AI, big data and the connected workplace are the top trends in Switzerland

Nine out of ten managers and HR managers rank artificial intelligence, big data and the connected workplace among the top trends in Switzerland

Swiss companies will face major skills gaps in the coming years

Teaming reaches the executive floor of Swiss companies; according to a Deloitte report, 70 percent of top management do not work together

Organizations must realign themselves from purely commercially oriented companies to social enterprises

Concerns about advancing automation, the need for new skills, an ageing workforce and tightening labor markets are putting Swiss leaders in the responsible position of realigning the current role of companies in society. In the 2018 report "The Rise of the Social Enterprise", Deloitte examines the rising expectations on each individual, how leadership itself must now act as a team and how new technologies are rapidly reshaping the HR priorities of organizations. Top trends among managers and Chief Human Resource Officers (CHROs) in Switzerland are the connected workplace (86 percent), automation and the use of HR-relevant employee data (85 percent each).

"While society is facing enormous demographic, technological and social challenges, employees increasingly want management to fill this gap. However, this goal is still a long way off," says Myriam Denk, Head of Human Capital Consulting, Deloitte Switzerland. "This year's report is a wake-up call for organizations to think outside the box and realize their importance in society as the business environment becomes increasingly competitive and digital challenges continue to grow. Integrating the C-suite in building a more socially-focused business will be a differentiator for organizations when it comes to attracting the right talent, fostering customer loyalty and securing long-term growth."

Almost 100 respondents in Switzerland point to the need for a team-oriented, interdisciplinary approach to tackling complex issues. 83 percent describe this trend as important or very important. Other survey results show that managers need to break out of their silos and work together more. Companies where leaders collaborate regularly can expect growth rates that are one-fifth higher than companies whose leadership only occasionally collaborates on ad hoc initiatives or projects. Although this collaboration is necessary to move the organization forward, 70 percent say their leaders do not collaborate regularly.

Business should close the social gap

Increased transparency and heightened political awareness have drawn attention to the role of business as a driver of change in society. Companies are increasingly expected to exercise their ability to do social good both externally for customers, communities and society and internally for their employees. Companies must take a comprehensive stakeholder approach to pressing public issues in order to maintain their reputation and relevance beyond the organization. With increasing pressure on companies to develop solutions to critical social challenges, citizenship must be a central part of an organization's identity and mission.

The new challenges of an ageing and hybrid workforce

Internal and external social flows are also drawing attention to the ageing global population. Increased life expectancy raises the question of how long careers will last and how an ageing workforce will impact the economy and public policy. 80 percent of respondents in Switzerland say that a multi-generational workforce is part of their company's diversity and inclusion strategy. Despite the aging global workforce and the competitive advantages that older talent offers, less than ten percent of respondents say their organizations have created dedicated roles for older employees to leverage their expertise. However, the ageing workforce remains an untapped resource of experience and knowledge that Swiss companies can use to their advantage.

As alternative working arrangements become more common in business, HR and business leaders are keen to better plan and optimize their own workplace ecosystems as quickly as possible. They are responding to the need to improve service, adapt more quickly and develop new skills. By 2020, 38% of Swiss companies expect growth in contractors, 57% in freelancers and 44% in gig workers.

Switzerland is already doing a good job when it comes to driving a diverse workplace ecosystem. More than half of the organizations surveyed in Switzerland have a range of policies and practices in place to manage the diversity of employee types, compared to just 16 percent globally. However, it is crucial that hybrid HR strategies are successfully implemented, as they can have a significant impact on an organization's employer image and external reputation.

"The challenge is not just finding the right people to perform certain tasks at certain times. For real value to be generated by building new workforce ecosystems, companies need to understand how to engage and connect with employees of all types," explains Denk, adding: "HR professionals and leaders should proactively form new leadership alliances to develop integrated workforce strategies and programs that help a company leverage the diversity of workforce options available today."

AI, robotics and automation: employees need to be constantly developed and retrained

With the use of AI (artificial intelligence), robotics, automation or HR analytics, technologies that show no signs of slowing down, companies need to focus on creativity, social intelligence and ICT know-how as future skills, according to another report by Deloitte Switzerland on key employee skills in the digital age. 91 percent of Swiss respondents expect AI and cognitive technologies to have a partial or significant impact on the workforce in 2020, and 38 percent are already actively designing jobs such as an employee engagement specialist, HR analytics director or robot recruiter around AI and robotics. While 85 percent of respondents consider this area important, only 31 percent feel ready to tackle it.

Holistic view of job and career

Companies and employees alike are aware that the traditional career model is undergoing radical change: 55% of Swiss respondents therefore consider the development of new career models and skills to be very important. But more than 57 percent have no programs in place to build the skills of the future, and only 25 percent give employees the opportunity to actively develop themselves and explore new paths. Organizations that embrace their role as drivers of change in the social enterprise must work to develop and implement robust solutions to close the growing skills gaps.

"Automation will continue to keep us busy in the coming years. Above all, it will improve the size, speed and quality of work," says Myriam Denk. "But it's important to remember that with the automation of routine work, new jobs will be created - jobs that are more service-oriented, analytical and social in nature and that match our essential human skills. Companies whose leadership recognizes this shift and reshapes the way these skills are used can be one step ahead in the marketplace."

The rise of the hyper-connected workplace

Due to a flood of new communication tools in the workplace that complement team-based work, more than 86 percent of companies see the productivity of the more connected employees as very important. 79 percent of respondents expect employees to spend more time within collaboration platforms in the future, and 66 percent expect work-based social media tools to grow. As digital tools move from the home to the workplace, organizations will need to leverage their expertise in team management, goal setting and employee development. Only then will they be able to improve their organizational, team and individual performance and foster the collaboration necessary to become a more socially focused company.