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5 October 2019
FIATA World Congress
Workforce of the future – The competing forces shaping 2030
PwC
The world
is changing
PwC
Digital decade
2006Launch of Twitter
Google became
a verb
2007Apple launched
iPhone
became
mainstream
2008Airbnb launched
Lehman Brothers
filed for
bankruptcy
2009Launch of Uber
Urban dwellers
became majority
of earth’s
population
Google prototype
of driverless car
2010China overtook
US as largest
manufacturing
nation
2011Global population
passed 7 billion
Borders
bookstores shut
up shop
3
PwC
Digital decade
2012Kodak files for
bankruptcy
2013More mobile
devices and
connections than
people on the
earth
Blockbuster
closed for good
201464 billion
messages sent
in a single day
2015Amazon and
Alibaba rule
e-commerce
2016Personal data,
psychology and
bots influence
voting in
elections
Google’s
DeepMind beats
‘Go’ champion
2017Facebook goes
to war on ‘Fake
news’
314 million
search results for
‘Future of work’
4
PwC
What is happening right now?
Source: http://www.visualcapitalist.com/internet-minute-2018/
2018this is what
happens in an
internet
minute
2019this is what
happens in an
internet
minute
5
PwC – Techfest 2019
6
The U.S. - the number of people
working or looking for work—is
projected to reach 163.8
million in 2024. 1
The share of women in the workforce is projected to
reach 47.2% in 2024, and the number of men in
the workforce is expected to slightly decrease to
52.8% in 2024. 2
Although automation will play a role in the
future workforce, the future will hinge more
on experts who wield smart technologies,
with 78% of recent survey respondents
citing that smart technologies will most
significantly change the workplace by
2020. 3
Demand for higher cognitive skills, such as creativity, critical thinking, decision
making, and complex information processing, will also grow through 2030—by 19% in
the United States and by 14% in Europe, from already sizable bases. The same research
predicts the fastest rise in the need for advanced IT and programming skills, which could grow
as much as 90% between 2016 and 2030. 7
Mind-Blowing Stats
65% of children now
entering primary school will
hold jobs that currently don’t
exist. 6
In an analysis of 25 common skill sets
today, researchers found that between 2016
and 2030, demand for social and
emotional skills will grow across all
industries by 26% in the United States
and 22% in Europe 4
The need for advanced IT and programming
skills is going to grow. There will be 1.4 million open
computing jobs by 2020 but only 400,000 computer-
science graduates with the skills to fill them. 5
Source: https://www.cmo.com/features/articles/2018/5/29/15-mind-blowing-stats-about-the-future-of-work.html#gs.h68ezx Giselle
Abramovich . Executive Editor, Enterprise Thought Leadership . Adobe
PwC – Techfest 2019
Mind-Blowing Stats
7
Source: https://www.cmo.com/features/articles/2018/5/29/15-mind-blowing-stats-about-the-future-of-work.html#gs.h68ezx Giselle Abramovich . Executive Editor, Enterprise Thought Leadership . Adobe
Companies with great employee
experience outperform the S&P 500
by 122%. Today, 51% of business
leaders said they have plans to
create individualized employee
experiences comparable to
consumer experiences. A keen focus
on employee experience will be key
for the future of work.
AI could double annual economic
growth rates in 2035 by changing the
nature of work and creating a new
relationship between man and
machine.
The impact of AI technologies on business
is projected to increase labour productivity
by up to 40% and enable people to make
more efficient use of their time.
Besides being more efficient,
tomorrow’s workforce will be even
more diverse than today’s—by gender,
ethnicity, culture, religion, sexual
preference and identification, and
perhaps by other characteristics we don’t
even know about right now.
The vast majority of office workers in the
United States, United Kingdom, and
Germany said they believe technology
helps them get their work done. The
majority of the 4,000-plus office workers
surveyed also said they believe
technology makes them more productive,
improves work-life integration, and helps
them better connect with co-workers.
Flexible workplaces are all the rage
nowadays. There are currently 14,411 shared work spaces in the world today.
The number of co-working members
will rise to 3.8 million by 2020 and
5.1 million by 2022.
When asked about what they think
about the future world of work, office
workers said they are mostly excited
(37%) and see a world of possibilities
79% of executives agreed that the future
of work will be based more on specific
projects than roles.
PwC
Age and stage are disconnecting
The three-stage model The multistage life
Education
Work
Retirement
Transition
Portfolio (mix of paid and
unpaid work)
Retirement
Self-employment
Employment in an
organisation
Exploration
Education
8
PwC
Reality check - a sobering outlook on global economic growth
We went from a record jump in the percentage of chief executives
projecting that global economic growth would ‘improve’ in 2018 to a record
jump in the percentage projecting growth would ‘decline’ in 2019.
