Across the world, all companies are facing monumental economic, social and demographic challenges. The particular consequences are shaped by each country’s culture and demographic history, the social contract and cohesion that binds its citizens, and a company’s business challenges. On the global people dimension, Capgemini Consulting believes the most significant challenges include five key trends:
1. Digital Transformation. Technological advances follow each other ever more rapidly and are assimilated even faster. The adoption of digital technologies enables companies to realize cost reductions and increase added value, driving up profit margins. Those most successful adopters of these new digital tools become networked organizations, providing possibilities for unprecedented collaboration and innovation and an instant connection with suppliers, consumers and talent over a multitude of channels. Organizations must ensure that their physical and virtual work environments take full advantage of increasingly sophisticated technologies.
2. Knowledge-based economy. ‘Give someone a fish, and you feed him for a day. But teach him how to fish, and you feed him for a lifetime. Provide him with technology and market linkages and you feed an entire region.’ New ideas or intellectual capital are the new keys to prosperity and to the wealth of nations. Organizations must walk a tightrope balancing the need to share knowledge in order to generate new insights, while at the same time protecting what they know in order to own the benefits.
3. Borderless business. Businesses are developing international influence and increasingly operating on an international playing field. Globalization is a powerful driver of the new world order and economy. To remain competitive, businesses and their business units are becoming borderless - geographically, internally, externally and virtually!
4. Productivity and social imperatives. Developing economies in Asia, Eastern Europe and South America are putting pressure on western economies to be more productive. The need to not only be productive, but also deliver on Corporate Social Responsibility (CSR) is rising. Declining birthrates and graying workforces are forcing companies to do more with less people. In the pursuit of greater efficiency, all are expected to generate greater amounts of output in less time and to respond to multiple tasks immediately. Balancing employee and business needs has become a critical factor in business success.
5. Shifting demographics and the personalization paradox. The makeup of the global workforce is shifting radically, with more immigration, greater cultural diversity and emerging classes of employees, such as older workers. Despite high unemployment rates in many countries, the net result of these trends is a critical shortage of labor and certain skills worldwide. To hold onto their talent, organizations need to create a strong employer brand. But what are the key ingredients for attracting, retaining and engaging talented resources? How do you reconcile the need to meet your employees’ individual needs and personal priorities with the need to standardize and industrialize HR processes to decrease costs and operate globally? How can organizations solve the well-known paradox of human engagement in efficient operations in this 21st century?