2021: Human-led, tech-powered, data-driven What our surveys tell us about a turbulent year

Co-authored by Bhushan Sethi (PwC US) & Pete Brown (PwC UK) 

PwC’s Joint Global Leaders, People & Organisation 

2021 has been another memorable year for organisations. Leaders were faced with old and new challenges as offices started to open up again, with headlines being dominated by issues around hybrid working, the great resignation, burnout and ESG commitments.  

But before we welcome 2022, let’s look back at 2021. Using data from various surveys that PwC launched throughout the year, it serves to highlight just how much the world of work has changed, the pace at which it continues to evolve, as well as how organisations have realised the power of their people. 

January: Upskilling is key to stimulating the economic recovery from the COVID-19 pandemic

• Upskilling could boost global GDP by $6.5 trillion 
• and create 5.3 million net new jobs by 2030

The need to upskill people so they can participate in the economy is more critical than ever before. The PwC report, jointly authored with the World Economic Forum, Upskilling for shared prosperity, estimated that if countries upskill their citizens in line with OECD industry best practices, it would lead to huge global GDP growth and new job creation.

February: Developing new skills is the key to boosting productivity in financial services 

• 80% of financial services firms are deploying digital tools to support the upskilling of their people – boosting productivity by 90%

The challenges around keeping people motivated and productive are more pertinent this year than ever before. PwC’s Productivity 2021 and beyond report found that upskilling, through training and mentoring, is key to increasing productivity, as is outsourcing to the gig-economy.

March: Pandemic has accelerated digital upskilling, but key groups still miss out 

• Half of the global workforce report missing out on career opportunities due to bias
• 60% are worried that automation is putting many jobs at risk

PwC’s Hopes & Fears 2021 survey of 32,500 workers reported that people feel excited or confident about the future. Most said they believe they can meet the challenges of automation — and they proved it during the pandemic: by learning new digital skills and adapting to remote work. But there are still concerns about job security which organisations need to address by having open conversations with their people about the future. 

April: After a year of change, US employee priorities are shifting on location, benefits and skills

• 22% of employees were planning to move more than 50 miles away from a core office location
• 44% of workers said they would surrender a pay raise for unlimited vacation time

PwC’s US workforce pulse survey found many employees were reconsidering their values or make major changes in their personal lives, which is changing how they work and what they need to be productive. Business leaders need to understand what employees really want and create policies and plans that allow for more flexibility and personalisation. 

May: Organisations need a strong workforce strategy to help them take action today, to prepare for tomorrow's work

• 46% of organisations are not considering upskilling impacts when deploying automation or AI

PwC’s workforce strategy diagnostic found that companies are still not taking into account people when making technology investments. And yet society is living through a fundamental transformation in the way we work. The differentiator is how quickly business and human resource (HR) leaders have been able to gauge, respond and navigate the ongoing health, economic and societal crisis. 

June: Culture a source of competitive advantage but gulf in attitudes between senior management and rest of workforce never greater

• 67% said culture is more important than strategy or operations
• 41% feel maintaining community was more difficult during the pandemic

Culture is advancing on the leadership agenda, with PwC’s Global Culture Survey 2021 finding that it is a source of competitive advantage and a strategic priority for senior leaders. But it has been deprioritised in the eyes of the rest of the workforce. 

July: Today’s workforce is more diverse, attitudes toward work are evolving, and employee preferences are changing

Pay, incentives, and benefits haven’t significantly changed for decades, but people’s preferences have. PwC’s strategy+business article Rethinking total reward strategies showed that employee compensation needs a rethink if companies are to attract and retain talent. 

August: At a pivotal moment for the future of work, companies can help their businesses and employees thrive

65% of employees are looking for a new job. 

• 88% of executives told us they are seeing higher turnover than normal. 

PwC US’s Next in Work pulse survey showed that executives have a good grasp on why their employees are looking elsewhere but when it comes to offering incentives that employees want most, they’re falling short in two key areas: benefits and compensation. By redesigning work, they can help drive growth, better anticipate uncertainty and create a workplace that top talent is eager to join. 

September: Trust is complicated, but customers and employees have clear priorities — which companies often miss.

• 73% of business leaders cite the CEO as either responsible for or accountable for trust
• 44% of consumers have stopped buying from a company due to a lack of trust

Both employees and customers reported higher trust in US businesses now than before the pandemic began according to PwC’s Trust in US Business Survey. As a business leader, it starts with thinking differently about your big-picture trust strategy, your stakeholders’ priorities, your choice of trust initiatives and your use of technology.

October: Companies failing to act on environmental, societal & governance (ESG) issues risk losing investors

• 49% of investors surveyed express willingness to divest from companies that aren’t taking sufficient action on ESG issues.
• 59% say lack of action on ESG issues makes it likely they would vote against an executive pay agreement

ESG factors are increasingly driving investment strategies, with our ESG Investor survey research finding that they have now become a make-or-break consideration for leading investors globally. It is clear that investors expect ESG to be an integral part of corporate strategy. 

November: Productivity has risen with hybrid working, but worker trust may pose a larger challenge

• 57% of respondents say their organisation performed better against workforce performance and productivity targets over the past 12 months
• Only 30% of the business and HR leaders surveyed strongly believe their organisation is building high levels of trust between workers and their direct supervisors.

As we anticipate greater short and long-term uncertainty, the importance of establishing effective planning practices will be critical to address today’s and tomorrow's business and workforce priorities. In PwC’s Future of work & skills survey the nearly 4,000 business and human resources (HR) leaders who responded collectively identified six ‘no-regrets’ moves as important to their workforce strategy. 

December: A time for hope: Consumers’ outlook brightens despite headwinds

Flexible work is driving optimism with PwC’s global consumer insights survey finding those who work from home 10 percentage points more optimistic than those who work away from home. And those who can work in a hybrid way are 9 percentage points more optimistic than those who are required to either be at home or in an office all of the time.

Looking ahead to 2022

As the fallout of the pandemic continues to be felt around the globe, the above data and analysis shows how resilient and agile many companies and their people are, but also the challenges, and opportunities  they face. With 2021 continuing to change how, where and when work gets done at a faster pace than ever before, it makes us wonder what the next year will bring.  One thing is clear: Transformation will continue apace in most organisations - and it’s people that will dictate whether they are successful, or not

We look forward to sharing with you further insights,  thought leadership, data and analysis throughout 2022, to help you continue to navigate through these times. If you have any questions on any of the above comments or reports, do get in touch, we’d love to hear your thoughts and experiences from this year. 

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