Retention of employees is critical
Infosys a global leader in next-generation digital services and consulting, today unveiled a global research report titled ‘Future of Work 2023’. According to the report, up to $US1.4 trillion in revenue and $US282 billion in new profit could be generated through digital tools automation, diversifying talent pool, and improving skills development amongst employees. It highlights how the workplace of the 21st century will see more hybrid working and digital engagement, enabling firms to build more diverse and creative teams.
The survey was conducted by the Infosys Knowledge Institute (IKI), the research arm of Infosys, and surveyed 2,500 senior executives and managers involved in workplace and workforce planning for large companies with more than $US1 billion in annual revenue. The survey covered 12 industries across the US, UK, France, Germany, Australia, and New Zealand. The study focused on how shifting trends and pressures on workforce, workplace, and workstyles relate to revenue growth, profitability, and employee retention.
The key findings from the survey are as follows:
- Shifting to a flexible, diverse, and digital work model is correlated with 7.7 percentage points higher profit growth and 6.7 percentage points higher revenue growth.
- Retention of employees is critical. Companies that increased their staff retention between 2020 and 2022 were almost a fifth more likely to see increased revenue and profit compared with those that saw retention fall during this period.
- Almost two-thirds of senior executives practice remote working rather than in-office working and expect flexible or remote workspaces to grow in the future.
- 65 per cent of senior executives concurred that incorporating remote working resulted in better staff retention. Companies that incorporated wellness initiatives, home office stipends, and reskilling programs saw an increase in staff retention. Modernization and automation of digital tools, compensation rise, and bring-your-own-device strategies were also impactful on retention.
- Automation and modernization of digital tools are set to become the top investment priority for firms in the next two years and expected to bring in up to $US123 billion profit.
- Successful businesses of the future are likely to focus less on the employees’ work location and more on the mix of people who are working and how well they are supported.
- Respondents cited collaboration, change management, and a constant evolution of future of work approaches as the top challenges faced by companies in implementing workplace transformation strategies.
