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Abstract: This article explores the major trends transforming the future of work through technological advancements like AI and robotics, globalization enabling distributed teams, and changing workforce demographics as younger generations and diversity alter the makeup of companies, necessitating that up to 375 million workers may need to switch jobs or acquire new skills by 2030. In response, the future of work demands new approaches to leadership that move beyond vision and problem-solving skills to emphasize soft abilities like engagement, empowerment, facilitation, and expertise in digital transformation, diversity/inclusion, lifelong learning, and virtual team management to match contemporary flat, adaptive organizational structures. Progressive companies are evolving leadership by leveraging digital tools to personalized learning and community-building, requiring that leaders effectively engage dispersed teams using technology while also fostering relationships, with a focus on developing global/cultural competence and championing inclusion, diversity, and cultures that prioritize trust, well-being, belonging and continuous development to cultivate workforce adaptability amid ongoing disruption.
The world of work is undergoing a period of profound and rapid change, driven by advancements in technology, globalization, shifting demographics, and other societal forces. As many as 375 million workers globally may need to switch occupational categories and acquire new skills by 2030 due to the disruption of entire industries and the emergence of new jobs, according to the World Economic Forum (WEF, 2020). This "future of work" landscape poses challenges for organizations to stay competitive and for workers to navigate their careers, but it also presents an opportunity for leadership evolution. As the workplace transforms, so too must leadership styles, competencies, and culture to inspire, engage, and empower increasingly digital and diverse workforces.
Today we will explore the key research and trends shaping the future of work, discuss how they require new approaches to leadership, and provide practical examples of how organizations from various industries are adapting their leadership models.
Major Trends Driving Workplace Transformation
Technological Change: According to research from global consulting firm McKinsey & Company (2018), the future of work will revolve significantly around advanced technologies like artificial intelligence (AI), robotics, the Internet of Things, 3D printing, and more. They estimate that around one-third of the activities individuals are paid to do could be automated by currently demonstrated technologies. New technologies are disrupting entire industries and the skills required across sectors. For example, intelligent machines are replacing human workers on factory floors and in warehouses, while AI chatbots are customer service agents (WEF, 2020).
Globalization: Globalization of work through remote and distributed teams is another defining trend of the future workplace (WEF, 2020). Advancements in communications technologies have enabled more connectivity across borders and time zones than ever before. With skills and talents now interconnected globally, organizations worldwide can tap diverse talent pools beyond traditional geographic constraints. However, managing virtual and cross-cultural teams presents new challenges for leadership.
Demographic Shifts: Demographic forces are also remaking the world of work. First, younger generations like Gen Z are entering the workforce with different values, preferences, and expectations than previous cohorts. Second, populations are aging in many countries amid declining birthrates, altering the composition and needs of workforces (Manyika et al., 2017). Third, greater diversity and inclusion are priorities more than ever as racial and gender diversity grows worldwide. Leaders must adapt to stay relevant to these new worker segments.
The Leadership Imperative
The research is clear - the future of work will demand new leadership approaches to thrive amid ongoing disruption and transformation. While skills like strategic visioning, problem-solving, and managing change remain crucial for leaders, soft skills centered around humans and relationships are even more important. Three emerging areas of focus for leadership evolution are:
Adapting leadership styles. Directive, hierarchical styles characteristic of Industrial Age organizations are ill-suited for the digital future. Participative, facilitative, and empowering styles allow for engagement, creativity, and adaptability needed as work becomes flatter, more cross-functional, and project-based (Drew, 2019).
Developing new competencies. Future leaders must have expertise navigating digital transformation, managing remote/virtual teams, improving diversity/inclusion, lifelong learning, developing others, and building psychological safety and empowerment (Alagappan et al., 2021). Technical skills are also increasingly required to lead digital transformation.
Fostering people-centric cultures. Organizational culture was once a secondary consideration behind performance metrics, but a people-first culture focused on trust, well-being, and compassion has become a competitive advantage (Deng et al., 2021). Leaders must champion cultures of belonging, psychological safety, and continuous learning.
We will now explore specific approaches organizations are adopting to evolve leadership against the backdrop of research on the future of work and required leadership styles and competencies.
Evolving Leadership Through Technology
Leveraging Digital Tools
Modern technology allows innovative organizations to rethink leadership development and training delivery. For example, global professional services firm EY incorporates gamified digital learning experiences and virtual learning communities into their leadership curriculum. Their "Leadership Academy" portal houses training modules, assessments, and collaborative tools framed around real-world scenarios (EY, 2022).
