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Your Workforce Is More Adaptable Than You May Think

 

Here is an excerpt from an article written by Joseph B. Fuller, Judith K. Wallenstein, Manjari Raman, and Alice de Chalendar for Harvard Business Review and the HBR Blog Network. To read the complete article, check out the wealth of free resources, obtain subscription information, and receive HBR email alerts, please click here.

Credit: Francesco Bongiorni

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Many managers have little faith in their employees’ ability to survive the twists and turns of a rapidly evolving economy. “The majority of people in disappearing jobs do not realize what is coming,” the head of strategy at a top German bank recently told us. “My call center workers are neither able nor willing to change.”

This kind of thinking is common, but it’s wrong, as we learned after surveying thousands of employees around the world. In 2018, in an attempt to understand the various forces shaping the nature of work, Harvard Business School’s Project on Managing the Future of Work and the Boston Consulting Group’s Henderson Institute came together to conduct a survey spanning 11 countries—Brazil, China, France, Germany, India, Indonesia, Japan, Spain, Sweden, the United Kingdom, and the United States—gathering responses from 1,000 workers in each. In it we focused solely on the people most vulnerable to changing dynamics: lower-income and middle-skills workers. The majority of them were earning less than the average household income in their countries, and all of them had no more than two years of postsecondary education. In each of eight countries—Brazil, China, France, Germany, India, Japan, the United Kingdom, and the United States—we then surveyed at least 800 business leaders (whose companies differed from those of the workers we surveyed). In total we gathered responses from 11,000 workers and 6,500 business leaders.

What we learned was fascinating: The two groups perceived the future in significantly different ways. Given the complexity of the changes that companies are confronting today and the speed with which they need to make decisions, this gap in perceptions has serious and far-reaching consequences for managers and employees alike.

Predictably, business leaders feel anxious as they struggle to marshal and mobilize the workforce of tomorrow. In a climate of perpetual disruption, how can they find and hire employees who have the skills their companies need? And what should they do with people whose skills have become obsolete? The CEO of one multinational company told us he was so tormented by that last question that he had to seek counsel from his priest.

The workers, however, didn’t share that sense of anxiety. Instead, they focused more on the opportunities and benefits that the future holds for them, and they revealed themselves to be much more eager to embrace change and learn new skills than their employers gave them credit for.

The Nature of the Gap

When executives today consider the forces that are changing how work is done, they tend to think mostly about disruptive technologies. But that’s too narrow a focus. A remarkably broad set of forces is transforming the nature of work, and companies need to take them all into account.

In our research we’ve identified 17 forces of disruption, which we group into six basic categories. Our surveys explored the attitudes that business leaders and workers had toward each of them. In their responses, we were able to discern three notable differences in the ways that the two groups think about the future of work.

The first is that workers seem to recognize more clearly than leaders do that their organizations are contending with multiple forces of disruption, each of which will affect how companies work differently. When asked to rate the impact that each of the 17 forces would have on their work lives, using a 100-point scale, the employees rated the force with the strongest impact 15 points higher than the force with the weakest impact. In comparison, there was only a nine-point spread between the forces rated the strongest and the weakest by managers.

In fact, the leaders seemed unable or unwilling to think in differentiated ways about the forces’ potential for disruption. When asked about each force, roughly a third of them described it as having a significant impact on their organization today; close to half projected that it would have a significant impact in the future; and about a fifth claimed it would have no impact at all. That’s a troubling level of uniformity, and it suggests that most leaders haven’t yet figured out which forces of change they should make a priority.

Interestingly, workers appeared to be more aware of the opportunities and challenges of several of the forces. Notably, workers focused on the growing importance of the gig economy, and they ranked “freelancing and labor-sharing platforms” as the third most significant of all 17 forces. Business leaders, however, ranked that force as the least significant.

The second difference that emerged from our survey was this: Workers seem to be more adaptive and optimistic about the future than their leaders recognize.

The conventional wisdom, of course, is that workers fear that technology will make their jobs obsolete. But our survey revealed that to be a misconception. A majority of the workers felt that advances such as automation and artificial intelligence would have a positive impact on their future. In fact, they felt that way about two-thirds of the forces. What concerned them most were the forces that might allow other workers—temporary, freelance, outsourced—to take their jobs.

When asked why they had a positive outlook, workers most commonly cited two reasons: the prospect of better wages and the prospect of more interesting and meaningful jobs. Both automation and technology, they felt, heralded opportunity on those fronts—by contributing to the emergence of more-flexible and self-directed forms of work, by creating alternative ways to earn income, and by making it possible to avoid tasks that were “dirty, dangerous, or dull.”

In every country workers described themselves as more willing to prepare for the workplace of the future than managers believed them to be (in Japan, though, the percentages were nearly equal). Yet when asked what was holding workers back, managers chose answers that blamed employees, rather than themselves. Their most common response was that workers feared significant change. The idea that workers might lack the support they needed from employers was only their fifth-most-popular response.

That brings us to our third finding: Workers are seeking more support and guidance to prepare themselves for future employment than management is providing.

In every country except France and Japan, significant majorities of workers reported that they—and not their government or their employer—were responsible for equipping themselves to meet the needs of a rapidly evolving workplace. That held true across age groups and for both men and women. But workers also felt that they had serious obstacles to overcome: a lack of knowledge about their options; a lack of time to prepare for the future; high training costs; the impact that taking time off for training would have on wages; and, in particular, insufficient support from their employers. All are barriers that management can and should help workers get past.

Here is a direct link to the complete article.

Joseph B. Fuller is a professor of management practice and a cochair of the Project on Managing the Future of Work at Harvard Business School. He is also the faculty co-chair of HBS’ executive education program on Leading an Agile Workforce Transformation.

Judith K. Wallenstein is a senior partner and managing director at Boston Consulting Group, a BCG Fellow, and the director of the BCG Henderson Institute in Europe.

Manjari Raman is a program director and senior researcher for Harvard Business School’s Project on U.S. Competitiveness and the Project on Managing the Future of Work.

Alice de Chalendar is a consultant at BCG and a researcher at the BCG Henderson Institute.

 

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