The future of work is changing. Will your workforce be ready? · 2018-03-14 · The future of work is changing. Will your workforce be ready . Mobile talent and workforce enablement.

T h e f u t u r e o f w o r k i s c h a n g i n g . W i l l y o u r w o r k f o r c e b e r e a d y ?

3The future of work is changing. Will your workforce be ready? | 2 | The future of work is changing. Will your workforce be ready?

There’s no doubt that the future of work is changing.The world continues to change with developments in globaliz ation, dem ograp hics, technology and regulation. These disrup tiv e forces require organizations to change rapidly — and they need their people to be agile and adap table to that change. At the same time it’s getting harder to source, manage, motivate and retain talent while controlling costs.

EY can help you prepare for the future of work and your future workforce.

W o r k f o r c e t r e n d s

The global working population is expected to i n c r e a s e b y 4 8 5 m i l l i o n people between 2017 and 2027.

Millennials are going to be 7 5 % o f t h e w o r l d ’ s w o r k f o r c e by 2025.

Of all age groups, millennials, or Generation Go, are the most likely to quit a job because of substandard technology. E i g h t y - t w o p e r c e n t s a i d t h a t w o r k p l a c e t e c h n o l o g y would influence their choice to accept a new job.

By 2020, surplus talent will be limited to a select few emerging economies. This will force businesses to think carefully about long-term talent location strategies. At the same time, the number of people 65 and older is continuing to grow at an unprecedented rate. This shift — in size, age and diversity — will transform the workforce and an organization’s responsibility toward it. These changes will also dramatically impact consumer spending and behavior.

On the flip side, the career span of the younger employee is extending as individuals live longer and healthier lives. Generation X and millennial employees increasingly are looking to their employers to provide meaningful work, in flexible environments and ample opportunities for development.

W o r k f o r c e e x p e c t a t i o n s a n d e n g a g e m e n t

S e v e n t y - f i v e p e r c e n t o f m i l l e n n i a l s want the ability to work flexibly and still be on track for a promotion

Purpose is driving engagement. Among employees who are motivated by purpose, 7 7 % b e l i e v e t h e i r w o r k m a k e s a n i m p a c t and 6 8 % e x p e r i e n c e m e a n i n g f u l r e l a t i o n s h i p s a t w o r k .

Engaged employees are more productive. Business units in the top quartile of employee engagement are 2 1 % m o r e p r o f i t a b l e compared with business units in the bottom quartile.

As organizations evolve, so does the need to enable, engage and reward top talent in innovative new ways. Employees who feel in control of the variables in their working world likely will have a heightened commitment to enhancing company results.

Simply put, engaged employees are a competitive advantage driving strong, sustainable results by directly impacting customer behavior, brand loyalty and overall brand reputation.

This evolution also brings change in stakeholder expectations and customers and investors seek deeper reasons to engage.

T e c h n o l o g y a n d t r a n s f o r m a t i o n

Since 2000, 5 2 % o f F o r t u n e 5 0 0 c o m p a n i e s have gone bankrupt, been acquired or ceased to exist due to digital disruption.

Technology is the fourth industrial revolution reshaping the business world, demonstrated by a 49% global internet penetration in 2016, a 7 2 5 % i n c r e a s e compared with 2000.

In 2017, almost 5 0 % o f o r g a n i z a t i o n s plan to adopt mobile-enabled human resources (HR) processes — a significant increase from 13% in 2014.

Technology is transforming the way we do business and impacting how we create, deliver and capture value. What’s more, this process is accelerating with the rise of local, social and mobile technology.

Technology today is improving our ability to, for example, care for the environment, treat disease, improve security, make better sense of data, serve customers, deliver processes, and innovate and grow across the board.

No organization, regardless of size, can compete without responding to this new digital age.

W o r k f o r c e m o b i l i t y a n d e n a b l e m e n t

More than half ( 6 2 % ) o f c o m p a n i e s use flexible workers (freelancers, temps and agency workers).

By 2020, it is expected that the workforce of one in four organizations will be at least 3 0 % c o n t i n g e n t w o r k e r s .

S e v e n t y - t w o p e r c e n t o f e x e c u t i v e s said the need for globally mobile employees will increase during the next two to three years.

Organizations must think and act globally, looking beyond their traditional boundaries for top talent, while creating a unifying community that is welcoming and supportive of global workers.

The added challenge of a successful organization is to empower locally, while thinking globally. Global talent strategies and HR programs should be developed to allow for geographic variances in regulatory, economic, market and cultural diversity so that they can source, manage, train and compensate this global workforce.

$ 4 8 5 m$ 4 8 5 m

The future of work is changing. Will your workforce be ready? | 4 | The future of work is changing. Will your workforce be ready?