Confidence in organizations’ revenue growth prospects
has fallen sharply as well
Do you believe global economic growth
will improve, stay the same, or decline
over the next 12 months?
(showing only ‘improve’)
How confident are you about your
organization’s prospects for revenue growth
over the next 12 months/next 3 years?
(showing only ‘very confident’)
2018 2019
Improve
Stay the same
Decline
Curbed confidence from the corner office can be considered a leading indicator of the direction of the global
economy. The only previous survey when three-year confidence dipped below 12-month confidence globally was in
the precursor stages of the recession of 2007-08.
CEOs all around the world are less optimistic
than they were a year ago
Do you believe economic growth will improve, stay the same, or decline
over the next 12 months?
9
PwC
Look inside-out for growth: CEOs plan to drive revenue growth by focusing on internally-focused initiatives
77% 71% organic growth
Which of the following activities, if any, are you planning in the next 12 months to drive revenue growth?
PwC
Source: 22nd CEO Survey
operational efficiencies
CEOs appear to be less certain about their expansion plans outside their home markets
They are less bothered by the broad, existential threats that rose in the rankings last year – for example, terrorism and climate change – and are
more ‘extremely concerned’ about the ease of doing business in the markets where they operate.
35%
34%
Policy uncertainty
Availability of key skills
Over-regulation 35%
Geopolitical uncertainty
Cyber threats
30%
30%
Trade conflicts 31%
Top reported threats to organizational growth prospects
by CEOs in 2019
10
the keystone technologies
with
grips
Getting to
PwC New Services and Emerging Tech
Confidential information for the sole benefit and use of PwC’s client.
Analyzed 250+
technologies to zero
in on the eight
having the biggest
business impact
right now.
12
PwC
Artificial intelligence
Assisted IntelligenceTODAY
• Automating repetitive, standardised
or time-consuming tasks and
providing assisted intelligence
• Increased demand for STEM skills to
build new tech ecosystem
• Fundamentally change in the nature
of work. Humans and machines
collaborate to make decisions
• Uniquely human traits (emotional
intelligence, creativity, persuasion,
innovation) become more valuable
• Adaptive continuous intelligent
systems take over decision making
• The future of humans at work is
questioned
Augmented IntelligenceEMERGING
Autonomous IntelligenceFUTURE
13
PwC
The impact of AI on jobs
44%
CEOs believe that AI is good for the society79%
84% CEOs agree that AI-based decisions need to be
explainable in order to be trusted
88% of China’s CEOs believe AI will displace more
jobs than it creates in the long run
PwC
22nd CEO Survey
Over two-thirds of CEOs ‘agree’ that
governments should play a critical and integral
role in AI development.
of US CEOs disagree with the statement that AI will displace more jobs
than it creates in the long run
14
PwC – Techfest 2019
Top 10 most important Trust, humanness and adaptability
1515PwC – Techfest 2019
PwC – Techfest 2019
Top 10 ‘at risk’People experience, analytics and future-looking HR
1616PwC – Techfest 2019
PwC – Techfest 2019
action
for
priorities
Key
PwC
Acceleration
Source: Thomas Friedman
RATE OF CHANGE
TIME
Technology
18
PwC
Potential impact of job automation over time across industry sectors
Source: PIAAC data, PwC analysis
60%
50%
40%
30%
20%
10%
0%
2019 2021 2023 2025 2027 2029 2031 2033 2035 2037
Education
Wholesale and retail trade
Financial and insuranceWholesale and retail trade
Manufacturing
Transporting and storage
19
PwC
Potential impact of job automation over time occupational categories
Source: PIAAC data, PwC analysis
Machine operators and assemblers
Clerical workers
Craft and related trades workers
Service and sales workers
Technicians and associate
professionals
Managers and professionals
70%
50%
40%
30%
20%
10%
0%
2019 2021 2023 2025 2027 2029 2031 2033 2035 2037
60%
20
PwC
Share of jobs with potential high rates of automation by gender and age groups
Source: PIAAC data, PwC analysis
21
PwC
Pule’s roadmap to the World of Work in South Africa
22
Pule is starts her
education in primary
school and then
secondary school.
Some of Pule’s friends
cannot attend school
due to high school fees
(50.8% of individuals
do not attend
education due inability
to pay) and lack of
access to schools.
Average rise in the
cost of education
(2016) - 4.6%
Pule enrolls at university.
