Issue 14 - Summer 2020
We are living through a fundamental transformation in the way in which we work – never before has change accelerated at such a pace. In this article we will explore some of what is coming down the line for our workplaces – this will include looking at what changes we can expect from the workforce and the workplace of the future, what impact technological advances are having, and what the workplace in 2030 may look like. We’ll also hear from a number of key players within insurance and get their opinions.
The evolution in the workplace is challenging organisations and forcing employees to rethink everything we thought we knew about what it is to work. Rapid technological innovation, globalisation, shifting demographics, new behaviours and climate change are just some of the areas impacting upon the work we do, as well as the skills that are required. The changes that are coming bring with them enormous benefits for businesses and for the workforce, enhancing the workplace and enabling many of us to do our jobs more efficiently and with greater ease. However they also bring up major organisational, talent and HR challenges – and this is at a time when businesses are already facing unprecedented risks and uncertainty.
In many ways the workplace of the future is already here – it maybe still only in its infancy but a lot of the changes we are expecting to see in the future are already in motion.
Globalisation has in many ways made the world a lot smaller – language, currency, location – all things previously thought of as obstacles no longer are, and this allows companies to tap into talent anywhere in the world at any time.
In recent years we have seen technology impact every aspect of business behaviour, including the way we communicate, collaborate, teach, learn, find information, and create content – and this is forcing companies to completely re-imagine the way we work.
Behaviours of employees have dramatically changed – for example, we demand more in terms of work, life, balance – we want more flexibility and diversity is expected in the workforce.
We’re also working remotely a lot more – work is becoming something that’s with you, rather than something you go to. Businesses are starting to realise that employees working from home doesn’t have to signify a halt in productivity, collaborative work, or company progress. In fact it can often lead to a happier and more productive workforce. But it does raise the question about what we lose in terms of meaningful relationships.
The emergence of the ‘Gig Economy’ has seen more people working freelance, but this brings with it some potential issues.
Many freelance workers won’t have the same entitlements and benefits, such as health insurance, pensions etc, as those in full-time employment and so it’s expected that this could be a major issue in thirty or forty years time.
Many of the jobs that are around now didn’t exist a decade ago and many of the jobs which exist today could be made redundant by automation and artificial intelligence or they could be replaced by new roles which have yet to be invented.
The organisations that will flourish in this new environment are the ones who will be able to attract and retain employees. But as employees demand more from their place of work, businesses need to think about creating a workplace where employees want to work – rather than assuming it’s a place where employees need to work.
Industry 4.0 is the popular term for the fourth industrial revolution, which is characterised mainly by the influx of a wide range of new technologies that combine the physical, digital and biological worlds. This new wave of technology is enhancing the way in which we do business, enabling organisations of all sizes to be more productive and creating new jobs that demand new skills. However on the other hand, as cognitive abilities and tasks that were once reserved for humans are increasingly being carried out by machines, there is a growing concern about the impact on jobs.
Ten years ago if AI was mentioned in a boardroom or on a conference call it would have been laughed at. Whereas nowadays it’s becoming increasingly apparent that companies need to take notice. AI covers a broad range of technology, but as Bernard Marr, an international Futurist, says it’s the ‘crucial lynchpin of much of the digital transformation taking place today as organisations position themselves to capitalise on the ever growing amount of data being generated and collected.’ Marr also says that at its core, AI is based on the premise of building machines that are capable of thinking like humans, something that is still widely under debate both practically and ethically.
In industry, AI is being harnessed for everything from fraud detection to customer service and in manufacturing it’s used to manage workforces and productive processes to predicting faults before they occur. In our everyday lives, we’re already surrounded by AI and we don’t even realise it – drones, self-driving cars, Smartphone assistants – all use AI technology.
It is anticipated that over the coming years AI will become much more prevalent and companies will be able to exploit it to increase productivity – however with this comes the fact that some jobs may become obsolete. The OECD estimates that in the coming years, almost 14% of jobs are likely to be automated, while another 32% are at high risk of being partially automated – so nearly 1 in 2 people are likely to be affected in some way.
However many believe that in most cases the nature of jobs will change rather than disappear. The Irish Institute of Training and Development and Skillset Ireland recently (December 2019) published research – entitled ‘Enabling the Workforce of the Future: The Role of Learning and Development’ and it found that the changes will inevitably result in the emergence of new jobs and require the acquisition of new skills by employees and that while some jobs will disappear due to advances in technology many others will be transformed. The research also found that it’s almost inevitable that many lower-skilled jobs will be replaced by technology, creating an urgent need to reskill those workers. Many higher-skilled jobs are also likely to be impacted, and this, in turn, will create a need to develop lifelong learning capabilities, as well as an adaptable workforce.
