Future of Work - Deloitte

1 Future of work The People Imperative Josh Bersin Founder, Bersin by Deloitte Principal, Deloitte Consulting LLP. October, 2017. Is the Fear and Hype True? 47% of today's jobs will be gone in 10 years 41% of US workforce participates in crowd/gig economy Essentially all the new jobs created since 2008 fall into the category of alternative work .. Oxford Economics, National Bureau of Economic Research, and Bureau of Labor Statistics Copyright 2017 Deloitte Development LLC. All rights reserved. Robots are Here Today Average cost below $25,000. China purchased 250,000 in 2016. Copyright 2017 Deloitte Development LLC. All rights reserved. Businesses Are Adapting Quickly 41% of companies have fully implemented or have made significant progress in adopting cognitive, AI and Robotics 77% of these companies believe technology is creating better jobs , and only 20% see job reductions 50% are retraining workers to work side by side with machines 67% of employees believe they must continuously reskill themselves to stay in their career, and 58% believe they will have a new career within five years Deloitte Human Capital Trends 2017.

2 Copyright 2017 Deloitte Development LLC. All rights reserved. Increased Need for Social, Integrative, and Hybrid Skills Job Capabilities For the Future Empathy Communication Close vision Speaking Interpreting data Judgement Social skills Integrated thinking Design Hybrid jobs Talent for survival Essential skills for humans working in the machine age, Deloitte UK, 2016. Copyright 2017 Deloitte Development LLC. All rights reserved. Skills map, David Deming, Harvard University, 1980-2012, Catch the Wave, Deloitte University Press, Josh Bersin, 2017. Driving A Need for More Human Skills Shift to a service and IP-based economy Copyright 2017 Deloitte Development LLC. All rights reserved. Source: Bureau of Labor Statistics Today's New World of work 7. Employees are Overwhelmed The average US worker now The average mobile phone user spends 25% of their day reading checks their device 150 times a or answering emails day. More than 80% of all companies 40% of the US population believes rate their business highly complex it is impossible to succeed at work or complex for employees.

3 And have a balanced family life. Fewer than 16% of companies have The average US worker works a program to simplify work or help 47 hours and 49% work 50 hours employees deal with stress. or more per week, with 20% at 60+ hours per week Copyright Sources: 2017. Deloitte Deloitte Human Development Capital Trends 2014 All rights 2015 reserved. We Are Working More Hours: A Vacation Crisis Since 2000, US workers lost an entire week of 35% of Millennial vacation, dropping average vacation days from women feel guilty about taking time off to (25% of men). Americans left 662 million unused vacation days forfeiting $66 billion in benefits 39% want to be seen as a work martyr to their boss, yet these over-workers are less likely to receive a promotion or raise than their peers. Copyright 2017 Deloitte Development LLC. All rights reserved. Productivity is suffering is technology helping? US, UK, Canadian Productivity Lag i-Phone 100 million 1 billion launched Twitter users smartphones Copyright 2017 Deloitte Development LLC.

4 All rights reserved. Cost of Stress at work : $300 Billion per Year According to CDC Research in 2016, 40% of US. and UK workers believe they have very stressful jobs, resulting in accidents, fatigue, nervousness, and lack of energy. This translates to $300B spent on employee wellness, healthcare, and absence costs every year Copyright 2017 Deloitte Development LLC. All rights reserved. Workplace Culture Trend: Wellbeing Google Trends Search for Wellbeing since 2004. Copyright 2017 Deloitte Development LLC. All rights reserved. Engagement Remains a Challenge Average What are these companies doing? Copyright 2017 Deloitte Development LLC. All rights reserved. Summer, 2016 Glassdoor Bersin by Deloitte Research Change in the nature of a Career 50% of Millennials will Half-life of technical skills is 37% of working people live to age of 100, expect approximately 2 years believe they will change 10-12 jobs by age of 38 careers within 5 years Only 29% of companies Life expectancy of Fortune 83% of companies believe believe careers in their 1000 firm is less than 15 they will have open careers.

5 Company are 10 years+, years, S&P 500 firm is five within 3 years, only 19%. 44% say less than five years have structured careers years Source: Deloitte Human Capital Trends 2017, GitHub, World Economic Forum, Bersin Career Research Copyright 2017 Deloitte Development LLC. All rights reserved. Career Models Are In Disruption 58% of companies are redesigning or planning to redesign their career model Deloitte HC Trends 2017. 83% of companies expect to have an open or highly flexible career model within the next 3-5 years Deloitte HC Trends 2017. Only 19% of companies Learning and career 31% of companies expect promote vertical career management software has careers to be 3-5 years long moves, 67% now promote become the #1 fastest growing 60% expect them to be 10. horizontal or project based segment in HR technology years or less career progression (CedarCrestone 2017). Copyright 2017 Deloitte Development LLC. All rights reserved.