Through adaptive software for individualized learning paths and social learning features fostering peer connection and mentorship, technology enhances traditional training methods within organizations. Tools like LinkedIn Learning, Degreed, and Coursera offer libraries of on-demand leadership content employees can access 24/7 from anywhere. When paired with coaching, technology personalizes learning experiences and makes leadership development more scalable and continuous.
Leading Digitally Transformed Teams
Technology is also transforming how leaders engage their teams. Forward-thinking companies like Anthropic use AI to optimize workflows and manage distributed teams through chatbots and virtual assistants (Anthropic, 2022). However, technology alone does not replace human leadership. AI tools should augment—not replace—meaningful human interaction.
Leaders must still foster psychological safety, belonging, and trust among digitally-enabled and hybrid teams. For example, healthcare technology company Omada Health offers regular video check-ins, asynchronous messaging threads, and team bonding activities to build rapport among globally-dispersed employees (Omada Health, 2022). Effective digital leadership requires both leveraging technology smartly and focusing on human relationships.
Evolving Leadership for a Global Future
Developing Cross-Cultural Competencies
With workforces increasingly diversifying and going remote, cultural intelligence and global mindsets are imperative for leaders. Companies invest heavily in cultural training, international assignments, and mentorship to prepare future global leaders. For instance, consulting firm Bain & Company partners high-potential executives with mentors from different countries and industries through their Global Leadership Initiative (Bain & Company, 2022).
Participants gain exposure managing cross-border projects from inception to closeout, helping them build empathy, collaborate virtually, and respond appropriately in diverse settings. Developing global and cultural dexterity exposes leaders to different perspectives needed as workforces become more globally distributed.
Leading Virtual and Remote Teams
The rise of remote work necessitates new skills in managing teams without constant in-person oversight. Leaders must communicate clearly via technology, set expectations, provide ongoing feedback and support, foster connections among dispersed colleagues, and empower autonomy and accountability (Loonam et al., 2018).
For example, automaker GM offers training on topics such as pacing remote meetings effectively and assessing the "temperature" of virtual teams through technology surveys and feedback tools (GM, 2022). Beyond digital literacy, compassion and caretaking come to the forefront for remote leadership. Trust and well-being require extra attention in distributed environments.
Heading: Developing an Inclusive, Learning Culture
Championing Diversity, Equity and Inclusion
As the future workforce becomes even more gender and racially diverse globally, fostering inclusion is mission-critical (WEF, 2020). Leaders must walk the talk on diversity beyond surface-level measures. For instance, venture capital firm Atomic leads with transparency by publishing annual DEI reports on hiring rates, salaries by race/gender, and underrepresented founder funding rates compared to industry averages (Atomic, 2022).
Transparency cultivated an environment where underrepresented groups felt seen, heard and empowered. Leaders should role-model inclusion through recruiting diverse networks, sponsoring development programs for marginalized populations, and zero-tolerance for microaggressions or unfair treatment (Cook & Glass, 2014). An inclusive culture starts from the top-down.
Cultivating Continuous Learning and Growth
In the future characterized by ongoing disruption, leaders must champion adaptability through continuous skill-building. For example, technology giant Microsoft established extensive employee development programs encompassing everything from technical certifications to management training to interpersonal skills (Microsoft, 2022).
Additionally, their curriculum incorporates feedback tools, projects simulating real work challenges, coaching networks, and financial support for external courses. By supporting lifelong learning, leaders foster the growth mindsets critical for navigating career transitions and transformations ahead (Dweck, 2015). A culture where learning is valued and investment prioritized will engage workforces amid changing skill needs.
Conclusion
Research clearly indicates the future world of work will demand new styles of collaborative, caring, digitally-fluent leadership focused on empowering human potential amid ongoing disruption. While technical skills remain vital, multi-dimensional soft skills centered on communication, diversity, virtual teamwork, learning agility and culture-shaping have taken precedence. Progressive organizations view leadership development not just as training programs, but as a continuous, experiential process leveraging the latest technologies and emphasizing global experience, inclusion and perpetual skill-building. Those instituting a future-ready, people-centered leadership model will emerge strongest in attracting and retaining the next generation multi-talented workforce. Overall, fostering empowerment, caretaking, curiosity and adaptability will distinguish leaders able to successfully navigate the coming era of work.
