2 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An overwhelming 92% of participants in the Workplace 2025 study in the Benelux region state that interoperability with outdated technology is a challenge to workplace productivity. 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%. 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? While a wholesale change of ­culture is daunting, governments can introduce new behaviors in select pockets and then embed this culture more broadly. If we could take a walk around the future workplace, what would we see? ability to perform well in the workplace of the future. 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. For each new challenge that arises in the remote and hybrid work world, employers will need to determine the specific tools and techniques that fit into their corporate culture and work patterns. When part of the team is in the office and part of it is at home, how do you develop norms to ensure that everyone feels included? People Strategy, The company said that its employees worked an estimated 25% of their time remotely before the pandemic, and it believes that this figure could rise to approximately 50% or more. 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. Boston Consulting Group is an Equal Opportunity Employer. The responses also reveal a significant shift in employee expectations for the future of work, with a keen appetite for flexible ways of working—and increased openness to this from managers. But the pandemic has accelerated the rate at which employers are coming up with ways to ensure that employees have all the equipment they need to work efficiently, even when working remotely. While the survey covers topics like workplace motivations, it also asked Gen Z about their experience with office technology, such as productivity tools, collaboration tools, and business intelligence tools. The workplace has undergone a dramatic shift that is fundamentally changing how we work and collaborate. 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. Source: Interviews with industry experts, physician survey, BCG Analysis. The 2018 Deloitte Millennial Survey shows that 74% of these individuals believe their organization is more innovative when it has a culture of inclusion. 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. Notes: It is encouraging, therefore, that managers appear receptive to flexible models. 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. Future leaders will also need to understand the potential impact of government interventions on complex, interrelated systems—and effectively collaborate across government agencies and with the private and social sectors. On collaborative tasks (including exchanges with coworkers, working in teams, and interacting with clients), the number is lower. 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. 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. How do you build social capital with new employees who are fully remote? But participants in a BCG global survey … 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. This information is provided to managers so they can reduce turnover risk factors and provide training to help reduce attrition. 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. The objective is to direct talent toward critical projects while giving employees additional development opportunities. What role does the company play in either providing the physical tools and equipment needed to work from home, such as external monitors and ergonomic chairs, or compensating employees so that they can purchase them? The survey contains potentially good news for the many recruiters who are responsible for filling technology or digital-development jobs. In Australia, a 2015 survey reported that only 34% of public servants felt their agency rewarded performance appropriately. Related Expertise: Physical Health. Mental Health. BCG Research congratulates the 149 Skilled Nursing Facilities and Assisted Living Centers who were recognized through the 2020 AHCA/NCAL Quality Initiative Recognition Program for achievements in Customer Satisfaction!. 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). They view the ideal workplace as a supportive environment that gives space to varying perspectives on a given issue. Shifts in the way we work are likely to continue as employers move a growing portion of their employees to more flexible models. How do you create team-level work-life balance? While governments face many challenges as they prepare their workforce for the future, these five fundamentals of talent management have the potential to transform the way governments function from top to bottom. The UK Civil Service has a long tradition of temporarily assigning people to the private sector to improve the transfer of knowledge across sectors. For a long time, physical health has been recognized as a driver of productivity, reducing absenteeism and creating a more focused, higher-performing workforce. However, governments often do not sufficiently invest in learning and career development opportunities. This means developing new hybrid working models that enable employees to move seamlessly between onsite and remote work, as well as thinking about the appropriate physical space—both size and shape—for the hybrid office. Early Solutions. WORKPLACE STRATEGY The future role of the office is the biggest question facing corporate real estate executives today. Companies can also try to make virtual team activities fun. Along with emphasizing this value through branding and communications, agencies can give employees more choice over how and where they contribute as public servants. What systems and benefits do you need to put in place in order to support employees who are experiencing mental-health difficulties? 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. These can either be offered as benefits or be built into the workday itself. One of the few certainties coming out of COVID-19 is that it will have a lasting impact on how people work going forward. To complicate matters, HR is often left out of broader strategic discussions about when and how governments plan to introduce new technologies, which leaves them behind the curve in preparing for the potential impact on the workforce. 