This includes forecasting future workforce needs, identifying capabilities gaps, and developing strategies to address these gaps. It will be important to understand employee productivity as the workplace continues to evolve. When employees work remotely, how do you replicate the ad hoc, serendipitous encounters with colleagues who work on the same team or were once down the hallway? Companies can also try to make virtual team activities fun. BCG has created wellness challenges for employees and highlighted winners in the company newsletter. flexible models. Online services company GitLab encourages employees to set aside a few hours per week for virtual coffee breaks and to use Slack for informal connections and conversations. Perhaps most challenging, but with the highest payback, will be figuring out how to maximize the social connectivity that takes place in the office. One of the few certainties coming out of COVID-19 is that it will have a lasting impact on how people work going forward. Artificial intelligence, automation, and robotics will make this shift as significant as the mechanization in prior generations of agriculture and manufacturing. Boston Consulting Group is an Equal Opportunity Employer. Our findings suggest that the future of work will be increasingly hybrid. Given the speed and scale of the pandemic-related changes and the fact that employers had no time to prepare staff for the shift to remote work, we expected to see a decline in employee productivity. A BCG analysis found that using advanced robots can reduce conversion costs by up to 15%, and combining advanced robotics with other technologies, process en - hancements, and structural layout changes can yield savings of up to 40%. 1 To create team-level work-life balance, one approach is to carve out work-free hours every evening or set limits on how early or late work calls can be scheduled. Even prior to the pandemic, remote working was a well-established trend as employees became less dependent on the physical office to successfully perform their jobs. Workplace Tools. In our survey, we were struck to find that of respondents who are managers—and some might not expect all managers to welcome increased flexibility—most are in fact very open to this. In response, it piloted agile project teams designed to boost employees’ morale and encourage collaborative decision making. This means organizations need to recruit differently than they have in the past and offer more robust opportunities for growth. What steps should you take to help employees manage the burdens of working remotely, such as the blurring of work-life boundaries and the cognitive overload from being digitally engaged all day? ability to perform well in the workplace of the future. In a 2018 survey of 6,500 executives worldwide, conducted by BCG in partnership with Harvard Business School’s Man - aging the Future of Work initiative, roughly 40% of respondents said they expected freelance workers to account for an increased share of their organization’s work - It’s now clear that business as usual will be different in the world of work. Public Sector, In our Workplace of the Future survey, 87% of employers said they anticipate prioritizing tech and digital infrastructure investments that support sustained remote work. Powerful forces are driving an increasingly productive workforce for whom traditional boundaries have been eroded and whose physical workplace is shifting beyond recognition. That’s a difference of almost 400%! In fact, BCG’s recent Workplace of the Future employer survey found that companies expect about 40% of their employees to follow a remote-working model in the future. Canada’s Free Agent ­Program, for example, retains high-performing staff by offering them the ability to select projects that match their interests so they can contribute in a way that’s ­personally meaningful. In our research, 60% of employees said they want some flexibility in where and/or when they work. Front, a workplace-communications platform provider, offers an employee assistance program in the form of a confidential counseling service to help employees with challenges related to work, family, stress, finances, and other personal issues. In addition, many BCG offices offer meditation sessions, online fitness classes, and health webinars. But even so, more than half—51%—of all respondents said they have been able to maintain or improve their productivity on collaborative tasks. For Credit Suisse, just a 1% reduction in attrition equates to $75 million to $100 million in annual savings. As technology rapidly evolves, we need to have people who And this presents both challenges and opportunities: to reimagine the entire employee experience and to create conditions that allow employees to thrive in the workplace of the future—one that will be far less office centric. In contrast, employee dissatisfaction with a high number of these factors is cause for concern. HR leaders need to plan for the future of work, including workforce and employee planning, management, ... Nine HR trends emerge as the lasting result of workforce and workplace changes resulting from coronavirus pandemic disruption, according to a Gartner survey of 800-plus HR leaders. Meanwhile, with 29% of respondents telling us they have experienced worse overall mental health during COVID-19, it is imperative for employers to create awareness and develop tools and benefits that support employees’ needs. People Strategy, Respondents told us they miss “being able to spontaneously walk to a coworker’s desk and discuss an issue” and “social gatherings at work.” It will be critical for companies to recreate this connectivity regardless of where employees are located. Digital HR, BCG’s survey also found that employees place a high value on feeling appreciated and receiving recognition for their work— respondents ranked this among the top ten satisfaction