The Long-Term Impact On The Workplace

Lessons learned from the pandemic

Few have recognized the potential permanency of the changes we experienced in the workplace over 2020. The pandemic forced all industries across the planet to adopt new ways of working that organizations and governments should recognize are here to stay. Previously vilified as the harbinger of doom for jobs, technology proved to be our emancipator as we worked from home, automated as much as we could and reimagined how work could be accomplished. While it may seem counter-intuitive, investing in technology that may eventually replace us could be the key to a sustainable future.  
 

The last 50 years of work have been defined by predictable patterns involving who is doing the work, where it occurs and when it happens. While these standards have been impacted by technological advancements, demographic shifts and emerging social norms, Covid-19 has accelerated the arrival of new ways of working. Private industries tend to be early adopters of innovation, while the public sector frequently strives for stability over all else. 

REI, an outdoor gear retailer looking to save money and survive the economic impact of the Coronavirus, announced earlier this year ⁱ that they were selling their brand new, never used corporate headquarters.  According to a recent Gartner survey ⁱⁱ, this is not a temporary shift that will revert back to “normal” post pandemic, as 82% of company leaders plan to allow employees to work remotely at least part time going forward.  

If the majority of work can now be done anytime, anywhere and by anyone, organizations and governments need to rethink expectations for infrastructure and support of this fluid workforce. Back in 2016, the United Nations ⁱⁱⁱ suggested that access to the internet is a catalyst for the enjoyment of basic human rights. A lack of connectivity for both workers and students is likely to heighten economic inequality and reduce individual and organizational productivity. In fact, Natalia Emanuel and Emma Harrington ^iv, PhD candidates in economics at Harvard found that call-center workers in a Fortune 500 retailer experienced an increase in productivity of 8% to 10% when working remotely versus on-site. Our corporate and country leaders play a critical role in providing the workforce with the tools, technology and resources needed to be successful in the future.  

“Digital transformation” is not simply a buzzword used by consulting firms and technology companies. Rather, it’s a relevant concern for all industries and geographies. Prior to the pandemic, the topic du jour was how technology (particularly artificial intelligence and machine learning) was destroying our economic livelihood. While this platitude has been wielded by politicians and prognosticators for decades, recent advancements in computing and automation have given it fresh fuel. Research by economists Daron Acemoglu and Pascual Restrepo ^v seems to corroborate this point of view as they predict a reduction in both employment and wages resulting from industrial robots. Others suggest that technology has historically created more jobs than it destroyed, and that workers have largely benefited from improvements in quality of life and even income. The reality is somewhere in between these polarities.

As work has emerged from industrial roots to more of a services orientation, the number of jobs that require physical labor continues to decline. While there are still a significant number of low-wage, low-skill jobs, new forms of automation are replacing those positions as well. What will be left is work that requires a truly human skillset including critical-thinking, problem-solving, creativity, communication and even compassion. This is the reason that Amazon announced last year that it was spending $700 million to retrain its employees. While the company continues to invest in technology that will eventually replace its people, at the same time it’s helping them to upskill and reskill to remain relevant over time.  

As workers migrate to these new roles and responsibilities, ubiquitous cloud technologies will permit us to maintain uninterrupted connectivity. 5G has arrived and is enabling mobile devices, IoT sensors and video platforms while work/life balance transforms into work/life integration. We get to peer into our colleagues’ personal lives through Zoom calls and we realize that they have kids and pets and a decorating style we would not have guessed. And all the while the world moves away from traditional models of 8 to 5, Monday through Friday, on-site, full-time work arrangements and instead toward 4-day work weeks, temporary gigs from anywhere and daily pay. In many respects, technology is actually enabling a more human experience at work by freeing people up from the mundane and manual.

As the pandemic accelerated the adoption of new technologies and operational models (about 25 times faster according to a recent survey by McKinsey ^vi), it also hastened the metamorphosis of the workplace. Most of us would likely agree that 2020 has been a year to forget. But it would be a shame to simply revert to the way things were once vaccines are widely distributed and the world opens back up. We have seen wild experiments based on necessity and learned lessons that should not be forgotten. It’s imperative that we continue the momentum created by this crisis and embrace the idea that technology can help people reach their full potential, while remembering that only the elastic enterprise will withstand the inexorable disruptions of the future.  

Notes
ⁱ REI to sell its never-used Bellevue headquarters and shift office work to multiple Seattle-area sites, The Seattle Times, August 12, 2020
ⁱⁱ Gartner Survey Reveals 82% of Company Leaders Plan to Allow Employees to Work Remotely Some of the Time, Gartner website, July 14, 2020
ⁱⁱⁱ The promotion, protection and enjoyment of human rights on the Internet, United Nations General Assembly, June 27, 2016
^iv Working' Remotely? Selection, Treatment, and Market Provision of Remote Work, November 12th, 2020
^v Robots and Jobs: Evidence from US Labor Markets, The University of Chicago Press Journals, June 2020
^vi How COVID-19 has pushed companies over the technology tipping point—and transformed business forever, McKinsey, October 5, 2020

Marcus Mossberger is Sr Director, Global Product and Industry Market Strategy at Infor. He currently leads a team of evangelists that serve as subject matter experts in Infor’s strategic solutions. Collectively, they focus on helping organizations optimize their resources, including supplies, assets, and human resources. Over the course of his career, Marcus has served in a variety of roles including HR leadership, product management, sales and strategy. Visit www.infor.com Connect Marcus Mossberger