The Future of Work - Davidson · The Future of Work | 1. The future of work – what is it? Are we...

The Future of Work

What it means for Queensland businesses

ASSOC PROF. KAREN BECKERPROF. LISA BRADLEYMICHELLE SMIDT

December 2015

The Future of Work | ii

CONTENTS

1 PROJECT FINDINGS OVERVIEW

2 SUMMARY

3 RESEARCH METHOD

4 DATA ANALYSIS

5 TECHNOLOGY

6 DEMOGRAPHICS

7 GLOBALISATION

8 ECONOMY

9 CHANGING NATURE OF WORK

10 POLITICS AND POLICY

11 EDUCATION AND TRAINING

12 ARE WE PREPARED FOR IT?

13 POTENTIAL SOLUTIONS AND CURRENT RESPONSES

15 CONCLUSION

16 ATTACHMENTS

The Future of Work | 1

The future of work – what is it? Are we prepared for it?

QUT in partnership with Davidson conducted research into the future of work and

what it means for Queensland businesses. As a part of this research, focus groups

were conducted with 22 industry representatives in the first quarter of 2015. These

participants were all senior figures in their organisations and shared the strategic

issues currently confronting businesses particularly in relation to the workforce and

the nature of work. The participants included senior HR professionals, business

consultants, industry group representatives and company directors. The focus

group outcomes were analysed to identify major issues for businesses in relation to

how work is changing and the resulting impact on businesses. Seven key themes

were identified.

What is it?

The seven themes related to the issues that are impacting on industries and

individual businesses and the work and workforces within them. These themes were:

� Technology;

� Demographics;

� Globalisation;

� The Economy;

� The Changing Nature of Work;

� Politics & Policy; and

� Education & Training.

Are we prepared for it?

Following on from these issues, participants were also asked about the extent to

which businesses are prepared for these changes. Overwhelmingly, the participants

felt that while there was an acknowledgement of the changes, there is also a lack of

proactive measures being taken to prepare for the changes. In particular, there was

recognition of the need for more forward planning and less reliance on short-term

thinking (driven by the need for profit), which they believed to be prevalent among

the majority of businesses.

Potential solutions

Even though there is room for more forward planning, focus group participants did

offer some potential solutions and examples of current actions that organisations

are taking to meet the challenges associated with the changes to work and the

workforce. These potential solutions and current responses will be explained

further in this report.

PROJECT FINDINGS OVERVIEW

“...as a business owner, I have never been less certain about the future.”


LACK OF FORWARD PLANNING

� Short-term thinking

� Who will the future employers be?

SUMMARY

TECHNOLOGY

� Automation

� Work flexibility

� Social Media

CHANGING NATURE OF WORK

� Move to project based work

� Work fluctuations

POLITICS & POLICY

� Industrial relations laws

� Political volatility

EDUCATION & TRAINING

� Disappearance of low skilled work and entry level positions

� Changing future skills needs

GLOBALISATION

� Global markets

� Workforce mobility

ECONOMY

� Domination of large operators

� Industry shifts within local economy

DEMOGRAPHICS

� Ageing

� Women’s participation

The seven themes


A qualitative method was employed in this research as we sought to better

understand, from the perspective of participants, how they are experiencing

changes in the nature of their business or industry. Focus groups were used to

collect the data. The focus group discussions were guided by questions related

to the themes identified from a review of the current literature, while also allowing

new themes to emerge. Four focus groups were conducted in November 2014

and February 2015 in Brisbane, Queensland, Australia. The duration of the focus

groups ranged between one and a half to two hours. For quality and consistency,

a minimum of two researchers attended each session with one facilitating and

moderating the group and the other(s) taking notes and observing. The focus

groups were further audiotaped and later transcribed verbatim. The research had

ethics approval from Queensland University of Technology.

Participant sample

Purposeful sampling was used to identify participants as it increases data credibility

through the selection of relevant study subjects. Participants were therefore

selected who had a role that provides them with sufficient exposure to a business

or industry in Queensland to understand the current issues and potential future

challenges in the area of employment in this region. Four groups were targeted:

HR Managers across a wide range of industries in Queensland; management

consultants with exposure to Queensland businesses, leaders of industry

associations in Queensland and non-executive directors of companies based in

Queensland. The networks of the researchers and industry partners were drawn

upon to identify the breadth of participants required. The table below shows the

characteristics of the participants.

