Navigating the Future of Work: 5 Global Workforce Trends

“My boss is asking me to do more with less.”

“Work smarter, not harder.”

“We need to streamline [fill in the blank].”

In my more than 40 years in the workforce solutions industry, I can confidently attest that these phrases have been uttered in nearly every boardroom from San Francisco to Shanghai for decades. However, I will say the explosion of AI and volatility of the political and economic landscapes across the globe have added an air of apprehension in taking the necessary next steps when it comes to workforce planning. 

There’s no doubt that the COVID-19 pandemic accelerated the pace and scale of the transformation we’re facing today, exposing the fragility of many business models and forcing organizations to rethink how they get work done. In this context, it is essential for HR, procurement and functional leaders to understand the global megatrends that are shaping the future of work and how they can leverage them to create a competitive advantage.

5 Global Megatrends Impacting the Way Work Works

The landscape of work is undergoing a seismic shift, influenced by global workforce trends that are redefining the very nature of employment. In this article, I outline five megatrends that are pivotal in shaping the future of work and discuss their implications for workforce transformation.

1. Shifting Demographics and Globalization

The world's population is growing and changing. According to the United Nations, the global population is expected to reach 9.7 billion by 2050, with most of the growth occurring in Asia and Africa. These regions will also account for over two-thirds of the world's workforce, while regions like North America and Europe will face aging and shrinking populations.

This means that even if you aren’t today, you will need to think more globally and strategically about where and how you get work done. You have to tap into the talent pools that are available and relevant for your business, regardless of the geographic boundaries. That means sending work to where the people are, not the other way around.

If you’ve followed me for a while, you know that I’ve been talking for years about Africa emerging as a key player in the future of the global workforce, and, today, many global tech companies are already there. Recently, Uganda is the country enterprises are most frequently asking about. With our global perspective and local focus, Allegis Global Solutions (AGS) helps organizations in planning efforts to ensure their global workforce strategy planning is cost-effective, ethical and compliant. A great primer on where to start looking is our recent report on 13 emerging global markets to watch.

2. The “Gigification” of Work

The gig economy represents the second megatrend, offering a new paradigm of employment that values flexibility and autonomy. More individuals are choosing freelance and contract work over permanent positions – according to Upwork, over one-third of the US workforce are engaged in some form of freelance work. And, that percentage soars to over half when just looking at Gen Z professionals.

As more and more workers opt for alternative work arrangements that offer them more choice and flexibility over their careers, the benefits for employers also abound. This shift towards project-based employment allows businesses to adapt swiftly to changing market needs. Plus, creating an internal gig economy within your organization – i.e., offering opportunities to existing employees to work on different projects, teams, or functions, based on their skills, interests, and availability – fosters a dynamic environment where talent can thrive on autonomy and entrepreneurial spirit. This, in turn, can improve engagement, retention and productivity, as well as their learning and development.

Companies that embrace this trend will find themselves at the forefront of agility, ready to pivot with the market's ebb and flow. Key to seizing the opportunity here is making sure you can access and manage any type of talent through a single point of entry and common skills framework, i.e., harmonization of workforce acquisition channels. This is a key element in our Universal Workforce Model™ as well as companies looking to become more of a skills-based organization.

3. Skills-Based Hiring: The New Credential

The skills landscape is evolving rapidly. The World Economic Forum estimates that by 2025, as many as 85 million jobs could be displaced by automation. Meanwhile, 97 million new roles may emerge that are more adapted to the new division of labor between humans and machines. This means that the skills that are in demand today may become obsolete tomorrow, and that new skills will emerge that are not yet taught or recognized.

How can you prepare for this change? By adopting a skills-based approach to your workforce. This means that you have to identify the critical skills that are required for your business – both now and in the future – and then map them to your existing and potential workforce. You have to move away from the traditional criteria of education, experience or industry, and focus on the actual capabilities and potential of your workforce.

A real-world example I shared recently in my podcast conversation with Kim Sneeder of CareerCircle was how we helped a client struggling to find project managers by placing a wedding planner in the role. Both jobs require great project management skills, managing deadlines and priorities and working with cross-functional teams. Just because the candidate’s resume didn’t have the title ‘project manager,’ didn’t mean they didn’t have the skills required to complete the tasks.

4. The Imperative of Strategic Workforce Planning

With all the options you have to get work done – FTE, contingent workers, freelancers, service providers, internal gigs, automation, generative AI – how do you take advantage of all the options to get work done and not get overwhelmed? Well, you probably need to get a lot more comfortable with strategic workforce planning.

For decades, HR directors have been telling me that they’re terrible at workforce planning. However, when it comes to forecasting, you need to get comfortable with being ‘only’ 80% correct. Directionally correct is important because anticipating future workforce needs and developing strategies to meet those needs puts you in a proactive position rather than reactive. Think of it as going to the grocery store after you’ve eaten rather than when you’re hungry – you’re likely to make fewer purchases you’ll regret.

Hiring should be about getting ahead of it, building talent pools, being more proactive. Use data and analytics to forecast hiring requirements, identify skill gaps and build a resilient workforce capable of adapting to change. The good news is there are now tools out there that are really helpful. The challenge is that bringing another piece of tech into the business brings its own hurdles and challenges. That’s why we developed our Acumen® Intelligent Workforce Platform, which augments your existing technology stack by seamlessly integrating leading technology tools and data intelligence to improve the workforce planning process.

5. Synergizing AI and Human Ingenuity 

Curious why I saved AI for last? Well, it’s because it has the potential to further drive or shift all of the preceding megatrends I’ve covered.

The emergence of generative AI is transforming the future of work – helping to automate, optimize and innovate work processes, as well as enhance creativity and productivity. This is more than just another advancement in technology. I liken it to dropping the Internet into a medieval old town. Everyone can see that it’s there but is still unsure what to do about it.

My hot take: stop asking humans to do robot work. Look to generative AI to augment and complement your human capabilities, not replace them. You can use generative AI to perform tasks that are repetitive, tedious or time-consuming, such as data entry, scheduling or reporting, and free up your time and energy for more strategic, creative or complex tasks.

For example, AGS has integrated the Globality GLO platform into Acumen to amplify the capabilities and impact of our procurement experts who now bring much greater insights across the source to pay process to identify opportunities for savings and efficiencies.

Using Global Megatrends to Your Advantage

The future of work is here and now. The global mega trends that we have discussed are not just predictions or possibilities, but realities that are already affecting your organization and your workforce. The question is, are you ready to embrace them and use them to your advantage?

How can you start to do that? Take a task- versus role-based approach to deconstructing the work.

Instead of relying on traditional job descriptions and resumes, you can deconstruct the work into tasks and outcomes and then decide the best way to get each task done. This could involve automating, outsourcing, offshoring, nearshoring, or using different types of talent, such as freelancers, contractors or services providers.

By taking this approach, you can achieve more with less – as you can access the right skills at the right time and place – while reducing overheads, risks and inefficiencies. You can also improve your agility and responsiveness, as you can scale up or down your extended workforce as needed, depending on the demand and the market conditions.

For a deeper exploration of these trends and their implications for your organization, I invite you to download our free e-book on The Universal Workforce Model™. This comprehensive guide offers valuable insights into creating a workforce that is not only prepared for the future but is also actively shaping it.