UK Business Transformation: 2019 predictions

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UK Business Transformation: 2019 predictions

If the last two years have seen a boom in digital transformation, then 2019 could be the year the groundwork begins to bear fruit. With the huge regulation changes in 2018 accounted for and the adoption of new technology well underway for many organisations, businesses will want to see tangible results of these well laid foundations this year. Emerging technology and yet more compliance requirements in many sectors will, however, underline that transformation is an on-going project for any company that wants to remain competitive and see long-term value. Below are some of the trends we expect to see from a hiring perspective this year.

Digital Transformation

2018 saw organisations embrace digital transformation more than ever before and we fully expect to see that continue in 2019, with a continued spread from the IT function right up to the boardroom. More C-suite leaders understand the impact of digital transformation on corporate culture, reputation and competitive market edge, and are hiring accordingly.

Robotic Process Automation (RPA) is leading the way, automating low-level processes to free up employees to deal with higher-level tasks, while finally being accepted as an addition rather than a replacement for a workforce. We expect to see more of these internal process adoptions to streamline processes this year, before any radical front-end customer facing changes, purely because the returns on investment are immediately visible.

Another addition that will see the up-skilling of staff to accommodate it is natural language processing (NLP), which, like RPA, will transform businesses across a number of sectors that have a service or customer-facing channel. It is estimated that 40% of these companies will have it in place by the end of 2019 to deal with the simpler end of voice requests, such as credit applications or customer service, so we expect to see hiring in this specialism too.

Voice Activated Technology

An extension of NLP above, voice activated technology is taking the voice assistant to the next level and is being embraced in a number of sectors. Aside from the simpler tasks it can achieve (showcased on a domestic front by Alexa, Siri and friends), in banking, for example, there is the potential for voice and biometrics to work hand in hand to ensure security and therefore access further services.

As this is emerging technology still, there is much to be done, again internally, to merge either legacy systems or recently adopted tech to ensure that voice activation can access information correctly. We also expect to see regulation amends and heightened compliance needs to maintain security, as voice activation becomes more commonplace in e-commerce and other sectors.

AI & Machine Learning

Although still very much in its infancy in the majority of sectors, businesses are aware that artificial intelligence (AI) is on its way. Implementation has begun and although only 7% of organisations view their current AI offering as highly sophisticated, as adoption rates increase through 2019, the demand for specific talent will spike as companies aim to keep up with their trailblazing competitors.

We are seeing an increase in data science roles and machine learning opportunities, which is great news for candidates, but will be a challenge for companies who will be competing for the same, sought-after experts.

Agile

Emerging technology; shifting market conditions; customer expectations; and speed to market have all had and will continue to have an impact, resulting in a demand for Agile talent. The vast majority of organisations across multiple sectors have conceded their legacy systems are not enough and that digital transformation is imperative to survive. The result of this is that Agile professionals have never been in higher demand, and we are seeing almost all of our major clients hiring.

Mergers and Acquisitions

We saw a lot of activity in this space in 2018, with worldwide M&A hitting a record $3 trillion before Q4. However, a number of global factors such as political uncertainty; strained trade relations between major countries; impending Brexit, and volatile stock markets suggest that 2019 may see a quieter and more cautious first quarter, at least. Ultimately though, businesses will always need to transform faster than is possible organically, so M&A will bounce back.

Information Security

The increased demand for information security talent began with the introduction of GDPR in 2018 and shows no signs of slowing in 2019, particularly as GDPR regulators start to enforce it this year. Recent research predicts the info sec market to grow 8.7% in 2019. Therefore, we not only expect to see the majority of larger companies grow their info sec teams this year, but also see info sec represented in more boardrooms as CISOs bridge the gap between the C Suite and IT departments, simultaneously enhancing a business’s reputation and competitive advantage in this area.

The rise in the awareness of cyber security in general, as well as highly publicised data breaches or insider threats in a number of sectors, has resulted in demand on the technical side moving up the hiring agenda. Many of our clients have already had significant sign-off to support growth in this area, to ensure best practice, integrity of systems, as well as mitigate risk with third parties and supply chain.

Regulatory

While the true outcome is currently still unknown, as we approach Brexit, we are seeing our clients wisely investing in a number of generic Regulatory roles, including project management specialists and business analysts, to place their teams in the best possible position for whatever happens at the end of Q1.

As with the info sec market above, 2019 will see the enforcement of the numerous large-scale, cross-sector regulations implemented in 2018, with companies needing specialist talent to ensure compliance of these. As digital transformation and the adoption of AI also picks up, companies with an increased exposure to cyber crime or IT risk will be looking to maintain operational stability and resilience, as well as stay ahead of the frequently changing associated regulatory landscape.

