The Outsourcing Week in Review (Future of Work): July 7, 2023

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It’s a thrilling time in the world of work! Technology, evolving workforce demographics, and an increased focus on well-being and flexibility are sparking rapid shifts. Let’s see how it all unfolds

Workplace tensions are escalating around the globe as 18% of employees are “loud quitting” or vocalizing their dissatisfaction with their companies as they exit. According to consulting firm Gallup, this shift comes alongside the quieter but equally concerning trend of “quiet quitting,” where employees stay in their roles but reduce their efforts. Interestingly, both groups are more open to lower salaries in new roles, while fully engaged employees would require a 31% pay increase to consider switching jobs. Gallup added that the lack of engagement in the workplace is causing an estimated loss of US$8 trillion, or about 9% of the world’s GDP.

Meanwhile, Gen Zs are driving companies to re-evaluate employee engagement and workplace strategies. Real estate firm Colliers said that this generation’s emphasis on psychological well-being, personal growth, inclusion, work-life balance, and flexibility leads companies to augment their diversity, equity, and inclusion initiatives. More businesses are also redesigning their office spaces to attract Gen Z employees and boost collaboration, productivity, and mental well-being.

While the world is adapting to new working demographics, health experts from the United States (U.S.) warn that remote work can lead to serious physical health risks such as cardiovascular diseases, diabetes, and blood clots due to a more sedentary lifestyle. A recent survey by digital health firm Upright reported a 50% decrease in remote workers’ daily movement, with other concerns including increased screen time and the rise of harmful habits such as smoking, drinking, and recreational drug use. Experts recommend that remote workers move regularly, hydrate, and exercise to counter these risks.

Aside from health, the rise of remote work also influences immigration policies. Canada, for instance, introduced a new digital nomad visa to attract international tech talent. This move offers foreigners the chance to work in the country for up to six months with an extension option if they secure a job offer. Canada joins over 48 other countries offering similar visa opportunities for international remote workers.

New Zealand takes the work-life balance crown as it topped Remote’s Global Life-Work Balance Index. The index, which evaluated countries on factors such as annual leave, sick pay, healthcare, and overall happiness, saw New Zealand with a total index score of 79.35, boasting a generous annual leave allowance, a high rate of sick pay, and a universal healthcare system. On the other hand, the U.S. lagged at 53rd place due to the absence of a universal healthcare system, statutory annual leave, and sick pay.

The role of Artificial Intelligence (AI) in business and the workforce is becoming increasingly significant. A recent CNBC Technology Executive Council survey reveals that 47% of top tech executives now prioritize AI in their budgets, outstripping cloud computing by more than double. The study also shows a significant shift in tech challenges, with growing customer demand for tech-driven products and diminishing fears of recession-induced cost-cutting. This aligns with findings where 65% of HR leaders reported increased productivity and efficiency through AI use. According to engagement solutions provider Engagedly, the areas most positively impacted by AI include performance management, recruitment, and employee engagement. A rapid return on investment also drives AI adoption in HR — with a global adoption rate of 21% — although the fear of job loss due to automation remains in these companies.

Around 93% of business leaders believe in the importance of human involvement in AI decision-making as the tech continues infiltrating the world of work. A study by cloud applications provider Workday revealed that most company chiefs are still worried about the reliability and timeliness of the data used by AI and machine learning (ML). Workday Chief Technology Officer Jim Stratton added that successful AI and ML adoption requires keeping humans in the decision-making loop, working with partners committed to responsible AI, and maintaining data integrity.

Similarly, New York City is now enforcing America’s first-ever law regulating AI bias in hiring. In a country where roughly 80% of employers use automated technology for employment decisions, companies must now disclose their use of AI and share collected personal data with job applicants. The law also requires companies to conduct annual audits for potential system bias. Despite concerns about possible audit evasion, this law is seen as a crucial step toward transparency and forms a foundation for future AI hiring regulations.

For International Labour Organization (ILO) Director General Gilbert Houngbo, AI is an employment opportunity rather than a threat. In an interview, Houngbo said the labor market could benefit from AI if it is well-prepared and offers adequate training and reskilling programs. The ILO chief also urged for policy reviews, particularly in education, to prepare workers for AI’s emerging demands in the workplace.

So, are you grabbing the opportunities from AI?

Source: Giphy

The future of work stories this week​..

5 July 2023

4 July 2023   

  • AI boosts efficiency for 65% HR leaders, says Engagedly – read article…
  • 93% of business leaders champion human oversight in AI – read article…
  • U.S. frontline workers contemplate quitting amid safety concern – read article…

3 July 2023

  • Global workforce discontent as report finds 18% ‘loud quitting’ – read article…
  • Workers outsource AI training tasks to AI, study finds – read article...
  • Gen Z Americans prioritize work experience in future career paths – read article…

30 June 2023

  • Aussie Gen Zs prioritize AI skills for future careers — study – read article…
  • Canada’s digital nomad strategy targets tech talent – read article…
  • In-person work boosts team productivity, claims CEO – read article…

29 June 2023

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About Derek Gallimore

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.