The workplace model is undergoing a seismic shift. But does this mean all our jobs will be automated? Will the individual employee still matter? The future of work will actually be more human than ever, says Samad Masood, Associate Vice President, Infosys Knowledge Institute at Infosys. ‘Digital automation is enabling work processes to be built around human needs. And this will ultimately lead to more diverse talent and flexible work styles, creating a thriving work culture that encourages fresh ideas and well-being.’

What’s more, employers who embrace and drive the required changes in the workplace are likely to reap some rewards, he says. According to Infosys Knowledge Institute’s The Future of Work 2023 report, firms that focus on flexible working, employee wellness, diverse skill sets and the automation of digital tools can add an estimated 7.7 percentage points to profit growth and 6.7 percentage points to revenue growth.

The report, which surveyed 2 500 senior executives from large firms across 12 industries in six countries, highlights the fact that remote work and digital engagement are here to stay.

Not just a white-collar issue

Remote working is not just a short-term fad but an existing trend that was accelerated by the global pandemic. Infosys found the growth in remote work to be driven by employee preference and not corporate cost-cutting. Nearly two-thirds (59%) of survey respondents already work in a flexible or more remote space, with 73% expecting flexible arrangements to grow in the future.

The Remchannel 2023 Employee Benefits Survey bears this out, showing that hybrid work has doubled since 2019, with 83% of employers having since implemented a hybrid work model. Importantly, remote working is not just a white-collar issue, according to Masood.

‘It’s true that it’s mainly white-collar office workers who have changed their work location from an office to home,’ he says, ‘but overall, there are just as many employees who work in the field and face the same challenges in terms of employee engagement as remote office workers.’

The upshot is that 38% of employees work away from a traditional corporate setting (either at home or in the field in engineering, delivery or other such manual roles), according to Masood. A further 41% are in alternate corporate settings (branches or specialist facilities, which could include a bank branch, retail store, medical clinic or kiosk) that are not traditional offices.

‘All of these employees can be better served by well-designed digital employee engagement tools that provide consistent access and information on corporate benefits, culture and training that is tailored to the needs and work styles of their role,’ he says.

How to attract and retain talent

Although 65% of senior executives are increasing remote working to attract or retain talent, this isn’t enough on its own, Masood points out. ‘Organisations will need – and are carrying out – a combination of initiatives to engage employees and drive retention,’ he says.

This makes sense, as companies with higher retention are almost 20% more likely to increase their revenue and profit than those that saw retention fall, according to The Future of Work.

But if remote working alone doesn’t drive talent attraction and retention, what does? When Infosys analysed workplace initiatives (that respondents had been adding since 2020), they found that some had a clear correlation with increased retention. Reskilling staff had the most impact, followed by home-office stipends and wellness initiatives. While initiatives such as modernisation and automation of digital tools, BYOD (bring your own device) schemes and compensation increases were less commonly utilised, they also proved to have a great impact on retention.

Survey respondents indicated a number of workplace initiatives that clearly correlated with increased staff retention. Perhaps surprisingly, employees seemed less motivated by compensation increases than by staff reskilling, home-office stipends and wellness initiatives.

With this in mind, broadening benefits is important. ‘Our research discovered that employee retention is related to both the benefits that they are offered as well as the level of digital modernisation and automation that their employers were delivering,’ says Masood.

‘With flexibility and personalisation having entered other aspects of the workplace – such as work location, work timings or work styles – it will be worth adapting them to employee benefits, too, to drive employee satisfaction and gain a competitive advantage,’ he adds.

This highlights the need for organisations to engage with individual members of their increasingly diverse workforces. Lindiwe Sebesho, Managing Director of Remchannel, says, ‘For the first time, five generations make up the workplace, bringing different perspectives and priorities. This means a flexible, innovative approach to employee benefits is necessary.’ 

Flexibility and personalisation

Sebesho points out that the idea of ‘lifetime employment’ is shifting, and even older workers may not stay in permanent employment until they retire. Whereas working on a contract or freelance basis provides greater flexibility, losing access to company benefits – and especially employer-sponsored retirement funds – is a concern, she says.