Many of her friends start
working or drop out of
school.
45.7% of youth aged 19 are
not in education, 8% of
population is in tertiary
education. Post-secondary
school completion rate (age
25 and older) is 11.4%.
There were 92k child
headed households in 2017
Pule enjoys her job but
due to economic
conditions, political
unrest/instability and
changes to the world of
work, she is at risk of
being retrenched
Since the start of 2019, 13
companies have announced
retrenchment of 13k
employees. In the second
quarter of 2019
retrenchments have shot
up by 27% from 2018.
Due to retrenchments,
Pule moves back into the
private sector but her
skills are dated and she
requires the relevant
upskilling.
Pule is excited to start a
career in government.
1.2m individuals were
employed by government in
2018. Government is
planning to retrench
30,000 public sector
workers in the next 3 years
and cut salary costs.
It is tough for Pule to find a
suitable job.
Irrespective of the level of
employment, youth
unemployment rates are
high - Age 15-24: 55.2%;
Age 25-34 - 34.2%; Age 35-
64 - 18.0%;
57% of unemployed people
have less than Grade 12
educationOnce at school, learning is
challenging for Pule due to
factors out of her control
Lack of books (2.8%), very
large classes (3.3%),
unusable facilities (2.1%),
lack of teachers (1.6%),
teacher absenteeism (1.2%),
poor quality of teaching
(1.2%) (% of individuals
expressing as problems)
Access to digital upskilling
and digital learning
methodologies for Pule is
limited.
Only 84.4% of households have
access to electricity in 2017,
49% of individuals do not have
a smartphone and 38% do not
have access to the internet.
In secondary school, the
risk of Pule not completing
her education is high.
Upper secondary
completion rate (aged 15
and older) - 55.1%
Secondary school completion
rate (age 25 and older) -
30.7%
Pule is 65 years old
and can no longer
work. Without proper
retirement savings,
Pule is living off old
age grants from the
government
21m individuals are
registered tax income
payers in 2018, versus
17.8m individuals that
were registered to
receive social grants,
relief assistance or
social relief in 2018.
Rarest job skills in
South Africa
- Java developer
- Financial
accountant
- Developer
- Php developer
- Web Developer
Sources disclosed in appendix
*TVET - Technical and Vocational Education and Training
For every 100
students who start
school in South
Africa, only 12 go to
university, and only 4
of them get a degree
within 6 years
Future skill sets
- Future thinking
- Collaboration
- Communication
- Creativity
- Adaptability
PwC
2030: Four worlds of work
FRAGMENTATION
Social responsibility and trust dominate the
corporate agenda with concerns about
demographic changes, climate and
sustainability becoming key drivers of
business.
Companies care
The
Green World
The
Yellow World
Social-first and community businesses
prosper. Crowd-funded capital flows to
ethical and blameless brands. A search for
meaning and relevance with a social heart.
Artisans, makers and 'new worker Guilds'
thrive. ‘Humanness’ is highly valued.
Humans come first
The
Blue World
Big company capitalism rules as
organisations continue to grow bigger and
individual preferences trump beliefs about
social responsibility.
Corporate is king
Organisations and individuals race to give
consumers what they want. Innovation
outpaces regulation. Digital platforms give
outsized reach and influence to those with a
winning idea. Specialists and niche profit-
makers flourish.
Innovation rules
The
Red World
INTEGRATION
COLLECTIVISM INDIVIDUALISM
23
PwC
The high-wage, middle-skilled job has gone the way of Kodak film. In the age of accelerations, there is increasingly no such animal in the zoo anymore. There are still high-wage, high-skilled jobs. And there are middle-waged, middle-skilled jobs. But there is no longer high-wage, middle skilled jobs. Average is officially over. When I graduated from college I got to find a job, my girls have to invent their”
– Thomas L. Friedman24
PwC – Techfest 2019
For organisations to stay at the forefront requires a new social contract for the employer-employee relationship
An environment that embraces diversity and inclusionWork-life integration requires a safe place for people to be their
authentic selves at work
Purpose-driven, meaningful workJobs that connect to larger societal issues that contribute to
progress in the world
Multidimensional growth opportunitiesEmployees seek opportunities to explore different skill sets and roles
within the same company
Benefits and compensation packages that accurately
meet the demands of people todayCost of living expenses have increased, but hourly wages and
salaries have not
Inspired leadershipVisible, accessible leaders that foster a culture of mentorship and
sponsorship
Core roles of the future HR function
People cultivator
Understanding employees and developing talent
Flexible navigator
Responding to continuous transformation of skills
Business promoter
Maximising business value through people
Cultural ambassador
Promoting and getting the best out of the organisation’s DNA
Digital accelerator
Collaborating with IT to accelerate for the Digital Age
25
PwC – Techfest 2019
Create an engaging people experienceTaking action:
Tackle burn-out and foster vitality
Build social resilience
Nurture agility and adaptability
Support 'intrapreneurship’
Provide autonomy
Move beyond 'good practice‘
Be mindful about the unintended consequences26
PwC – Techfest 2019
Get your story straight
Build a clear narrative about the
future of work
Share your strategic direction if
you want to take your workers
with you
Be clear about how you will
support workers with reskilling or
redeployment
Be transparent about the
commercial pressures you face
as you support your workers
27
PwC – Techfest 2019
The upskilling need across industries
Technology requires new skills.
