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Economic uncertainty, gig economy, demographics make Adecco’s ‘megatrends’ list

March 22, 2018

Geopolitical and economic uncertainty, the gig economy and a new demographic mix are among six global “megatrends” affecting the world of work, according to The Adecco Group’s annual report released this week.

The full list of six trends:

Geopolitical and economic uncertainty — These factors increase companies’ need for flexibility. “The workforce an organization requires today may not be the same as in a few years’ time,” according to the report. “Businesses therefore value agility and flexibility more and more, to stay ahead in a rapidly changing world. Flexible talent solutions are becoming an important source of competitive advantage. Many of our most successful clients adopt as much as 50% flexibility within their workforce.”

The Gig Economy — More people choose to work a portfolio of jobs, or gigs, in place of traditional full-time roles, and online platforms help to match supply and demand. “The flipside of this flexibility for workers and companies is that society needs to update its social protection systems to fit the demands of a changing world,” according to the report. “We need to guarantee ‘flexicurity’ for everyone in the workforce.”

Skills imbalances — New jobs require new skills, and workers need education to upskill and reskill. “In the US, 1.4 million computer specialist roles will be created by 2020 yet more than 70% of vacancies will go unfilled,” the report said. “Meanwhile, as automation and robotics adoption rises, as many as 14% of the global workforce will need to switch roles by 2030.”

New demographic mix — Populations are growing older in many countries and their workforces are shrinking, leading to talent shortages. On the other hand, more people now choose to work during their retirement. And another change — millennials will comprise 50% of the global workforce by 2020. Adecco said it’s aiming to serve millennials and other demographic groups that are “digital natives” by putting in place mobile applications such as Adecco & Moi in France and its digital platforms Adia, Yoss and Vettery.

Automation, artificial intelligence and machine learning — Machines increasingly perform repetitive tasks, enabling workers to focus on higher value-added activities. “Going forward, we see the combination of automation and flexible HR solutions as the next key driver of productivity for our clients,” the report said. “For example, the automotive industry, with amongst the highest adoption of robotics in manufacturing globally, is also one of the largest users of flexible employment.”

Digitization, big data and analytics — The staffing industry is evolving from a branch-based model to a combination of online and offline models. Meanwhile, digital marketplaces have the potential to transform direct-hire recruiting, and new, data-driven business models are emerging. “The traditional idea of a branch network applies less to the new world of work, or to the needs of our candidates and clients,” CFO Hans Ploos van Amstel said in a statement in the annual report. “We are evolving the way we deliver our core services from a purely branch-based system to an omni-channel delivery. Of course, that local visibility and presence is still vital, especially for smaller customers, but we’re moving to fewer, big branches.”