What are the risks — and rewards — of new work models?

Three converging workplace trends — automation, open talent pools, and increased flexibility — are creating a once-in-a-generation opportunity to transform how work gets done. New work models present the appealing possibilities of an energising employee experience, increased output and reduced cost. Yet this combination of results could remain just a possibility if companies don’t recognise that, alongside the understandable appeal, comes less obvious risk that must be managed.

Many of the benefits of reimagining how, when and where work gets done have been discussed extensively: lower real estate costs for companies, as well as less need for travel, and greater schedule and location flexibility, for individuals. Much less debate has occurred about how new work models will also reshape an organisation’s risk profile, however. Most notably, it will require business and functional leaders to monitor new intertwined vulnerabilities, assess risk tolerance and ensure the company and employees are adequately protected from unforeseen and interconnected consequences.

We believe that if you get this right your organisation will gain a sustainable advantage, but how can you do this?

In addition to the potential impact on company culture and innovation, which many leaders have considered, there are other important areas of change that shouldn’t be overlooked:

Beyond direct business impact, decisions about new work models will affect the communities in which they operate. A stark example of this is how remote work dramatically changed the complexion of central business districts. Streets that had bustled with commuters and office workers emptied, and with that, an array of service providers such as coffee shops, food vendors, florists, and messengers were left without business.

With the increasing likelihood of future disruptive events — more global health crises, extreme weather events and geopolitical tensions — how and where work is performed will be impacted. This will have lasting effects on economies, including micro-economies around major cities, and communities.

It is possible that the role companies play in defining these effects will become an area of reputational risk and could also factor into environmental, social and governance (ESG) considerations of employees and investors.

These risks should not dissuade leaders from capitalising on this extraordinary opportunity to reimagine the future of work. Rather, leaders should factor their new risk profiles into how they change to unlock the full potential of the opportunity in the new work models. It will simply take a careful balance and systematic approach to:

Underscoring this transformation is the employee experience (EX). It demands special attention because the ways of work will continue to change how your employees engage with your organisation and connect with each other.

Our 2021 Global Employee Experience Survey reflects this point: 92% of organisations plan to enhance their EX over the next three years. This shows a clear case for the importance of planning, clarifying the best way to capture value, manage downstream risks and ultimately create an enduring competitive advantage.