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Do you know that exciting yet slightly unsettling feeling of wanting to explore a new city, a complex system with lots of unknowns, but you don’t know where to start? Well, what helps best is having a map and some good local advice.
Embarking on the Future of Work is like stepping onto a subway – dynamic, interconnected, and full of destinations waiting to be explored. We have envisioned it as a transformation journey, where different (macro-)trends serve as lines and stations that offer insights and opportunities to shape the way we navigate the complex and ever-changing work terrain.
I am happy to share that we have recently released our SAP Future of Work Trend Report 2024. This report isn't just a collection of insights; it's a ticket to understanding the shifts that are redefining how we work. Picture it as the comprehensive subway map, outlining the routes to navigate the Future of Workforce, the Future of People Practices, and the Future of HR (see figure).
Let's take a high-speed tour through the 10 pivotal trends that define this year's route map:
1. Reimagining Strategic Workforce Planning: Embracing Diversity and an Evolving Skill Landscape
Our workforce is diverse beyond traditional demographics like age, gender, or nationality. Diverse skill sets, employment models (e.g. Gig Work) and AI augmentation levels contribute to the rich tapestry of the modern workplace. Together with ever-changing skill requirements, this trend emphasizes that workforce composition and planning should not be left to chance – but require a strategic target picture with a data-driven, business-centric approach to foster workforce agility and organisational resilience.
2. Embracing a Human + AI Digital Partnership: Turning Science Fiction into Reality
Artificial Intelligence is no longer confined to the realms of science fiction; it's a collaborative force to augment human capabilities. Generative AI, in particular, is reshaping our work landscape, serving as a digital partner that generates customized output, consults, and inspires. The integration of AI demands a continuous learning curve, emphasizing the importance of both digital dexterity and human-centric qualities like collaboration, creativity and empathy.
3. Enabling a Fluid, Skills-Based Workforce: A Rapid Skill Transformation
The pace of skill transformation is accelerating, requiring a focus on fostering a growth mindset and lifelong learning. Developing a skills foundation as a “common language” across talent processes – end-to-end from hiring to development to rewards and recognition – allows organizations to steer a fluid workforce and bridge skill gaps before they become critical.
4. Making the "True Hybrid" Model Work: Best of two Worlds
The Future of Work is no longer about where you are but how to make “hybrid work” work. Hybrid arrangements outperform other models like full onsite or full remote through combining the best of two worlds. It’s about providing flexibility, leading virtual experiences and human-centric workplace rituals to drive engagement, productivity and first and foremost – a compelling people experience.
5. Leading from the Middle: The Evolving Role of Managers
Managers find themselves caught in the middle, balancing expectations from top management and employees. The focus shifts from top-down mandates to creating a culture of trust, empowerment, and human-centricity. New leadership styles and an emphasis on diversity and inclusion contribute to organizational resilience.
6. Being Human in the Age of AI: Navigating Change with a Human Touch
Artificial Intelligence is omnipresent, fostering constant change and transformation. Overcoming initial "AI Anxiety," employees now view AI as a valuable partner at work. The key is to design AI in a way that keeps the human touch at work. At SAP, we commit to relevant, reliable, and responsible AI in our products, with an ethical implementation that is ensured by clear guiding principles, internal governance structures, and an advisory panel of external experts.
7. Steering Towards a Sustainable Future of Work: Integrating ESG Initiatives
Sustainability is a pressing topic alongside AI. Businesses are transforming to stay relevant and competitive. Stakeholder demands, especially prominent in Gen Z, drive the importance of ESG initiatives. SAP as a sustainability leader helps others on their journey via its products and leads by example, for example with Net Zero carbon emissions in 2023.
8. Driving Business AI in HR: Transforming the People function
The adoption of digitization and automation in HR is imperative. Generative AI, chatbots and Low Code No Code solutions are enhancing both efficiency and experience. HR leaders recognize the need for AI adoption, with 76% agreeing it's essential for organizational success. Digital dexterity is now a must-have skill for HR professionals, ensuring they can effectively leverage AI for business transformation.
9. Redefining Productivity: Beyond Traditional Metrics
The disruptions of the past years emphasize the need to redefine productivity. The rise of remote work, digitization, and AI triggers a shift from traditional metrics. Generative AI promises to elevate productivity, challenging the conventional notions of work. The discussion highlights the importance of human factors like stress and energy levels, essential for optimized and sustainable productivity.
10. Changing Work for Good: Employee-Centric Paradigm
The Great Resignation marked a wave of people seeking a holistic work experience. Employees desire fair treatment, respect, and continuous personal growth. HR plays a crucial role in creating a work environment that fosters trust and empowerment. Companies committed to a higher purpose and vision gain a competitive edge in attracting and retaining talent.
What it means for employees and HR practitioners
In this bustling subway of trends and innovations, the impact on today's workers is significant. Workers today crave more than just a job; they seek a purposeful journey where their skills are valued, their well-being is prioritized, and their workplace is a thriving hub of collaboration and continuous learning. Strategic workforce planning, the harmonious integration of AI, embracing hybrid models – all these trends and more converge to redefine the employee experience.
As HR practitioners, we are the conductors guiding this journey. For us, these trends are not merely stops on the subway map; they are opportunities to craft a workplace culture that resonates with the aspirations and expectations of today’s workforce. The Future of Work is about creating an environment where the human factor is not overshadowed by technology but elevated by it. It's about steering organizations towards sustainability, fostering a culture of continuous learning, and championing diversity and inclusion.
Share your thoughts on our 10 trends for 2024 and join us on our Future of Work journey in this ever-evolving landscape. Together, we're changing the way we work for good.