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Th
e futu
re of w
ork
A
journey to 2022
ww
w.pw
c.com/hum
ancapital
10,0
00
people in China,
India, Germ
any, the UK
and the US
give their views on the future of w
ork and w
hat it means for them
66%
see the future of work as
a world full of possibility and believe
they will be successful
53% think technological
breakthroughs will transform
the way
people work over the next 5 – 10 years
A journey to 2022
2
Three w
orlds of work
4
The Blue W
orld – corporate is king10
The G
reen World – com
panies care14
The O
range World – sm
all is beautiful18
A sum
mary of people m
anagement
characteristics in 202222
Are you ready?
24
Appendix
26
Contacts
27
Co
nten
ts
1T
he fu
ture o
f wo
rk – A jo
urn
ey to 2022
Forew
ord
So how are these developm
ents going to affect the talent your business needs? H
ow
can you attract, retain and motivate them
? H
ow is H
R going to change as a result?’
The projections in this report build on the
work started in 2007 by a team
from Pw
C
and the James M
artin Institute for Science and C
ivilisation at the Said Business School in O
xford, who cam
e together to develop a series of scenarios for the future of people m
anagement. T
he result was three ‘w
orlds of w
ork’, which provide a lens through
which to exam
ine how organisations m
ight operate in the future.
In this report, we look to 2022 and consider
how the characteristics of these three
worlds of w
ork are likely to be shaped by the changes com
ing up over the next
eight years. This includes setting out
the recruitment, rew
ard and employee
engagement strategies that are likely to
be most relevant as these w
orlds evolve, and w
hat this means for businesses,
workforces and H
R.
This report draw
s on a specially com
missioned survey of 10,000 people in
China, India, G
ermany, the U
K and the U
S,w
ho told us how they think the w
orkplace w
ill evolve and how this w
ill affect their em
ployment prospects and future w
orking lives. Further input com
es from a survey
of almost 500 H
R professionals across
the world, w
ho share their insights on how
they’re preparing for the changes ahead. R
ohit Talwar, G
lobal Futurist and the C
EO of Fast Future R
esearch, has also contributed his cutting-edge thinking to
this study. Our thanks to all those w
ho kindly shared their perspectives.
No exploration of the future of w
ork could ever be definitive. Indeed, one of the defining characteristics of our age is its ability to surprise and confound. H
owever,
while things happen that w
e cannot predict, w
e can still be prepared. M
ich
ae
l Re
nd
ell
He
ad
of H
um
an
Ca
pit
al C
on
su
ltin
g, P
wC
Disruptive innovations are creating new
industries and business models, and destroying old ones. N
ew
technologies, data analytics and social networks are having a huge im
pact on how people com
municate,
collaborate and work. A
s generations collide, workforces becom
e more diverse and people w
ork longer; traditional career m
odels may soon be a thing of the past. M
any of the roles and job titles of tomorrow
will be ones w
e’ve not even thought of yet.
2P
wC
A jo
urn
ey to 2
02
2
1 U
rban p
op
ula
tion g
row
th, W
orld
Health
Org
an
isatio
n (h
ttp://w
ww
.wh
o.in
t/gh
o/u
rban
_h
ealth
/situ
atio
n_tre
nd
s/u
rban
_p
op
ula
tion
_g
row
th_te
xt/e
n/)
2 E
co
no
mis
t, 10
.03
.12
3 G
ua
rdia
n, 3
1.1
0.11
4 R
eu
ters
, 30 A
pril 2
013
5 Cisco V
isual Netw
orking Index: G
lobal M
obile D
ata Traffic Forecast Up
date, 2013
–2018, Cisco, 05.02.14
20
06
Launch of Twitter
20
07
Apple launches the
iPhone
20
08
Lehman B
rothers fi
les for bankruptcy
20
09
Urban dw
ellers becom
e a majority of
the global population for the fi
rst time
1
2010
China overtakes the
US as w
orld’s largest m
anufacturer2
2011
Global population
passes 7 billion3
2012
Impact of resource
scarcity comes
into sharp focus as prolonged droughts threaten blackouts in Texas (pow
er plants are the largest users of w
ater in the US)
4
2013
Num
ber of m
obile devices and connections surpasses the num
ber of people on the planet 5
3T
he fu
ture o
f wo
rk – A jo
urn
ey to 2022
2018
Analysts attend
presentation by Fortune 500 C
hief Perform
ance O
fficer, who heads
a combined Finance
and HR
function
2015
Worker in G
ermany
says the “best is yet to com
e” after celebrating 75 years’ service w
ith the sam
e firm
2019
Doctor in C
hina carries out ‘rem
ote’ surgery on patient in G
hana
20
22
World’s fi
rst fully autom
ated and robot-served hotel opens
2017
Assem
bly workers
in factory in Hanoi
start wearing
sensors to gauge concentration, w
ork rate and m
ood
20
21
Licences granted for driverless cars
2016
$10 tablet com
puter comes on
to the market
20
20
Rioting sw
eeps across university cam
puses as students lose patience w
ith lack of job opportunities
4P
wC
Th
ree wo
rlds o
f wo
rkO
ur scenario analysis sees the expectations of organisations and the aspirations of the people w
ho want
to work for them
diverging into three distinct ‘w
orlds’ of w
ork: Blue, Green
and Orange.