Mobile talent and workforce enablementTransactions

EY helps organizations put talent and purpose at the heart of their transformation agenda to proactively respond to disruption, achieve their business objectives and improve financial performance. We support our clients and their workforce on their transformation journey — whether it’s driven by new technology, innovation, digital enablement, cyber, organizational change, new regulation, brand and reputation, risk, efficiency, and customer workforce experience.

EY helps organizations align and drive their people priorities and manage related risks during mergers, acquisitions, carve-outs, divestitures, spin-offs, IPOs and other related transactions. We support our clients with the alignment of leadership, organizations and culture, workforce and talent planning, and rewards and benefits, as well as HR function setup, restructuring and transformation to enable businesses to achieve their organizational, people, financial and value-capture objectives during a transaction.

EY helps organizations deploy their talent to areas where they are most needed to support the business, providing a seamless journey for their mobile workforce. We help our clients manage their people-related risk; align their talent, sourcing and location strategy with their business strategy; and adapt to the new work environment and changing expectations of the workforce. We help in the development leaders and talent using tailored learning approaches, systems and analytics to support them and enable their domestic, global and organizational mobility.

Transformation

EY’s People Advisory Services can help you gain a competitive advantage by providing the impactful people, HR and organization alignment at critical business crossroads.Looking at people as part of an integrated business strategy, organizations are able to gain a competitive workforce advantage. EY works globally to help companies address complex issues relating to organizational transformation or transactions, end-to-end employee life cycles, effective talent deployment and mobility, gaining value from evolving and virtual workforces, and the changing role of HR.

EY’s future of work framework provides a holistic approach to create future business and workforce models for success. Organizations are facing new market forces that require new ways of operating. EY’s future of work framework offers a holistic model that looks at both the hardware (operating model) and software (operating environment) of an organization to align them for success.

Future of work framework

Process Simplifying, standardizing, automating, training and empowering process owners across key business issues to make certain that strategic alignment of organizational goals, value chains and key process indicators (KPIs)

Leadership and teamingDeveloping leaders capable of leading a new digital organization and workforce while creating new and high-performing teams by evaluating roles, talent type and team fit

Purpose and values Evaluating and laying out the road map for change based on clear identification and alignment of organizational, team and individual purpose

Mindset Helping employees

bring their true self to work by increasing

individual mindfulness, removing internal

stressors and changing mindsets to better respond to external stimuli

Technology Leveraging and harnessing technology to create persona-based experiences to influence engagement, adoption and productivity; making certain technology enables core, common and consistent process

Strategy Accurately defining and activating the purpose and values to make certain of organizational alignment, prioritizing and selecting the right investments for strategic alignment, and having business and individual goals aligned with corporate strategy

Organizational designDesign and implementation of a business structure aligned to strategy and capabilities, with an understanding of organizational influences and making data- informed decisions related to organizational efficiency and effectiveness

Governance Accessing and analyzing complete and insightful information to make timely

decisions, while leveraging a structure that engages and

empowers the organization

Performance and rewardsSetting the ideal motivations and rewards to create inspired individuals, teams and organization

Technology experienceGauging the multiple types of technology and related experiences customized to the workforce and designed to influence engagement, adoption and productivity

Talent alignmentImproving the acquisition and development of talent to comply with evolving needs of the business through strategic workforce planning, skills management, modern learning and talent development

Physical environmentAddressing how the real estate portfolio and the physical environment amplify the effectiveness of the workforce

Operating environment

Operating model

Strategy

GovernanceProcess

Mindset

PhysicalEnvironment

Purpose andvalues

Leadership andteaming

Performanceand rewards

Org DesignTechnology

Techexperience

Talentalignment

Business

model

Workforce

modelCustomer/workforce experienc

e

Culture

7The future of work is changing. Will your workforce be ready? | 6 | The future of work is changing. Will your workforce be ready?

Transformationdigital, cyber,

functionTransactions Mobile talent and

workforce enablement

WhatEcosystems

• Globalization• Shifting

demographics• Talent gaps• Talent retraining,

upskilling, reskilling

• Mergers• Acquisitions• Spins-offs, carve-

outs, divestitures• IPOs

• Organization restructuring• Automation and robotic process

automation (RPA)• Digital enablement• E-commerce• Productivity enhancements• Customer experience• Talent gaps• Talent retraining, upskilling, reskilling

WhyYour environment

HowEY services

New organization to support

strategy and operating model

EY’s approach to organizational design helps guide clients from organization mapping, organization sizing and organization design through to implementation. Business leaders need a solid, focused plan for designing their future organization to enable their go-forward operating model, as well as drive to organizational effectiveness and financial outcomes.

