The challenges that leaders face today are more significant and complex than they’ve been in generations. Global crises such as climate change and destabilising inequity demand action. Accelerating the workplace’s digital journey carries tremendous execution risk. And people want and need more support and inspiration from their employers. Burnout has become its own epidemic, now recognised by the World Health Organization as an official disease. Weary, anxious workers are resigning from their jobs in record numbers around the world.
For organisations to thrive, they need to access their people’s full potential and develop and execute new, dynamic strategies. In our Future of Work and Skills Survey, conducted in September 2021, the nearly 4,000 business and human resources (HR) leaders who responded collectively identified six ‘no-regrets’ moves as important to their workforce strategy—and agreed that they are taking action. But when given a choice to agree ‘slightly,’ ‘moderately’ or ‘strongly,’ only 20 to 30% agreed strongly that they are taking action today.
Across all six broad no-regrets categories, the three specific actions that leaders in our survey were most likely to say were important but that they were not acting on are all related to digitisation or automation. The top three inhibitors to progress on these and other challenges were cost, lack of leadership capability and organisational culture. These stumbling blocks highlight the importance of shoring up both the financial and the human capital elements of the tech equation.
Leadership and organisational culture are, of course, linked. For leaders to make progress on their digital agenda and address urgent challenges, they will have to change their own behaviours and their people’s. Leaders will need to lean into data and develop their ability to use it to make more deliberate decisions. They’ll need to help shape their people’s behaviours by modelling changes in how work gets done and by putting actions behind their words on issues such as well-being and diversity, equity, and inclusion targets. Leaders will also have to invest in new cloud technologies, automation, and data models that fuel outcomes-based decision-making and meaningful returns on investment.
Identifying the risks of replacing human work with technology
Identifying the skills workers will need in the future due to technology
Communicating clearly about the effect of automation and AI on future skills needs
These are the factors that leaders in our survey were most likely to say get in the way of them taking action:
Cost pressures
Leadership capability
Organisational culture
Optimising productivity is about focusing on what you can control, and it’s integral to overcoming challenges related to digitisation and automation. Our survey confirms what has been widely reported elsewhere: remote or hybrid work boosted productivity in most workplaces. In our survey, 57% of respondents said their organisation performed better against workforce performance and productivity targets over the past 12 months. Only 4% said their company performed significantly worse.
Given these findings, now is the time for leaders to build an environment that supports sustainable productivity rather than fret about monitoring employees. Being productive for a day or week is meaningless if that productivity comes at the expense of well-being. Giving workers flexibility to manage their work and home lives as they see fit and take time to rest, and supporting their diverse circumstances and needs, will help them to be healthy, mentally and physically. And this will make it more likely that they’ll perform well in the long term.
It makes sense that certain sectors that are either chronically under-resourced, such as government and the public sector, or that are fully in the throes of disruption, such as EU&R, have the least confidence in their abilities and the level of action they have been able to take in these six important areas. It’s also logical, then, that tech-oriented industries such as TMT, which tend to have a professional, in-demand workforce, are more confident of their firms’ abilities and preparedness for the future. Countries and regions that are more optimistic will see that the sentiment is contagious. And a more optimistic workforce will feel free to do their best work and be their best selves.
In September 2021, PwC commissioned a global survey of 3,937 business executives and HR-focused leaders. The survey polled leaders in 26 countries and regions and 28 industries.