Those industries facing the highest disruption due to
technology advancement and work automation
require the biggest rebalancing of their workforces --
and the biggest need for new skills to understand,
develop and work alongside technology.
All parts of an organisation need new
skills.
Organisations need help at both an enterprise-wide
and business unit or function level. Enterprise wide
buyers may look to a function or business unit as a
proof of concept or pilot approach. 5-10% of roles will
be disrupted each year.
Organisations failing to deliver through
current upskilling efforts.
Many organisations are finding that their current
upskilling plans are failing to meet the evolving needs
of the business.
Jobs at a high risk of automation by 2030
28
PwC – Techfest 2019
CEOs across all industries say they are strongly focused on upskilling their current workforce
Note: Insurance is the only industry surveyed where more CEOs plan to focus on hiring from competitors or other industries (total 43%) than upskilling
(36%). In other industries the choice of the biggest percentage of respondents is retraining current workers over hiring.29
PwC
Transport and logistics jobs into future
Source: Nedlac – Futures of Work in South Africa, March 2019
• Taxi and bus drivers
• Cargo and freight clerks
• Cashier and ticket clerks
• Parking lot attendants
• Route monitors
• Truck drivers
• Cargo vessel crew
• Railroad, brake, signal and switch
operators
• Train drivers
• Weigh bridge operators
30
• Data analysts
• Transport hub experience managers
• AI and machine learning specialists
• Solution designers
• System optimizers
• Blockchain management and
transport routes, bookings, etc.
• Infrastructure designers
• VR training developers
• Transport concierge
• Supply chain and logistics specialists
• Drone operators
PwC – Techfest 2019
Upskilling - Building blocks
Define future workforce and
understand impact of
automation
Create a cultural shift and the
right behaviours
Create buy-in and align
rewards and incentives
Measure Return on
Learning investment
Assess current workforce
capabilitiesInspire citizen-led innovation Free up time for learning
Track Employee
Engagement
Understand the
organisational culture
Nurture physical vitality and
mental wellbeing
Design for an engaging
learning experience
Benchmark the L&D
function
Build digital understanding
Focus on targeted personal
transformation journeys
Deliver training
Rapidly review and refresh
upskilling strategy
Make inclusion a priority
Improve effectiveness of
Learning Organisation &
Tech
Test strategic alternatives and
scale best-performing
programmes
Identify skills gaps,
mismatches and role
adjacencies
Validate the case for
change
Assess current
environment & identify
skills gaps and
mismatches
Build a future-proof
skills strategy
Lay the cultural
foundation
Develop and
implement upskilling
Evaluate return on
investment
PwC
Future skills and competencies
32
Social Intelligence
Ability to connect with
others in a deep and
direct manner i.e. to
sense and stimulate
reactions and desired
interactions
2 Novel – adaptive
thinking
Ability to come up with
solutions and responses
beyond that which is rule
- based
3 Cross-cultural
competency
Ability to operate in
different cultural settings
4 Computational
thinking
Ability to translate vast
amounts of data into
abstract concepts
5Sense-making
Ability to determine the
deeper meaning or
significance of what is
being expressed
1
PwC
Future skills and competencies
33
New media Literacy
Ability to critically assess
and develop content that
uses new media forms,
and to leverage media
for persuasive
communication
6 Trans-disciplinarity
Ability to understand
concepts across multiple
disciplines
7 Design mind set
Ability to represent and
develop tasks and work
processes for desired
outcomes
8 Cognitive load
management
Ability to discriminate
and filter information for
importance, and
to understand how
to maximize cognitive
functioning using
a variety of tools and
techniques
9 Virtual
collaboration
Ability to work
productively, drive
engagement, and
demonstrate presence
as a member of a virtual
team
10
PwC – Techfest 2019
Define future workforce and understand the impact of automationIdentify their future workforce needs in line with
business transformation and digital strategies.