Blue World
Green W
orld
5T
he fu
ture o
f wo
rk – A jo
urn
ey to 2022
Green W
orldO
range World
A m
ajor shift in managem
ent practices to accom
modate a rapidly
changing world of w
ork and the inform
ation workers that inhabit
this world [w
ill have the single biggest im
pact on the way w
e work
over the next 10 years]
He
ad
of T
ale
nt, I
nfo
rm
atio
n
Technology Sector, South A
frica
6P
wC
Tremendous forces are radically reshaping
the world of w
ork. Economic shifts are
redistributing power, w
ealth, competition
and opportunity around the globe. D
isruptive innovations, radical thinking, new
business models and resource
scarcity are impacting every sector.
Businesses across the world are beginning
to understand that they need a clear and m
eaningful purpose, and mandate for the
decade ahead if they are to attract and retain em
ployees, customers and partners.
Figure 1 sets out the trends people around the w
orld believe will transform
the way
people work over the next 5 – 10 years.
It is important to reflect that the scale of
expected change is not unprecedented. H
owever, w
hat is unique is the pervasive nature of the change and its accelerating pace.
Th
ree wo
rlds o
f wo
rk
At the beginning of the century,
Ray K
urzweil, Futurist and C
hief Engineer at G
oogle, predicted that 20,000 years of progress w
ould be cram
med into the next 100. 1 If
anything, progress and change have accelerated even faster than that.
1 T
he L
aw
of A
cce
lera
ting
Retu
rns, R
ay K
urz
we
il, 07.0
3.0
1 (h
ttp://w
ww
.ku
rzw
eila
i.net/th
e-la
w-o
f-acce
lera
ting
-retu
rns)
Pw
C s
urve
y of 1
0,0
00 m
em
be
rs of th
e g
en
era
l po
pu
latio
n b
ase
d in
Ch
ina
, Ge
rmany,
Ind
ia, th
e U
K a
nd
the U
S
Fig
ure
1: W
ha
t will t
ra
ns
form
th
e w
ay p
eo
ple
wo
rk
ove
r t
he
ne
xt 5
– 1
0 y
ea
rs?
Techno
log
y bre
akth
rou
gh
s
Reso
urc
e s
carc
ity an
d c
limate
chan
ge
Shifts in
glo
bal e
co
no
mic
po
wer
Dem
og
rap
hic
shifts
Rap
id u
rbanis
atio
n
No
ne o
f these
Do
n’t k
no
w/n
ot su
re
53
%3
9%
36
%3
3%
26
%4
%13
%
Managing com
plexity as well as am
biguity [will have the
single biggest impact on the w
ay we w
ork over the next 10 years]
He
ad
of H
R. E
ne
rg
y, U
tilit
ies a
nd
Min
ing
, In
dia
7T
he fu
ture o
f wo
rk – A jo
urn
ey to 2022
Co
mp
eting fo
rcesW
hat cuts across these developments are
the push and pull of individualism versus
collectivism and corporate integration
versus business fragmentation. T
he com
petition between these forces is
creating what w
e’ve identified as three scenarios (‘w
orlds’) for the future of work:
• Large corporates turning into m
ini-states and taking on a prom
inent role in society.
• Specialisation creating the rise of collaborative netw
orks.•
The social and environm
ental agenda forcing fundam
ental changes to business strategy.
Most organisations are likely to be a m
ix of all three w
orlds of work. A
s we explore
in this report, it’s therefore useful to think about w
here your organisation might
be positioned within these scenarios,
the trade-offs this entails and what
implications this has for your people
managem
ent strategy.
Evo
lving p
riorities
The em
ergence of these three worlds is
going to create fresh challenges for HR
. O
rganisations currently grapple with the
realities of skills shortages, managing
people through change and creating an effective w
orkforce. By 2022, the radical
change in business models w
ill mean that
companies w
ill be facing further issues such as:•
The need to create ever m
ore sophisticated people m
easurement
techniques to monitor and control
performance and productivity.
• Increasing im
portance of social capital and relationships as the drivers of business success.
• T
he boundary between w
ork and personal life disappearing as com
panies assum
e greater responsibility for the social w
elfare of their employees.
Organisations w
ill have to be prepared to undergo new
learning cycles and adapt them
selves to these new
challenges, not only to survive, but to succeed.
He
ad
of H
R, H
ea
lth
ca
re
, In
dia
Ch
an
gin
g role o
f HR
HR
has been perceived by many as a
passive, service-oriented function. But given the dem
ands of tomorrow
’s w
orkplace and business environment, w
e believe H
R is at a crossroads and w
ill go one of three w
ays:•
With a proactive m
indset and focused on business strategy, H
R w
ill take on a new
wider people rem
it incorporating and influencing m
any other aspects of the business.
• T
he function will becom
e the driver of the corporate social responsibility agenda w
ithin the organisation.•
The function w
ill be seen as transactional and alm
ost entirely outsourced.
