The world of work is changing. We’re entering an era when leadership demands greater collaboration and purpose-driven organisations such as clothes retailers Patagonia and TOMS and design consultancy IDEO are growing in number. Organisational structures are becoming flatter with companies such as the online clothes retailer Zappos introducing Holacracy, a social technology that changes organisational structure and decision making.
There are a number of drivers of these changes. Global shifts such as population growth, the rise of megacities, shifting economic power, climate change, natural resource degradation and food security – not only demand new thinking, but also will change how business and communities work together. The technology revolution will help provide new ways to solve these problems and provide new ways for individuals, small teams and large organisations to connect and collaborate, enabling us not just to work harder, but also smarter.
People and technology
But as companies race to leverage technology, they’ll need to remember that at its heart, work and business are about people. We are entering what Herman Miller called a “generation bending era”. As the overall population ages in industrialised countries, mature workers are staying in employment longer due to better health and lower-than-expected retirement savings. Yet at the same time the millennial generation will eventually make up the majority of the workforce, accounting for 75% of the global workforce by 2025.
The challenge will be how best to perfect the blend – accommodating both age and experience, while realising the possibility of millennial employees’ expectations for purpose-driven organisations, innovation and entrepreneurial opportunities. To do this, companies will need to make operational and structural changes to support workers in all stages of life. These will include changes in compensation, promotion and training structures, as well as output and productivity expectations.
These changes will not always be straightforward to implement and have the potential to cause both short-term financial implications as well as unhealthy tensions. For example, delaying retirement may increase payroll and benefit costs, while younger workers may find that there’s a leadership and progression ceiling. Technology changes may cause more mature workers to be befuddled and they may have skills gaps.
Opportunities ahead
So yes, there are challenges, but there are also opportunities. This is an era of unprecedented diversity in our workforce. Businesses that can effectively leverage this multi-generational workforce will benefit from diversity of thinking, creativity and innovation and will be at the cusp of building the dynamic, Plan B companies of the future that are able to drive benefits for people and the planet while realising profit.
To do so will require a new approach and style of leadership, as we move from more autocratic traditional models of authority to more collaborative styles that believe in the power of the collective team. Read more about collaborative leadership as part of our New Ways of Working series.
The B Team and Virgin Unite created a report on New Ways of Working to help organisations better understand changes to the world of work, listen to the needs of employees and create environments that help them thrive. “Create Thriving Communities” is one of the 10 challenges of the B Team.
Benjamin Hay is head of strategic projects at Virgin Unite and the senior adviser and lead to the B Team on Redefining Work. Anna Gowdridge is head of people at Virgin Unite.
Content on this page is brought to you by The B Team, to inspire business leaders working towards a Plan B for Business that prioritizes people, planet and profit. The B Team is a sponsor of Davos coverage, the Bold bets series, and the Tales from the front lines series.