RESEARCH METHOD

Background Information

Focus Group Number

1 Consultants

2 HR Managers

3 Industry Groups

4 Board Directors

ORGANISATIONAL TYPE

Government 2

Semi-public 1 1 2

Private 7 4 1

Non-profit 1 2 1

ROLE TYPE

HR / People Managers 1 6

Consultants 4

CEO / Director 2

Representatives 5

Board Member 4

GENDER

Male 5 3 4 2

Female 2 3 1 2


Analysis of the data was performed using thematic analysis, which is a flexible

method that can be used to analyse themes emerging from the data. As part of the

thematic analysis, both a theory-driven and a data-driven approach were applied

simultaneously.

In the theory-driven analysis a search for themes similar to those identified in the

literature review was undertaken. During this analysis, any reference to one of the

four themes i.e. Demographics, Technology, Globalisation, or Economy respectively

was coded against the relevant theme(s). In addition, the data-driven analysis was

employed to detect any additional topics falling outside the predefined theory-

driven themes. Any such additional topics were coded against broad theme

headings and subsequently reanalysed and divided into new themes and/or

subthemes as required. Coding was undertaken by one researcher to ensure

consistency, and checked by the other researchers to confirm

findings and enhance dependability of the analysis.

DATA ANALYSIS


The Findings

Technology was overwhelmingly the most discussed

issue across all the focus groups. Technology has had

a significant impact on how Queensland businesses

operate, their markets and their customers, and in turn

this has impacted workforces and the type of work

carried out. In particular, automation, work flexibility

and social media were seen to be heavily influencing

organisations and industries at large.

Technology is reportedly automating previously

manual tasks and challenging traditional business

models, particularly by driving businesses to transact

with their customers electronically as much as in

person:

“…it is more about getting to that online space so that

people do business with us online, instead of face-to-

face. And that has a massive implication. Massive.”

“There’s so much new technology that’s starting to eat away at our markets; and I am

becoming aware of new technology every day.”

“…is our organisation preparing for 2025? Yes, it is, but not for people. It is all about

automation.”

Focus group participants also reported that technology was providing an

unprecedented level of flexibility in relation to where and when people work;

providing many efficiencies, but also requiring businesses to think differently about

how they manage their workforce:

“… there’s more flexible work arrangements and that’s filtering down to workplace

cultures, where people are wanting to attract staff and staff who want to work

somewhere where there is that workplace flexibility; where they can work from home,

… and technology enables all that sort of thing.”

“…technology has given us huge lifts in productivity, let’s face it. The fact [is] that the

client doesn’t need to know whether I am answering their email on my iPhone…”

Social media in particular was reported to be having a large impact on work

and organisations and these changes were predicted to continue to challenge

businesses to work with these technologies:

“[I talked to someone who said] “Oh, we have got 15 people now who do monitoring

[of social media].” It is only a medium-sized business. That is just scary. It is a whole

new industry; it is not going to go away.”

TECHNOLOGY


The Findings

“[…] the other aspect that’s also going to affect us pretty dramatically is the change in

demographics.”

Changing demographics were seen as impacting the future of work. Participants

felt strongly that the changes in the characteristics of the workforce would have far

reaching implications for work in the short and longer term.

The major changes included the ageing population and increasing participation

in the workforce by women. Focus group participants were mindful of the various

effects of an aging population, including the effect on small and family businesses:

“Of interest, also, with … the population getting older; owners of small/medium

businesses not having the next generation wanting the business.”

Further, it was felt that with the population aging, there were going to be changes in

the types of work that people wanted to perform and were able to perform:

“Five years on, I would think that we are probably going to see a turnover of people

in our industry. We know that a lot of the actual production workers in the workforce

…are going to retire in that time.”

DEMOGRAPHICS

Shanti Hesse / Shutterstock.com


The Findings

Globalisation was considered by those in the focus groups to be an important issue

leading to changes in work. In particular, the participants noted that they were now

exposed to global markets, regardless of their location, and they acknowledged the

challenge of increasing workforce mobility.

Many discussed the challenges of conducting business in a global marketplace, but

it was also acknowledged that this may create opportunities for businesses to be

located beyond the usual central business districts:

“I think it will boil down to that explanation of understanding that we play in a global

market; and you can start and run a company/business of any size from anywhere in

Queensland.”

