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Peoplefirst:TheReimaginingworkcancitizensofcitiestoflourishPeoplefirst:Thefutureofcitiespost-COVID 2Theemergingpost-COVIDsocialorderrequirescitiestoreorientto“peoplefirst.”Weneedtotransformhowwe(re)constructandsharework.
Peopleacrosstheplanetarelivingwith—andprocessing—theeffectsofmultipleoverlappingchallenges.TheseincludeCOVID-19,climatechange,socialinequality,supplychaindisruptions,persistenthighinflationandtheprobabilityoflocalorglobalrecessions.Asaresult,businessesareunderincreasingpressuretotherightthing”andrespecthumanrights,operatesustainablyandhaveamorepositivesocialimpact.
Manyorganizationsarethereforelookingtobalancetheirtraditionalownership-drivenorshareholder-focusedmodelswithnewapproachesthataremoreparticipativeorstakeholder-based.Employees(andworkersingeneral)areacriticalcomponentofthischange—itistheywhoareinnovatingnewapproachestowork,strivingtosustaintheenvironmentandcontributinginawidevarietyofpositivewaystosociety.Peoplefirst:Thefutureofcitiespost-COVID 3Becauseofthechallengestheyface,ofallageshavebeguntoshifttheirpriorities.Theyarereassessingwheretheywanttoliveandwork,andarerethinkingtheirrelationshipwiththeiremployersandwithworkitself.Anproportionareforgoingfull-timeemploymentandoptingtobecomeindependentcontractors,gigworkersorsmall-businessowners.Fromageographicalpointofitisclearthatthepandemichasacceleratedadecade-longtrendofindividualsandfamiliesrelocatingtosmallerandlesscommerciallyestablishedcities.Peoplearemakingthismovetoseekmoreaffordablehousingandgreateraccesstochildcareservicesandschools.Manyfindthatthattheirnewcityhomesofferahigherqualityoflife,oftencoupledwithlowertaxesandalowercostofliving.Thereisnodoubtthatthistrendwillcontinue,fueledbythe“workfromanywhere”movement,bytheincreaseinhybridworkarrangements,andbythegrowingnumberofindependentcontractorsandgigworkersactiveintheeconomy.AThisprocessofchangeisfundamentallytransformingtherelationshipbetweenemployeesandemployers.Itisalsoshiftingwhereandhowemployerssourcetalentandhowtheyconnectthattalenttowork.Mostimportantly,itisrequiringorganizationstobothchangetheirworkoperatingsystemsandtoconsidertheholisticwell-beingofpeopleaspartoftheirstrategicdecision-making.
Businessesareredesigningtheirpeopleprocessesandworkpracticestosupportallcontingentandthoseinsupplychain.RavinJesuthasanGlobalTransformationLeader,Mercer,andco-authorofWorkWithoutJobsPeoplefirst:Thefutureofcitiespost-COVID 4Ourrecentlyreleased2022MercerGlobalreporthighlightsthisprofoundshiftinthesocialcontractbetweenemployersandemployees—ourfindingsconfirmthatthefutureofworkwilldependonaflatter,moreflexibleandmorefungibleworkforce.34%oftheemployeeswesurveyedsaytheywouldforgoapayraiseformorecontrolovertheirworkschedule.62%ofemployeessaytheywouldjoinacompanyonlyiftheycanworkremotelyorinahybridarrangement.Almostsixin10employeesgloballywouldconsiderfreelancing.Inresponsetothisongoingandacceleratingshift,manybusinessesareredesigningtheirpeopleprocessesandworkpracticestosupportalltypesofworkers,includingemployees,contingentworkersandthoseinthesupplychain.Overall,the“S”intheESG(environmental,socialandgovernance)agendaisbecomingevermoreimportant.AinThisemergingnewordercallsforatransformationinhowweviewanddesignwork,andinhowwebuildnewskills.Bynecessity,itcallsforgreaterinclusionandmustcultivatethrivingcompaniestoflourishingandprosperouscities,societiesandworkforces.Ifdesignedwell,suchachangecanenableagilityandresilienceacrossbusinessesandinstitutionsthroughtimesofvolatilityandincreasinguncertainty.callthenewparadigmorplatformneedtoaimforthePeople-FirstCity.DavidAndersonChiefCommercialOfficer,MercerPeoplefirst:Thefutureofcitiespost-COVID 5Inrecognitionofthismajornewtrend,MercerhascollaboratedwiththeWorldEconomicForumtocreatetheGoodWorkFramework.Thisfeaturesfiveprinciplesdesignedtoadvancemorehealthy,equitable,resilientandhuman-centricwaysofworking.