In the coming sections of this report, w
e explore the nature of these three w
orlds, w
hat’s shaping them and how
this will
affect HR
priorities, organisational design and w
ider business strategies.
8P
wC
FragmentationIntegration
The
Ora
nge
World
The
Green
World
The
Blu
eW
orld
Collectivism
Ind
ividu
alism
Com
panies begin to break dow
n into collaboration netw
orks of smaller
organisations; specialisation dom
inates the world
economy
Big company
capitalism rules as
organisations continue to grow
bigger and individual preferences trum
p beliefs about social responsibility
Social responsibility dom
inates the corporate agenda w
ith concerns about dem
ographic changes, clim
ate and sustainability becom
ing the key drivers of business
Sma
ll is bea
utifu
l
Co
rpo
rate is k
ing
Co
mp
an
ies care
Th
ree wo
rlds o
f wo
rk
9T
he fu
ture o
f wo
rk – A jo
urn
ey to 2022
There w
ill be a major shift aw
ay from the
thinking that we learn one profession, have one
job and stay in it for decades.
Fe
ma
le, v
olu
nta
ry
wo
rk
er (
ag
ed
33
– 4
7),
Ge
rm
an
y.
10
Pw
C
Where big com
pany capitalism
reigns supreme
The globalisers take centre stage, consum
er preferences dom
inate, a corporate career separates the haves from
the have-nots.
Th
e Blu
e Wo
rld – co
rpo
rate is k
ing
Drivin
g goa
lProfit, grow
th and m
arket leadership.
Ho
w to
com
pete
Scale is the crucialdifferentiator. It allow
sthese m
ega-corporationsto reach out across theglobe and com
pete fortalent and resources – constantly innovating and keeping pace w
ithcustom
er demands.
Em
plo
yee valu
e p
rop
ositio
n
(the ‘d
eal’)
Job security andlong-term
service with an
organisation in return for em
ployee comm
itment and
flexibility.
11T
he fu
ture o
f wo
rk – A jo
urn
ey to 2022
The m
ost important
thing in a job for 44% of
people around the world is
job security.
44
%T
he attractions include high rewards for
high-flyers. This is a chance to be one of the
‘haves’ in a world w
here stable employm
ent is less and less the norm
.
Employees also have access to the
pensions, health and other benefits that their host societies m
ay not provide or be scaling back.
Metrics and data are used to drive business
performance through com
plex staff segm
entation strategies which identify
thousands of skills sets – creating precision around sourcing the right candidates for the right tasks, as w
ell as on-the-job perform
ance measurem
ent and assessment.
of people around the world
believe that technology will
improve their job prospects.
64
%
Relen
tless pressu
re to p
erform
In the Blue World, big com
pany capitalism
reigns supreme. C
onsumer preferences
and profit margins dom
inate in a model
built around flexibility, efficiency and speed to m
arket. The relentless pressure
on performance isn’t just driven by
competition from
peers, but also aggressive new
entrants looking to lead innovation and undercut existing players. Blue firm
s follow
the money and go w
herever the opportunity is – their operating m
odel enables them
to survive and thrive in both stable and volatile econom
ic conditions alike.
The challenges include how
to integrate talent from
different markets into the
overall corporate culture. The need to lead
innovation and open up new opportunities
will also see them
investing heavily in R&
D
and acquiring smaller start-ups.
How
to cater for flexibility with the right am
ount of trust and technological support to still exceed the expectations of clients [w
ill have the single biggest impact on the w
ay we
work over the next ten years]
Hu
ma
n R
eso
urc
e D
ire
cto
r, B
usin
ess S
erv
ice
s, K
en
ya
Pw
C s
urve
y of 1
0,0
00 m
em
be
rs of th
e g
en
era
l po
pu
latio
n
base
d in
Ch
ina
, Ge
rmany, In
dia
, the U
K a
nd
the U
S
12
Pw
C
31%
of HR
professionals are gearing their talent strategies to pushing back the borders of innovation and possibility, em
ploying only the best and offering long-term
job security and rew
ard.
Th
e Blu
e Wo
rld o
f 20
22
People policies seek to lock in talent, but the top talent is still hard to attract and retain; m
any senior executives use personal agents to seek out the best deals.
The data profiling that drives custom
er m
anagement w
ill increasingly be replicated am
ong employees as screening and
monitoring m
ove to a new level. Sensors
check their location, performance and
health. The m
onitoring may even stretch
into their private lives in an extension of today’s drug tests. Periodic health screening gives w
ay to real-time m
onitoring of
health, with proactive health guidance and
treatment to enable staff to perform
more
efficiently, reduce sick leave and work for
more years before needing to retire.
Blue firms have a netw
ork of relationships w
ith third-party research centres, innovation firm
s and universities through w
hich they fund and source new product
and process ideas. They use m
echanisms
such as idea sourcing platforms, challenge
contests and seeding of venture funds and incubators to bring a constant flow
of opportunity. W
hile some of the ideas m
ake it into core products and processes, m
any are sold on or licensed to create a self-funding innovation m
odel.