It was predicted that as businesses continued to operate beyond traditional

borders, there would be further challenges to organisations to compete globally:

“I actually think brands are under fire, particularly we will see more brands being

global.”

“I worry about the effect of globalisation and the effect of polarisation on the services

industry.”

This competition did not stop with competing for customers, but extended to the

challenges of attracting and retaining key talent in the workplace. While some

segments of the workforce remain committed to their current employer or at

least location, there was a growing recognition of a professional workforce that

is prepared to move, often

internationally, for an appealing

employment opportunity.

Employers were therefore being

forced to either find overseas

opportunities where possible or

risk losing critical talent:

“Globalisation for us: a big

issue around moving of talent.”

GLOBALISATION


The Findings

The economy was often mentioned as an important

issue by our participants and was frequently linked to

globalisation. The major economic issues identified

included the domination of larger operators as well as

industry shifts within the local Queensland economy,

in particular reflecting on recent downturns in the

resources sector and the flow-on effects for other

industries.

Participants were mindful of the growing trend

towards large operators dominating the marketplace,

and the impact this will have on the small businesses

in the economy:

“… the majors are really squeezing out the small

operators.”

“Even if you look around your own neighbourhood, you

will see that those corner stores are going or they are

gone...”

Many participants reflected on the perceived slowing

in the economy and the impact this will have as a

result. In particular, it was reported that the constant

search for efficiencies was driving a reduction in the workforce that was being felt

across all industries:

“I don’t think there’s enough growth in the economy. If we don’t grow the economy,

we don’t employ people.”

“One year at your industry is all about survival for some and continued cost cutting,

hanging in there until a turn-around.”

“We went from 104 staff to 24, but our growth is well into 30/40 per cent year-on-year; and

capacity to actually maintain and service that growth is quite a challenge for us.”

ECONOMY

“If we don’t grow the economy, we don’t employ people.”


The Findings

Focus group participants discussed their

views about how work itself and the nature

of business were changing. It was felt there

was less focus on long-term employment with

employees in some industries. Participants

identified a trend towards more project-based

work and other workflow fluctuations as being

influential for the future of work:

“Flexing up and flexing down is probably the

single biggest challenge we have…well that is,

you go through peak periods where you need lots

of hands to the wheel; and then you need to be

able to flex down at the same time and basically

let people go, when you don’t need that demand

there.”

“It is a challenge, but we are definitely moving

more and more towards contract because we

have seen change or shifting in skill-sets in the

organisation.”

While participants identified there were business drivers that necessitated a flexible

workforce, it was also acknowledged that there is a downside for individuals and

that there needed to be consideration of broader impacts than just delivering on

current demands:

“…as some projects come off, “How do we keep those people in the industry?” We

have got quite a bit of work that we are doing around trying to help people transition

from project to project and that is in the short-term, one/two-year cycle.”

CHANGING NATURE OF WORK

“...there were business drivers that necessitated a flexible workforce.”


The Findings

Laws around industrial relations and political volatility were two of the issues

identified by the participants as having significant influence on the future of work. It

was reported that the politics of the day had a significant influence, and the volatility

as governments, and subsequent policies, changed, were impacting on businesses:

“We need longer term governments or longer term objectives from governments …”

Participants felt one of the major ways that politics influenced the future of the

workplace was through impacts on the economy. Quotes have been provided

previously around the importance ascribed to the economy, but participants in the

focus groups clearly felt there was a link between politics and policy with economic

outcomes.

“[…] it is just the political volatility and how that’s going to affect everyone’s future, in

particularly the future of the economy.”

Further, public policy and the associated cost of labour were also seen as important.

Participants reported feeling there was a lot of legislation around managing the

workforce, but that this was not stable, and the changes as much as the legislation

itself were potentially costly:

“We work in an environment where the last couple of years you have got to change

your workplace [processes due to changes in] legislation every three to five minutes.”

Big picture questions were also raised by participants in relation to politics and

government. It appeared there was a view that governments and policy needed to

provide direction and strategy around what is important:

“So this whole question of ‘what services

do people want? Who is prepared to pay,

and how they are prepared to pay?’, is a

big public policy question.”

POLITICS AND POLICY

“We need longer term governments or longer term objectives from governments...”