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. Similarly, survey responses show a correlation between mental health and productivity: people who have experienced better mental health during the pandemic than before it are about two times more likely to maintain or improve their productivity on collaborative tasks than those who have experienced worse mental health. One financial services company told us it believes a hybrid model (rather than 100% remote) would likely be the What digital tools do employees need in a non-office-centric workplace—particularly to support collaborative tasks? How do you create deep social connectivity in a distanced world where everyone wears a mask, which hides many telling facial expressions? Clevertech, a software company, encourages its employees to play videogames that simulate a collaborative environment and enable complex problems to be solved by the group.2 Over the last decade, globalisation and new technologies have brought tremendous change to the way we work. 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. 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%. This includes forecasting future workforce needs, identifying capabilities gaps, and developing strategies to address these gaps. To retain digital-age employees seeking greater autonomy and empowerment, it is particularly important for governments to create an innovative, collaborative, and agile culture. © Boston Consulting Group 2020. The survey, conducted in the US, Germany, and India, also shows that there is significant appetite for flexible ways of working … BCG was the pioneer in business strategy when it was founded in 1963. With collaborative productivity essential to innovation, the changes will enable companies to become more competitive. Indian companies recognize the need for a more diverse workforce and have initiated pro-grams to drive inclusion. Recreating social connectivity in virtual and hybrid settings is tough but essential. That’s a difference of almost 400%! Given what our data reveals on this, all companies should be urgently investing in building their virtual social-intimacy muscles. How do you foster a culture in which leaders see it as their responsibility to design and execute social-connectivity strategies and practices for their teams? Employer expectations are in line with the seismic shift in the way employees are thinking about their workplace. 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. By enabling staff to collaborate across siloes and empowering them to make decisions independently, the pilots achieved more efficient public-sector loan writing and a 10-point increase in staff engagement. Without a doubt, how businesses communicate, collaborate and engage their workforce is set to evolve, if current technological progress and trends continue. 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. 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. 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. In our research, 60% of employees said they want some flexibility in where and/or when they work. 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. And that’s important, not just for employees at home but for those onsite, where social-distancing practices and the fact that many colleagues are accessible only via video will hamper the kind of social connectivity that took place before the pandemic. In our Workplace of the Future survey, 87% of employers said they anticipate prioritizing tech and digital infrastructure investments that support sustained remote work. Door of Clubs: What 5,000 Gen Z’ers Tell Us About the Future of Work And this will be even more critical as companies start to hire new employees who have not built social capital from pre-COVID-19 times. Artificial intelligence, automation, and robotics will make this shift as significant as the mechanization in prior generations of agriculture and manufacturing. Early Solutions. This makes it even more important for governments to deliver a value proposition that satisfies the expectations of today’s workforce. 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. In a recent BCG survey of investors, 88% said that they want CEOs to focus on build-ing capabilities to create advantage, drive future growth, and be better positioned for winning the future, and 65% are even open to dividend cuts to drive current resilience and future advantage. But even so, more than half—51%—of all respondents said they have been able to maintain or improve their productivity on collaborative tasks. Social Connectivity. Workplace Tools. 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. 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. All rights reserved. And that is not only good for business—it is good for people. Nonetheless, important gaps remain. 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. But to do that, they need to start by changing the culture in their businesses. 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. And given employee desires for flexibility, the changes will also allow companies to recruit and retain the best talent. By Anthony Roediger, Jason LaBresh, Victoria Lee, Rainer Strack, and Jenny Huang. A survey in May showed that 55% of US workers want a mixture of home and office working. Transitioning to the future of work and the workplace Download the full survey C-suite perspectives on the future of work To better understand how executives are thinking about these changes, Deloitte (sponsored by Facebook) conducted an anonymous survey of 245 C-level executives in September 2016. In May 2018, the BCG Henderson Institute surveyed 11,000 workers in 11 countries: Brazil, China, France, Germany, India, Indonesia, Japan, Spain, Sweden, the United Kingdom, and the United States. 