FlexibilityisintegraltotheGoodWorkFramework.Thisisasyoungerworkersaremorelikelytoconsidergigworkthantheiroldercounterparts.Indeed,basedonMercer’s2022Globalreport,62%ofGenZers,61%ofMillennials,53%ofGenXersandonly39%ofBabyBoomersarelikelytoconsiderthistypeofflexibleemployment.ESGGoodWorkAequitable,resilientandhuman-centricfutureofwork,respectingfundamentalrights,acrossin-person,hybridandvirtualwork,forallcontingentandsupplychains).Promotefairpaysocialjustice
Provideflexibilityandprotection
Deliveronhealthwell-being
Drivediversity,equityandinclusion
FosteremployabilityandalearningPeoplefirst:Thefutureofcitiespost-COVID 6AsGenZjoinsthetheyseekingleadersandwhointheinwhichtheyapproachworkcomparedtopastgenerations.Theyarefocusedondiversity,flexibilityandaworkplacethatishealthy,bothmentallyandphysically.Theyarealsoreassessingwork-lifebalanceandareemphasizinglife-workbalance.MarkBealLeadingGenZexpertandauthorofGenZGraduatestoAdulthood77Importantly,inanewoperatingthatreinventsworkatboththetaskandcapabilitylevels,transformationisledbythework,nottechnology.Automationisreconceivedtooptimizethecombinationofhumansandmachines,simultaneouslysubstituting,augmentingandcreatinghumanwork.RavinJesuthasanGlobalTransformationLeader,Mercer,andco-authorofWorkWithoutJobsPeoplefirst:Thefutureofcitiespost-COVIDAcoreNewWorkOperatingSystempeople-firstbusinesseswillplayaintheworldofwork—indevelopingthePeople-FirstCitiesplatform.Informedandempoweredbytheneedforpositivechange,suchbusinesseswillworktodeconstructjobs,redeploytasksandreconstructwork.Wearealreadyseeingthattheseinnovativebusinessesemployagile,flexible,inclusiveandresilientoperatingsystem,whichwetermNewWorkOperatingSystems.1Suchsystemsareunderpinnedbyfouruniversalprinciples,whichareadaptableacrosscultures.Thesefourprinciplesare:Startwiththeworktobedone(currentandfuturetasks)andnottheexistingjobsCombinehumansandautomationConsiderthefullarrayofhumanengagementsAllowtalenttoflowtoworkAlthoughtheymaybetailoredtodifferentculturesandcustoms,thefourprinciplessetaclearpathwaythatcanbefollowedtoensuretheholisticwell-beingofemployeesinbothgrowthanddevelopedeconomies.Bendingthedemandside—TheNewWorkOperatingSystemstartswiththesequestions:Bendingthedemandside—TheNewWorkOperatingSystemstartswiththesequestions:Whatarethecurrentandfutureworktasks(regardlessofcurrentjobs)?WhatthecapabilitiesneededtoperformtheseWhichcurrentandpotentialworkershave,ormightdevelop,thesecapabilities(regardlessoftheircurrentjobs)?Whatarethebestworkarrangementstoengagethosecapabilities(includingoptionsbeyondfull-timeemployment)?Peoplefirst:Thefutureofcitiespost-COVID 8UsingaNewWorkOperatingSystem,people-firstbusinesses,andtherebypeople-firstcities,canbeyondalimitingsupply-sideviewoflabor.Theycanreassessworktohelpbendthedemandsideoftheemploymentequationand,thereby,reshapeworkbemoreflexible,diversified,equitableandinclusive.Thisnewdemand-sideorientationenablestalentmanagementteamstomovebeyondjobsandjobholders,beyondmatchingthe“right”candidatetoajob,andbeyondthethinkingthatseesacollegedegreeastheprimarymeansbywhichsomeonecangainaccesstothelabormarketandtomeaningfulwork.Intheirbestsellingbook,WorkWithoutJobs(MITPress,2022),RavinJesuthasanandJohnBoudreaulayoutthecasefortheNewWorkOperatingSystem,andwhyitmustbeunderpinnedbytasksandskills,insteadofjobs.Theydetailtheeconomicandsocietalgainsthatsuchanapproachwillbring—agility,resilienceandproductivity,andinclusivity,equityandhuman-centricity,respectively.AsillustratedinWorkWithoutJobs,deconstructingworkuncoversnewoptionsforsourcing,rewardingandengagingworkers.Thisprocessinvolvesdeterminingwhichtasksshouldbebundledtogetherintoajob,whichworkersarequalifiedtoperformwhichtasks,andwhichtaskscanbeunbundledandreconstructed.Deconstructingandremakingworkinthiswayhelpsidentifywhichresponsibilitiesarebestsuitedforregularfull-timeemployeesandwhicharemoreappropriateforfreelancers,contractorsandvolunteers(andwhichcanbemanagedthroughotherpartnerships).Italsoallowsbusinessestobetterseeeachemployeeasanarrayofcapabilitiesandskills,ratherthansimplyastheholderofajob.Ultimately,itensuresthatpeopleareoptimallyconnectedtotheworktheydo.Theideaisbeingputintoplay:Oneinfourparticipatinginour2022Globalstudythatdesignsthatenablefluidworkingbetweenpartnersandoutsidethealsosaypartnershipsastobuilding