References
Alagappan, S., Ravid, R., Sperling, R., Vishwanath, R., & Yeremian, A. (2021, September 29). How to design a 21st-century leadership model. McKinsey Quarterly. https://www.mckinsey.com/business-functions/organization/our-insights/how-to-design-a-21st-century-leadership-model
Anthropic. (2022). Leadership principles. https://www.anthropic.com/leadership
Atomic. (2022). Diversity, equity and inclusion report 2021. https://www.atomic.com/dei-report-2021/
Bain & Company. (2022). Global leadership initiative. https://www.bain.com/careers/programs/global-leadership-initiative/
Cook, A., & Glass, C. (2014). Above the glass ceiling: When are women and racial/ethnic minorities promoted to CEO? Strategic Management Journal, 35(7), 1080–1089. https://doi.org/10.1002/smj.2161
Deng, Z., Gogarty, S., & Munoz-Bustamante, S. (2021). Culture is everything: Building resilience and strength through a culture of care. McKinsey Quarterly. https://www.mckinsey.com/business-functions/organization/our-insights/culture-is-everything-building-resilience-and-strength-through-a-culture-of-care
Drew, G. (2019). From command-and-control to engaged leadership. Harvard Business Review. https://hbr.org/2019/11/from-command-and-control-to-engaged-leadership
Dweck, C.S. (2015). Teachers' mindsets: "Every student has something to teach me". Educational Horizons, 93(2), 10-14. https://doi.org/10.1177/0013175X14561420
EY. (2022). Leadership Academy. https://www.ey.com/en_gl/careers/students-and-graduates/leadership-academy
GM. (2022). Leadership & organizational development. https://www.gm.com/organizational-development.html
Loonam, J., Eaves, S., Kumar, V., & Parry, G. (2018). Towards successful virtual working: The role of human resource management. Strategic HR Review, 17(3), 138-143. https://doi.org/10.1108/SHR-01-2018-0008
Manyika, J., Lund, S., Chui, M., Bughin, J., Woetzel, J., Batra, P., Ko, R., & Sanghvi, S. (2017). Jobs lost, jobs gained: Workforce transitions in a time of automation. McKinsey Global Institute. https://www.mckinsey.com/featured-insights/future-of-work/jobs-lost-jobs-gained-what-the-future-of-work-will-mean-for-jobs-skills-and-wages
Microsoft. (2022). Learning & development. https://www.microsoft.com/en-us/learning/overview.aspx
Omada Health. (2022). Culture & values. https://www.omadahealth.com/company/culture-and-values
World Economic Forum. (2020). The future of jobs report 2020. https://www.weforum.org/reports/the-future-of-jobs-report-2020
Additional Reading
Westover, J. H. (2024). Optimizing Organizations: Reinvention through People, Adapted Mindsets, and the Dynamics of Change. HCI Academic Press. doi.org/10.70175/hclpress.2024.3
Westover, J. H. (2024). Reinventing Leadership: People-Centered Strategies for Empowering Organizational Change. HCI Academic Press. doi.org/10.70175/hclpress.2024.4
Westover, J. H. (2024). Cultivating Engagement: Mastering Inclusive Leadership, Culture Change, and Data-Informed Decision Making. HCI Academic Press. doi.org/10.70175/hclpress.2024.5
Westover, J. H. (2024). Energizing Innovation: Inspiring Peak Performance through Talent, Culture, and Growth. HCI Academic Press. doi.org/10.70175/hclpress.2024.6
Westover, J. H. (2024). Championing Performance: Aligning Organizational and Employee Trust, Purpose, and Well-Being. HCI Academic Press. doi.org/10.70175/hclpress.2024.7
Citation: Westover, J. H. (2024). Workforce Evolution: Strategies for Adapting to Changing Human Capital Needs. HCI Academic Press. doi.org/10.70175/hclpress.2024.8
Westover, J. H. (2024). Navigating Change: Keys to Organizational Agility, Innovation, and Impact. HCI Academic Press. doi.org/10.70175/hclpress.2024.11
Westover, J. H. (2024). Inspiring Purpose: Leading People and Unlocking Human Capacity in the Workplace. HCI Academic Press. doi.org/10.70175/hclpress.2024.12
Jonathan H. Westover, PhD is Chief Academic & Learning Officer (HCI Academy); Chair/Professor, Organizational Leadership (UVU); OD Consultant (Human Capital Innovations). Read Jonathan Westover's executive profile here.
Suggested Citation: Westover, J. H. (2024). The Future of Work is Forcing a Leadership Evolution. Human Capital Leadership Review, 15(2). doi.org/10.70175/hclreview.2020.15.2.3
