Every year, new business trends emerge as organizations embrace and prioritize change in the quest for growth and success.
2020 was a particularly interesting year for business transformation, as it accelerated changes that would otherwise have taken decades to take hold and introduced new practices, highlighting areas where alternative approaches were essential.
But what are the trends for leading companies as we move into 2021 and beyond? We take a look at some of the strategies top business leaders are implementing as they respond to current challenges and prepare for the future.
Continuing to Facilitate Remote Work
Perhaps one of the most widespread changes in the business world related to COVID-19 has been the shift from working outside the office to working from home.
Although remote work is no longer a necessity, it is something that many companies have continued to maintain; it is a significant trend we can expect for the future of business.
Remote work can not only reduce company expenses by eliminating the need to rent physical office space full-time, but many employees have expressed a preference for working from home at least part of the workweek.
This trend may also be linked to the growing emphasis on employee well-being and job satisfaction, as managers and decision-makers are paying closer attention to what their employees want (namely, flexible work arrangements) and are genuinely considering their needs.
Depending on the organization, the benefits of remote work may also include increased productivity. McKinsey notes that, as employees continued to adapt to remote work over the course of the pandemic, more employers began to see productivity that was somewhat better than when working from the office.
Rise of Hybrid Work
As organizations continue to adapt to the realities of remote work, hybrid work is becoming an increasingly attractive prospect.
Hybrid work essentially allows for greater flexibility for employees: there are days when they can work from the office and collaborate closely with team members, and other days when they can enjoy the greater freedom and convenience of working remotely.
We are likely to begin seeing the facilitation of hybrid work as a key factor in attracting and retaining talent.
Prioritizing gender equality
The debate over gender equality in the workplace is nothing new. With numerous studies showing how women have been disproportionately affected by the pandemic, many companies are considering how they can truly transform corporate culture and create positive, more productive environments.
Prioritizing gender equality is not simply a social issue: dedicating the necessary resources to address inequalities in the workplace is good for economic growth. Making the relevant changes opens the door to more opportunities and new perspectives, benefiting everyone.
It has also been shown that women working toward gender equality in leadership roles have higher productivity and better mental well-being, both before the pandemic and now, in addition to having more trusting relationships with managers and feeling more supported.
It is essential to ensure that employees and leaders are informed about implicit and unconscious gender biases. Training programs and access to resources ensure that all members of the organization are more aware of diversity-related issues and how they may be unknowingly contributing to a non-inclusive workplace.
Analyzing the extent of a company’s gender pay gap by conducting a comprehensive pay review is also something employers should consider. A thorough analysis helps ensure that men and women in equivalent roles receive equal pay and highlights areas that need improvement.
At this stage, companies should also review whether men and women have equal opportunities to negotiate higher salaries to prevent the gender pay gap from widening further.
Investing in diverse leadership
One of the most important changes organizations should consider as part of this transformation is investing in relevant talent that demonstrates a commitment to fostering equity and diversity.
Promoting more women to leadership positions demonstrates that leaders can put into practice what they understand about embedding gender parity and diversity into the very fabric of the organization.
Embracing the acceleration of digital transformation
Digital innovation has been on the rise in recent years, but the business world has seen a significant acceleration of digital practices during the course of the pandemic.
Under the umbrella of digital transformation, there are numerous factors to consider, as companies increasingly rely on technology to fundamentally change operations across the entire organization.
Processes are being digitized across customer channels and the supply chain. Many companies recognize that technology now plays a central role in best business practices and is not merely important for cost efficiency.
Among the essential changes driven by digital technology are cloud-based functions, data-driven decision-making, automation, an effective online and social media presence, and one of the fastest-growing trends: e-commerce.
Embracing E-commerce
With more customers online, businesses have had to follow them, especially as in-person commerce has become more difficult.
This shift toward e-commerce channels will likely only become more crucial as customers continue to enjoy the convenience of online shopping and social media becomes a more integral part of the shopping experience.
Ultimately, leading companies continue to learn from past challenges and respond to them in a productive, growth-oriented manner, while considering the big picture and understanding what the future is likely to hold.
Implementing an effective cost-reduction plan is essential for companies that want to prioritize facilitating fundamental changes and reallocating the necessary resources to enable significant growth.
To learn more about how ERA can help you identify and optimize growth opportunities, contact our team of experts today.