factors globally (German work-ers ranked it number one). And we focused our analysis on collaborative tasks because, as our survey reveals, in this new remote or hybrid world, collaborative work seems harder and appears to generate the most concern among employers—many of whom assume teams need to meet in person to collaborate. A government’s existing talent base is one of its greatest assets; smart investments in this workforce will pay dividends for many decades to come. The authors are grateful to many people who contributed to the research, writing, and production of this report, including Gaby Barrios, Stefanie Beck, Gibson Farone-Collins, Beth Kaufman, Elizabeth Kuriakose, and Krista Ryu. Governments should focus primarily on hiring and building expertise internally, especially in core areas such as data analytics, emerging technologies, and cybersecurity. According to the Economic Times of India, Microsoft India is bringing in experts to educate leaders and employees on the importance of mental health and well-being during these challenging times. The US Environmental ­Protection Agency offers a Skills Marketplace program that enables participating employees to apply for short-term, ­mission-critical assignments and projects posted on an internal portal. Others are organizing visits to leading companies and NGOs to observe best practices in action. To encourage employees’ physical health, employers need to create new structures that make it easy for employees to remain fit and well. BCG: Boston Consulting Group looks at the future of Digital Factories and the future of Manufacturing Technologies The future of manufacturing is exciting. A Decoding Global Talent 2018 of 366,000 people worldwide, conducted with the online international recruitment company The Network, found that out of 26 workplace satisfaction factors, respondents ranked “learning and training opportunities” and “career development” fourth and fifth, respectively. The public sector has a unique appeal that can help it attract talent, especially among today’s employees: it offers the chance to make a difference in the world. BCG was the pioneer in business strategy when it was founded in 1963. Social Connectivity. To assess employee sentiment on these changes, from the end of May through mid-June we surveyed more than 12,000 professionals employed before and during COVID-19 in the US, Germany, and India. What systems and benefits do you need to put in place in order to support employees who are experiencing mental-health difficulties? Combined with our findings on what drives employee productivity, this underscores the fact that listening and responding to what employees want are essential to a company’s success, including its ability to attract and retain talent. Companies have reacted swiftly to the changes. Initiatives range from helping employees to create comfortable workstations by giving them allowances for the purchase of equipment to delivering technology and office equipment to their homes and subsidizing their broadband costs. To support professional development, governments can do the following: BCG’s survey also found that employees place a high value on feeling appreciated and receiving recognition for their work—respondents ranked this among the top ten satisfaction factors globally (German workers ranked it number one). 2 AI in the Factory of the Future: The Ghost in the Machine AT A GLANCE Artificial intelligence is rapidly becoming essential for enhancing the productivity of industrial operations, as it enables producers to reduce conversion costs by up to 20%. But while some respondents did report such a drop, a surprisingly large number said they have been able to maintain or even improve their productivity. When we looked at respondents who are dissatisfied or doing worse on at least three factors, only 16% (from a small sample size, with a confidence interval of +/- 3% at 80% confidence) said they have been able to maintain or improve productivity. Without being able to provide access to a corporate gym, what other benefits, incentives, and structures might you put in place to encourage physical well-being? For those working at home, how do you create the sense of a workplace. But the key questions and examples featured here provide a starting point for consideration so that companies can enhance productivity whenever and wherever work is happening. to changing customer needs. But the standard talent management strategy is sorely outdated. The responses to the survey yielded unexpected insights. Shifts in the way we work are likely to continue as employers move a growing portion of their employees to more flexible models. We found four factors that correlate with employee perceptions of their productivity on collaborative tasks, whether working remotely or onsite: social connectivity, mental health, physical health, and workplace tools. The survey, conducted in the US, Germany, and India, also shows that there is significant appetite for flexible ways of working … Furthermore, our survey suggests that employees miss the connectivity they had with colleagues in the office. Social Connectivity. Sharing talent across public-sector agencies can also help governments build long-term capabilities. Governments can also tap into the growing desire for purpose-driven work, an area where they have a natural advantage over the private sector—although not a mono­poly. For a long time, physical health has been recognized as a driver of productivity, reducing absenteeism and creating a more focused, higher-performing workforce. To fulfill this role, HR must be equipped for effective strategic workforce planning (SWP). Indian companies recognize the need for a more diverse workforce and have initiated pro-grams to drive inclusion. Some agencies have established leadership academies that offer courses on pressing digital topics, such as managing tech disruption