of Work Exchange research in 2023 finds that nearly 80% of businesses across the globe experienced a greater number of remote and hybrid workers in 2022, a stat that represents something deeper about this type of work model: it’s now permanent, no matter how many executives believe they can ignore the spectrum of flexibility that has become synonymous with post-pandemic working.
The adoption of digital workspaces has not been without its challenges, however. One of the biggest challenges has been the need to adapt to new technologies and ways of working, especially as many executive leaders continue to push for return-to-office initiatives. For many workers, the transition to remote work has required a significant learning curve, as they have had to figure out how to stay connected and collaborate with their colleagues without the benefit of face-to-face interactions.
Another challenge has been the need to balance the demands of work with the demands of home life, as many people have had to set up makeshift offices in their homes. This can be especially difficult for those with children or other family responsibilities, who may struggle to find the time and space to focus on their work. Thus, the elements of work-life integration will continue to be a critical issue for enterprises that enable a flexible working environment for their talent.
Despite these issues, there are many benefits to digital workspaces. One of the most obvious advantages is the ability to work from anywhere, which can be especially appealing to people who live in high-cost cities like New York, Chicago, Boston, etc. Digital workspaces also offer greater flexibility and autonomy, as employees are not tied to a specific schedule or location. This can lead to increased productivity and job satisfaction (two factors that play vital roles in talent retention efforts), as employees are able to customize their work environments to fit their needs and preferences.
And, with innovation at play, digital workspaces can offer so much more than a flexible, automated, and collaborative environment for remote and hybrid employees. As seen with Vista Equity Partners and Evergreen Coast Capital’s acquisition of digital workspace leader Citrix last year, the convergence of virtual desktop technology and advanced, real-time intelligence (as well as other forms of automation) can provide business users with an additional layer of value. The Citrix deal proved that (with TIBCO (a Vista portfolio company)), digital workspaces can be seamlessly integrated with various applications and data across the enterprise technology infrastructure of the contemporary enterprise…meaning that businesses have the ability to shift a true office environment onto a remote infrastructure without losing control over intellectual property and data whilst giving flexible workers the same strength of access to enterprise systems that they would have in the office.
Overall, it is clear that digital workspaces are here to stay. As more and more companies adopt remote work policies, it is important for employees and employers to find ways to adapt to this new way of working. This may require a rethinking of traditional work practices and the use of new technologies, but the benefits of digital workspaces – including greater flexibility, cost savings, and, with a push from next generation automation, frictionless integration of applications and intelligence – prove that their power is critical for success in 2023.
Happy New Year!
At the behest of our rock star analyst, Christopher Dwyer (also our SVP of Research), Ardent Partners launched this site in the summer of 2021 to help HR, talent acquisition, procurement, IT, and finance executives understand the critical convergence of talent and innovation and the impact that the extended workforce has had and will have on business operations and bottom-line performance. I would argue that as we kick off the new year, nothing is more important to a business than understanding the Future of Work in 2023 and having the right strategies, tools, and approaches to manage it well.
The Future of Work in 2023 already looks very different from just a few years ago, driven by a few large trends that are discussed below.
One of the biggest drivers of change in the Future of Work is automation and the tools used to perform tasks that were previously done by humans. This can include everything from manufacturing and assembly line work to data entry and customer service. As automation is adopted and becomes more prevalent within the enterprise, efficiencies and perhaps more importantly, effectiveness, increase as staffers can spend more time on deeper strategic elements of their work.
With today’s growing extended workforce, enterprises need flexibility and scalability. Automation can bridge the various data points related to recruitment, onboarding, and payroll, allowing HR to focus on strategic workforce development and management planning. Through direct sourcing initiatives and automation, an enterprise can flex its extended workforce requirements quickly and efficiently, providing the necessary support before ramping down.
Another significant trend in the Future of Work is the increasing use of artificial intelligence (AI). AI refers to the development of computer systems that can perform tasks that normally require human intelligence, such as learning, problem-solving, and decision-making. AI is already being used in a variety of industries, including healthcare, finance, and retail. We are in the early stages of an AI revolution, but this technology is almost certainly going to play an even larger role in the way we work, potentially leading to the creation of new job roles and a better understanding of how to staff the most successful teams and projects.