The Findings

Education and training was also raised as a critical

issue to be considered by many of the participants

in the focus groups. The main issues included the

disappearance of low skilled work and entry level

positions, the need for identification of future skills

needs, and enhancing industry focused career

development.

A number of the focus group participants were

genuinely concerned about the loss of entry level jobs

that have traditionally been a training ground for new

graduates and others finishing education and entering

the workforce:

“So if we send our low-level work off-shore, what does that

mean for our graduates and their careers?”

“So the big question is: How do we create an entry level?

How do we help people bridge the gap from school and

career?”

Some were considering the future workforce and what

education or training will be required when there is

no longer unskilled labour as the entry point to their organisation. In one case, a

manufacturing organisation was undertaking extensive analysis to determine what

the future skills needs of their operation will be:

“Within the five/ten-year mark, there will be no place for unskilled labour in

manufacturing, in my view; and that’s going to be really interesting, where those

people come from and what background do they have?”

There was also concern that with the growing amount of project-based work,

industries needed to consider how to develop the workforce more broadly, and

provide career paths that retained talent for ongoing sustainability of the industry:

“And really, for the industry, it is quite easy to skill up a project but, actually, how do

you create a career pathway in a cyclic, project-based, uncertain industry […]”

There was however, some agreement that there are critical skills that will always be

required in the workforce of the future:

“Those skills will have to be people skills; you will have good interpersonal

communication skills; you are going to be able to relate to customers. Those things

are never going to go away.”

EDUCATION & TRAINING

“...how do you create a career pathway in a cyclic, project-based, uncertain industry?”


The findings from the focus groups strongly indicated perceptions that there was a

lack of forward planning by most organisations. There was strong acknowledgement

that the future was changing, but little preparation and activity in relation to adapting

to these changes. It was identified by participants that there was a focus on short-

term thinking and questions about who future employers will be.

“Businesses are thinking short-term.”

This short-term thinking was felt to be a problem for the future and was causing

anxiety for a number of those in the focus groups as it was felt that this was

detrimental to the future of organisations:

“The thing that keeps me wake at night is just the short-term nature of the decision-

making.”

While acknowledging the potential problems with a short-term focus,

the participants also indicated an accompanying and widespread lack of

planning and lack of consideration of future scenarios:

“Strategic planning now - everyone is saying, ‘No use doing a five-year business

plan. Basically, it will change ten times in 12 months.’ That’s okay. But that doesn’t

lead to long-term strategic change/initiatives.”

“There would be very few of those that know what they are going to do in

2016; [they] probably know what they are going to do in 2015.”

Participants identified that one of the problems associated with a lack of

forward planning was the difficulties associated with workforce planning.

It was felt organisations were aware they needed to be doing it, but were

struggling with how to do it well in a changing environment, and so were

often letting it slide:

“What we see in workforce planning is everyone wants to do it. Very few are

doing it.”

Participants in the focus groups clearly linked the short-term focus with

some of the broader issues already discussed. In particular, it was felt there was

a role for governments and public policy to provide a longer term vision, including

global, economic and demographic changes:

“I think a big problem with this, a problem we face: there’s really no-one out there

providing a vision of what the environment might look like for business; what the world

might look like; what the economy might look like; what society might look like in 2025,

2035.”

ARE WE PREPARED FOR IT?

“What we see in workforce planning is everyone wants to do it. Very few are doing it.”


While focus group participants felt there was limited action being taken to prepare for and

respond to changes in the nature of work and in workforces, there were some potential

solutions or actions identified. Examples were given from a range of industries where

some organisations are taking steps to address the challenges raised.

Many reported constantly monitoring the environment and their industry for

changes and developing the ability to move quickly in response to changes:

“We most certainly are looking at those marketing indications, technology

indications; watching everything very closely and starting to develop that… agility.”

Beyond monitoring, four key solutions and actions were seen to provide

opportunities to address the challenges.

1. Developing the workforce

Education, training and career development approaches were seen as an

area that can help individuals to prepare for an unknown future, but also help

organisations and indeed entire industries to handle the changing world in

which we work and live.

Many believed some of the changes to the workforce and to the nature of

the work itself will challenge the education system as it currently stands, and

that government policy needed to be in step with these changing priorities.

“… it is a policy setting thing, making sure - government is trying to make sure that we

have the right kind of people through the education system and the right numbers.”

