Navigating the Future of Work

Shaping tomorrow: Craft human-centric HR strategies to transform your people into a dynamic competitive advantage, driving both innovation and growth.

In today's rapidly evolving business landscape, organizations are navigating an unprecedented array of challenges and opportunities when it comes to managing their most valuable asset: their people. As the workforce becomes increasingly diverse, digital transformation accelerates, and the demand for agility and resilience grows, businesses must rethink their HR approach.

Download the 2024 Global Human Capital Trends report

New generational shifts

The landscape of work is changing. The traditional method of managing your workforce is less effective. The challenges are multifaceted—ranging from technological disruptions to the rising demand for sustainability and inclusivity from a new generation of workers. Gen Zs and millennials are reshaping the workplace with their focus on purpose, flexibility, and environmental responsibility. Organizations are expected to demonstrate empathy, curiosity, and inclusivity in work environment. Deloitte’s 2024 Gen Z and Millennial Survey provides valuable insights into the priorities and perspectives of younger generations:

Purpose influences workplace satisfaction

The majority of Gen Zs (86%) and millennials (89%) say having a sense of purpose is important to their overall job satisfaction and well-being. And these generations are increasingly willing to reject assignments or employers who don’t align with their values. When employers take that feedback and respond positively, employee loyalty tends to be much higher.

Environmental sustainability drives career decisions and consumer behaviors

Environmental sustainability remains a top concern, with 62% of Gen Zs and 59% of millennials reporting feeling anxious about climate change in the past month. This is reflected in Gen Zs’ and millennials’ career decisions. Two in 10 Gen Zs and millennials have already changed jobs or industries to better align their work with their environmental values, with another quarter planning to do so in the future.

Positive perceptions of GenAI increase with more hands-on experience

Gen Zs and millennials are feeling uncertain about GenAI and its potential impact on their careers. Those who frequently use GenAI at work are more likely to say they feel excitement about, and trust in the technology. But, conversely, the more one uses GenAI the more likely they are to also have concerns, such as believing that GenAI-driven automation will make it harder for younger generations to enter the workforce.

Work/life balance and flexibility remain paramount

Work/life balance remains paramount for both Gen Zs and millennials, once again topping their list of priorities when choosing an employer and being the most admired trait among their peers. Gen Zs and millennials continue to value flexibility in where and when they work, and this drive for flexibility continues to increase the popularity of less traditional employment models, including part-time roles, job-sharing, and side gigs.

Employers should stay focused on workplace mental health

Only about half of Gen Zs (51%) and millennials (56%) rate their mental health as good or extremely good. And while stress levels have improved slightly since last year, they remain high, with 40% of Gen Zs and 35% of millennials saying they feel stressed all or most of the time. Financial concerns, and family welfare are major stressors, alongside job related factors such as long working hours and lack of recognition.

Gen Z and Millennials are driving significant shifts in workplace dynamics, emphasizing the importance of flexibility, purpose, and technology integration. These generations value work environments that prioritize mental health, diversity, and inclusivity, pushing organizations to adopt more human-centric policies. Good preparation is paramount, especially taking into consideration other emerging trends in field of HR.

Embracing human capital trends

Adapting HR practices to meet the needs of the increasingly diverse and dynamic workforce is not easy but it is crucial for businesses striving to remain competitive as it directly impacts talent attraction, retention, and overall productivity. Deloitte’s 2024 Dutch Human Capital Trends Report provides insights on how to adapt to the shift towards boundaryless work environments and build unique human capabilities in the Netherlands and Belgium.

Trust does not equal transparency

Greater transparency can help organizations build trust or erode it. Leaders must build a framework to ensure transparency is helping and not hindering efforts.

Moving beyond productivity

Traditional productivity metrics are becoming obsolete in an era of human-centered work. Workplace data can help organizations make the shift to measuring human performance.

Workplace microcultures

Embracing different ways of working for different work groups, rather than enforcing a top-down centralized culture, fosters human sustainability and stronger business outcomes.

Boundaryless HR

The future of work demands that the HR Department continues to evolve from a siloed function to a boundaryless discipline integrated with the people, business, and the communities it serves.

Digital playground

Technology is accelerating the evolution of the relationship between workers and organizations. Digital tools can provide safe, accessible spaces for workers and organizations to experiment and play.

An example of such a technology is the Well at Work Monitor. It is a science-backed tool that measures workplace wellbeing, offering actionable insights and facilitating targeted interventions at various organizational levels. Developed by TNO and Deloitte with the Wellbeing Community, it uses a user-friendly questionnaire for employees to track their wellbeing over time. Beyond measurement, it promotes healthier, more engaged workplaces and enables knowledge sharing and benchmarking among companies. As digital technologies enhance employee wellbeing, the following section will focus on workplace mental health and wellbeing.

Workplace mental health and wellbeing

Among the trends, workplace mental health and trust building have emerged as some of the key words, making workplace Psychological Safety a prominent topic. Psychological Safety creates the context for an inclusive culture, which is why embracing and ensuring psychological safety is a key concern for many leaders. We aim to address this sensitive issue by initiating a dialogue about psychological safety with a variety of people in senior leadership positions.

In the broadcast recording below, you will see an open dialogue on Psychological Safety to explore different and similar perspectives with individuals with different perspectives and backgrounds and a deep dive into three common myths in the corporate world about Psychological Safety and Trust.

Organizations that harness the strengths and adaptability of Gen Z and Millennial workers are positioning themselves for success. By embracing emerging human capital trends, businesses can foster a culture that values continuous learning, innovation, and inclusivity. Moreover, prioritizing wellbeing and psychological safety not only boosts employee engagement and satisfaction but also drives productivity and creativity. These elements are crucial for transforming the workforce into a strategic asset that propels organizational success.

Deloitte is committed to guiding organizations in creating environments where every team member feels empowered, valued, and inspired to contribute their best, ultimately enhancing the overall competitive edge. Reach out to us today to learn how we can support your journey.

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Navigating the Future of Work