TheNewWorkOperatingSystemapproachreinventsworkatboththetaskandcapabilitylevels.Itisimportantthatthistransformationshouldbeledbytheworkitself,andnotbytechnology.Asaresult,automationshouldbereconceivedasawaytooptimizethecombinationofhumansandmachines—somethingthatsimultaneouslysubstitutes,augmentsandcreateshumanwork.Thisapproachusesautomationtodeliverhighlyrepetitive,rules-basedworkwhileaugmentinghumancreativity,empathyandcriticalthinking,andalsocreatingbothdemandfornewhumanworkandthespaceinwhichitcanbedone.Byrethinkingandreorganizingworkintheaboveways,businesseswillattract,retainanddeveloptalent.Theywillbuildamoreflexible,diversified,inclusive,equitableandresilientworkforce—thefoundationforPeople-FirstCitiesandbalancedsocieties.Peoplefirst:Thefutureofcitiespost-COVID 9imperativestomeaningfullyengageGenPromotepassionprojects:GenZershavemultipletotheirlives—manyareartists,contentcreatorsandentrepreneurs.Theyalsoliketocontributecharitablytocommunities.Theyhaveoftenbeenschooledineducationalsystemsthatpromoteindependentthoughtandshouldconsiderandagileworkplacesthatthepursuitofpassionandsidehustles.Createcommunitiesofsharedinterests:Onlineorin-person,GenZersparticipateincommunitiesofsharedinterests,focusedonissuessuchasmusic,sports,filmorbooks.Theywillbemoreengagediftheydiscoverthesesortofcommunitiesatwork.Marketmentalhealth:InarecentsurveyofGennearly40%saidmentalhealthisthemostimportantgoal-settingareaintheirlives.respectthispriority,createahealthyworkenvironmentbywelcomingconversationsaboutmentalhealthandbyprovidingmental-healthsupportandbenefits.Movefrommanagingtomentoring:WhileGenZersunderstandtheywillhavetoreporttomanagers,theywantmentorswhowillactivelysupporttheevolutiontheircareersandtheiracquisitionofnewskills.Encourageentrepreneurship:Inongoingsurveys,Zersseethemselvesasentrepreneurs(morethananyothertypeofpersona).Empowerthemas“ZEOs”andofferthemtheopportunitytodevelopnewproducts,servicesorcompanyinitiatives.*fromMarkBeal,aleadingGenZexpertandauthorofDecodingGenZ,EngagingGenZandGenZGraduatestoAdulthood.MarkcollaborateswithGenZindividualsondailybasisasanassistantprofessorattheRutgersUniversitySchoolofCommunicationandInformation.
SuggestionssegmentEmployeesinfixedroles:Theseemployeesholdfull-timeroles.Thismightbebecausetheirjobsdeliveraconvenientvolumeofworkthatfitsaregularworkpattern.Itmightbealsoduetocomplianceorcontrolreasons,orbecausetheindividualinvolvedhasuniqueordifficult-to-acquireskillsthatjustifyofferingafixed,full-timeassignment.Employeesinflexibleroles:Theseemployees’rolesarepartiallyfixed(becauseofworkvolumesortheneedforjob-specificskills)buttheindividualscanflowtospecificchallengesasneeded.Suchrolesoftenemergefrominternalmarketplaceswhereregularjobholderstakeonadditionalprojectworkorshort-termassignments.Employeesfullyflowtotasks,assignmentsandprojects:Thecapabilitiesoftheseemployeesarerequiredinshort-termburstsacrossseveraldifferentworkprocesses.Anexampleofthistypeofwouldbeafreelanceorproject-baseddatascientistwhomovesamongprojectsinmarketing,HRandoperationsasneeded.**Source:RavinJesuthasanandJohnW.Boudreau,WorkWithoutJobs,MITPress,2022.Peoplefirst:Thefutureofcitiespost-COVID 10WorkandPeople-FirstCitiesliveinanincreasinglyurbanandconnectedworld.morethanhalfoftheworld’spopulationlivesincities,upfrom30%in1950.AsofJanuary32citiesacrosstheglobecouldbeclassifiedasmegacities(metropoliseswith10millionormoreresidents).ThemajorityoftheseinChinaandIndia,thetwomostpopulouscountriesintheworld.2Megacitiesaredynamicenginesofgrowth.Ingeneral,thepercapitaGDPofacountry’smegacitiesis80%higherthantheGDPofthebalanceofitsnationaleconomy.Morethan1.5millionpeoplearebeingaddedtotheglobalurbanpopulationeveryweek.By2030,theUnitedNationsestimates750millionpeoplewillcallmegacitieshome.Thisisa35%increasefrom2020.By2030,citieswithmorethan1millioninhabitantsareprojectedtohaveanaggregatepopulationof2.3billionpeople,withmuchofthatpopulationconcentratedinemergingmarkets.3Overall,itisclearthatdespitetheculturalshiftsthathavealteredthewayweliveandworkoverthepasttwoyears,citieswillbetheplacewheremuchofourfuturestorywillbeplayedout.Thereislittledoubtthaturbanareaswillcontinuetobemagnetsfortalent,wealthandcreativity,andthattheywillcontinuetogeneratewealth,humanconnectionsandinnovation.Thismeansthatmostofthechallengesandopportunitiesofourtimeswillbeurban.People-firstbusinesseswillbecentraltothedevelopmentofPeople-FirstCitiesglobally.Thisisapotentialwin-winsituation,aspeople-firstbusinesseswill,themselves,benefitfromfosteringenvironmentsthatbalancephysical,financialandspiritualwell-being.
