Trends that affect the global workforce and workplace and HR

Trend Number 1: Diversity is here to Stay

Diversity is one of the defining characteristics of the modern American workplace. The workforce of the 21st century increasingly resembles the general population. It encompasses individuals of both genders in nearly equal numbers and every other demographic category — including race, religion, national origin, age range, and physical disability.

The impact of demographic shifts

With a growing number of cities having a “majority minority” population, minority and immigrant groups also account for a growing share of the workforce.

A range of work settings and work preferences

Differing work arrangements represent another aspect of workforce diversity. Enabled by technology — including high-speed networks and mobile communications— there is growing variety in how and where employees work. Significant numbers work remotely from their homes, either by choice or because their employer requires it. The organization needs to provide the right combination of opportunities, rewards, and work arrangements to keep these individuals motivated, productive, and performing optimally.

Trend Number 2: In a Knowledge-Based Economy, Diversity is Increasingly Being Seen as a Source of Competitive Advantage

In the industrial model of production that persisted through the late 20 century, standardization and uniformity were highly valued, not only in materials and processes, but in people as well. Employees were viewed as being interchangeable and easily replaced, and human differences were neither valued nor accommodated in the workplace. To achieve and sustain competitive advantage, companies need to be fast, adaptable, and innovative.

A diverse workforce helps companies respond to key challenges posed by a changing marketplace.

• Enhancing creativity and innovation. The most successful organizations are skilled at harnessing the unique contributions of individuals and the synergistic power of teams to enhance competitiveness.

• Fostering adaptability and resilience. Research has shown that diverse organizations — which, of necessity, must learn to deal with their own internal differences — can adapt more readily to changing circumstances.

• Reaching out to new markets. Diversity is not just a reality in the workplace, but in the marketplace as well. By drawing on the experiences and insights of its own diverse workforce, an organization can more quickly recognize opportunities within demographic groups and geographies that are outside its traditional customer base — and develop goods and services that appeal to those targeted markets.

Trend Number 3: The Changing Employee/Employer Relationship is creating a New Employee Consciousness

In the industrial economy, the implicit contract between employees and employers was based on a top-down, hierarchical management style. Workers had little autonomy or decision-making power; and rewards, benefits, and work arrangements were offered on a “one size fits all” basis.

Under the pressure of global competition, however, that mutual loyalty eroded as organizations resorted to downsizing and outsourcing to improve financial performance and employees came to put their own interests ahead of the organizations.

In this context, the contract between employees and employers is undergoing a fundamental shift. The most talented and sought-after workers recognize that they can “shop” for the work situation that best matches their aspirations and needs. One major consequence of these changes is that organizations face a “new employment deal” based on employee consciousness of the value of self-development, individual responsibility, and self-direction — with managers offering guidance and support rather than issuing top-down directives. Simply put, it’s no longer possible to manage the workforce as a monolithic entity. Instead, organizations are challenged to manage a complex group of unique individuals who demand different work experiences, based on differences in their backgrounds and values.