The snowballing pace of change in technology and the constant streaming of information is fundamentally changing the shape of our future workplaces.
Certain trends, such as the evolving needs of employees, the shifting role of governments and intermediaries, and the impact of an ageless workforce, all point to the need for employers to be flexible and adaptable in order to stay competitive and attract the best talent.
Below are nine trends set to reshape the future of the workplace and the role that financial services and technology will play within this.
1. Flexibility and collaboration for business survival
We are in a period where business models are constantly being disrupted and new models keep appearing, thereby forcing organisations to adapt and change quickly, just in order to survive.
Work will become more collaborative and interconnected across time zones, countries, languages and cultures.
New collaboration platforms to connect teams, skills and companies will develop as technology assists to break down these barriers. Developments in areas such as Virtual Reality could completely redefine the experience of collaborating with colleagues across the globe as you step into your immersive virtual meeting room.
The change in structure will be reflected in employee remunerations and benefit packages. Would an interconnected global team expect the same benefits across borders?
It would certainly change the way employers and employees would expect to interact with their benefits and the financial services industry will need to ensure that the interaction between them and companies is more interactive and collaborative.
2. Income uncertainty
Since 2003, real wages in UK households have been stagnating, or in decline for the low and middle earners and it is anticipated that this will decline even further over the next 10 to 15 years.
This decline not only increases the inequality in households and in UK regions, but also puts significant pressure on households’ ability to save for pensions, or rainy days.
For individuals, this will seriously challenge traditional budgeting approaches and have significant consequences for saving over the short, medium or long term. What will suitable advice look like and how will you be able to anticipate the client’s appropriate appetite for risk?
Assessing repayment abilities on loans and mortgages will certainly need to adapt. It also raises the mind-boggling question of the regulatory checks and balances to ensure good outcomes for clients.
This illustrates a greater need for advice and education to help people plan and invest in this complex environment. From a provider perspective, the ability for clients to easily manage their savings and protection in one place and to be able to move money from one area to another is essential.
The technology platforms being used will need to assist and support this level of flexibility and visibility.