Of all the technologies available to enterprises that help automate key workforce processes, AI is the pure representation of the Future of Work. However, there are different shades of artificial intelligence helping organizations optimize the way they get work done and how they think about talent. It’s more than having an artificial persona to help figure things out and make decisions — instead, it’s enabling smarter decisions.
If bias can be removed from decision-making and technology, and AI is set up in such a way that there is no unconscious bias, then it is possible to understand how diverse the workforce truly is. The Future of Work Exchange has long said (including many years ago) that a diverse workforce is the deepest workforce. Being able to bring in different voices from different cultures allows businesses to be more innovative and think outside the box. And AI is a perfect conduit for that.
In addition to automation and AI, the Future of Work is also likely to be influenced by the increasing popularity of remote work and flexible scheduling. With the advancement of communication technologies such as video conferencing and project management software, it is becoming easier for employees to work from anywhere in the world. This trend is being driven by a variety of factors, including the desire for work-life balance, the need for companies to access a global talent pool, and the cost savings associated with remote work.
Progressive companies realize the importance of hybrid work options for employees. While compensation remains a major factor when accepting a job offer, it is benefits such as hybrid work that are attracting more job candidates. Hybrid work models are also contributing to healthy employee well-being and mental health — both of which can have a significant impact on the bottom line. A hybrid workforce makes healthy sense to workers and fiscal sense to the enterprise.
As technology continues to advance at an unprecedented pace, Ardent Partners expects to see significant changes to the way we will work in the coming years. Whether it is through upskilling and retraining or embracing new technologies, the key to success in the Future of Work will be adaptability and a willingness to embrace change — namely automation, artificial intelligence, remote work, and flexible scheduling.
And, as the Future of Work continues to evolve, it is important for both individuals and companies to stay abreast of these trends and to be proactive in preparing for the changes that are likely to come. That’s where THE FUTURE OF WORK EXCHANGE site comes into the picture — if you haven’t already, bookmark this site and make it a regular stop as you pursue your workforce goals and objectives in 2023 and drive to become a Best-in-Class operation.
The concept of “humanity in the workplace” is not entirely new. While there are plenty of leaders that merely view their workforce as numbers and faceless drivers of productivity, there are also many leaders that prioritize the physical and mental wellbeing of their talent. So, what sets aside 2023 as an outlier for focusing on these attributes more so than in months past?
As the COVID-19 pandemic expanded and ultimately disrupted billions of lives, many workers used this time as an opportunity for personal introspection, reevaluating their goals in life and at work (and their career journeys to date). Workers newly entrusted within their organizations also felt empowered to take ownership of their careers. Many discovered renewed passions for social causes, a need for work-life integration, and career journeys that defined their sense of self. Those pursuits began playing out at the end of 2021 — referred to as “The Great Resignation” — and continued throughout most of 2022. The millions of workers who left their jobs during this period sent a message to their employers that a new set of workplace criteria was being considered. Issues like empathy, diversity, equity, inclusion, and other business culture considerations were identified as critical needs of the new-normal enterprise. Suddenly the need for a strategy to develop, communicate, and realize corporate values became an important way to retain current talent and attract new workers.
This sets the stage for 2023 as a critical year for “the human factor,” as businesses now have to contend with managing through economic uncertainty, an increasingly-tightening labor market, and a delicate balance between hanging onto pandemic-era reliance on remote and hybrid workplace models and desiring workers to return to in-person collaboration. Simply put: leading with a human edge might be the only way for enterprises to truly enhance talent retention while improving the ways they get work done in a challenging business environment.