Taken from the PwC "Workforce of the Future" report
Rapid advances in technological innovation
Automation, robotics and AI are advancing quickly, dramatically changing the nature and number of jobs available. Technology has the power to improve our lives, raising productivity, living standards and average life span, and allowing people to focus on personal fulfilment. But it also brings the threat of social unrest and political upheaval if economic advantages are not shared equitably.
The changing size, distribution and age profile of the world’s population
With a few regional exceptions the world’s population is ageing, putting pressure on business, social institutions and economies. Our longer life span will affect business models, talent ambitions and pension costs. Older workers will need to learn new skills and work for longer. ‘Re-tooling’ will become the norm. The shortage of a human workforce in a number of rapidly-ageing economies will drive the need for automation and productivity enhancements.
Significant increase in the world’s population moving to live in cities
By 2030, the UN projects that 4.9 billion people will be urban dwellers and, by 2050, the world’s urban population will have increased by some 72%. Already, many of the largest cities have GDPs larger than mid-size countries. In this new world, cities will become important agents for job creation.
Power shifting between developed and developing countries
The rapidly developing nations, particularly those with a large working-age population, that embrace a business ethos, attract investment and improve their education system will gain the most. Emerging nations face the biggest challenge as technology increases the gulf with the developed world; unemployment and migration will continue to be rampant without significant, sustained investment. The erosion of the middle class, wealth disparity and job losses due to large-scale automation will increase the risk of social unrest in developed countries.
Depleted fossil fuels, extreme weather, rising sea levels and water shortages
Demand for energy and water is forecast to increase by as much as 50% and 40% respectively by 2030. New types of jobs in alternative energy, new engineering processes, product design and waste management will need to be created to deal with these needs. Traditional energy industries, and the millions of people employed by them, will see a rapid restructuring.
A dedicated and relentless focus on Customer Centricity is vital. Markets tend to punish those who do not adapt, so to future proof, organisations must begin and end their commercial strategies with a focus on customer value. This is easy to say and hard to achieve, but this is why many Insurers now are transforming, in order to practically effect what amounts to a paradigm shift in their companies.
The advancements have already happened. The lowering of costs and barriers to access technology has already seen the rise of disruptive Insurance and Financial service Companies that take one simple offering and execute it perfectly. This over time will have a direct impact on the retail side of the industry, for example, customers who consume PAYG insurance services as and when they need them in the channel most accessible to them.
I wouldn’t say obsolete necessarily but many roles will need to change and those who work in them will need to adapt and pivot to a way of working both individually and collectively, which provides new value commensurate with rising customer expectations and the potential new technologies afford to support that.
Learn broadly and widely about business and strategy, not just insurance. All of our jobs, no matter what the role, will be focussed on delivering the best product and service to the customer at the right time. Learn about customer experience and have it at the core of everything you do.
I think the advances being made will transform the workplace. AI technologies will offer new job opportunities and avenues for economic advancement. A number of jobs will be displaced by automation, however, there will also be jobs created by technological innovation.
I think the advances being made will transform the workplace. AI technologies will offer new job opportunities and avenues for economic advancement. A number of jobs will be displaced by automation, however, there will also be jobs created by technological innovation. The insurance industry will benefit from technological changes in the form of higher productivity and improved corporate performance but the advances will also change the skills required and ultimately the jobs available. The advances will allow people to focus on the core aspects of their roles and technology will enable us to work smarter.
Talent is and always will be the most important piece from my perspective, people crave human interaction in times of crisis and no piece of technology can replace that aspect of what we do. Technology will help us work smarter but our talent will remain key. The insurance industry can build a strong pipeline of talent using its brand and its employees, there is no better marketing tool than your employees, if you foster a creative and trustworthy environment to work in people will seek out your organisation.
In order to prepare for the future, we must be highly agile. To harness new technologies to their full effect, we will need to retool corporate structures and ultimately change our approach to work. A key element to future success will be in providing continuous learning options and instilling a culture of lifelong learning throughout insurance organisations. A well-trained workforce, equipped with the skills required to adopt automation and AI technologies will ensure that our industry will enjoy strengthened productivity growth and that the talents of all are harnessed.
Social-first and community businesses prosper. Crowdfunded capital flows towards ethical and blameless brands. There is a search for meaning and relevance with a social heart. Artisans, Makers and ‘New Worker Guilds’ thrive. Humanness is highly valued.
Organisations and individuals race to give consumers what they want. Innovation outpaces regulation. Digital platforms give outsized reach and influence to those with a winning idea. Specialists and niche profit-makers flourish.
Social responsibility and trust dominate the corporate agenda with concerns about demographic changes, climate and sustainability becoming key drivers of business.
Big company capitalism rules as organisations continue to grow bigger and individual preferences trump beliefs about social responsibility.