Beyond education, it was also clear that training, either at an organisational

or industry level, needs to prepare workers for some of the changes

occurring. In one example, an organisation was providing development for

people to make them mobile and more culturally aware as their organisation often

required staff to move internationally. Along similar lines, an industry organisation

was working within their industry to identify career pathways in an industry that is

heavily project-based.

2. Engaging the workforce

The importance of catering to the new workforce needs was also acknowledged. From

the beginning of the employment relationship, organisations are looking for new ways

to recruit and retain their workforce. They are aware that with changing products and

services, and new business models, the criteria for selection of their workforce must

also change:

“Some business are clearly aware of the types of criteria that will make someone a good

organisational member in the future and these criteria are likely to be very different to

what companies are recruiting for now.”

Organisations are also considering how to engage the key individuals in their

business as more than just employees.

POTENTIAL SOLUTIONS AND CURRENT RESPONSES

“...they are acting; they are taking a longer term, strategic view; whether that be mergers, acquisitions, restructures, brand new products.”


“I think many businesses, including ours, are embracing more innovative equity sharing

models; and that sort of genuine sense of sharing the wealth, rather than the feudal system

that we all ran before and hope to survive, but has not.”

Many examples of flexible work arrangements were evident in a wide range of

different jobs – some that might be anticipated in areas such as consulting

but also for jobs in call centres and health care. While attractive to existing

employees and helping with retention of staff, these steps were also crucial

for attracting new employees looking for such flexibility.

3. Changing business models and structures

It was clear that many organisations are in the midst of responding to

changes by questioning their entire way of doing business and were

planning significant changes, while others were in surveillance mode.

In particular, business strategies were being questioned and doing

‘business as usual’ was no longer an option. New strategies, new structures

and new ways of doing business with customers were high on the agenda:

“There are those organisations where the burning platform is evident and it is years

away and they are acting; they are taking a longer term, strategic view; whether that

be mergers, acquisitions, restructures, brand new products.”

[organisations are realising] “This structure was built for a company that is ten

years ago. We need to be different – we need to look differently and we need to

get our people in different places doing different things in order to achieve the

strategy.”

Mergers and inter-business collaborations were high on the list of options

to enhance competitiveness. Particularly for SMEs, clustering and collaboration were

seen as critical to operating effectively in their marketplace.

“[...] there is a couple of manufacturers, engineering-type companies… got together because

every time they tried to compete to get into a government contract or a mining, they got, ‘No,

you are too small...’ But they got together and they got it.”

“Interestingly, in the not-for-profit sector, which is where you wouldn’t really expect

mergers to be high on the agenda, they are interested in merging as well because

there’s no money changing hands.”

4. Harnessing technology

Although many of the challenges raised were linked to technology, this same factor

was seen as holding prospective solutions to some of the challenges, and potentially

giving organisations an edge over competitors.

“…certainly investing more heavily in technology; there’s no doubt about that.”

However, participants were also clear that best practice in relation to new technology

was when the technology was directly useful for efficiency and/or effectiveness of

the business. A number of businesses were considering 3D printing, robotics and

automation, and some reported already using 3D printers.

“We just put in five 3D printers in our office this morning”

“You know, you do adopt technology or do things differently to be there in 2025.”

“...we need to look differently and we need to get our people in different places doing different things in order to achieve the strategy.”


CONCLUSION

In conclusion, it is clear that businesses in Queensland are highly aware of the

potential changes that are likely to impact on their business. They know that

changing technology, demographics, increasing globalisation and a volatile

economy are all likely to result in major impacts. However, it is also clear that many

businesses are unsure about how to address these issues in order to best cope

with the coming changes.

While there is a large amount of uncertainty about what to do, many constructive

actions have already been taken. These include: higher level of monitoring; better

engagement and development of the workforce; changing business models and

structures; and harnessing technology. The participants were clear there needed to

be recognition of the need for more forward planning and less reliance on short-

term thinking (driven by the need for profit), which they believed to be prevalent

among the majority of businesses.

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The Future of Work

SUMMARYFrom a review of hundreds of industry, government,

and academic resources and publications related

to the topic ‘future of work’ a number of key themes

consistently featured across the materials as shown

in the graph on the right.

