Infosys has published a global research report about the future of work. The report is titled ‘Future of Work 2023’. It estimates $1.4 trillion in revenue and $282 billion in new profit could be generated through using digital tools automation.
The report urges enterprises to diversify talent pools and improve skills development for employees. It highlights how the workplace of the 21st century will see more hybrid working and digital engagement. This will enable firms to build more diverse and creative teams.
The survey was conducted by the Infosys Knowledge Institute (IKI), the research arm of Infosys. The research surveyed 2,500 senior executives and managers involved in workplace and workforce planning for large companies with more than $1 billion in annual revenue. The survey covered 12 industries across the US, UK, France, Germany, Australia, and New Zealand. It focused on how trends and pressures on workforce, workplace, and workstyles relate to revenue growth, profitability and employee retention.
Hybrid working is here to stay
The future of work is not about working from home or in the office. It’s about having the flexibility to work effectively wherever, whenever and however you choose. Furthermore, remote working is more than a trend. It represents a permanent shift in priorities and preferences of employees, with the transition out of the office being led by executives.
Remote working is expected to drive employee retention going forward. 65% of executives say they use this strategy to attract or retain employees. Companies that increased retention in the two years leading up to 2022 were almost a fifth more likely to have grown revenue and profits.
Automation: Making the workplace a better place
The research suggests organisations are increasingly turning to tools that enable real-time conversations, chat-based tools, and VR/AR tools. Digital Tool Automation and modernisation are executives’ top investment priorities by value and volume of workplace initiatives. Businesses need to invest in virtual and digital rollouts – including providing the right hardware and infrastructure for seamless operation.
Key findings from the survey
- Shifting to a flexible, diverse, and digital work model is correlated with 7.7 percentage points higher profit growth and 6.7 percentage points higher revenue growth.
- Retention of employees is critical. Companies that increased staff retention between 2020 and 2022 were almost a fifth more likely to increase revenue and profit. This compared with those that saw retention fall during this period.
- Almost two-thirds of senior executives practice remote working rather than in-office working. They expect flexible or remote workspaces to grow in the future.
- 65% of senior executives concurred that incorporating remote working resulted in better staff retention. Companies that incorporated wellness initiatives, home office stipends, and reskilling programmes saw an increase in staff retention. Modernisation and automation of digital tools, compensation rise, and bring-your-own-device strategies were also impactful on retention.
- Automation and modernisation of digital tools are set to become the top investment priority for firms in next two years. It is expected to bring in up to $123 billion in profit.
- Successful businesses of the future are likely to focus less on the employees’ work location and more on the mix of people who are working and how well they are supported.
- Respondents cited collaboration, change management, and a constant evolution of future work approaches as the top challenges faced by companies in implementing workplace transformation strategies.
Rajesh Varrier, EVP, Head of Digital Experience & Microsoft Business, Infosys, said, “Organisations have realised that remote work is here to stay. Furthermore, there is a pressing need to diversify and upskill their employees to boost business growth. The findings from the Future of Work 2023 report also showcase how businesses can drive growth, productivity, and profitability through the automation of digital tools and create more inclusive workplaces.”
Enterprise Times: What this means for business
This is an interesting report from Infosys. Many analysts and commentators have suggested the next Industrial Revolution is already upon us! Scientists, entrepreneurs, and policymakers, including the United Nations and World Economic Forum, are warning of an imminent paradigm shift in the future of work.
The report explores how the future of work may dictate the future of your business. For enterprises to survive and thrive, they have to be agile to operate within the environment of disruption and continuous innovation.
Talent is becoming a key differentiator in business, and employee retention the key to success. In fact, companies that increased their retention rates over the past three years were almost a fifth more likely to see growth. To keep pace with employees, companies should re-examine their employee relationships from a new perspective. They must deploy new tools and use them in new ways to foster a human-centric culture and succeed in the future.