New workforce, leadership and

talent

EY helps organizations align their workforce, leadership and talent with their business strategy and operating model; adapt to the changing needs of their customers; and build modern leadership and talent capabilities to drive efficiency and innovation as they grow and change. EY helps clients shift to workforce models, new skill sets, new leadership mindsets and new ways of working to enable them to compete in the digital era.

New work environment and

workforce analytics

EY supports clients in developing the right workforce operating environment and executing effectively toward it. Through the future of work maturity assessment, EY provides a data-driven approach to workforce strategy, and the work environment so talent is acquired, managed and developed to be engaged and deliver clear business outcomes.

New learning and change programs

EY’s change approach is a holistic view of all of the people levers that an organization can use to drive organizational readiness engagement, and adoption in the pursuit of sustainable improvements realization. Our pragmatic change approach leverages innovative, agile methods to transform the overall employee experience across all impacted stakeholders. EY also can design and launch new digital learning programs to support performance improvement through adoption and proficiency building.

New alignment of rewards,

performance and career

EY is focused on the development of rewards programs that are not only competitive, but also aligned with the business. We can help you understand what employees and the workforce value most about their workplace and use analytics to align goals and objectives and predict how a workforce, including leaders, employees and contingent workers, will respond to potential changes in the total rewards package.

Integrated mobility,

regulatory and risk

EY offers integrated, end-to-end mobile talent services, providing a seamless journey and an improved experience for an organization’s mobile employees and workforce and enabling increased talent mobility and compliance, reduced administration and cost-reduction efficiencies, and better access to data for the corporate user.

New HR function

EY’s business-led people operating model enables a holistic approach to HR transformation. It drives the next level of employee and workforce experience necessary for organizations to thrive in the future of work through a digital value chain approach to HR transformation, leveraging technology and robotics, as well as design thinking and implementation agility, to unlock the business value trapped in the HR operating model.

EY provides services to help organizations meet the demands of the future working world.By focusing on the key operating model and operating environment and issues facing today’s organizations, EY offers services designed to lead companies through complex organization transactions, transformations and, global workforce and mobile talent challenges.

EY’s future of work approach is technology-enabled and data-driven, helping organizations drive transparency, visibility and speed to execution across people priorities.

Think TankA virtual collaborative platform used to engage participants in the same room or across the globe. It facilitates collaborative brainstorming, including the ability to poll, vote and rank, creating a profound collective experience as participants are left with the distinct impression that business can be done better.

ARISA business process analysis software tool from SoftwareAG that is designed to support business process management activity, such as analyzing the relationships and interactions between processes and related elements (e.g., organization, data, systems and products). It can be the hub for all process-related data for an organization, supporting process baselining, analysis, improvement and governance.

HR Service CatalogA catalog of leading-practice HR processes, subprocesses and HR activities defined with worksplit assignments across people operating model roles to enable HR function simplification, automation and transformation.

EY Process DepotA dynamic web portal for storing and viewing sector reference frameworks (HR leading practice process models and detailed maps inclusive of a digital point of view), along with related information, such as risks, controls, KPIs and maturity models.

Organization and Talent Hub A proprietary technology platform that facilitates and accelerates a client’s organization and talent planning from design to execution. The platform pulls each organization’s data into a secure environment and creates a consolidated master data set of record for the go-forward organization. It provides the granularity essential for planning the new organization and selecting and retaining talent, while tracking workforce movements needed for day-to-day operations as well as capturing real-time savings.

Future of Work Readiness IndexA quantified readiness index score that delivers clarity for an organization about the forces driving change at the organization, an understanding of the current state and desired future state across the operating model and operating environment, and quantified future-of-work readiness results for comparison with benchmarks.

EY GlobalOne technologyA technology platform accessed by clients and employees that aligns a single global process supporting mobile employees. The system supports high-touch, high-tech services while maintaining security around global HR data.

About EY’s People Advisory ServicesAs the world continues to be impacted by globalization, demographics, technology, innovation and regulation, organizations are under pressure to adapt quickly and build agile people cultures that respond to these disruptive forces. EY’s People Advisory Services believes a better working world is helping our clients harness their people agenda — the right people, with the right capabilities, in the right place, for the right cost, doing the right things.

We work globally and collaborate to bring you professional teams to address complex issues relating to organizational transformation, end-to-end employee life cycles, effective talent deployment and mobility, gaining value from your evolving and virtual workforces, and the changing role of HR in support of business strategy. Our EY member firm professionals ask better questions and work with clients to create holistic, innovative answers that deliver quality results.

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T r a n s a c t i o n s

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T r a n s f o r m a t i o n

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