The workforce metamorphosis

Welcome to the brand new 'What's Next?' newsletter.

In this edition, we’re diving into three key trends that are Reshaping The Workforce

• The role of AI and the looming skills gap 
• The controversial Great Return To The Office
• And we put the spotlight on Gen Z

The looming AI skills gap

Back in May this year, I had the pleasure of talking with the UK Prime Minister about AI, and the transformative role it can play (LinkedIn Business Connect Session).

As many anticipated, there has been an explosive growth of generative AI (gen AI) tools - and this is confirmed by many studies, including the latest annual McKinsey Global Survey (released in August 2023). Businesses are certainly experiencing better productivity and a host of other benefits from AI, but the spin-off now is that there is a huge AI skills gap. 

Add in the fear and misconception that surrounds AI and you have the perfect storm. A report by skills provider Corndel found that the majority of younger workers believe that AI will be doing a portion of their job. This is likely to be true - but essentially AI will be taking over areas of business where processes can be automated and streamlined in a more efficient manner. The good news is that a whole host of reports are confirming that job reorganisation is more common than job displacement, including this study from the OECD. 

At the LEAP conference in Saudi Arabia, I spoke with Isabelle Kumar about the impact of AI on recruitment and also about the challenges that governing bodies face: at the moment collectively,  we don’t understand AI well enough to regulate it properly but this will inevitably follow, just as it did with Crypto technology.  

CEOs and managers are currently fascinated with AI (with mixed results). But the larger question at play is whether automating many of the tasks of entry-level jobs represents a career calamity for Gen Z - who are finding junior jobs are stripped of the drudgery, which simultaneously functioned as a nuts-and-bolts learning curve. Or perhaps, conversely, it’s an opportunity for these digital natives to excel.

What do you think?

Let's hear from an expert. This week I'm featuring Melissa O'Neill . Local Recruitment Entrepreneur Middle East partner in Dubai.

Q: Generative-AI is taking the business world by storm - do you think it will affect any one generation more than another? 

It's instinctive to believe that the younger, digitally native generations will bear the most influence and benefit from these new technologies, but in my opinion, it’s more important to embrace the beauty of cross-generational synergy. A diverse and inclusive use and implementation of Generative AI could shape an exciting future within which all generations have a valued stake.  

Q: What are the key things you think CEOs and managers should be aware of when integrating generative AI tech into their processes? 

I think it’s important to understand that whilst automation streamlines, human guidance is still paramount. This isn’t about outsourcing the creative and strategic management of your business but amplifying it. Fostering a culture where technology is an enabler and not a replacement is the key. So keep your mission-driven compass aligned on collaboration and learning how technology can support in building your vision.

The Great Return

Three years after the pandemic, remote working has proved to be an enduring trend. But it looks like the glory days of WFH may soon be over, as many major businesses have been busy ordering staff back to the office again, albeit on a hybrid model.

According to a survey by Forbes released in mid-2023, 12.7% of full-time employees are working entirely from home and 28.2% are working in a hybrid model. A further 98% of workers expressed a desire to work remotely, at least part of the time. 

• Zoom asks staff to return to office | Business News | Sky News

Zoom , the video conferencing app that shot to fame in the pandemic and enabled the workforce to transition to remote-only, has ordered its employees back to the office for three days a week. 

• Meta employees who flout new return-to-office mandate face termination | Computerworld

Meanwhile, other tech giants are also trying to claw back their remote workers. Meta (previously known as Facebook) announced in June this year that any employees not officially designated as remote workers would be required to return to the office three days a week from early September.

Gen Z isn't after a job; they're after a lifestyle

Like this report from Deloitte points out, Gen Zers are about to step onto the world stage, with dramatic effects that ripple through the workplace, consumer behaviours, tech, politics, and culture.

Radically different from Millennials, this generation has an entirely unique perspective on careers and how to define success in life and in the workforce - and, like this LinkedIn article shows, there’s a widespread perception that they’re not grafters. 

But, that’s not the whole story. This article by Business Insider argues that Gen Zers have a lot to offer - digital skills, adaptability and efficiency. 

When it comes to what Gen Z wants from employers it comes down to three things: purpose, flexibility and a great tech set-up. For many Gen Zers, owning a house is an impossible pipe dream and so their focus is on a good work-life balance, enjoying the life they have. For Gen Z, there’s nothing more attractive than a 9 to 5 job, as this Telegraph story explains. 

It’s sobering to note that according to a 2023 Cigna survey of 12,000 global workers, 91 per cent of 18-to-24-year-olds report being stressed (compared to an average of 84 per cent); while 39 per cent of Gen-Z cited financial insecurity as their leading stressor, (more than millennials at 34 per cent and Gen-X at 29 per cent.)

And reassuringly, not everyone is down on Gen Z. Sir John Timpson, the founder of Timpsons, finds Gen Z more savvy and hard-working than previous generations, you can read his take on it here.

Elaine Tyler , founder of Venatrix , part of the Recruitment Entrepreneur group, says Gen Zers bring a host of benefits to a business, notably their strong grasp of technology and problem-solving capabilities.

“Because of the pandemic, many Gen Zers have never worked in an office before and their social/ work interactions were dramatically altered during formative years so it’s important to be very clear about office/ work environment expectations and prepare for a period of adjustment,” says Elaine.

Takeaway tip: If you want to hire Gen Z: speak their language - it’s all about being real, inclusive and ready to change the world.

So, what's next?

• There’s now an AI skills gap - expect to see a rapidly rising demand for people with skills in AI 
• Greater investment in AI capabilities at national and local government level 
• Initiatives, partnerships and collaborations between government, private-sector businesses, and research leaders 
• A continued push to get staff to forego remote working for a hybrid model - working at the office part-time 
• Businesses and individuals wanting to recruit Gen Zers will increasingly look for expert support and advice to input into their recruitment strategy - covering everything from tone of voice to job description and interview processes. 

Want to delve deeper? 

This TED talk on AI proofing your career by Matthew Wells is worth a watch if you want to understand more about the shift towards functions that require adaptability and emotional intelligence.

I always enjoy hearing your views on the topics we’ve talked about here. Please leave your comments in the comments section.

Until next time...