6 Millennial Expectations Have Changed work 80% want to give Their team mates are performance appraisals the most important to the boss people at work 60% think Expect feedback weekly 7 months 2/3 want to be creative . and progression of tenure means at work in their job annually they're loyal . Deloitte Millennial Survey, n=70,000, Spring 2016. Copyright 2017 Deloitte Development LLC. All rights reserved. Millennials: Citizenship On The Rise Millennials Are Concerned about A. Threatening and Unfair World 64% expect economic and political conditions to get worse in the coming two years In mature markets, only 64 percent of millennials predict they will be financially worse off than their parents and 69% say they'll be less happier. As a result, 77% of Millennials actively take part in volunteerism and charity work to help their community 88% of Millennials believe business can be a major force for positive social change Copyright 2017 Deloitte Development LLC.

7 All rights reserved. So what's going on? The Future of work is all about People 5 Keys to Success 18. Companies are transforming themselves Networks of teams Focus on culture and employee experience Learning and personal reinvention Redefining career . Design thinking in jobs and work Copyright 2017 Deloitte Development LLC. All rights reserved. 1. Embrace the New Organization: a network of teams Copyright 2017 Deloitte Development LLC. All rights reserved. 20. 1. Organization design will be challenged everywhere A network of teams B. Shared values and culture A. A Transparent goals and projects B F C D Free flow of information and feedback People rewarded for C D E G their skills and abilities, not position E. How things were How things are How things work Source????????? Copyright 2017 Deloitte Development LLC. All rights reserved. Moving to the New Organization Model Today Future Hierarchical Business Projects, Squads, Organization Structure: Functions Teams, Shared Services Teams formed slowly Teams assemble and Teams and Projects: over time stop quickly Job descriptions, job Assignments, tasks, Jobs and Roles: levels, job titles expert roles Managers manage Managers own teams Managers: projects and sponsor.

8 And people's careers people Jobs are owned by the Jobs open in transparent Careers: manager and not shared marketplace People sought out based People assigned jobs Flexibility and Space: on skills, work on by management multiple projects People rewarded by People rewarded by level, Rewards: outcomes, reputation, tenure, experience sponsorship Inclusion, Sustainability, Citizenship, Collective Culture: Diversity Thinking, Shared Values Copyright 2017 Deloitte Development LLC. All rights reserved. 2. Culture, purpose, and inclusion as business strategy Copyright 2017 Deloitte Development LLC. All rights reserved. 23. Culture As Business Strategy 89% of companies, Companies with a strong mission rate culture as an and purpose outperformed the urgent issue S&P 500 by 8-fold over a 20 year period. yet only 14% really know what good These companies performed 4x culture looks like higher than Good to Great . companies. Source: Firms of Endearment, by R.

9 Sisodia, D. Wolf, and J. Sheth (2007). Copyright 2017 Deloitte Development LLC. All rights reserved. 24. Culture, value, leadership, and career (The Big Four). What matters to employees Correlation of employment factors to Glassdoor recommendations as place to work Culture and values Senior leadership Career opportunities work life balance Compensation & benefits Culture and leadership are 3X more important than salary in your employment brand. Year founded (age) Career development and learning are almost 2X more important than comp, benefits, and work environment. Source????????? Copyright 2017 Deloitte Development LLC. All rights reserved. Factors that link culture and engagement Copyright 2017 Deloitte Development LLC. All rights reserved. Bersin by Deloitte Engagement Model The Simply Irresistible Organization . Meaningful Hands-On Positive work Growth Trust in work Management Environment Opportunity Leadership Autonomy Clear transparent goals Flexible, humane work Facilitated talent mobility Mission and purpose environment Selection to Fit Coaching & feedback Recognition rich culture Career growth in many Investment in people, trust paths Small Teams Leadership Development Open flexible workspace Self and formal Transparency and development communication Time for Slack Modern Performance Inclusive, diverse culture High impact learning Inspiration Management culture Collaboration and Connection Copyright 2017 Deloitte Development LLC.

10 All rights reserved. Flexible, Open, Modern work Environments Copyright 2017 Deloitte Development LLC. All rights reserved. Employee Experience: Beyond Engagement Surveys 14% 79%. Very important or important believe their internal processes for 22% collaboration and decision making are are excellent at building working well a differentiated employee experience 23% 10%. believe their employees are using design are fully aligned with the thinking as part of corporate purpose crafting the employee experience Copyright 2017 Deloitte Development LLC. All rights reserved. Deloitte Human Capital Trends 2017. Why Feedback is Critical Copyright 2017 Deloitte Development LLC. All rights reserved. The Listening Organization Enterprise Feedback Architecture Pulse Surveys Annual Anonymous Survey Feedback Tools Social Media Customer Integrated Monitoring Satisfaction Reporting & Analytics Sentiment Analysis Network Analysis Exit Performance Interviews Check-ins Job Boards Employment Performance & Ads Brand Appraisals Copyright 2017 Deloitte Development LLC.