Stay Ahead in the Future of Work: Strategies to Beat Competition

Did you receive the memo? We’re living in the 4th Industrial Revolution, yet labor productivity growth sits at a historic low, contradicting the promise of technological breakthroughs that began in Q4 2007. Why? According to Jeff Schwartz, Deloitte’s HR thought leader, business productivity is no longer driven by Moore’s Law, even as tech advances at an unprecedented pace.

What can organizations do to close the gap between productivity and innovation? The answer lies in adapting with your workforce.

Schwartz and colleagues at Deloitte Human Capital believe HR has a unique role in guiding leaders through rapid tech shifts and the expectations of a fast‑growing Millennial and Gen‑Z workforce. In their recent Innovation Tech Terminal event, in partnership with ZipRecruiter and WeFind, HR Tech experts—start‑ups, investors, and corporate leaders—discussed the future of work, the biggest challenges ahead, and how to reinvent for the digital age.

Be Flexible

Vered Raviv‑Schwarz, COO of Fiverr, highlighted a seismic shift: almost 40% of the U.S. workforce freelances. Employers now compete not only with other companies but with a way of life. A 2016 survey found that 63% of freelancers chose the gig life, 50% said no salary would entice them back, and 73% reported higher earnings after leaving full‑time work.

Freelancers demand more than compensation; they crave flexibility and the ability to act as intrapreneurs. Leading tech giants—Amazon, Google—have embraced risk‑tolerant cultures that encourage experimentation. Companies like WordPress and Buffer have gone 100% remote, proving that home can be the best office for employee retention.

Instead of fighting the gig economy, firms can collaborate with freelancers to gain a fluid, scalable workforce that delivers hyper‑specialized talent. As routine tasks disappear under automation, off‑balance‑sheet workers may become a sizable component of future organizations.

Love Thy Employee

Flexibility alone won’t motivate the digital‑first generation. HR must shift from a customer‑centric to an employee‑centric focus, offering an end‑to‑end view of the employee experience—from recruitment to retirement.

Performance measurement must evolve beyond annual reviews. Continuous feedback loops and rewards aligned with team and organizational goals are now essential. Ronni Zehavi, CEO of Hibob, notes that many HR platforms neglect the employee (“C”) and that firms spend up to 80% of their budget on people—making people the most critical resource for growth.

Develop Your Talent

With Millennials comprising 75% of the U.S. workforce by 2025 and 60% open to new opportunities, retaining this cohort is vital. They’re accustomed to job‑hopping (21% changed jobs last year, compared to 7% of non‑Millennials) and expect continuous learning.

PepsiCo’s “Critical Experiences” framework immerses employees in ambiguous, high‑impact projects that build new skills and knowledge—skills that stay relevant throughout their careers.

Be Attractive

Talent acquisition now ranks as the third most critical challenge in Deloitte’s 2017 Global Human Capital Trends report. Companies must build a digital employment brand to attract top talent in an era of rapid skill change.

Platforms like Industry use video and photography to replace outdated hiring methods, allowing restaurants to showcase culture and professionals to highlight personality. Others leverage cognitive systems—such as IBM Watson—to predict candidate performance, optimize recruitment marketing, and accelerate hiring.

Moving Forward

HR has transformed from a compliance function—supporting 404 deals and $2.2 billion in funding in 2016—to a strategic partner that helps organizations navigate the 4th Industrial Revolution and meet new workforce expectations.