Leadership teams have a high focus on the
evolution of the corporate culture, with
rigorous recruitment processes to ensure
new em
ployees fit the corporate ideal. New
staff are subject to com
pulsory corporate culture learning and developm
ent program
mes.
The ‘contract’ w
ith employees is defined
by the handing over of data (e.g. health, perform
ance, possibly even private life) in return for job security. M
ore than 30% of
the participants in our global survey would
be happy for their employers to have access
to their personal data. Younger people tend to be m
ore open to this than older generations, so this kind of m
onitoring could becom
e routine in the years to come.
3 o
ut o
f 10
of the participants in our global survey would
be happy for their employers to have access to
their personal data.
The speed of technological progress, such as the popularity
of the ‘Internet of Things’, w
ill have a big impact on the w
ay w
e work over the next ten years.
Ma
le, in
pe
rm
an
en
t e
mp
loy
me
nt (
ag
ed
33
– 4
7), C
hin
a
Pw
C survey of 480 H
R p
rofessionals from across the w
orld
13
Th
e futu
re of w
ork – A
jou
rney to
2022
Ch
an
gin
g orga
nisa
tion
al
an
d H
R d
ema
nd
s
The m
anagement of people w
ithin the Blue W
orld is a hard business discipline, akin to finance w
ithin this scenario. In addition to identifying and delivering the talent needed to m
eet business objectives, successful H
R team
s are developing the ever m
ore sophisticated measurem
ent and m
anagement techniques needed to
ensure that the workforce m
eets exacting perform
ance targets.
The H
R function evolves into a people and
performance unit, w
hich is led by the Chief
People Officer (C
PO), w
ho is a powerful
and influential figure within the leadership
team of the organisation.
Those responsible for people m
anagement
increasingly need financial, analytical, m
arketing and risk managem
ent skills to m
easure the impact of hum
an talent on their organisation and retain the best people.
Talent is managed alongside artificial
intelligence in a hybrid model. H
R w
ill develop real-tim
e response to data feeds as it evolves into a key part of the w
ider perform
ance team.
Qu
estion
s for H
RH
ow can you develop the m
ore sophisticated human
capital metrics needed to constantly im
prove perform
ance?
How
do you develop a broader resource optimisation
approach in which m
achines, artificial intelligence and hum
an beings work side by side?
Where is the line betw
een performance m
onitoring and personal space and how
can you make sure the
organisation stays within it?
?
Rew
ard models include a strong
performance-related elem
ent. A key
challenge for HR
is convincing employees
that the ‘price’ of data release and close m
onitoring is worth paying. T
his includes developing the right balance betw
een the benefits (e.g. job security or health protection) and productivity gains of this personal data. It also includes building trust through codes of conduct about how
data is acquired, used and shared.
The m
achine will becom
e fully intelligent and have the ability to think independently.
Ma
le, in
pe
rm
an
en
t e
mp
loy
me
nt
(a
ge
d 4
8 –
66
), U
K
14P
wC
Where consum
ers and employees
force change
Com
panies develop a powerful social conscience and green
sense of responsibility. Consum
ers demand ethics and
environmental credentials as a top priority. Society and
business see their agendas align.
Th
e Green
Wo
rld – co
mp
an
ies care
Drivin
g goa
lSocially and environm
entally beneficial good.
Ho
w to
com
pete
A social and environm
ental conscience is dem
anded by custom
ers and staff right through the organisation and its supply chain. T
he organisation m
ust get it right in order to survive and com
pete.
Em
plo
yee valu
e p
rop
ositio
n (th
e ‘dea
l’)Ethical values and w
ork – life balance in return for loyalty tow
ards an organisation that does right by its em
ployees.
15
Th
e futu
re of w
ork – A
jou
rney to
2022
Brands can rise and fall on the basis
of perceived green credentials, with
government im
posed corporate fines for bad behaviour in this highly regulated w
orld. Corporate responsibility is not
an altruistic nice to have, but a business im
perative. Employees are expected to
uphold corporate values and targets around the green agenda.
The need to travel to m
eet clients and colleagues is replaced w
ith technological solutions, w
hich reduce the need for face-to-face contact. Em
ployees’ carbon footprint is carefully m
onitored and built into perform
ance targets.
As society gravitates tow
ards more
sustainable living, the HR
function is forced to em
brace sustainability and corporate responsibility as part of its people engagem
ent and talent m
anagement agendas.
of people around the w
orld want to w
ork for an organisation w
ith a powerful
social conscience. 1
65%
of HR
professionals are building their talent strategies around their organisations’ social and environm
ental conscience, w
hich is intrinsic to the brand and m
atches the values and beliefs of their people. 2
Reth
ink
ing va
lues a
nd
goa
ls
In the Green W
orld, companies take
the lead in developing a strong social conscience and sense of environm
ental responsibility. T
hey are open, trusting, collaborative learning organisations and see them
selves playing an important role in
supporting and developing their employees
and local comm
unities. Com
panies have strong control over their supplier netw
orks to ensure that corporate ethical valuesare upheld across the supply chain, and are able to troubleshoot w
hen things go wrong.
In turn, the combination of ethical values,
support for the real economy and fam
ily-friendly hours is an opportunity to create a new
employee value proposition that isn’t
solely reliant on pay.
