Organisations not doing enough to prepare for future of work, says PwC report

Businesses are not taking prompt action on the human resources front in terms of retaining talent and dealing with future challenges, said a PwC report.

It notes that while the majority of businesses recognise which capabilities are important for their future success, many are failing to take the actions needed today to build or even introduce them into their organisations.

"These actions include using data analytics to make workforce decisions and creating a compelling work experience for employees. This gap will put them at risk in the future when it comes to attracting, developing and retaining the talent they need to succeed," the report said.

PwC's 'Future of Work' report has been produced in collaboration with Lynda Gratton, Professor of Management Practice at London Business School.

It is based on a survey of 1,246 businesses and HR leaders from 79 countries.

The report focuses on 45 capabilities and identifies where organisations are most 'at risk' by looking at the number of respondents who say a capability is important to the future of their business but indicate that they're are not yet taking action.

"Technology and trends such as rising life expectancy, social and environmental pressures and the gig economy are transforming the world of work. Companies that understand and act on these workforce changes now will be the ones that thrive in the future," said Carol Stubbings, Joint Global Leader, People and Organisation, PwC UK.

The survey finds that companies are struggling to use data and advanced analytics to make better decisions about the workforce. The top three 'at risk' capabilities all relate to workforce analytics and their use in improving the working environment and people's behaviours.

Although more than 60 per cent of respondents say using data analytics in workforce decisions is important, only 27 per cent actually use it, the report said.

In addition, only 38 per cent use data analytics to predict and monitor skills gaps in the workforce, while just 31 per cent use sophisticated workforce planning and predictive analytics and only 28 per cent use data analytics to help limit bias in hiring and to craft incentives tailored to individuals.

"Indian leaders today understand the importance of data analytics. However, there is a marked gap between realising the importance and taking the right, adequate steps in building the organisation systems and processes that enable insights based decision making consistently.

"We need to address this gap and look at using advanced analytics in enhancing employee experience, to be future ready," said Chaitali Mukherjee, Leader People and Organisation, PwC India.

As many as 59 per cent of the respondents in the survey were HR professionals, and the remaining were business executives.