and adopting a data-driven mindset. While awareness of the impact of mental health on work has been increasing, the pandemic—and the stresses and anxieties it has created—underscores how critical it is for employers to recognize the links between mental health and productivity. to lose ground with every step. 82. Early Solutions. Employers can also make a therapist available for confidential appointments. To understand why, we dug more deeply into the data. Early Solutions. If we could take a walk around the future workplace, what would we see? It is encouraging, therefore, that managers appear receptive to flexible models. BCG was the pioneer in business strategy when it was founded in 1963. While some jobs will be lost, and many others created, almost all will change. The City of Chicago teamed up with insurer Allstate to develop a data-driven model that helped health inspectors monitor food establishments, allowing them to zero in on health violations more quickly than ever before. Several significant trends are radically transforming the way government employees carry out their daily responsibilities, including a shift toward a more digital and agile mindset in the workplace and citizens’ expectations of a seamless digital experience across government services. This experience is yielding fascinating insights that have significant implications for the way we should organize work. https://www.bcg.com/.../2019/building-government-workforce-of-the-future Harvard Business School’s Project on Managing the Future of Work and BCG’s Henderson Institute, 2018. Mental Health. This Future of Work Survey allowed us to assess how remote working has Patients Prescribers Medical Representatives/ Pharmacos Pharmacy. For many, this means embracing agile behaviors and mindsets in order to lead and empower cross-agency agile teams. But to do that, they need to start by changing the culture in their businesses. Governments can A CEO’s Guide to Leading and Learning in the Digital Age in three main ways: they can build it, by developing skills internally; buy it, by hiring; or borrow it, through the use of temporary or contract employees. SWP requires two things governments often lack: accurate data on the workforce and an HR team with advanced-analytics capabilities. In the following sections, we present some of these questions, along with examples of solutions that could spark ideas. A US Congressional Budget Office report found that from 2011 through 2015, federal workers with a professional degree or doctorate earned 24% less than their private-sector counterparts. While this is a subjective productivity indicator, the data is still striking. The good news is that companies have already been investing heavily in the tools needed to work remotely. Things that might once have seemed impossible have proved surprisingly workable. BCG surveyed, in collaboration with KRC Research, more than 1,500 managers and 7,500 white- and blue-collar employees across 15 European countries in a broad range of industries, and interviewed numerous European busi-ness leaders at major companies. While there have In Australia, a 2015 survey reported that only 34% of public servants felt their agency rewarded performance appropriately. To be prepared for the future, you have to understand it. In the digital era, the public sector often can’t compete with the generous compensation packages offered by private-sector companies, particularly when recruiting for highly skilled, in-demand professions. A productive workforce is a healthy workforce. It’s hard to overestimate the disruption to work that has taken place over the past several months. BCG’s Centre for Canada’s Future surveyed over 5,000 working Canadians on gender, LGBTQ2, racial and ethnic, Indigenous, and disability issues in the workplace.1 Respondents vary in age and seniority, live across the country and work in a range of industries and roles. Increasing mobility across government contributes to richer career paths, greater employee engagement, and a better match between talent supply and demand. The UK Civil Service has a long tradition of temporarily assigning people to the private sector to improve the transfer of knowledge across sectors. Remarkably, however, instead of finding a collapse in the functioning of business, our research reveals something few might have predicted: employees perceive that their productivity has predominantly stayed the same or even improved. We explored their attitudes toward flexibility, productivity (on individual, collaborative, and managerial tasks), well-being, career security, social connectivity, culture, learning and development, and the work tools they use. This makes it even more important for governments to deliver a value proposition that satisfies the expectations of today’s workforce. By Kam Dhillon, January 11, 2018 - Future Workplace • Future Workplace 2025 • Future Workplace 2025 - Articles • Future Workplace 2025 - Resources • Research An overwhelming 92% of participants in the Workplace 2025 study in the Benelux region state that interoperability with outdated technology is a challenge to workplace productivity. How do you build social capital with new employees who are fully remote? Governments can use similar techniques to collect data and metrics across agencies and systematically measure the effectiveness of talent initiatives. It can be an outcome that drives productivity, value and impact by unlocking human potential and creating an organization that is resilient to risk, fit for the future and grounded in meaning for workers whose identity will drive sustained results. Governments need a major human resources overhaul. This crisis has presented a once-in-a-lifetime opportunity to reinvent the workplace. Survey question: In my company, we have a clear understanding of which digital capabilities will be needed of employees in the future. To counter this