Throughout the past 18 or so months, many business leaders were anxious to call their workforce back to the office out of fear of waning productivity and a loss of visibility and control over their teams. What they discovered, however, was a sense of empowerment that had been missing from the ranks of professionals for far too long; while compensation and benefits will always, always be critical factors in selecting (or staying at) a job, aspects such as flexibility, better working conditions, transparency into career journeys, etc. became top-of-mind and non-negotiable attributes of their roles. While we know this as “The Great Resignation,” this was, in fact, a true “talent revolution” that signaled a new era of work and labor.
Throw all of these concepts into a blender marked “2023” and what we get is a workplace environment that requires so much more than just appreciation and empathy. Leadership in the year ahead does not just need to implement more humanity, it requires it to truly be effective in what would be (yet another) watershed year for the business arena.
While not all industries fear the specter of a recession, there are many workers are shifting their mindsets from “revolution” to “survival,” a sharp turn from the months past when, on average, over four million professionals voluntarily resigned from their positions for a 16-month period. This type of thinking can wreak havoc on already-stressed professionals who are facing burnout and wellness issues, leaving leaders with only one option: infuse humanity into core leaderships strategies in order to develop a stable workplace that is supportive of its talent.
“The human factor” has been oft-discussed since the pandemic began. Many of us faced personal reawakening in the face of mortality and sickness, watching as the world faced a public health crisis unlike anything we had experienced before. People reevaluated their lives and the role of their careers as part of their identities, meaning that there was much more at stake than just “work.” Workers desired purpose, craved flexibility, and wanted an overall sense of alignment between their human personas and workplace characters. This translated into the need for business leaders to be more human in their management approaches.
Which, of course, leads us to a new year and new vision. Upcoming Ardent Partners and Future of Work Exchange research found that nearly 70% of businesses see worker burnout as a core challenge, in addition to another 74% who perceive recession risks as a driver for worker anxiety. This all means that leaders have to strike a balance between managing costs and driving productivity and ensuring that they emotionally support their talent in a more deliberate and meaningful way. Empathy-infused management, flexible workplace options, more appreciation, and enhancing worker wellness and wellbeing (especially mental health) are all critical attributes in this regard.
However, there is one overarching strategy that leaders can adopt to ensure that their workforce is engaged, productive, rested, and stable in 2023: place humanity in the center of all business strategies. By doing so, enterprises will create a workplace environment in which talent feels trusted and valued. In the wake of uncertainty, this is the most powerful approach of all.
[The Future of Work Exchange will be back next week with all-new content and insights to kick off the new year. Until then, enjoy our “Best Of” series that revisits some of our most-read articles from 2022.]
There’s enough discussion around the technological components of the Future of Work movement: artificial intelligence, machine learning, blockchain, digital staffing, etc. While “innovation” in and of itself is one of the three major foundational legs of the Future of Work (the other two being “the evolution of talent” and “the transformation of business thinking”), there’s so much more to the very notion of work optimization than just automation and new technology.
As we’ve learned over the past two-plus years, the workplace itself has become a living, breathing entity that has the power to determine the overall productivity of a business, and, more importantly, how emotionally tethered the workforce is to the greater organization. For the record, it’s not just a matter if or when a business offers remote or hybrid work options, but rather how deeply rooted flexibility truly is within all facets of how work is done and how the workforce is ultimately managed.
Now would be the best time to bring up the annoying factor in every business-related conversation: “The Great Resignation” continues unabated, sparked by a veritable “Talent Revolution” that has restructured the way workers perceive their jobs, roles, and career paths. The very concept of flexibility is not just a “perk” for talent; it’s become a determining factor in whether or not a professional chooses to remain with an enterprise or search for greener pastures.
From here, flexibility is catalyst for the next great iteration of the workplace. There are undeniable roots from the larger idea of flexibility, including empathy-led leadership (more flexibility in how leaders lead), leveraging new models to get work done (distributed teams, new functional collaboration, etc.), more humanity within the fabric of the workplace, and, of course, more malleability in where workers work (remote work, hybrid workplace, etc.).
And, when we bring up this idea of “flexibility,” it doesn’t just translate into specific aspects of the workplace, but rather all of them. That’s right: the next iteration of the workplace centers on how work is done rather than on archaic principles of control and authority, including: