The 2023 Work Transformation Survey was fielded from October to December 2023 and completed by 579 respondents from North America, Europe, Asia and the Middle East. Together, these organizations employ more than 15 million people.
Among the respondents, 90% are for-profit organizations and 22% have more than $5 billion in annual revenue. Respondents came from a wide variety of industries, with a particularly strong representation from the manufacturing, financial services and IT telecom sectors.
Key drivers of work transformation
Artificial intelligence (AI) and digital technologies
AI and digital technologies are reshaping the workplace. 35% of work will be done by automation in three years, almost twice as much as three years ago. Employees must adapt to new tools and ways of working.
Changing demographics
Shifts in demographics, like aging populations, are influencing work transformation by altering the composition and expectations of the workforce. Organizations need to adjust their strategies to manage a more diverse workforce with varying needs and skills.
Shifts in labor force participation
Changes in labor force participation, such as varying employment rates and the rise of part-time and freelance work, are creating a more fluid job market. 52% of employers expect to see opportunities to create value through new sources of talent. This shift demands that businesses adopt more flexible employment practices and integrate a broader range of employment types into their workforce planning.
Challenges facing organizations
- Cost pressures and high inflation: Organizations are operating under significant financial stress due to continued high inflation, which impacts operational costs and overall budgeting.
- Talent shortages: There’s a critical shortage of talent, especially individuals who have the necessary skills to interact with new technologies and adapt to new ways of working. This shortage makes it imperative for organizations to strategically place the right talent in the right roles.
Organizations need to keep pace with current work requirements while forecasting future requirements
But fewer than 2 in 5 respondents are prepared to deal with the effects of new technologies and digital tools or reskilling of employees.
77% of organizations are focusing on talent acquisition, retention and engagement
Current actions around work transformation
Already taken action
- Talent attraction, retention and engagement
- Diversity, equity and inclusion
- Scaling for growth
Currently taking action
- Work efficiency and effectiveness
- Talent attraction, retention and engagement
- Diversity, equity and inclusion (DEI)
Planning or considering taking action
- Reskilling
- Technologies and digital skills
- Addressing climate change
The dynamics of work are truly changing, and this will likely mandate greater flexibility, adaptation and innovation in the way we work.
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