The future of workTrends disrupting your People AgendaVersion 0.8

Technology as a solution and a challenge

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“Technology gives us power, but it does not and cannot tell us how to use that power. Thanks to technology, we can instantly communicate across the world, but it still

doesn’t help us know what to say.”

Jonathan Sacks

3.5 zettabytes (3.5x1021)

of new information will be created worldwide this year.

Just 1 zettabyte is equivalent to

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250 billion DVDs

5,000 years.That’s more information than was created in the last

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of what a university student learns in their first year will be outdated by the third year of their study.

50%

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efficiencyTechnology enables …

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Technology enables …productivity

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Technology enables …speed

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Technology enables …connectivity

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Technology enables …predictability

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Technology enables …improved collaboration

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anxiety… but it also creates

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The primary sources of workplace stress include things like email information overload and a

constant need to “remain connected.”

87

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Some 50% of people aged 18–24 check their phones within five minutes of waking and 40% check it less than five minutes before

going to sleep.

Source: Ofcom — The communication market report 2015

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Technostress:A modern disease caused by one’s inability to cope or deal

with information communication technologies in a healthy way.

Constant connectivity Productivity demands Change capacity

Lost work

Decreased human contactPrivacy infringement

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The improvements are easy to see.

More information available Computational speed

Work efficiency Purchasing opportunities

So what?

… but the implications are less clear.

So what?

Personal relationships

Physical and psychological well-being

Work efficiency

Purchasing opportunities

The unknown

We are currently preparing studentsfor jobs that don’t yet exist …

… using technologies that have yet to be invented …

… in order to solve problems we don’t even know about yet.

The future of work

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“Technology is constantly advancing, if you make sure your business is nimble and smart enough to adopt new ideas early,

then it gives your start-up a weapon that will allow you to compete with the market leaders.”

Richard Branson

In today’s workplace, the increase of digital will have a major impact on the

future of work

Digital

Technology enablement

Analytics

Robotic process automation

Artificial intelligence

Block chains

By 2025, smart machines willreplace 1 in 3 jobs.

By 2025, smart machines willreplace more than 1 in 3 jobs.

Jobs that may not exist in 2025 include …

Telemarketers

Insurance underwriters

Cashiers

Data entry operator

Popular jobs in 2025 …

Professional triber Freelance professors Urban farmers

Senior carerSmart home handyperson 3D printer design specialist

Virtual reality experience designer

Automation will have the power to change the face of HR

95%of HR time is spent on repetitive tasks

65%of HR rules-based processes can be automated with robotics

time to process of an average human vs a robot

2h is reduced to

3mins

50–70% cost reduction to process on average of a person to a robot

Robotics can facilitate a refocus

Strategic7%

Tactical62%

Strategic80%

Tactical20%

From To

Work is becoming increasingly automated.

So what?

The good news is that technology takes the robot out of the human by automating

routine and repetitive tasks.

It also implies that we need to be nimble and skill up for the next

wave of job roles, and to deploy our people in new ways.

Changing global workforces

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“In Globalization 2.0, the era that introduced us to multinational companies, it went from size

medium to size small.”

Ireland0m

UK-2m

France-3m

Spain-3m

Italy-2m

Germany-3m

Egypt4m

India47m

Russia-6m

Japan-9m

Brazil3m

US-17m

Mexico5m

China-10m

Philippines5mMalaysia

1m

Indonesia5m

Austrailia-0.5m

Source: U.S. Census Bureau; BCG Analysis

Moderate increase

Significant increase

Decrease

Legend:

By 2020, many workforces could be facing significant shortfalls.

Source: EY Knowledge analysis of Office for National Statistics data

707580859095

100105110115120125130135140

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*

employees index 2008=100 self employed without employees index 2008=100

UK employees & self-employed without employees (i.e. proxy for contingent workers) index where 2008 level = 100

In the UK, the number of permanent employees has grown far more slowly than the number of contingent workers post-crisis

So what?

3

Changing global workforces:

So what?

Number of underemployed in developed markets

Growing birth-rates in developing markets

Managing contingent workers will become a fact of life

The global workforce is changing.

The good news is that technology enables work to be performed automatically and virtually.

Workers and talent can be sourced and deployed in diverse ways but the war on talent for specialist

roles will increase.

Putting the “human” back into managing our people

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“Technology is teaching us tobe human again.”

Simon MainwaringFounder and CEO of brand leadership firm ‘We First’

Ironically, as technology is making human connectivity ever more important, the platforms and data we connect to …

disconnect us from each other.

Creatinghealthier work environments

Achievingmind clarity

Increasingthe need for

strong social skills

Helpingemployees adapt

to the change

Getting back to human means …

How?

Thinking clearly and makingeffective decisions

Being more creative, innovative and collaborative

Building resilience to bounce back from stress

Achievingmind clarity

Re-engaging our human creativity means …How?

Creatinghealthier work environments

Decreasing stress hormones

Improving cognitive focus, creativity and productivity

Improving societal relationships (teaming)

Re-engaging our human creativity means …How?

Increasingthe need for

strong social skills

Stepping away from the computer and interacting socially

Collaborating and playing toteam member strengths

Adapting to changing circumstances

Re-engaging our human creativity means …How?

Helpingemployees adapt

to the change

Retraining employees whose time is freed up due to technology

Leveraging massive online open courses

Encouraging sabbaticals and cross-company talent exchanges

Re-engaging our human creativity means …How?

“Technological change isn’t just a constant: it’s accelerating. Technology will never again change as slowly as it does today.Businesses and governments alike need organisations that are built to evolve on an ongoing basis. In that context, principles matter more than plans.We need principles to guide how we change; not plans to spell out what we change.”

Martin Sorrell Chief Executive Officer of WPP plc

Peoplebeforeprocess

Leading in a digital age

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“What if CEO stood for ‘chief enabling officer’?”

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Leading in a digital age “What if that CEO’s primary role were to nurture a

breed of intrapreneurs who would grow into tomorrow’s entrepreneurs?”

Richard Branson

What are the new workforce competencies to succeed in a technology-enabled work environment?

Technology and data aptitude

Collaboration andnetworking

Virtual teamwork Conceptualanalysis skills

Processanalysis skills

Vendor/service provider collaboration

Diversity mindset

Continuous, self-directedlearning

Flexibility

The new competencies:

Adaptability

How can we as leaders manage, communicate, inspire and succeed in a global, digital economy?

By adopting new mindsets.

Intellectual curiosity

360º thinking

By adopting new mindsets.

Cultural curiosity

By adopting new mindsets.

Collaboration

By adopting new mindsets.

Connectivity

By adopting new mindsets.

Adaptability

By adopting new mindsets.

Integration

By adopting new mindsets.

Alignment

By adopting new mindsets.

Inspiration

By adopting new mindsets.

How can you be a part of the solution?

Enable

Execute

Be Entrepreneurial

Engage

Empathise

We are on an incredible journey.Conclusion

A journey that will change …how we work

A journey that will change …

how we lead our companies

and how we serve customers.

A journey that will change …

This journey provides us all with an opportunity to grow and shape our future.

What role will you take?

©2016 Ernst & Young LLP.All Rights Reserved.