According to new research by PwC Future of Work and Skills, during the pandemic many companies have boosted the productivity and efficiency of their human resources. However, in terms of culture and leadership issues, there are parameters that act as a deterrent to the creation of strong human resources strategies. The research is based on a sample of 4000 heads of companies and human resources departments from 26 countries and regions and 28 industries.
Remote and hybrid work have led to short-term productivity growth in most workplaces. 57% of respondents report that their business has performed better than their performance and productivity targets in the last 12 months, compared to just 4% who report that their company has performed significantly worse over the same period.
However, the benefits of productivity and efficiency may be achieved at the expense of long-term employee confidence. A typical example is that only 31% of business and human resources executives surveyed strongly believe that their business builds high levels of trust between employees and their immediate superiors. Burnout syndrome may also contribute to this, as almost three quarters (74%) say they are not entirely sure that the workload is manageable to the extent that it allows employees to make full use of their personal time.
Bhushan Sethi, Joint Global Leader, People and Organization at PwC USA, states: “As businesses accelerate their digital transformation, leadership and culture are emerging as critical areas for effective governance. “Employee confidence, high competition for talent and the changing expectations of human resources highlight the important role of leaders and in particular the need to create an inclusive leadership culture in a hybrid work environment.”
Benefits of strategic planning
According to research, effective organizational planning can pay off. Companies that followed both design methods, both potential (where leaders create a framework for flexibility in the organization response) and scenario-based (where leaders anticipate needs based on different scenarios) scored 30% more likely to perform better financially and other goals, than those who do not use either approach. In addition, companies that only do dynamic design see a 10% advantage over those who base their design solely on scripts.
THE Bhushan Sethi adds: “The pandemic has increased the pressure to integrate business strategies with workforce strategies, with strong scenario-based planning, which for some organizations brings tangible economic benefits. As we expect higher levels of uncertainty, the importance of establishing effective planning practices will be crucial in addressing current and future business and workforce priorities. ”
The design should take into account the impact of technology on human work
Digitization will continue to be high on the agenda of leaders, and there is currently a gap between the enhanced role of technology in human resource strategy and the understanding of the risks it entails. Only 21% of leaders surveyed fully agree that they are able to identify the potential dangers posed by decisions to replace human labor with technology. In addition, only 25% fully agree that they communicate clearly and consistently with employees and other stakeholders about the impact of automation and artificial intelligence.
Focusing on the need to develop skills must also be imperative for planning. One-third of HR and other department heads said it was important to determine the skills the company would need in the future as a result of technological change, but only 26% fully agreed that they could do it right now.
THE Konstantinos Takos, Head of People & Change Consulting of PwC Greece, comments: “Trust and sustainable results are two principles on which the new PwC strategy,” The New Equation “is based, and we see that their importance is reflected in the results of the research . Prerequisites for understanding this new equation in a technology-accelerated world are the gradual transition from intuitive management to approaches that use new data sources to implement a more dynamic design, putting more focus on the human factor “
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Source From: Capital
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