The very fabric of work is being altered because of converging demographic and technological trends leading to the rise of new social contracts, says a new publication by Deloitte India. With this shift, new risks have emerged around adopting digital technologies, managing machine-human interaction, reskilling requirements, and extension of workplace boundaries.
The ‘Through the Risk Lens’ paper says that half of the workforce is likely to be millennials or gen Z workers by 2020, and by 2025, a fifth of the workforce will be contract workers. Furthermore, artificial intelligence (AI) will displace 40% of the world’s current tasks, similar disruptors will help create 1.75 million technology-enabled jobs, and more than five in 10 Indian employees will require reskilling by 2022.
“In light of newer business models and how disruptive innovation is changing the way we work, regulations are failing to keep pace. These changes have expanded organisations’ risk profiles and made them more complex and dynamic,” said Johar Batterywala, risk advisory partner at Deloitte India.
Organisations, as well as their risk leaders, need to focus on understanding these emerging risks and formulating a response strategy to remain relevant in this changing environment, he said.
In order to lead the change and secure their businesses, organisations will need to create a digital risk management strategy to manage the third party, data leakage and cyber risks, and develop a workforce strategy (employee vs. contingent workers) aligned to overall objectives.
“The onus is also on policymakers to reassess and update policies to define the gig economy, ensure access to government and societal benefits, and facilitate access to education,” said Deepa Seshadri, partner- risk advisory, Deloitte India.
Companies must prioritise onboarding gig workers more efficiently and putting in place a system for uniformity in payouts, said Batterywala. There must be a collaborative approach between regulators and organisations in order to build a comprehensive strategy around dealing with the workforce of the future, he said.
The paper, which has inputs from industry leaders from sectors like consumer, manufacturing, BFSI, pharma, and automotive, delves into the changes in work, regulation, extended enterprise, the current forces of disruption, the challenges it poses to the organisation, the risks that emanate from these changes and how these changes can be addressed.