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Three corporate governance trends that will emerge in the 2020s

Bill Gates once wrote in his book The Road Ahead: “We always overestimate the changes that will take place in the next two years, but underestimate the changes that will occur in the next 10 years. next year.” What do business leaders today need to pay attention to to prepare for the changes of the next 10 years?

In recent years, technology is gradually invading every corner of the workplace, changes are happening faster and more powerful than ever. This situation makes the question of what leaders should do to prepare for the changes become almost impossible to solve.

In the immediate future, they need to realize that the “future of work” is no longer a vision, it is starting in reality. Here are three trends that modern leaders should prepare for as they enter the new decade.

Rise of artificial intelligence (AI)

In 2018 alone, the number of businesses using AI tripled. Currently, about 37% of companies have been applying this technology in many forms. Hotel group Hilton International is using chatbots and AI-based interviewing platforms in its recruitment process. E-commerce giant Amazon is using more than 200,000 robots in warehouses. Pizza chain Domino’s is also using AI tools to monitor pizza workers in Australia and New Zealand.

By 2030, 70% of businesses will use at least one type of AI, according to McKinsey research. This can create huge changes in customer care, recruitment, supply chain as well as security… The extent of AI’s impact on businesses is not small: 72% of executives believe that AI will “become the company’s advantage in the future,” according to the PwC report.

In order not to fall behind on the track, leaders can no longer ignore AI: They need to upgrade their employees, modify their corporate structure, and strategically apply AI. “Change is coming, and AI is the driving technology,” said CP Gurnani, CEO of Tech Mahindra, “But we need to remember that in the end, humans are still in control.”

By 2030, 70% of businesses will adopt at least one type of AI, according to McKinsey research.

The importance of employee experience

In the new decade, businesses are expected to face a talent shortage. That’s why it’s so important to make sure employees stay happy and healthy.

“Strengthening the employee experience means building an organization that people want to come back to,” says Jacob Morgan, speaker and author of several corporate governance books. This involves many factors, from the design of the workspace to the mental health of employees.

Companies with a lot of engaged employees are 21% more profitable than other businesses. Therefore, this factor is becoming more and more important for HR departments. According to Deloitte’s Human Resources Trends 2019 report, 84% of survey respondents identified employee experience as an important issue, while 28% said it was a “urgent issue”.

The employee experience will become even more meaningful in the future as Generation Z (those born after 1996) joins the global workforce. It is estimated that these young people will make up 33% of the world’s human resources by 2030.

“Generation Z looks for leaders who are trustworthy, supportive of their every need and show their care as people, not just superiors and employees,” said Dan Schawel, director. Future of Workplace research director said. “Focusing on the day-to-day needs of Generation Z is the best way to determine what they need in the workplace,” he said.

Work with purpose

In early 2020, when Deloitte asked nearly 10,000 CEOs about the most important measure of success, the most agreed answer (34%) was “social impact”, followed by satisfaction. customers (18%) and financial results (17%).
According to a PwC survey, while 79% of leaders believe that goals are central to business success, only 34% see it as a guiding factor for all their decisions.

In the next decade, leaders need to weave goals into every aspect of their business, because 87% of young people are millennials (the generation born between 1980 and 1996) – the main generation of workers. currently believes that “a company’s success should not be measured solely by profits.”

Source: The Leader

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