As SVP, Professional Services at BairesDev, Damian oversees the entire customer relations life-cycle, safeguarding the company’s operations.
The workplace is a vastly different place than it was five years ago, mainly because the pandemic accelerated the adoption of new technologies. For some, basic activities like dressing in business attire and commuting seem like memories from a distant past. However, the pandemic has not been the only driving force.
According to “The Challenger Report,” more tech employees were laid off in 2022 than in 2020 and 2021 combined. This trend continued into 2023. As of March 31, roughly 135,000 tech workers in the U.S. have been laid off. Experts point to a number of reasons: economic downturn and the possibility of a recession, high inflation, higher interest rates and overhiring during the pandemic.
Many companies are now being forced to diversify their products or expand their operations elsewhere, requiring different skill sets than those added in previous years. As we look to the future of work in the tech industry, here are five trends that are important to keep in mind:
1. Hybrid and remote work has become the norm.
Many companies now allow employees to work from home a few days a week, while others have transitioned to a fully remote model. Workers are pushing for more hybrid and remote opportunities, too. According to a recent survey, 65% of respondents prefer 100% remote work, while 32% would prefer a hybrid workplace. In other words, these two models are here to stay and employers will have to come to terms with different workplace preferences.
If a company is struggling to meet the demands of their employees to work remotely, one thing they can do is co-create a remote work policy that outlines clear expectations for workers. Additionally, companies can explore asynchronous work as a complementary modality to give professionals the freedom to arrange their work schedule, while covering communication needs and meeting delivery deadlines.
2. There’s growing support for the four-day workweek.
From June to December 2022, a study was performed in the U.K. to determine the viability of a four-day workweek. Sixty-one companies participated in the experiment, using a 100-80-100 model: Workers get 100% of the pay for working 80% of the time in exchange for delivering 100% of their usual output.
The results were positive overall. According to the report (registration required), 63% of businesses found it easier to attract and retain talent and, most importantly, 78% of employees were happier and less stressed with this model.
If a company wants to adopt the four-day week, I recommend running a test with a small department first versus going all in from the beginning. If the results are satisfactory, proceed with a companywide trial. (Also keep in mind that country and state labor laws could prevent incorporating this model in some locations.)
3. Extended reality has entered the workspace.
Virtual reality, augmented reality and mixed reality can allow us to interact in a completely new way at work. Many companies already use VR for training since it allows for an immersive learning experience that re-creates real-life settings and simulates work challenges.
Meetings are also being impacted by this technology. According to a report by Microsoft, meetings in a VR setting may boost entitativity, or the feeling of being part of a group, bringing them up to par with face-to-face interactions.
Of course, VR might not be the best option for every company. Identify potential applications and asses the feasibility and cost. If the decision is to go ahead, then again I recommend developing a pilot project and testing it with a small group of employees first.
4. Artificial intelligence is affecting nearly every industry.
Artificial intelligence will replace many workers in some sectors, and others—such as restaurant workers—have already been affected. According to the McKinsey Global Institute report “The Future of Work in America,” nearly 40% of U.S. jobs are in occupational categories that could shrink between now and 2030.
The impact will be felt in the tech industry as well. While humans will always write code, many AI tools can assist developers in doing the job better and faster, completing projects in less time and with fewer team members than would be required now.
Many learning platforms can teach professionals how to leverage AI in their daily operations. Educational platforms like Platzi or Coursera have courses in everything professionals—from coders to people in marketing and accounting—need to know to be up to date with the best AI tools. Share these resources with your team and encourage upskilling.
5. We’re seeing an increase in specialization and outsourcing.
With the ability to have closer collaborations with other companies and partners across the country and even around the world, many companies are focusing their energies and resources on their core activities, leaving all other secondary activities in the hands of outsourced specialists.
The forecast for business processes outsourcing in the U.S. annual growth rate in revenue is 5.75%, resulting in a market volume of $162.20 billion by 2027. Regarding IT outsourcing, revenue is expected to grow by 5% globally (paywall), resulting in a market volume of $781 billion by 2030.
To select a good outsourcing partner, a company must do its due diligence. Ask for references and to see what projects they’ve worked on before, research what their reputation is in the market and, based on your interactions, try to gauge how quickly they can adapt to your needs. Features like time zone overlap and cultural alignment are also important to consider.
In conclusion, I believe these changes in the workplace, especially in the tech sector, are inevitable. Most of them are for the better, but it’s still important to understand and plan for these trends properly. That way, you can future-proof your business to operate successfully in the years to come.
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