36%
1 P
wC
su
rvey o
f 10
,00
0 m
em
be
rs of th
e g
en
era
l po
pu
latio
n b
ase
d
in C
hin
a, G
erm
any, In
dia
, the U
K a
nd
the U
S
2 Pw
C survey of 480 H
R p
rofessionals from across the w
orld
16P
wC
While our survey confirm
s that the opportunity to w
ork for organisations that share their values and beliefs is attractive to m
any of the best and brightest candidates, the overall incentive package is still going to be im
portant. Financial rew
ards can be augmented by the chance
to take up secondments on social and
environmental projects.
Further challenges include how to ensure
that strict compliance w
ith laws and
standards doesn’t inhibit flexibility and enterprise. In a caring organisation, there is also the question of how
to keep people in em
ployment if there is a dow
nturn in the m
arket or wider econom
y. Working closely
with em
ployees and other stakeholders, HR
w
ill be expected to come up w
ith innovative solutions to these challenges.
Qu
estion
s for H
RH
ow can you turn your values
into a compelling elem
ent of your em
ployer brand?
Is your function set up to work w
ith people w
ho want a greater say in
designing their working responsibilities
and rewards?
How
can you monitor the desired ethics
and behaviour most effectively?
?T
he G
reen W
orld of 2
02
2M
oves towards the G
reen World are being
bolstered by the need to use resources in sm
arter and more efficient w
ays. T
he disillusionment that has follow
ed in the w
ake of the financial crisis and public anger over som
e corporations’ environm
ental, social and tax policies is forcing ever m
ore companies and w
orkers to question the very nature and purpose of their business.
Custom
ers look to Green firm
s to introduce innovative ideas and practices and influence their ow
n behaviour – often setting challenges around w
ays of working
which can be transferred back into the
customer’s ow
n environment. C
ustomers
are proud to support Green firm
s and the broader societal goals they are pursuing. Technology and the internet play a critical role in providing total transparency of the firm
’s environmental, social and ethical
impact and perform
ance across all of its activities.
A distinctive feature of G
reen firms is the
practice of co-creation – engaging with
customers, partners, external agents and
the local comm
unity to create new products
and services that benefit the customer, the
company and the broader com
munity
Diversity and w
ork – life balance are viewed
as sources of strength and competitive
advantage. Staff are encouraged to forge links w
ith the comm
unity and to take part in socially useful projects.
Rather than basic perform
ance, the em
phasis is on using data to promote
broader objectives, such as health and w
ell-being, professional development,
flexible working and volunteering. T
he developm
ent of environmental best practice
is a key objective for employees, w
ho are encouraged to create new
and interactive w
ays to share ideas and encourage people to take them
up.
Ch
an
gin
g orga
nisa
tion
al a
nd
H
R d
ema
nd
sT
he CEO
drives the people strategy for the organisation, believing that the people in the organisation and their behaviours and role in society have a direct link to the organisation’s success or failure.
Green firm
pioneers avoid hierarchy and opt for flexible, flat and fluid organisational structures. Everyone in a G
reen firm has
the opportunity to participate in decision-m
aking and feels responsibility for the organisation’s success.
HR
and corporate social responsibility fuse as organisations em
brace sustainability and support for socially valuable ‘good grow
th’.
HR
helps to foster close collaboration betw
een employer and em
ployee in designing jobs around aspirations and lifestyles. R
eward m
odels will be highly
flexible as part of this personalised design.
The need for econom
ic and environmental
efficiency [will have the single biggest im
pact on the w
ay we w
ork over the next ten years]
Ma
le, s
elf-
em
plo
ye
d (
ag
ed
48
– 6
6), U
K
17T
he fu
ture o
f wo
rk – A jo
urn
ey to 2022
Crow
ded urban centres will necessitate
‘anywhere w
orking’ aided by technology.
VP
Hu
ma
n R
eso
urc
es, F
ina
nc
ial
Services, USA
Greater em
phasis on work – life balance – m
ore em
ployees wanting w
ork that fits around their life rather than focusing on a specific career path [w
ill have the single biggest impact on the w
ay we
work over the next ten years]
Hu
ma
n R
eso
urc
es M
an
ag
er, E
ng
ine
erin
g
and Con
struction, A
ustralia
18
Pw
C
Th
e Ora
nge W
orld
– sma
ll is bea
utifu
l
Where big is bad, for business, for
people and for the environment
Global businesses fragm
ent. Technology empow
ers a low
impact, high-tech business m
odel. Netw
orks prosper w
hile large companies decline.
Drivin
g goa
lM
aximising flexibility w
hile m
inimising fi
xed costs.
Ho
w to
com
pete
Embracing the rise of the
portfolio career, hiring a diverse m
ix of people on an affordable, ad hoc basis.
Em
plo
yee valu
e p
rop
ositio
n (th
e ‘dea
l’)Flexibility, autonom
y and varied challenges in return for w
orking on a short-term
contractual basis.