Based on the frequency of the themes, three key

trends were identified as having the biggest impact

on the future of work.

Economy & GlobalisationEconomic factors include: the move toward a one

world economy, shift to knowledge and service-based

economy, growing middle class around the world,

international integration, companies trading and operating

internationally. Additional moving work functions to

locations with lower labour and/ manufacturing costs also

affect organisations.

For more detailed information on this trend please refer to

the attached information sheet on Economy & Globalisation.

Demographics

Changes in the composition of the workforce such as

greater diversity in terms of ethnicity, gender and age

profile taking part in the workforce and consequently

changing attitudes, behaviours, and expectations of new

generations. The increase in life expectancy and health

is affectively leading to longer working lives and delayed

retirement. For more detailed information on this trend

please refer to the information sheet on Demographics.

Technology

Technological innovations, improvements and

advancements in relation to devices, infrastructure, human

augmentations, automation, artificial intelligence, robotics

and the speed at which these improvement are taking

place. Technology is seeing exponential growth and

improvement as is the rate at which these improvements

are being adopted by individuals and organisations. For

more detailed information on this trend please refer to the

information sheet on Technology.

Australian Businesses International Trade in Services

Proportion of Australian Population Aged 65 Years and Over

Australian Bureau of Statistics


2012–2013

36.6%Australian Businesses

introduced innovation

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The Future of Work

SUMMARY

This information sheet has been developed in partnership between Davidson and Queensland University of Technology (QUT) as part of a research project examining the future of work.

References

Australian Bureau of Statistics, www.abs.gov.au

What does it mean for organisations?Having identified the three key trends the next question becomes ‘how will these trends affect work?’ and what might

this look like for organisations operating alongside such changes. This page aims to provide an overview of the main

implications for organisations as a result of each of the key trends.

Key pointBy studying the changes that are occurring now and trying to understand their significance for the future, organisations will

be able to spot opportunities to proactively shape their future.

Having identified the 3 key trends the next question becomes ‘how will these trends affect work?’ and what might this look like for organisations operating alongside such changes. This page aims to provide an overview

of the main implications for organisations as a result of each of the key trends.

What does it mean for organisations? The Future of work

Key Point

By studying the changes that are occurring now and trying to understand their significance for the future, organisations will

be able to spot opportunities to proactively

shape their future.

Technology

Continuous investment and adoption of new technology

Automation of the workforce and jobs Increase in workforce mobility Greater use of flexible and part-

time working arrangements

Demographics

4 generations will be part of the workforce

Greater numbers of ageing employees and retiring talent

Need for more flexible and responsive policies

More diverse attitudes and preferences regarding work

Economy & Globalisation

Shift to knowledge economy –decline in manufacturing and low skilled jobs/ increase in

services and high skilled jobs

International supply chains/ cheaper emerging markets

Greater competition locally and globally

Emergence of global talent pool/ outsourcing

References Australian Bureau of Statistics, www.abs.gov.au

This information sheet has been developed in partnership between Davidson Consulting and Queensland University of Technology (QUT) as part of a research project examining the future of work.

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The Future of Work

TECHNOLOGYThe mention of technological advancements is extensive when examining publications about the future of work. It

is frequently and strongly stated that improvements in and adoption of new technologies will have the potential to

significantly change all aspects of work including what, how and where work is carried out.

Looking at the history of technological inventions and the increasing uptake of the resultant devices it is already evident

that many of these new creations have had immense impacts not only on how we operate as individuals and conduct our

lives but also on how organisations conduct business.

One of the outcomes of the technological

advancements so far has been the gradual

automation of jobs. Low skilled jobs have

increasingly been replaced by cheaper and

more effective robots and intelligent systems.

However what is now being proposed is that

as technologies continues to improve the

threat to previously considered safe jobs is

increasing. This could mean that more high

skilled occupations e.g. white collar jobs would

be replaced similar to what has happened to blue

collar job.

Another outcome of technology improvements

has been the increase in the mobility of business

operations and the workforce. More businesses

are now able to expand their markets and sell

their products or services across the globe

thorough the use of the internet and mobile

technologies. Communicating with a business

division in another country has been made much

simpler with the introduction of the internet and

mobile devices. Collaboration can now take place

through the cloud making the physical location of

individual employees less relevant. Additionally,

workers can now undertake assignments without

necessarily expatriating in the traditional sense.