Financial Crime & Compliance

Two major issues dominated this area in 2018 – the implementation of cryptocurrency regulations and high profile money laundering scandals – both of which will have a knock on effect on 2019’s trends. A new set of international AML standards will be released this year to further address the cryptocurrency landscape, which will require firms to strengthen their compliance in this area. Compliance specialists will also be in demand in banking and financial services as the information sharing initiative between the big banks and regulators will now filter down to smaller institutions.

Last year’s G20 Summit finally addressed ‘ultimate beneficial ownership’ after the notorious Panama Papers leak, so we expect to see legislation on this become a prominent feature of the financial crime landscape with shell companies and offshore structures coming under the microscope. Again, AML and compliance talent will be in demand here.

Open Banking and PSD2

2018 saw PSD2 and the UK Open Banking directives arrive, forcing the hand of the traditional banks to pay attention to the smaller, challenger banks, FinTechs and digital-only players. Open Banking is all about the user/customer experience and given the ubiquity of seamless services in other sectors, led by the likes of Amazon, Google, Uber and their contemporaries, 2019 will see the banking sector try to keep pace and keep customers. If they don’t, 2019 could be the year that the smaller players start to grab their market share in a meaningful way.

Approximately 9000+ financial institutions across Europe need to comply with the Second Payment Services Directive (PSD2) by March 14 this year, which is a game-changing new regulation for the payments industry. While integration of new service offerings is underway for most institutions, their overall strategies will evolve for the rest of year, seeing specialists in payments and compliance in demand. As banks cannot develop for themselves fast enough to remain competitive, we expect to see more third parties, agile partners and FinTechs involved too.

Blockchain

Blockchain, the underlying technology behind cryptocurrency, has been hyped for a few years now, but still had minimal adoption in commerce last year and it will be interesting to see if that continues in 2019. 2018 was a tough year for cryptocurrency, though this was no reflection on the tech behind it, which continues to enjoy heavy investment from banks and the UK government.

It is difficult to predict the impact on the banking sector, especially while there is still no FCA legislation in place to regulate its adoption. The potential in the technology is there though and the hope that blockchain’s ability to record and share data instantly will at some point replace legacy back-office tech and increase efficiency across the sector. It’s possible that challenger banks may take the first steps with it soon, possibly around payments, but even that may be well down the line.

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"2025 and Beyond" Question and Answer session