PwC – Techfest 2019
Assess current workforce capabilitiesUnderstand current workforce
capabilities.
PwC – Techfest 2019
Understand the organisational cultureVisualise culture and define key scenarios
incorporating upskilling, recruitment and mobility for
the future.
Understand the culture that their business
transformation and upskilling strategies will work
within.
PwC – Techfest 2019
Create a cultural shift and the right behaviours
Develop culture as a key foundation to delivering business value.
The Katzenbach Center ‘Critical Few’ methodology helps create the right behaviours and attitudes to collaborative learning,
knowledge sharing and adaptability. Inspire an emotional commitment rather than reluctant compliance.
Mindset
The values, beliefs,
attitudes, assumptions,
biases, and ways of thinking
about digital technology and
learning to fuel innovation.
BehaviorsThe application of new
learnings to adapt habits
and actions that drive
digital innovation.
Relationships
The right connections,
collaboration, relationships,
and influence within an
organisation to foster digital
innovation and learning.
A more holistic view of learning culture, based on leading research from
PwC’s Katzenbach Center.
PwC – Techfest 2019
Nurture physical vitality and mental wellbeingMany people work in continually connected,
extremely demanding work cultures where
stress and the risk of burnout are pervasive. It’s
a real barrier to organisational success affecting
people at all levels.
Ensure that their wellbeing programmes leave
employees with the energy and mental capacity
to learn effectively and fulfil their potential.
38PwC – Techfest 2019
PwC – Techfest 2019
Act now.
This isn’t about some ‘far future’ of work –
change is already happening, and
accelerating.
No regrets and bets.
The future isn’t a fixed destination. Plan for a
dynamic rather than a static future. You’ll
need to recognise multiple and evolving
scenarios. Make ‘no regrets’ moves that work
with most scenarios – but you’ll need to make
some ‘bets’ too.
Make a bigger leap.
Don’t be constrained by your starting point.
You might need a more radical change than
just a small step away from where you are
today.
Own the automation debate.
Automation and Artificial Intelligence (AI) will affect
every level of the business and its people. It’s too
important an issue to leave to IT (or HR) alone. A
depth of understanding and keen insight into the
changing technology landscape is a must.
People not jobs.
Organisations can’t protect jobs which are made
redundant by technology – but they do have a
responsibility to their people. Protect people not
jobs. Nurture agility, adaptability and re-skilling.
Build a clear narrative.
A third of workers are anxious about the future
and their job due to automation – an anxiety that
kills confidence and the willingness to innovate.
How your employees feel affects the business
today – so start a mature conversation about the
future.
39
Key messages
PwC
No regrets moves
40
Linear predictions don’t cut itMake decisions based on purpose
and values
Embrace technology
as a force for good
Focus on the humans
and the humane
PwC – Techfest 2019
Workers are worried about their futures, creating pressure on governments and businesses
55% of people are worried
automation and/or other innovations will take their job away.1
60% think ‘few people will
have stable, long-term
employment in the future’.2
37% of workers are worried
about automation putting jobs
at risk.2
30% of jobs at high risk of
displacement by automation by
2030.3
1 Edelman Trust Barometer 20192 PwC Workforce of the future survey, 20173 PwC Economics Analysis, 2018
PwC – Techfest 2019
Organisations are challenged to deliver productivity
$3trillion in tech
investment each year.4Growth in workforce
productivity, by any measure,
remains low.6
79% of CEOs are worried
about the availability of key
skills.5
46% of CEOs say their first
priority to remedy the issue is
reskilling workers they currently
have.5
4 Forrester Forecast 20195 PwC CEO Survey, 20196 OECD
PwC – Techfest 2019
Workers are willing to upskill
74% are ready to learn new
skills or re-train to remain employable in the future.7
2 days per month on
training to upgrade their skills, if
offered by their employer.8
$24k per head to reskill
displaced workers in
corporate America.9
7 PwC Workforce of the Future Survey , 20178 PwC TechAtWork Survey, 20189 World Economic Forum, 2019
PwC – Techfest 2019
Further readings
44
PwC
So what should we tell our children?
...to stay ahead, you need to focus on
your ability to continuously adapt…
For students, it’s not just about acquiring
knowledge, but about how to learn.
For the rest of us, we should remember
that intellectual complacency is not our
friend and that learning – not just new
things but new ways of thinking – is a
life-long endeavour.”
– Blair Sheppard, Global Leader,
Strategy and Leadership Development, PwC
45
