What time travel, clairvoyance and CEOs tell us about the future of work

With a job like mine, I’m sometimes asked to use the powers of clairvoyance to look into the future - (just between us, next week’s Lotto numbers are defs not 5, 8, 15, 33, 37 and 45.)

But this week, at the AFR Business Summit, I found myself using a different superpower – time travel. As a panel of experts and leaders discussed just how much their organisations have changed since the pandemic struck, I cast my mind back to the Land Before COVID.

Join me there, for a moment…

Imagine this. We’re at your 2019 office Christmas party. You walk up to your CEO and shake their hand. Yes, not an awkward elbow tap, but an actual handshake. Then, you pitch your great idea: “Let’s switch to an entirely virtual operation in three months’ time! Everyone will work from home, nobody will commute, and our gleaming office block can just gather dust for a few weeks.”

It’s fair to say that your CEO would’ve wondered what you’d been drinking. Sure, flexible ways of working existed back then. Processes were already being automated and new workplace models were on the rise. But mobilising the entire organisation to work virtually within a matter of weeks? Really?

Yes, really.

Now, here we are. Current day Australia. Willingly or otherwise, most CEOs have experimented with virtual working en masse. And, if my conversations with business leaders are anything to go by, these experiences have permanently changed the way leaders think about work. Here are three stand-out opportunities I’m seeing.

1. Workplaces, spaces and new bases

The pandemic has been a circuit breaker that has prompted many people to look afresh at their working lives. For example, a recent global survey of 10,000 office workers (including flexibly-working Australians) found 85% of people prefer to work remotely two or three days a week in the future. Employers will recruit and retain more top talent when they offer this to their employees.

Our research at PwC shows that, more than ever before, professionals now expect to choose the environment to suit their day. That largely means using the office for connection and collaboration, and home for deep thinking and administration.

Reduced face-to-face work has seen some organisations introduce ‘work from anywhere’ policies, and even exploring how they can better leverage workers from different countries in similar time-zones. Plus, Australia has just witnessed the largest quarterly internal migration hit on record, with people leaving cities to base themselves in regional areas. Talent can now be sourced from places we might never have imagined 18-months ago.

2. Using digital to enhance (not damage) culture

COVID and remote working blurred the lines between the home and office. Initially, productivity went up but the danger is that, over time, people find it hard to switch off (literally and figuratively), end up working longer and impacting wellbeing.

Last year, another global survey showed the majority of employees feel leaders could show more empathy towards their people’s work-life balance, with a greater focus on outcomes and less on hours worked.

So, how can organisations build and sustain a working culture that values and supports wellbeing, if their people work in a geographically dispersed environment?

The answer starts with leaders and middle managers. And it requires a change of mindset. Virtual working doesn’t have to damage culture; it can actually present a raft of opportunities to enhance it.

Instead of working the way we always did and replicating that online, we can upskill people’s digital capability, provide access to new tools, try new methods, and co-create new ways of working. As Expert360 CEO, Bridget Loudon, said at the Summit, “adapt or die”. If we do this right, virtual working will sound the death of ‘management by presenteeism’. People could feel even more connected and supported than ever. 

3. Closing the skills gap

The pandemic has forced Australia to hit the brakes on immigration and that’s exacerbating some critical shortages in roles and sectors that previously relied on skilled migration. At the AFR Summit, the Prime Minister spoke to how regional Australia is feeling the absence of backpackers and temporary visa holders. For example, the ABS estimates a current shortfall of 22,000 workers in horticulture alone. In an election year, we can expect to see more focus on filling the 54,000 vacant jobs that are currently going unfilled in the regions.

To help address skilled migration challenges, the government is focusing on reskilling and upskilling to support the development of local talent, particularly those who were disproportionately impacted by the pandemic, like women and young people. Further job creation will be targeted towards industries like construction and manufacturing, as well as in the care sector off the back of the Aged Care Royal Commission and impact that the pandemic has head on healthcare.

But there’s also a broader opportunity to close the skills gap at large. If Australia can do this, our research shows that Australia could gain US$90bn by 2030, which equates to 5.2% of GDP. From an employment perspective, this could generate an additional 200,000 Australian jobs.

Of course, it’s not just down to the government (or educators) to close this skills gap. Business leaders have a massive part to play too - a point highlighted by several AFR Summit panelists, among them Business Council of Australia’s Tim Reed and Mirvac’s Susan Lloyd-Hurwitz. It’s important that leaders have a long-term view of what skills their business will need in future, informed by the organisation’s strategic plan. Leaders can then identify the skills gaps in their current workforce and start addressing those now.

Upskilling people is an investment in the organisation as well as its employees. To function well in their jobs, people need to keep developing and adapting. And when talented staff see personal growth in their role, they are much more likely to remain loyal to their employer.

This is the moment for leaders to shine.

So, where to from here?

The AFR Summit showcased a number of business leaders who are stepping up to the challenge. And there is optimism off the back of an active labour market, with the Prime Minister reporting 20,000 job ads per month more than before the pandemic.

We’ll be sharing some additional insights on March 12th, 2021 as we;;, when we publish PwC Australia’s 24th CEO Survey - Building resilience: from reactive to proactive. Our analysis won’t allow you to travel through time, but it will offer clues about how global and local CEOs are (and aren’t) preparing their organisations for the future of work.