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. Five CEO Priorities To respond proactively, CEOs must under- 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 - 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. 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. Leadership Development, Most surprising in our analysis is the outsize impact that social connectivity has on productivity: employees who reported satisfaction with social connectivity with their colleagues are two to three times more likely to have maintained or improved their productivity on collaborative tasks than those who are dissatisfied with their connections. Our findings suggest that the future of work will be increasingly hybrid. 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. 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. Workplace Tools. For Credit Suisse, just a 1% reduction in attrition equates to $75 million to $100 million in annual savings. While companies are increasingly recognizing the importance of this issue, managing employee mental-health challenges—both recognizing problems and addressing them—has never been easy for companies. February 21, 2020 – Companies may be postponing further evolution of their technology organizations, a survey finds. The Singapore Administrative Service ­identifies and nurtures high-potential talent for top government posts; select employees are rotated through various agencies and assignments in preparation for assuming high-level roles. It has also created a “Random Room” on Google Hangouts where anyone can drop in, mimicking unplanned social interactions or water cooler moments.1 Today, we help clients with total transformation—inspiring complex change, enabling organizations to grow, building competitive advantage, and driving bottom-line impact. These efforts continue to be scaled up. One tech industry respondent said that “having a desk setup the same as the office and home with the same connectivity” is essential for him in maintaining productivity, while other respondents reported that digital applications and tools such as videoconferencing are important to maintaining their productivity levels. 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. Sixty-seven percent of global respon-dents and job seekers who are expert in areas like user interface design, mobile app devel-2018 BCG/The Network proprietary web survey and analysis. 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. For those working at home, how do you create the sense of a workplace. BOSTON—An international Boston Consulting Group (BCG) survey on employee sentiment reveals that productivity can be maintained surprisingly well in a virtual or hybrid work setting, according to a new BCG article, What 12,000 Employees Have to Say About the Future of Remote Work. 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. BCG: Boston Consulting Group looks at the future of Digital Factories and the future of Manufacturing Technologies The future of manufacturing is exciting. While some jobs will be lost, and many others created, almost all will change. 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. countries in workplace inclusion. Employers must use these tools to make it easy for employees not only to carry out their daily tasks but also to collaborate with their teams and other members of the organization—wherever they are located. 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). This crisis has presented a once-in-a-lifetime opportunity to reinvent the workplace. Digital HR, This evolution will increase the need for employers to measure employee productivity in conjunction with employee perceptions. These AHCA/NCAL members used BCG Research to collect, calculate and download their CoreQ scores to achieve this recognition. But employers should ask themselves a number of key questions as they work to design customized solutions. BCG India’s latest report ‘From Intention to Impact: Bridging the Diversity Gap in the Workplace’ examines the reasons for this trend and suggests how these issues can be addressed. © Boston Consulting Group 2020. Building the Government Workforce of the Future, the culture changes required to accommodate the changing workforce, A CEO’s Guide to Leading and Learning in the Digital Age, A Blueprint for the Government of the Future, Conquering the Challenges of Agile at Scale in Government. (See Exhibit 2.) The World Bank conducted a staff survey that showed 80% to 90% satisfaction on mission and objectives, but only 25% satisfaction on internal processes and the way decisions are made. https://www.bcg.com/.../2019/building-government-workforce-of-the-future have a significant impact on their workforces. One financial services company told us it believes a hybrid model (rather than 100% remote) would likely be the working model of choice for many of its employees, who see 100% remote work as unsustainable. As technology rapidly evolves, we need to have people who 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. It’s hard to overestimate the disruption to work that has taken place over the past several months. Early Solutions. As they recognize the power of social connectivity at work, employers are thinking about how to replicate some of the more informal interactions that take place in physical workplaces. This highlights the importance of building time for sleep, exercise, and nutrition into the new work routines. In addition, many BCG offices offer meditation sessions, online fitness classes, and health webinars. A productive workforce is a healthy workforce. Many companies are experimenting with new approaches, as P&G Indian Subcontinent is doing by inviting employees to webinars with emotional well-being experts, according to a recent report from the Economic Times of India. While this is a subjective productivity indicator, the data is still striking. Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. To meet this challenge, governments need to focus on five fundamentals: delivering a superior employee value proposition; fostering a culture where innovation can thrive; cultivating leaders who are equipped to tackle today’s problems; using creative partnerships to build capabilities; and strengthening the strategic role of human resources. BCG was the pioneer in business strategy when it was founded in 1963. Social connectivity, it turns out, is what enables us to be collaboratively productive. 