concern and promote equal participation in meetings, one option is to have all participants dial in to the call individually, even if they are onsite. As described in a recent post from one of our BCG leaders, the serendipity of impromptu hallway or cafeteria-style meetings can be recreated by randomly FaceTiming team members to ask how they are doing. However, governments often do not sufficiently invest in learning and career development opportunities. Leadership Development, Early Solutions. countries in workplace inclusion. Although the COVID-19 pandemic has led to economic, health, and social devastation, it has also created an unprecedented opportunity: to run the world’s biggest-ever workplace experiment. The workplace has undergone a dramatic shift that is fundamentally changing how we work and collaborate. Our survey found the pandemic has forced employers to move an unprecedented share of employees—some 40%—to remote working. Investments in physical infrastructure, support (such as daycare), and digital technologies will of course be essential. This means promoting positive healthy behaviors in the remote and hybrid workplace. Along with emphasizing this value through branding and communications, agencies can give employees more choice over how and where they contribute as public servants. Boston Consulting Group is an Equal Opportunity Employer. But to benefit fully from the changes, organizations need to focus on helping leaders, managers, and employees to promote physical and mental well-being and—most important—virtual social connections. Please rate on a scale of 1-4: “The advanced use of techno-logy is already a requirement, but it will become even more important in the future. All rights reserved. Some companies were already investing in tools for the virtual workplace before the COVID-19 outbreak. have a significant impact on their workforces. The desire to innovate in government can be a tough sell in a risk-averse culture driven by public scrutiny and accountability to taxpayers. When teams are split between home and office, remote members often feel at a disadvantage during meetings vis-à-vis those who are physically together. And collaborative productivity is essential for any company looking to improve communication, increase efficiency, accelerate skills acquisition, or harness innovation. Governments are finding it harder than ever to attract and retain talented employees with the skills necessary to be valuable assets in the digital age. Understanding the drivers of productivity in this new environment and designing appropriate, sustainable working models are crucial to the success of work—both today and tomorrow. To retain digital-age employees seeking greater autonomy and empowerment, it is particularly important for governments to create an innovative, collaborative, and agile culture. Employers can also consider scheduling regular meetings while out walking in order to build physical fitness into the workday. To access in-demand capabilities, governments can form partnerships with organizations outside the public sector. Digital, Technology, and Data, August 11, 2020  A state government in Australia worked with a health insurer to access data and analytical talent in order to better understand which clinical practices and medical treatments provided the best long-term outcomes for patients. Some 75% of employees said that during the first few months of the pandemic they have been able to maintain or improve productivity on their individual tasks (such as analyzing data, writing presentations, and executing administrative tasks). These AHCA/NCAL members used BCG Research to collect, calculate and download their CoreQ scores to achieve this recognition. This response was most pronounced in the US (67%), while the figure was 50% in India. This evolution will increase the need for employers to measure employee productivity in conjunction with employee perceptions. In March, for example, Starbucks announced that it would provide all its US-based employees and eligible family members with 20 free therapy sessions a year, according to the Wall Street Journal. Credit Suisse uses analytics to predict which employees are most likely to quit (on the basis of variables such as team size, managers’ performance ratings, and length of time in a role). (See Exhibit 2.) When we asked respondents about their satisfaction with tools such as videoconferencing, virtual white boards, and project management software, we found another powerful driver of productivity: employees who are satisfied with their tools are about twice as likely to have maintained or improved their productivity on collaborative tasks as those not satisfied with their tools. In Australia, a 2015 survey reported that only 34% of pub-lic servants felt their agency rewarded per- People Strategy, May 23, 2019  When reimagined, work can be more than a process. Moreover, focusing on well-being and social connectivity will serve another important purpose: helping employees to recover faster from what, for so many people, has been a traumatic, painful, and stressful period. Nonetheless, important gaps remain. Today’s employees expect their employers to give them an opportunity to work in flexible and collaborative ways. Additionally, ­Singapore’s Public Service Leadership ­Programme develops leaders with specialized capabilities for key functions that span multiple agencies in areas such as economy building, infrastructure and environment, security, social issues, and administration. Companies need to find ways of supporting employees’ mental health in the new remote and hybrid workplace. This highlights the importance of building time for sleep, exercise, and nutrition into the new work routines. February 21, 2020 – Companies may be postponing further evolution of their technology organizations, a survey finds. 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