Proportion of businesses with internet access, by employment size, 2010–11 to 2012–13

“Over the next five years, new digital technologies promise to dramatically change work outcomes and work experiences for employees of all sorts—manual workers, knowledge workers and managers alike—across a wide array of industries.”

Accenture – From Looking Digital to Being Digital: The Impact of Technology on the Future of Work, 2014, pg. 6

Key pointTechnology is advancing at an unprecedented rate as is the use of these new inventions. As a result innovations and the

adoption of new technologies have the potential of altering patterns of working and the nature of work with significant

consequences for both organisations and employees.

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The Future of Work

TECHNOLOGY


References


Accenture, (2014 From Looking Digital to Being Digital: The Impact of Technology on the Future of Work, pg. 6

Business Spectator, (2014). What are human beings going to do? www.businessspectator.com.au

International Telecommunication Union (2012). Measuring the Information Society: Executive Summary, pg.1.

The Economist, (2014). - The Future Of Jobs: The Onrushing, The Future Of Jobs: The Onrushing, www.economist.com

“The digital revolution is, at heart, a disruption of work, but unlike all previous ones of those in history, this one affects almost every form of labour – unskilled and skilled, physical and mental, blue collar and white collar.”

Business Spectator – What are human beings going to do? 2014, www.businessspectator.com.au

“…jobs are at high risk of being automated in 47% of the occupational categories into which work is customarily sorted. That includes accountancy, legal work, technical writing and a lot of other whitecollar occupations […] accept that some jobs—especially those currently associated with high levels of education and high wages—will survive.”

The Economist – The Future Of Jobs: The Onrushing, 2014, www.economist.com

As individuals and businesses have embraced new technologies this has enabled and allowed for greater flexibility in

terms of when and where work takes place. More organisations are offering or allowing their employees to work remotely

and where possible to work at times that suit the individual e.g. flex-time, spelling the end of the traditional 9-5 work

schedule as we know it.


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DEMOGRAPHICS

Significant changes are taking place in relation to

demographics and as a result the workforce of tomorrow

is becoming increasingly diverse in a number of ways. The

aim of this information sheet is to highlight the nature of the

diversity and consequent implications for organisations.

The population and Australian workforce is steadily becoming

more diverse. Organisations need to be aware of this change,

however understanding why and how the future workforce

is going to change can make the difference between failure

and success in attracting, retaining and managing future

employees. Four factors have been identified as most likely

to influence how the workforce will change.

One of the factors identified concerns the ageing of the population. Numbers from the Australian Bureau of Statistics

(ABS) clearly show the scale of the change. On the whole, people are living longer and staying healthier which means their

participation in the workforce is prolonged and likely to extend far beyond what have thus far been considered the normal

retirement age. For organisations retaining the knowledge and expertise of these employees can be an advantage as long

as there are managed appropriately.

A second factor impacting on diversity is the steady

increase in female participation in the workforce. As

the workforce will be comprised of a higher percentage

of women, businesses will need to adapt to better

accommodate women’s larger domestic responsibilities

if they want to reap the benefits of this higher female

participation.

Another factor shaping workforce diversity and

demographic change is the increase in migration to

Australia and consequently the increase in the number

of Australians born overseas. Having a multitude of

backgrounds and cultural diversity can bring great strengths

and be a significant competitive advantage for companies.

However this can only be achieved if organisations and

workplaces adopt the right approach and strategy which builds on inclusiveness and enhances the strengths of the

individual employees.

The last factor which will greatly change the composition of the workforce and no doubt challenge organisations is what

has been named the multigenerational workforce. Resulting from new generations entering the workforce at the same time

as the ageing population is staying on.

Multiple generations working beside and with each other

to overcome differences in attitudes, values, motivations

and perceptions will be fundamental in order to foster

collaboration and bridge the divide.

Furthermore, organisations may have to take steps to

better understand the expectations of the new generations

and rethink previous approaches to attraction, retention

and management.