19T
he fu
ture o
f wo
rk – A jo
urn
ey to 2022
The chance to take control
of their career, what they
do and when is w
hat 29%
of people around the world
most w
ant from a job. 1
29%
Seekin
g ou
t fresh o
pp
ortu
nities
In the Orange W
orld organisations fragm
ent into looser networks of
autonomous, often specialised operations.
Technology helps to bring these networks
together, often on a task-by-task basis, with
social media heightening the connectivity
upon which this w
orld depends.
Supply chains are built from com
plex, organic associations of specialist providers, varying greatly from
region to region and m
arket to market. Looser, less tightly
regulated clusters of companies are seen to
work m
ore effectively than their larger and potentially m
ore unwieldy counterparts.
Moves tow
ards the Orange W
orld have been bolstered by the rise of the portfolio career. M
any people have come to realise that they
could enjoy more flexibility and varied
challenges by working freelance or as a
contractor for a number of organisations.
The O
range World desire for autonom
y is strongest in C
hina, especially among young
people, indicating a generational shift tow
ards greater freedom, entrepreneurship
and specialist skills in this rapidly evolving econom
y. Over half of participants in C
hina believe that traditional em
ployment w
on’t be around in the future. Instead, people w
ill have their ow
n ‘brands’ and sell their skills to those w
ho need them. T
he belief that the future lies in a contingent m
odel is also strong am
ong graduates, though people w
ith fewer qualifications anticipate m
uch less change in their w
orking arrangements.
of HR
professionals expect at least 20%
of their workforce
to be made up of contractors
or temporary w
orkers by 2022. 2
46
%
People’s increasing need for diversified careers, mobility and
flexibility [will have the single biggest im
pact on the way w
e w
ork over the next ten years]
Hu
man R
esources M
anager, A
sset Man
agement,
South Africa
1 P
wC
su
rvey o
f 10
,00
0 m
em
be
rs of th
e g
en
era
l po
pu
latio
n b
ase
d
in C
hin
a, G
erm
any, In
dia
, the U
K a
nd
the U
S
2 Pw
C survey of 480 H
R p
rofessionals from across the w
orld
Contract em
ployment w
ill be king. Full-time
jobs will be becom
e obsolete.
Ma
le, r
etir
ed
(a
ge
d 4
8 –
66
), U
S
20
Pw
C
Workers are categorised and rew
arded for having specialist expertise, w
hich will
create increased demand for people to have
a personal stake in the organisation’s or project’s success. O
ptions such as project delivery-related bonuses are therefore going to becom
e more com
mon.
A key challenge is ensuring that the people
being hired genuinely have the expertise required or claim
ed. This dem
ands a com
bination of effective verification and w
atertight contractual agreements, possibly
with penalties for poor and non-delivery.
It’s also going to require a high degree of relationship building and business trust. M
any contractors and partners will adopt
‘eBay-style’ ratings of past perform
ance to help land the next contract.
Qu
estion
s for H
RH
ow can you identify and attract the
contract staff needed to meet different
objectives?
How
can you verify the authenticity of the data being used to select staff and associates?
How
do you effectively manage non-
owned resource?
?T
he O
ran
ge Wo
rld
of 2
02
2Big business w
ill be outflanked by a vibrant, innovative and entrepreneurial m
iddle market. A
core team em
bodies the philosophy and values of the com
pany. The
rest come in and out on a project-by-project
basis. Some firm
s compete on quality
and specialisation, while others offer
comm
oditised price-dependent support. Telepresence and virtual solutions allow
for greater rem
ote working and extended
global networks.
Efficient systems and processes are the key
to success of Orange com
panies. Maxim
um
operational flexibility, lean staffing models,
collaborative partnerships and minim
al fi
xed costs are critical enablers of Orange
firms. T
hese companies m
ake extensive use of technology to run their businesses, coordinate a largely external w
orkforce and support their relationships w
ith third parties. T
hey take advantage of disruptive technology w
hen appropriate and stay abreast of new
developments to ensure they
are up to speed in their sector.
The developm
ent of networks and
relationships with contingent staff
is critical. Technology tracks their applicability, location and availability.
Ch
an
gin
g orga
nisa
tion
al a
nd
H
R d
ema
nd
sH
R m
anages bidding processes as part of an open m
arket for assignments in
which people from
within and outside
the organisation apply and compete for
postings and projects.
Recruitm
ent becomes largely a sourcing
function, which is often m
erged with
the managem
ent of the huge number of
contracts and price agreements required
for each company’s netw
ork of partner organisations.M
any companies w
ill be too small to have
HR
hiring teams and w
ill look to technology or dedicated agents to supply needs.
People are more likely to see them
selves as m
embers of a particular skill or professional
network than as an em
ployee of a particular com
pany.
Orange pioneers w
ill give a new lease of
life to professional guilds, associations and trade bodies – relying on them
for training, developm
ent and innovation.
People are more likely to see them
selves as m
embers of a particular skill or professional
network than as an em
ployee of a specific com
pany.