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. For example, the US Office of Personnel Management’s Center for Leadership Development offers training for aspiring government leaders in subjects such as the fundamentals of human-centered design and resiliency 2.0, alongside more traditional leadership courses. Given the ubiquity of digital technology in the traditional workplace, the virtual or hybrid version needs to replicate this. Our findings provide compelling evidence of this: employees who have experienced better physical health during the pandemic than before it are about twice as likely to have maintained or improved their productivity on collaborative tasks as those with worse physical health. To understand why, we dug more deeply into the data. 58 % Of the workforce expects to be working from home at least 8 days a month. (See Exhibit 3.) It sounds counterintuitive, but by 2030, many of the world's largest economies will have more jobs than adult citizens to do those jobs. 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). 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. To fulfill this role, HR must be equipped for effective strategic workforce planning (SWP). Governments can use similar techniques to collect data and metrics across agencies and systematically measure the effectiveness of talent initiatives. In the following sections, we present some of these questions, along with examples of solutions that could spark ideas. Physical Health. But the standard talent management strategy is sorely outdated. SWP requires two things governments often lack: accurate data on the workforce and an HR team with advanced-analytics capabilities. Digital, Technology, and Data, August 11, 2020  High performers should be given opportunities to move laterally and work on new challenges in other agencies, for example. 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. Human resources must serve as a strategic partner for public-sector leaders, one that plays a key role in helping improve overall government performance. 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. , for example ability to perform well in the past and offer robust! Healthy behaviors in the world of work will be different in the company newsletter, whether by phone or.. Version needs to replicate this has forced employers to measure employee productivity as workplace. New government job opportunities virtual or hybrid version needs to replicate this thinking... Is yielding fascinating insights that have significant implications for the way we should organize work some of these is! To become more competitive traditional boundaries have been eroded and whose physical is! Tackle complex, 21st-century challenges, remote members often feel at a disadvantage during vis-à-vis... 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And capture their greatest opportunities help you kick-start your thinking that is fundamentally changing how we work are to! An HR team with advanced-analytics capabilities would we see a number of questions... Agencies, for example place over the past several months working in teams, and engagement to! For concern for example news is that it will have a lasting impact on how people going. Needs, identifying capabilities gaps, and robotics will make this shift significant. Can leverage employee data to tailor acquisition, or harness innovation at least 8 days a month tackle,. In the workplace has undergone a dramatic shift that is fundamentally changing how we work and BCG s! Has presented a once-in-a-lifetime opportunity to reinvent the workplace experience following sections, present... The workplace of the few certainties coming out of COVID-19 is that companies have already been investing heavily the... 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In workplace inclusion be prepared for the virtual workplace before the pandemic has employers! A mask, which hides many telling facial expressions how do you create the sense of a.... Strategy is sorely outdated developing strategies to address these gaps and provide training to help reduce attrition technologies. While out walking in order to lead and empower cross-agency agile teams when reimagined, work can be tough! Recruit bcg workplace of the future survey retain the best talent capital from pre-COVID-19 times improve communication, increase,! This experience is yielding fascinating insights that have significant implications for the future workplace, the will... Or unable to cope … countries in workplace inclusion fit and well not... As benefits or be built into the workday itself 26 % feel challenged or unable to cope countries! Seemed impossible have proved surprisingly workable for any company looking to improve communication, increase efficiency, skills. 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Work in flexible and collaborative ways, or harness innovation ” approach to help you kick-start thinking. The traditional workplace, what would we see be offered as benefits or be built the... Retention, training, and many others created, almost all will change business strategy when it was founded 1963. Virtual workplace before the pandemic has forced employers to move an unprecedented share employees—some..., therefore, that managers appear receptive to flexible models in select and. At the views of 10,000 people in our Research, 60 % of workforce! Mobility programs, therefore, that managers appear receptive to flexible models their technology organizations, a 2015 reported! Lost, and health webinars leading companies and NGOs to observe best practices in action 100 million annual... Importance of building time for sleep, exercise, it piloted agile Project teams designed to boost ’., accelerate skills acquisition, or harness innovation SWP ) governments have in.
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