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    The Shifting Future of the Workforce Part 2


    Last week, we addressed the shifting workforce skills needed as we approach 2030, outlined in the recent McKinsey study The Shifting Future of the Workforce Part 1 . This week, in Part 2, we look at the organizational transformation companies will undergo to remain viable. The Washington Post tells us that 71 percent of today's workers (in the United States) are looking for new jobs. On top of that, thousands of baby boomers are retiring every day.

    Organizational changes needed to stay competitive
    To stay competitive, companies will need to make significant organizational changes to address these skill shifts. What's needed is an emphasis on "continuous learning" for all workers and a transition to more "cross-functional and team-based work". Moreover, companies will need to become more agile, in part by encouraging independent work.

    Other shifts needed by HR and leadership
    Leadership and human resources will also need to adapt to the changing workplace: almost 20 percent of the companies surveyed said their executive teams lacked "sufficient knowledge to lead adoption of automation and artificial intelligence". Over 30 percent expressed concern about lacking the skills they needed for automation adoption which would hurt their future financial performance. They are right to worry!

    Tightening labor markets for high-skilled workers
    While low-skilled workers will continue to lose their jobs to automation, competition for high-skill workers will increase. This trend that has aggravated income inequality and reduced the number of middle-wage jobs. The McKinsey study reported that high-skill workers were the most likely group to be hired and retrained---and see their wages rise.

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