Employersaretrustedbypeopleandareincreasinglyexpectedtoplayakeyroleinsupportingtheirholisticwell-being.Thereisanopportunityforbusinesses,particularlywithingrowthmarketcities,tousethismomenttointentionallyre-evaluatetheirapproachtoensuretheyareoperatinginawaythatalignsemployeewell-beingwiththeircorebusinessstrategy.Indoingso,businessescanenablecitiesofallsizestobecomepeople-first.DavidAndersonChiefCommercialOfficer,MercerPeoplefirst:Thefutureofcitiespost-COVID 11Importantly,Mercer’s2022Globalreportrevealsthatexecutivesrecognizetheimportanceofthepeople-firstrevolution.C-suiteexecutivesrankthemental,physical,socialandfinancialwell-beingofworkersastheirsecondmostimportantpriority,justbehindreskilling.Mental Physical FinancialMental Physical FinancialInaddition,inlinewiththeshifttoremote,flexibleandgigworking,progressiveorganizationsareincreasinglyacknowledgingtheimportanceofwell-beingforthosenotintheirtraditionalfull-timestaff.applyingthisthinkingtotheuniverseoftalenttapintoandwith.Overall,people-firstbusinessesaretheorganizationsthatwilldeliverthenewsocialcontractthatisreshapingtheworldofwork.Theywilldothisbybendingthedemandcurveofworkandbyensuringtheyinvestsufficientlyintheirworkers’totalwell-beingandhealth.Ultimately,thiswillenhancethephysicalresilience,well-being,financialhealthandprosperityoftheworld’surbansocieties—andsupportthedevelopmentofgreaterdiversity,equityandinclusionthatwillbenecessaryforPeople-FirstCities(andsothemajorityofhumanity)toflourishandthrive.Peoplefirst:Thefutureofcitiespost-COVID 12takeaways:Shapingapeople-firstcitybuildssuccessforbusinessesandcommunitiesOurOursocialorderandpeople’spreferencesareinfluxfromtheimpactsofthepandemic,underlyingdemographicchangesandincreasingeconomicvolatility.Asaresult,thetraditionallyavailableworkforceisdeclining,makingitmorecriticalthanevertosuccessfullyhire(andretain)newandnon-traditionalworkers.Peopletodayhavedifferentexpectationsandneeds,especiallyforflexibility—over60%ofemployeeswillonlyjoinacompanyiftheycanworkremotelyorinahybridarrangement.wefaceaparadox:peoplestillflocktocitiesonamassivescale—especiallyinemergingmarkets—andmorethan1.5millionpeopleareaddedtotheglobalurbanpopulationeveryweek.Remoteandflexibleworkinghaven’tchangedthehumanneedforandbenefitsofcomingtogetherincities,buttheshapeofhowwecometogetheristransforming.Employersmust,therefore,fundamentallyrethinkwork,overturninghowtheyattractandengageworkersandmeettheirneeds.Businessesplayacriticalpartinshapingthepeople-firstcitiesofthefuture.Citiesandcompanies—althoughnolongeralwaystraditionalbigcities,andnolongeralwayslargecompanieswithasignificantphysicalpresence—willremaintalent,engagementandinnovationhubs.Businessesmustdeterminetheirroleinshapingpeople-firstcitiesofallsizestobenefitfromthewin-winofaccesstothebesttale
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