Proportion of Australian Population Aged 65 Years and Over


Australian Labour force participation rate by sex – seasonally adjusted


Net Overseas Migration to Australia


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DEMOGRAPHICS



References


Australian Human Resource Institute (AHRI). National convention and exhibition 2014, pg.6

Deloitte/AMP capital, (2013). It’s (almost) all about me workplace 2030: Built for us, pg.21

PwC , (2011). Millennials at work: Reshaping the workplace, pg. 3

OECD Report, (2013). Working papers on Public Governance, pg. 7

“Four generations are working together in today’s workplace, and a fifth, with members under 18, is knocking on your door.”AHRI – National convention and exhibition 2014, pg. 6

“Workers will be... More diverse and individually empowered.”Deloitte/AMP capital – It’s (almost) all about me Workplace 2030: Built for us, 2013, pg. 21

“The millennial generation born between 1980–2000 now entering employment in vast numbers will reshape the world of work for years to come. Attracting the best of these will be critical to businesses. [More importantly, this generation will] influence the way they work and where and how they operate in the workplace. They may also represent one of the biggest challenges that many organisations will face.”PwC – Millennials at work: Reshaping the workplace, 2011, pg. 3

“Current cost-cutting measures may overshadow the need to plan ahead for ageing workforces and to adapt to other demographic changes, such as more diverse workforces and the loss of skills through emigration.”OECD Report – Working Papers on Public Governance, 2013, pg.7

Population Structure – 1901 to 2012

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ECONOMY & GLOBALISATIONThe economy (both globally and nationally within Australia) is closely tied to work and employment. This connection

determines employment figures and shapes shifts in occupations and industries. According to the many sources reviewed

a shift is occurring away from manufacturing and blue collar jobs, to service based industries and an increase in white collar

jobs. This trend is supported by statistics from the Australian Bureau of Statistics (ABS) that show significant change in

industries and in occupations.

These changes have already been felt by many business and individuals in Australia. While some businesses have

outsourced labour-intensive and low-skilled jobs to locations with lower labour costs, others have shut down local

operations entirely and moved to cheaper locations abroad. These changes have greatly affected the nature of work and

jobs in Australia. The jobs that remain are no longer production-based but instead are more knowledge-intensive and

require a different skills set.

It would appear that this trend is ongoing and that it will continue to influence the future of work (both in terms of how work

is carried out, by whom and where).

Proportion of all employed people in the production and service industries 1966–2011

Australian Bureau of Statistics Australian Bureau of Statistics

Proportion of all employed people in the production and service industries 1966–2011

The Australian Government Department of Employment recently released their projections of growth and decline in employment across industries through to 2018.


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ECONOMY & GLOBALISATIONThe increasingly integrated nature of the global economy and the growth in trade internationally is another factor which

has led to changes in the content, location, and nature of work.


International Trade in Goods International Trade in Services

This transformation is bound to have consequences for organisations and those working in them. Most noteworthy is the

increasing skills and knowledge requirements of employees as the organisations that remain will be looking for highly

educated and experienced individuals to help deliver the specialised and knowledge-intensive services to clients who

may be located nationally or internationally. As a result of

the more integrated nature of the world economy, global

mobility of businesses and personnel was a consistent

theme reported across the resources reviewed.

Globalisation has enabled organisations to reach far

beyond national boundaries and allowed entry into new

and emerging markets. As a result, for many organisations,

clients and customers are no longer of a local but global

nature, which in turn has meant that employees also need

to operate globally. Furthermore, globalisation has also

opened the possibility for businesses to source from a

global pool of talent.


References


Australian Government Department of Employment, http://lmip.gov.au/default.aspx?LMIP/EmploymentProjections

KPMG, (2014). Executive report: The State of Services & Outsourcing in 2014, pg. 11

Mortensen, J. & Vilella-Vila, M. , (2012). The future of employment supply and demand in social Europe, pg. 671

PwC, (2012). Talent mobility 2020 and beyond, pg. 1

“The main trends that employment policy has to face over the coming decade include […]; globalisation as a source of intensified competitive pressures; innovation and the adoption of new technologies that have the potential of altering patterns of working; accelerated structural change in the specialisations of economies and in the organisation of economic activity, in particular, the consequences of the transition to a knowledge economy and climate change and the future of energy supply and use.”

Mortensen, J. & Vilella-Vila, M. - The future of employment supply and demand in social Europe, 2012, pg. 671

“The business world is changing rapidly and this has transformed the way the global workforce is sourced, organised and managed. Knowledge, trade, technology, capital and goods are more globally connected than ever before.”

PwC - Talent mobility 2020 and beyond, 2012, pg. 1

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