26 Feb, 2024

Our webinar 2025 and Beyond: Why Your Hiring, Learning, and Culture Need to Evolve brought together thought leaders Enrique Rubio (Hacking HR), Lisa Skinner Källström (Teamtailor), and Hydrogen Group’s Dean Jennings and Michelle Miller. The conversation explored strategies used to tackle the challenges of the future workforce, shift organisational cultures towards lasting partnerships, and ensure teams are equipped for the age of artificial intelligence. _ The Q&A box was brimming! Our webinar offered participants the chance to consult our HR experts on addressing shifts in the people and culture realm as we approach 2024 and beyond. Interesting questions were raised, and we compiled them all to seek and reached out to our experts to get some definitive answers. For a recap on the webinar, check out our blog Navigating the Future: Insights from our Webinar "2025 and Beyond" So, here we are. Your questions - answered! - How can companies make people feel more secure in their jobs? Is it just a matter of increasing communication? Lisa suggested a shift towards a more sustainable approach. 'In recent years, we have seen many companies experience massive growth, and the need to get great talent onboard - hence offering extremely generous compensation packages. Unfortunately, many have now faced layoffs, and while the compensation and benefit strategies are not the sole reasons, I would like to propose a more sustainable approach for the future. [Increase benefits as the company grows, and as business results allow, we can increase pension levels or similar benefits – and discuss it internally! Open dialogue about results, investment choices, and their rationale fosters a sense of involvement among team members and signals the company's commitment to a sustainable direction.]' Dean echoed concerns about job security in today's volatile economy and advises, 'In today's uncertain economic climate, job security is a concern. However, by becoming indispensable and embracing tools like AI, individuals can enhance their value to employers, securing their positions for the future. Apart from using Chat GPT, what other tasks can be automated with AI? Lisa commented, ‘We’ve mentioned a few examples already, but I would look at all the systems your company allows you to use and question your suppliers on what features are or will be based on AI. For example, many applicant tracking systems allow the opportunity for AI to summarise CVs for an easy overview, generate interview questions and suggest more personalised replies to rejected candidates based on their CVs. Also, the opportunity for AI to transcribe an interview is an amazing tool which allows the interviewer to solely focus on listening and talking to a candidate as opposed to taking notes. As always, AI in these types of systems is not designed to make the decisions for a recruiter or business - but serve as an assistant to save time and work more efficiently.’ Dean added, ‘There are far too many to list. The AI directory https://aitoolsdirectory.com/ does a really good job of showcasing what does what and where you can find it.’ What is the impact of AI on employee engagement and how can HR teams use AI to promote engagement? Also, what precautions should professionals take when using AI? Dean offered his perspective by stating that ‘engagement and AI may seem contradictory, but there's a clear benefit when HR uses AI to streamline admin tasks, freeing up time for vital human interaction. Tools like Koios, for instance, offer Acoustic AI, helping HR understand team and individual personalities better, for more tailored approaches. Professionals must approach AI implementation carefully, ensuring ethical use to maintain trust and transparency in the workplace.’ How can we make sure our services stay personalised while using AI? Dean responded, ‘By leveraging AI to handle time-consuming tasks. The best thing about AI is that you get to choose what it does and what it doesn’t. If you feel strongly about human interaction to enable personalisation, you don’t have to let go of that – just embrace AI to make those interactions better. Get it to strip data in the background for you, or to type up your notes and actions as you have the conversations. The possibilities are endless, and they can be tailored to your needs.’ Within your businesses, have you experienced any resistance to the adoption of AI? How have you handled these objections? Dean responded, ‘A lot of the resistance I have seen has either been a fear of trying or a fear of being caught. There seems to be a negative connotation with AI, that if you get it to do something for you, are you cheating? The answer is a resounding no, you are working with the tools available to make yourself more productive for your organisation. Robot proof recruiter, if you haven’t read it, you should. Especially if you are a recruiter or if recruitment is part of your job role. I’ll spare you the details, but it is an amazing read that showcases the fact you can never take the people part out of recruitment - you’ll always be able to provide a better level of service than a robot (at least for now) and you need to focus on the parts of the process where human interaction is at its most vital and automate/utilise AI to get back time in your day to improve that social element of the process.’ Do you feel Employee Resource Groups will be on the rise with the future generation of workers? Dean replied, ‘A truly hybrid workplace cannot function effectively without the right technology in place. That doesn’t even need to be AI. For employees to feel a sense of belonging in a workplace, there should be a seamless experience that goes beyond just having teams up on 1 laptop in a room full of 30 people. Again, this will only advance with time ... my eutopia is to have my whole team (who are based in the UK + Thailand) sat around a virtual desk, on a beach with an interactive whiteboard we can utilise in real time via virtual and augmented reality. You may laugh now, but in the next couple of years, VR and AR tech will be the staple of hybrid working and teams coming together around the globe. This doesn’t take away from the in-person experience and nor do I think it should. It should be a tool that compliments real-time working solutions.’ How can we support older generation employees in the changing landscape? Dean offered his perspective, ‘AI is truly remarkable. It embodies the futuristic vision many of us had as children—computers and programs taking on tasks for us. For those uneasy about it, I believe it's a matter of not fully comprehending it or lacking the skills to use it effectively. AI has quietly become a part of the workplace, and many are still navigating its intricacies. The focus should be on empowering employees to leverage AI to enhance productivity and value to the organisation. Those who resist or fail to adapt won't be replaced by AI but by individuals who embrace change and view AI as a tool for greater contribution.’ How can we safeguard against the risk of AI stifling creativity in the workplace? Lisa said, ‘I would say the opposite, if we use AI for the more regular and routine tasks then we will have more time to use to be creative! For example, instead of spending hours on creating a presentation for an important project - let AI do this creating for you and spend the time on how you want to engage with your audience instead. Using ChatGPT to find easy tasks that I would previously have spent a lot of time on has been a big change in how I work and allows me find space in the day.’ Is there a regional divide across different parts of the world? Are Europeans more prone to appreciate safety/job security than Americans? Lisa commented, ‘My thoughts are that globally we have been through a lot in recent years, covid affected everyone regardless of location. After that, we had war in Europe for the first time in many years which had major effects on the economy, which I believe has made people appreciate job safety even more and value this in choosing their next employer. However, in some parts of Europe employees are still very protected by labour laws etc so I believe it is different from America where it is more common to have short notice period and less resistance from employers to terminate an employment.’ Expanding on the key themes discussed in our webinar, we're thrilled to introduce our Thrive Guide – a practical roadmap for building a thriving workplace. Within the Thrive Guide, discover actionable strategies to enhance employee engagement, foster diversity and inclusion, and implement flexible working models. Discover practical solutions to enhance workplace productivity and satisfaction. As our expert Dean Jennings emphasises, 'adapting to evolving workplace dynamics requires strategic initiatives.' This sentiment is echoed by other industry leaders in our webinar. In the Thrive Guide, these insights converge to offer practical solutions, providing a roadmap for organisations navigating change. Revolutionise your workplace. Download the Thrive Guide now!