Cultural trends, demographics, and technological advances are changing the job market. Technology has improved the quality of life, and as a result, people are living longer. In addition, automation is continually replacing repetitive jobs. New communication tools are eliminating well-known methods of disseminating information. Nowadays, organizations are not communicating through printed newspapers and memos. Therefore, current jobs require individuals to possess digital media literacy skills.
The emergence of the covid-19 pandemic has transformed the work industry. The pandemic has led to dramatic changes that will affect jobs now and in the future. Here are predictions about the job market in the next five years.
1. Remote Work Is Here to Stay
People are increasingly working from home to curb the spread of the lethal virus. Companies, on the other hand, are prioritizing their employee’s wellbeing. Today, you can apply for a job online, be interviewed, and attend the onboarding process online. That allows you to work for several companies spread out in the US. Even post covid-19, many workers will not go back to the office.
As remote work becomes the norm, employers will continue to put employee wellness programs in place. By emphasizing employee’s happiness, businesses will cultivate strong culture characterized by cohesion, collaboration, and improved creativity.
2. Automation Will Cause Massive Job Loss and Create Others
Automation, including machine learning, the Internet of Things, artificial intelligence, and robotics, will replace thousands of jobs in the next five years. However, as automation ends many existing jobs, it will create new roles.
The current crisis is accelerating automation by disrupting how things are done in the workplace. The international monetary fund predicts that automation will displace more than 80 million jobs worldwide by 2025.
While automation will lead to job loss, it will also spur the creation of millions of others. The robotic revolution is expected to create more than 97 million jobs. Many of the jobs fall in product development, engineering, Artificial intelligence, and content creation.
There will be increased demand for human resources in decision-making, managing, reasoning, and communicating. In short, as companies adopt new technology, they will need humans to oversee tasks such as maintenance, data creation, and analysis.
3. More Employers Will Focus on Career Development
Businesses will invest heavily in continuous training and development. Instead of hiring new workers, employers will train existing workers to fill new roles. It is estimated that 50% of employees will need to learn new skills to remain relevant in the workplace.
By filling new roles from within, companies will reduce turnover rate, increase employee retention and gain a competitive edge. Therefore, reskilling will be a vital requirement for businesses to remain competitive. In the future, the most successful companies will be those that will invest heavily in human capital.
Over time, companies have discovered the importance of retraining their workers. According to a recent survey, employees will experience a high ROI within one year of prioritizing upskilling programs.
4. Companies Will Adapt Scalable Hiring Techniques
While still developing employee’s skills, companies will change their hiring approach. The coronavirus pandemic has reinforced the importance of agility to respond to environmental changes quickly. As a result, companies will be inclined to flexible workers.
Since the cost of hiring full-time employees is high, companies will minimize hiring costs by turning to freelancers, contractors, or specialists. In addition, businesses will quickly hire temporary employees to complete specific tasks and offboard them when the tasks are completed. This way, companies will avoid costs associated with recruiting, paperwork, and employee onboarding.
Besides saving costs and improve flexibility, a scalable workforce comes with its own risk. For example, human resource managers experience difficulties with classifying and managing remote teams. In addition, employers are expected to comply with independent contractor regulations failure to which they can face fines.
5. Conventional Offices Will Evolve
As companies shift to remote work, many employees and employers question when they will return to the physical workplace.
Surprisingly, numerous employees wish to go back to the physical workplace. Most of them wish to go to the office at least twice a week, while others want to be in the office full time. More than 70% of remote workers miss socializing with their colleagues, while 64% say there are many distractions at home compared to the office. From the above statistics, it is quite evident that the value of a physical workplace is irreplaceable.
While still creating jobs for freelancers, employers will create millions of in-house jobs in the next five years. As a result, companies will adopt more flexible work models as opposed to the compulsory 9-5 schedule. For instance, more employers will allow workers to telecommute while still having access to the physical office. Others will mix several models where workers will be needed to work from the office for three days and telecommute for two days.
The future of work is characterized by a combination of remote work and on-location work. However, work flexibility varies depending on the nature of the work and the geographical location.
6. Employers Will Emphasize on Employee Data
The pandemic forced businesses across the globe to shift to remote work. Due to this reason, employers had to look for an alternative way to track employee performance. To understand how employees handle tasks remotely, human resource managers turned to employee data collecting tools.
A recent study showed that companies increasingly utilize technology to gauge employee engagement, productivity, and wellbeing. Managers can tell when employees are active on their computers, how frequently they utilize communication mediums such as email and chat, and how workers spend their workday.
The trend of tracking employee data escalated during the pandemic. While this practice helps monitor employee performance, increased surveillance has adverse effects on employees. Some employees mishandle personal data leading to a breach of trust. Other employees feel demoralized or stressed out by increased tracking. Thus, companies need to observe trust and privacy when handling employee’s data.
Staying on top of workplace trends allows employers to attract talented individuals, reduce turnover rate and remain competitive in the marketplace. In the ever-changing business world, companies that embrace flexibility are destined to achieve long-term success.