Trend Barometer: People Management 2030
The (working) world is undergoing profound upheaval. Key megatrends such as digital transformation, new work and changing values are having an impact and presenting companies with major challenges – all in the face of growing uncertainty due to disruptive influences such as the pandemic and war. At the heart of these upheavals is people management, which is being called upon more than ever – and is becoming a corporate function that must fundamentally transform itself in order to meet the new challenges. In order to identify the right goals, concepts, priorities and trends for the future, we have joined forces with PwC Germany and the German Society for Human Resource Management to build on the results of the “People Management 2025” study (Bruch, Lohmann, Szlang & Heißenberg, 2019) from 2019, update them and use the Trend Barometer to look at possible developments up to the year 2030. Looking ahead to 2030, it is already clear:
“By 2030, almost all people management functions will become significantly more important. Recruiting, employee qualification and transformation and change management will be the main focus of a future-oriented people management. n People Management,” says Heike Bruch, Professor of Leadership at the University of St. Gallen and Director of the Institute for Leadership and Human Resource Management.
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Comprehensive development areas in people management
A comparison of the results from 2019 and 2022 with the respondents’ forecasts for 2030 shows that people management will play an increasingly important role for companies in the future. In view of the developments surrounding trends such as New Work, this is hardly surprising, but requires those responsible to take a close look at future priorities. Because HR management is traditionally broad-based and comes into contact with many corporate functions, it is extremely important to identify the most important areas of development now.
In a direct comparison, three people management functions in particular will gain in importance in the period from 2019 to 2022:
- Transformation and change management (+18 %)
- Data and technology management (+15 %)
- Employer branding (+14 %)
In view of the ongoing shortage of skilled workers, recruitment and personnel planning are also high priorities – also with regard to demographic change, which is forecast to be one of the biggest challenges for people management in 2030.
Particularly worrying: more than 43% of HR experts stated in the study that they feel their companies are not well prepared for future people management requirements. The barometer study analyzes the preparation deficits and identifies clear areas for action.
“Looking to the future, the gap between the relevance of people management tasks and the preparation for them is widening. In order to do justice to the increase in importance in 2030, an immense development push is required “says Marvin Neu, research associate at the Institute for Leadership and Human Resource Management at the University of St. Gallen.
Digital skills are gaining in importance
The increasing importance of comprehensive people management functions is also accompanied by new expectations in terms of skills. According to the study, digital knowledge (98%), empathy (97%) and strategic thinking (96%) will be among the most important skills for people management in 2030. The HR experts see the greatest increase in importance by 2030 in big data and people analytics skills (+23%), experimentation (+15%) and digital knowledge (+10%).
“A strong understanding of digital technologies and the possibilities of data analysis already play an important role in people management today – in 2030, these skills will be essential,”says Till R. Lohmann, Partner and Head of People & Organization Consulting at PwC Germany.
No New Work without New Culture
In addition to the changes in the functions and competencies of people management, the pandemic-related, ad hoc introduction of New Work has shaped change in companies in recent years. The proportion of companies with a highly mobile and flexible workforce has almost doubled from 33% in 2019 to 62% in 2022. Looking ahead to 2030, the respondents predict that all New Work elements will be used across the board.
At the same time, there are clear deficits across the board in the area of a modern work culture or “new culture”. Important New Culture dimensions are such as the use of agile methods (-20%), flexible structures and processes (-18%) and the role model function of top management (-17%). Key success factors of a New Culture such as visionary, inspiring leadership (-13%) or positive energy and high dynamism (-16%) show clear negative trends.
“New Work is an important competitive factor, but only works in combination with a modern work culture. Companies should therefore tackle the deficits in this field as a top priority,” says Heike Bruch.
Companies must now consistently seize the opportunities presented by change
Although the transformation of the world of work is already in full swing, there is still a long way to go. Unpredictable factors such as geopolitical crises, disrupted supply chains and labor shortages will also pose ever greater challenges for people management. In order to take advantage of the opportunities presented by these change processes, HR experts will need to be able to master a variety of new tasks by 2030.
“To overcome theupcoming hurdles for people management, HR departments will have to act in four key areas in the future: they must counteract the labor shortage, drive the digital transformation, develop versatile skills and establish a modern work culture,” says Heike Bruch.
This barometer study is intended to help companies draw a picture of their people management and serve as a springboard for successful management in the area of tension between cultural and technological transformation.
The study “Trend Barometer: People Management 2030” by the Institute for Leadership and Human Resource Management at the University of St. Gallen in cooperation with PwC Germany began with the “People Management 2025” study (Bruch, Lohmann, Szlang & Heißenberg, 2019), which is based on a survey of 155 HR experts conducted in 2019 together with the German Association for Human Resource Management (DGFP). In this barometer study, 315 HR experts were once again surveyed together with the DGFP on current developments in people management. This results in a comprehensive database with a total of 470 HR experts surveyed at two different measurement dates in 2019 and 2022.
Insights
Trend Barometer: People Management 2030
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