The workplace has changed – but the tectonic plates are still shifting

The nature of the workplace and the work we do there is unrecognisable when compared to even just a few years ago. A mass shift to remote and hybrid ways of working is the obvious difference but talent shortages, emerging technologies and rapidly evolving employee expectations are presenting challenges for employers who are critically dependent on their workforces for their success in the market.

This sea change is far from finished – observers say the tectonic plates are still shifting beneath our feet when it comes to the future of work. According to Meadhbh McCann, director in management consulting at KPMG Ireland, this ongoing evolution can be viewed in either a positive or a negative light.

“The foundations are still shifting and will likely continue to do so,” she says. “For some, that weakened stability is perceived as risky and we are seeing mandated return to the office in a bid to mitigate against commercial, cultural and knowledge-transfer impacts. For others, this landscape provides opportunities for new ways of working and may be perceived as a leveller in terms of access to broader talent pools and decreased accommodation outlays.”

Susanne Jeffery, HR transformation and technology director at PwC Ireland, agrees.

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“As we navigate this evolving landscape, the future of work promises to be more dynamic and adaptable than ever before,” she says.

Digital tools and platforms have facilitated collaboration and productivity for hybrid teams – Jeffery references a 2023 PwC survey which found that 62 per cent of Irish employees work in a hybrid model, “offering employees greater autonomy and work-life balance”.

“Employee expectations have shifted significantly in recent years, driven by evolving attitudes towards work-life balance and organisational culture,” she says. “There’s a growing demand for flexibility, with employees seeking remote work options and flexible schedules to accommodate personal commitments.”

McCann echoes this, noting that enhanced flexibility is no longer a “nice to have”; rather, it is a “key hygiene factor” for employee satisfaction.

“Flexibility isn’t just about where you work and goes far beyond the binary debate around remote vs being on-site,” she says. “Employees expect reasonable flexibility around working hours, leave, career paths, levels of autonomy and how they engage with people they work with to get their job done.”

Barbara Gerstenberger is head of the working life unit at Eurofound, the EU agency for the improvement of living and working conditions. She says the sharp increase in remote working peaked during the pandemic and although it has slightly fallen since then the proportion of workers working some or all of the time from home is significantly higher than it was five years ago.

“According to data from the EU Labour Force Survey, 14 per cent of workers worked from home ‘usually or sometimes’ in 2019,” she says. By 2022, this was 22 per cent of workers, or 44 million people across the EU engaged in remote working. Developments in remote working differ between EU member states and Ireland saw the biggest increase between 2019 and 2021 but also saw an above EU-average decline between 2021 and 2022.

Gerstenberger says this chimes with employee expectations and believes remote or hybrid working is a priority for most workers.

“In 2021, in an e-survey conducted by Eurofound, 60 per cent of workers said they would like to work from home at least some of the time,” she says. “This is far higher than the share of jobs which can actually be done remotely, which is close to 39 per cent of dependent employment in the EU.”

And even within a particular sector there are strong variations in the percentage of people working from home across the occupational spectrum, Gerstenberger says: “High proportions of managers and professionals avail of hybrid work arrangements, while technicians or clerical workers in the same sector are less likely to have access even though their tasks are equally or even more computerised.”

Research carried out by Eurofound has determined that organisations that offer hybrid or remote working are doing so because they believe it will enhance employee engagement, wellbeing and productivity without sacrificing the benefits that come from having people work within the same physical environment.

“Another motivation for adopting a hybrid arrangement was the recognition, especially by companies having difficulty recruiting staff, that offering telework in some form might give them an edge in the fight to attract new talent,” Gerstenberger notes.

This chimes with a growing recognition of the importance of employee wellbeing, which McCann says has been top of the agenda in the post-pandemic years. Most larger organisations now have some form of employee wellbeing programme, offering mental health support, wellbeing activities and initiatives to combat burnout.

“But, in my opinion, it should be less about offering a full schedule of wellbeing activities and more about developing a workplace that doesn’t contribute to making you unwell,” she notes.

To this end, Jeffery points to an increasing focus on workplace diversity, inclusion and belonging, saying employees expect organisations to prioritise these values.

“There’s a growing emphasis on fostering a supportive and inclusive workplace culture, with initiatives such as diversity training, mentorship programmes, and employee resource groups gaining prominence,” she says.

Career development and opportunities for skills enhancement have also become key expectations, especially in a hot talent market. As emerging technologies begin to embed themselves in the workplace, employees are increasingly seeking training and development opportunities to keep up to speed.

According to the World Economic Forum’s Future of Jobs Report 2023, more than 85 per cent of organisations surveyed identified the increased adoption of new and frontier technologies, and broadening digital access as the trends most likely to drive transformation in their organisation.

“Now more than ever, employees seek continuous learning and growth opportunities,” Jeffery says.

McCann, who works primarily with public sector clients, says she is seeing a lot of activity around proactively shaping the workforce of the future.

“While there are some limitations for public sector organisations when competing to attract and retain talent in this tight labour market, organisations that can clearly define and articulate their employer value proposition will have the best chance of connecting with prospective candidates,” she says. “Gen Z are said to be the first generation that prioritise purposeful work over salary, and this is something that the public sector can certainly offer.”

McCann says another prevalent area of focus is the multigenerational workforce and how employer offerings cater to differing needs and expectations.

Jeffery sees employers revamping recruitment strategies to attract diverse talent pools and prioritising inclusive hiring practices.

“Certain companies and sectors stand out for their innovative approaches and success in this space,” she says. “Technology companies, particularly those specialising in remote collaboration tools and digital workspace solutions, have excelled in facilitating flexible work arrangements and supporting employee wellbeing.”

Particularly progressive companies in sectors such as finance and professional services have demonstrated success through inclusive policies, flexible work arrangements and initiatives aimed at fostering a supportive workplace culture, she adds.

“The organisations that do prioritise employee wellbeing, diversity, and adaptability tend to emerge as leaders in navigating the evolving landscape of modern work.”

According to Gerstenberger, Eurofound’s research clearly indicates a future of work that is more employee-centric and not office dependent.

“The employer’s premises – usually offices – are increasingly seen as the work location for social interaction which, for example, promotes the exchange of ideas and innovation, whereas remote working is a work situation in which the social feature is not as important, so that more focused, individual, work can be carried out,” she explains.

“Companies introducing hybrid work practices successfully look at the broader picture but the feasibility and success of different arrangements depend on legislation, organisational and team-level objectives, task descriptions, and individual needs and preferences.”