In South Africa, many employees have to work beyond the average retirement age of 63. ‘Flexible work arrangements contribute to the overall employee experience through phased retirement or part-time work options,’ says Sebesho. ‘This allows older employees to transition into retirement whilst contributing to the transfer of skills to younger-generation workers.’

Younger employees increasingly demand a ‘personalised’ workplace experience, with benefits that speak to their unique needs and circumstances, according to Sebesho. This corresponds with Infosys research, which says personalisation can be a big draw for an individual who is considering joining an organisation – and it can also be what prevents them from leaving.

The Remchannel survey indicates that companies are introducing formal recognition and appreciation programmes to increase loyalty, which may lead to greater retention and, as a result, better retirement outcomes.

However, offering a robust employee retirement plan is just one aspect of the ‘total wellness mindset’ companies should embrace, says Masood. ‘Companies should think about how the plan is delivered, the ease with which employees can benefit from it, and whether they can access the full spectrum of complementary wellness benefits surrounding it. This will help to support better engagement and a positive employee experience.’

Digitising employee engagement

‘The overlap and opportunity is clear: by improving the digital access and experience of benefits platforms and services, employers can supercharge the attractiveness of their organisations to employees,’ says Masood. Human-centric companies are able to offer an employee experience and benefits that are relevant to their employees’ goals and challenges.

‘Each employee is a different individual, with unique preferences,’ says Masood. ‘Companies that acknowledge this and go the extra mile to personalise the experiences that they provide to their staff – whether it is through individual learning programmes or flexible benefits – will have an upper hand.’ He adds that employees should be made active participants in the decision-making process related to benefits.

Companies are expanding the use of digital technology to determine what their workforce really wants. To date, employee surveys have been the most common method of engagement. But surveys – together with the popular town halls – are expected to lose their place to service desk and IT service management tools in the next two years.

The power of tech

The tools and modes of change, management and collaboration need to be updated and modernised for the hybrid work environment to be effective. According to The Future of Work, automation and modernisation are the next big client priority. At the same time, the interest in initiatives around hybrid work and flexible work – currently listed as numbers 1 and 2 – have fallen off significantly. This indicates that companies have moved away from ‘how we do remote working’ to ‘how we actually use technology better’, says Masood.

By investing in automation and modernisation, and by digitising their processes, companies will become much better at measuring – and improving – the employee experience. This in turn is linked to staff retention and revenue growth.

The Future of Work report recommends, amongst others, that companies should continue to provide flexibility in hybrid work balance, invest in adequate tech to support hybrid work, measure holistic productivity metrics and evolve them, and invest in a strong digital experience. Ultimately, our future of work is set to use technology, and especially AI, to make work processes simpler and prioritise human-centricity to serve workforces better, while gaining a competitive advantage. The value of human-centricity is proven; therefore, digital transformation tools and AI automation will be all about amplifying human potential.

The four waves of workplace digitisation

In the past 25 years, digitisation has transformed our workplaces. From the early steps in the first wave to the virtualisation of the workplace in the second wave and the current focus on tool automation and investment in modernisation, the fourth wave will be all about the AI-empowered workplace.

WAVE 1: 2000 to 2020 | ESTABLISHING DIGITAL

• Early cloud adoption
• Advancement of email and collaborative tools
• Integration of mobile and BYOD
• Early steps in video conferencing

WAVE 2: 2020 to 2022 | VIRTUALISING THE WORKPLACE

• Rapid expansion of video conferencing and virtual collaboration
• Consumer apps adopted for comms
• Scaled hybrid working

WAVE 3: 2022 to 2023 | HUMAN-CENTRIC

• Focus on the effectiveness and adoption of digital tools
• Expansion of metrics focused on productivity, usage and experience
• Increased tool automation and investment in modernisation

WAVE 4: 2024 and beyond | AI-EMPOWERED

• Value Al skills and training
• Invest in responsible Al processes
• Target increased creativity, volume, innovation and cost reduction

* This article originally appeared in the Old Mutual Mindspace Thought Leaders Forum special issue. Read the full publication here.