We live in a world of VUCA – volatility, uncertainty, complexity and ambiguity. An ever-evolving set of external factors influences our people, operations and corporate culture. Most of the time, the changes come in gentle waves, often visible only in hindsight. But sometimes, larger storm surges create inflection points that herald significant shifts in the world of work.
Now is one of those times.
In the past four years, technology disruption, shifting demand for specific skill sets and heightened incivility in public discourse have increased in our daily lives. These trends have found their way into workplaces, leading to significant changes that require both employees and leaders to adapt.
Let's examine what's fueling each of these challenges.
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Challenge 1: Technology Disruption
Concerns over emerging technology have created one of the greatest challenges in today's workplace. While initial excitement around generative AI has normalized since the launch of ChatGPT, AI remains a key stressor as organizations and workers struggle to understand its implications. Questions persist about whether AI will accelerate productivity or prove destructive to the workforce.
Organizations must understand this transformative technology, leverage it effectively and improve workforce adoption while addressing concerns about job displacement.
Challenge 2: Growing Skills Gap
A growing skills shortage affects many industries. While an aging workforce contributes to this challenge, technology's impact on future skill requirements presents a bigger issue. Many required capabilities differ from traditional ones; technological changes will require significant upskilling. Organizations must identify needed skills and determine how to develop them as the landscape evolves. This requires assessing current skills and mapping future capabilities that combine technical and human-centric qualities such as digital fluency and change management.
In 2017, McKinsey reported that 700 million jobs could disappear by 2030 because of technology, globalization or demographic shifts. However, a follow-up study found that 900 million jobs will emerge. These positions will require different skills than today's roles, necessitating comprehensive workforce development.
See also: What Does Gen Z Want?
Challenge 3: Workplace Conflict
The employer-employee relationship has shifted in recent years as post-pandemic preferences and priorities, coupled with increased incivility, amplify workplace conflict. While hybrid work contributes to this dynamic, other factors play a role. Workforce expectations have changed: Employees focus intensely on organizational purpose, culture and experience. Employee engagement and healthy work culture remain central to performance and retention.
Some tension intensified during COVID-19. Though people showed consideration early in the pandemic, relationship-building and trust became harder in remote environments. Working remotely led to isolation and fewer opportunities for personal connection. As geopolitical tensions increased, workplace civility declined, leading to more discord, divisiveness, disrespect and disagreement. This manifests in increased employee grievances and relations issues.
Addressing these challenges requires a strategic approach:
- Lead with values and culture, defining organizational direction and ensuring purpose statements resonate with employees.
- Elevate human resources functions by aligning business strategy with workforce needs while emphasizing speed and responsiveness.
- Develop managers who connect employees and employers, empowering them as effective communicators rather than information bottlenecks.
- Enhance workforce productivity by engaging high-impact employees, providing personalized learning opportunities and measuring both technical and emotional intelligence.
As workplaces evolve, supporting functions must adapt. Technology grows increasingly dynamic, requiring active consideration of its role. Required skills change rapidly while employee-employer interactions continue shifting.
While change management remains important, organizations must move beyond standard approaches. They must reframe change management for today's context and develop employee resilience amid uncertainty. Agile, resilient and empathetic mindsets have become crucial for success, as workforces need tools and support to evolve effectively.
