The Workforce of the Future: Three considerations for boards

It’s no secret that innovation and new technology are disrupting established business models. What is often underestimated, however, is the rapid transformation of the workforce. Boards of directors must recognize that virtual workers, contingent workers and digital solutions are increasingly replacing traditional workers. This workforce of the future will significantly impact business strategy and long-term value creation. 

Leading boards understand that talent strategies and the ability to transform an organization’s workforce for tomorrow’s needs is critical to successfully navigating market and technology changes. Companies’ approaches to human capital investment can either grant them the flexibility to get ahead of market and competitive forces – or cause them to fall behind.

Here are three points for boards to consider to help position their organizations to both survive and thrive for years to come:

• Embrace the Workforce of the Future: Alternative workforce models and the increased use of contingent workers are increasingly impacting how businesses operate. The chart above  highlights how the workforce of the future is shifting from the traditional model towards a mix of digital, virtual and contingent workers.
• Invest in employee training and retraining: Having a flexible, well-trained workforce is key to an organization’s ability to capitalize on changes in customer buying patterns and emerging technology. Companies must be able to pivot quickly in response to new technologies or competitive disruption.
• Focus on employee experience and culture: Today’s employees are three times more likely to stay with a purpose-driven company. People want to work for a company they can believe in, so organizations that clearly state and pursue their purpose are at an advantage in the talent marketplace.

 For more on the questions that boards need to consider when it comes to workforce management, read the EY Center for Board Matters report: Boards Turn to the Talent Agenda