21
Th
e futu
re of w
ork – A
jou
rney to
2022
31%
of HR
professionals are building their talent strategies around the rise of the portfolio career, hiring a diverse m
ix of people on an affordable, ad hoc basis. 2
2 o
ut o
f 5
People around the world believe that
traditional employm
ent won’t be around
in the future. Instead, people will have their
own ‘brands’ and sell their skills to those
who need them
. 1
Managing a diverse, heavily m
atrixed and virtual organisation [w
ill have the single biggest impact on the
way w
e work over the next ten years]
Vic
e-P
re
sid
en
t f
or H
um
an
Re
so
urc
es, R
eta
il an
d
Co
nsu
me
r, S
wit
ze
rla
nd
1 P
wC
su
rvey o
f 10
,00
0 m
em
be
rs of th
e g
en
era
l p
op
ula
tion b
ase
d in
Ch
ina
, Ge
rmany, In
dia
, the
UK
an
d th
e U
S
2 Pw
C survey of 480 H
R p
rofessionals from
acro
ss th
e w
orld
22
Pw
C
A su
mm
ary o
f peo
ple m
an
agem
ent
cha
racteristics in
20
22
Co
rpo
rate is k
ing:
Blu
e Wo
rldC
om
pa
nies ca
re: G
reen W
orld
Sm
all is b
eau
tiful:
Ora
nge W
orld
Ho
w o
rgan
isatio
ns so
urce
an
d a
ttract ta
lent
Organisations com
pete to find and secure the best talent available and use extensive search and evaluation m
ethods to find the stars of tomorrow
.
Talent is attracted by the potential for high earnings, job security and status.
Green W
orld companies seek like-
minded individuals to extend their
corporate family, taking great care
to only select talent with the right
behaviours and attitudes.
Talent is attracted to Green W
orld brands, their values and their culture.
Technology provides the solution to finding and evaluating contractors as suppliers of key skills. C
omm
ercial term
s are offered for a specific task.
A com
pany’s reputation within netw
orks and online recruitm
ent markets is
crucial in attracting talent.
Rew
ard
an
d p
erform
an
ceR
eward is based on finely tuned
performance m
etrics.O
rganisations focus on total reward,
which recognises corporate citizenship
and good behaviours alongside perform
ance.
Contract-based pay for projects is the
norm. R
esults-based or buy-in contracts are also com
mon. N
egotiation skills are vital.
Lea
rnin
g an
d
develo
pm
ent's ro
leIndividuals build skills and experience to adapt to changing business needs. Learning and developm
ent is closely aligned to objectives and perform
ance m
easures.
Personal and professional development
fuse in areas such as volunteering.Individuals develop their ow
n skills. Professional guilds w
ill re-emerge and
certify skills alongside online references and perform
ance rankings.
Th
e role o
f HR
HR
uses advanced analytics to predict future talent dem
ands and to measure
and anticipate performance and
retention issues.
HR
acts as guardian of the brand. There
is a strong focus on creating the right culture and behaviours and on guarding against sustainability and reputational risk across the supply chain.
HR
focuses on sourcing contractors and negotiating the contracts, along w
ith perform
ance managem
ent and project econom
ics.
Ro
le of tech
no
log
y in
ma
na
gin
g peo
ple
Sensors and data analytics to measure
and optimise perform
ance.H
elping people to build work into their
lives and minim
ise their environmental
impact.
Creating virtual collaboration.
23
Th
e futu
re of w
ork – A
jou
rney to
2022
24
Pw
C
Are yo
u rea
dy?
The effectiveness w
ith which your
organisation plans people managem
ent for the long-term
will be critical to its
long-term viability, ensuring you have
the right people, with the right skills, in
the right places to realise your evolving goals. T
hink too much in the short-term
and you m
ay find yourself on the back foot, unable to catch up w
ith sudden shifts in your m
arketplace.
Forward-looking H
R team
s are already considering a range of different scenarios for the future as part of their business planning (see Figure 2), but few
are taking a sufficiently longer term
view to deal
with them
.
Pw
C survey of 480 H
R P
rofessionals from across the w
orld.
Fig
ure
2: P
lan
nin
g a
he
ad
– H
ow
far d
oe
s H
R in
yo
ur o
rg
an
isa
tio
n lo
ok
into
th
e fu
tu
re
?
Sho
rt-term:
Th
e fu
ture
is mo
ving
so fa
st
that it is ve
ry hard
to p
red
ict
ho
w th
ing
s will c
han
ge
Med
ium
-term:
I an
ticip
ate
a lo
t of c
han
ge a
nd
am
bu
ildin
g p
ossib
le fu
ture
scen
ario
s into
ou
r cu
rren
t
tale
nt p
ipelin
es
Lon
g-term: I a
m a
ctive
ly
co
nsid
erin
g th
e e
volvin
g a
nd
mu
ltiple
vision
s of th
e fu
ture
as p
art o
f ou
r
lon
g-te
rm b
usin
ess p
lan
nin
g
56%
21%
24%
Most of the H
R professionals in our survey
don’t believe they’re prepared for meeting
the needs of a workforce that dem
ands m
ore freedom, autonom
y and flexibility. O
nly around 20% report that they’re
ready to embrace the role of technology
and automation in replacing know
ledge w
orkers, even though most recognise this is
something they should consider.
