The evolving workforce - January 2021
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The evolving workforce January 2021 CONFIDENTIAL AND PROPRIETARY Any use of this material without specific permission is strictly prohibited
COVID-19 is accelerating macro trends that were already in play
Societal
Automation, AI, Jobs and skills New ways of
expectation
and digitization are changing working
shifts
Data and platforms are Changes in the nature of work As work has digitized, the need The role of business in society
enabling companies to scale will create new jobs and to be physically present has is changing as a new
and fueling automation categories of work where been challenged, collaboration generation rises
technical and socio-emotional tools have evolved
skills will be critical
COVID showed that every COVID-19 will end ‘business COVID has now accelerated COVID challenged business
business is now a as usual’ and accelerate fundamental behavioral and society to solve
technology business need for upskilling and re- shifts through an problems together
skilling enormous, global work from
home experiment
McKinsey & Company 2
Individuals and organizations are suffering from overwhelm
from the pandemic, which triggers survival mode
75% 3x 39%
of employees in the US1 more than before the of leaders have had their
and over a third in the crisis, employees rate health or that of a family
Asia-Pacific region report member affected by the
symptoms of burnout.
their mental health as virus1
European nations are “very poor”1
reporting increasing levels
of pandemic fatigue in their
populations2
1. Press searches; Web pages; Mental Health America Survey: Mental Health in the Workplace
2. WHO – European Region: Pandemic fatigue Reinvigorating the public to prevent COVID-19
Source: New York Times ‘As the Coronavirus Surges, a New Culprit Emerges: Pandemic Fatigue’ McKinsey & Company 3
Leaders can help the workforce through these challenges,
mitigate burnout, and reenergize them
Post-impact stages of community crisis response (illustrative)
Honeymoon
(Community Cohesion)
Respond with bounded
“Heroic” optimism, re-energizing
Disillusionment the workforce
Pre-disaster
Potential
good news Working
Warning through grief
Respond with
Threat overconfidence, failing to
address psychological
Impact needs
Disappointment
Early days 12-18 months
Where are
we headed?
New
Skills of More flexible Human-centered
a organizational
a
the future ways ofaworking change a
models
McKinsey & Company 5
Skills of the
a future New organizational
a models More flexible ways
a of working Human-centered
a change
As we look ahead, four meta skills become
increasingly important
Cognitive
Social and emotional
Technical
Adaptability / learning to learn
McKinsey & Company 6
Skills of the
a future New organizational
a models More flexible ways
a of working Human-centered
a change
Research shows that organizations with greater resilience
and adaptability responded faster to the crisis…
Adaptability rated in the top 2 capabilities as crucial for
growth and recovery, the other being inspirational leadership1
Upskilling on adaptability and resilience has been shown to
improve creativity, innovation, and employee experience,
which is linked to…
20% higher productivity
4.4x more profit
Potential poll: Does your organization offer (or plan to offer in next 6-12 months) any
capability building oriented around adaptability and resilience? [Yes, no, I don’t know]
Source: McKinsey Org Practice; IBM/Globoforce; Kennedy Fitch; Jacob Morgan; “The Link Between Job Satisfaction and Firm Value, With Implications for Corporate Social Responsibility” (London Business McKinsey & Company 7
School); “An operating model for the next normal: Lessons from agile organizations in the crisis” (McKinsey); McKinsey Accelerate ‘Executives see superior capabilities as the key to future growth’ article
Skills of the
a future New organizational
a models More flexible ways
a of working Human-centered
a change
Meanwhile, organizations designed with industrial age thinking
cannot keep up – new organizational models are required
Old thinking New thinking
Rules based Potential based
Maximize control Minimize control
Minimize negative surprises Maximize positive surprises
McKinsey & Company 8
Skills of the
a future New organizational
a models More flexible ways
a of working Human-centered
a change
To build a distinctive
organization, you
need to make bold
moves to redefine:
Who you are
How you operate
How you grow
McKinsey & Company 9
Skills of the
a future New organizational
a models More flexible ways
a of working Human-centered
a change
While the picture is evolving, strong evidence suggests that the
role of virtual work will continue as the COVID-19 crisis abates
of employees are willing to
83% work remotely after the
pandemic subsides (vs. 37%
pre-COVID-19)
Almost half of US CXOs surveyed
48% report that no in-person working is
permitted for teams (48%), or is
subject to approval and limited to
roles where there is a clear business
of respondents with a client- need (40%)
33% facing role report an
increase in client satisfaction
vs. only 14% reporting a
decrease
of respondents believe that
56% companies will adopt Virtual Working
for 2+ days per week after the
emergency
McKinsey & Company 10
Source: COVID-19 Smart working survey, 4,034 respondents, Italy; Survey refresh, Jan 2021, Global surveySkills of the
a future New organizational
a models More flexible ways
a of working Human-centered
a change
When is it helpful to work in person vs. remote
Best done in person Examples
Cross-functional problem solving, particularly Solutioning sprint for an agile team
complex problems requiring innovative solutions
Making important decisions that have a high Decisions about whether to launch a
degree of ambiguity or uncertainty new product or enter a new market
Forming new relationships or new teams New hire onboarding
Fostering informal connections, creative collision Social networking; informal mentoring
Building community, social cohesion, shared Teambuilding events
culture
Learning and apprenticeship for complex skills On-the-job talent development
McKinsey & Company 11Skills of the
a future New organizational
a models More flexible ways
a of working Human-centered
a change
Most office space is fundamentally made for individual work of old
models – this needs to change
Traditional workplaces often devote …whereas a purpose-built hybrid workplace could flip that
more than 2/3 of space to desks and ratio, reduce overall space, and lean into flexible work
individuals offices, focused on options to generate savings and make the office “fit for
technology for heads down work… purpose”
McKinsey & Company 12What if you designed the organization around
how people actually work, rather than vertically?
The horizontal How would you design for human teaming and
organization collaboration, something that traditional
organization design doesn’t do?
McKinsey & Company 13
Skills of the
a future New organizational
a models More flexible ways
a of working Human-centered
a changeEmergent
transformation
What if the most compelling transformations arrive at
destinations you couldn’t articulate when you started?
What if you put on the onus on your teams to chart the way?
What will it take to embrace less control, recognizing that
positive surprise can be good?
McKinsey & Company 14
Skills of the
a future New organizational
a models More flexible ways
a of working Human-centered
a changePersonalized
change journey
What if you tailored change journeys to
unique needs of your people rather than
putting everyone through the same journey?
How can you use technology to enable
individual empowerment?
McKinsey & Company 15
Skills of the
a future New organizational
a models More flexible ways
a of working Human-centered
a changeOrganizations are embracing this moment
Reground in the
organization’s purpose Become a more human-centric
organization where employees
feel a sense of belonging and support to
bring their best self
Build adaptability skills
in employees
Become more agile and migrate to
digital technologies
Embrace the hybrid workplace
Spark faster decision making of the future
and innovation
Re-energizing is about more than solving crisis
fatigue—it’s about becoming a better organization
McKinsey & Company 16Thank you
Elizabeth Mygatt | Elizabeth_Mygatt@mckinsey.com
Tiffany Vogel | Tiffany_Vogel@mckinsey.com
McKinsey & Company 17You can also read