25
Th
e futu
re of w
ork – A
jou
rney to
2022
Fig
ure
3: H
ow
ca
n o
rg
an
isa
tio
ns p
lan
for t
he
fu
tu
re
of p
eo
ple
ma
na
ge
me
nt?
Wh
ich w
orld are you heading tow
ards: Blue, Green, O
range or som
ething else entirely?
Wh
at are the scenarios for your
organisation?
Ho
w w
ill your organisation need to change...resourcing, talent m
anagement, em
ployee engagement,
reward, learning and developm
ent...w
hat else?
As Figure 3 outlines, our three w
orlds can provide a starting point for judging the opportunities, risks and evolving dem
ands on H
R across different areas of your
organisation. But no one model w
ill prevail and even w
ithin them, it w
ill be important
to manage com
peting demands.
Ho
w w
ill your organisation’s culture respond to an environm
ent of constant change? W
hat will be the role of
leadership? What behaviours w
ill be m
ost valuable to the organisation and how
will the organisation need
to comm
unicate with and engage all
employees?
Wh
at do you need to do to get there?
Better understand where you are now
through use of evaluation techniques, benchm
arking and measurem
ent.
26
Pw
C
So w
ha
t do
es the fu
ture h
old
for H
R?
In the Blue World, it w
ill be at the centre of a hugely influential m
etric-driven strategy and performance function. In the O
range W
orld, it is set to have a much narrow
er recruitment and tendering
role, with m
any other aspects of the function outsourced. In the G
reen World, H
R’s role could be m
uch more diffuse, helping
employees to shape their w
ork around their values and outside lives.
Whatever path your function follow
s, it’s going to look very different in 2022.
27
Th
e futu
re of w
ork – A
jou
rney to
2022
Blue World
Green W
orldO
range World
28
Pw
C
Ap
pen
dix
Glo
ba
l forces
Bu
siness fra
gmen
tation
Globalisation
Technology conrols me
Reverse globalisationI control technology
Collectivism
Co
rpo
rate in
tegra
tion
Individualism
The fre
e-m
arke
t trend
pre
vails a
s tra
de b
arrie
rs disa
pp
ear
Focus o
n in
divid
ual w
ants;
a response to the infinite choices ava
ilab
le to
consu
mers
A ye
arn
ing fo
r the h
um
an to
uch
min
imise
s the p
erso
nal im
pact o
f te
chnolo
gy o
n c
onsu
mers
BIg
busin
ess ru
les a
ll
Pro
tectio
nist p
olic
ies b
egin
to re
build
b
arrie
rs to fre
e m
ove
ment o
f peop
le
and
good
s
The c
om
mon g
ood
pre
vails o
ver
perso
nal p
refe
rence, e
.g. c
olle
ctive
re
sponsib
ility for th
e e
nviro
nm
ent
ove
r ind
ividual in
tere
st Allo
win
g te
chnolo
gy in
to a
lmost
eve
ry part o
f a p
erso
n’s life
The p
ote
ntia
l bre
ak-u
p o
f larg
e
busin
esse
s and
the risk o
f colla
bora
tion n
etw
orks
Crea
ting th
e three w
orld
sW
e worked w
ith the James M
artin Institute to think about the factors that w
ere affecting business and those that we
believed would grow
in importance in the
future. We m
apped these around a matrix
and developed a number of scenarios:
plausible futures around each.
We started our research by exam
ining the forces that w
ere affecting global business and w
ere likely to have significant impact
on the future. While there are m
any social, environm
ental, religious and demographic
factors that have a significant influence, w
e chose to focus on the global forces that w
e feel have the greatest impact on
people managem
ent.
29
Th
e futu
re of w
ork – A
jou
rney to
2022
Co
nta
cts
Mic
ha
el R
en
de
ll
Hum
an Resource Services
Global N
etwork Leader
+44 20 7212 4945
michael.g.rendell@
uk.pwc.com
Ju
stin
e B
ro
wn
Global m
arketing & business developm
ent, H
uman resources services
+44 113 289 4423
justine.brown@
uk.pwc.com
No
rth A
merica
Sc
ott O
ls
en
+1 646 471 0651
c.com
Bh
us
ha
n S
eth
i
+1 646 471 2377
c.com
Western
Eu
rop
eJ
on
An
dre
ws
+44 20 7804 9000
jon.andrews@
uk.pwc.com
Pe
te
r D
e B
ley
+32 2 7104321
c.com
Ch
arle
s D
on
ko
r
+41 58 792 4554
c.com
Till L
oh
ma
n
+49 40 6378-8835
till.r.lohmann@
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Ea
stern E
uro
pe
Zs
olt
Sz
ele
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i
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ast
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are
z
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ng K
on
gM
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ok
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c.com
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kia
Xin
g
+86 (10) 6533 7018
c.com
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po
reA
ly
win
Te
h
+65 62367268
alywin.teh@
sg.pwc.com
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iaP
ad
ma
ja
Ala
ga
na
nd
an
+91 80 4079 4001
padmaja.alaganandan@
in.pwc.com
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stralia
Jo
n W
illia
ms
+61 (2) 8266 2402
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th a
nd
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ao
Lin
s
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ra
ld S
ee
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rs
+27 (11) 797 4560
c.com
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