UK Business Transformation: 2020 Market Trends

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UK Business Transformation: 2020 Market Trends

We often look ahead to the coming year with analyses of trends and give some predictions of what we expect to see, based on how the previous year has played out. This year it feels a more momentous task at the threshold of a new decade, particularly with Business Transformation being inextricably linked to the Fourth Industrial Revolution set to shape the next few years.

We will no doubt see further technological developments that organisations must embrace to survive and thrive. While regulations will be sure to evolve too, it’s a long-term strategic view of adopting the right, efficient methodologies and technologies that will pay dividends. Here are some of the areas where we expect to see higher demand for skilled professionals this year.

Digital transformation

Digital transformation has been huge for several years now and will continue to be a key area for all businesses, either beginning their transformation or evolving their existing projects in new directions. While much of AI is still “on its way” and will be debated again much like last year, certain elements that are already with us, such as automation and robotics, will be vital to adopt, with expertise in these areas already much sought after. For those businesses beginning their digital transformation journey, we expect to see ongoing transition to cloud technology this year, though with the hindsight of seeing a number of high-profile failed implementations over recent years, these may be more considered, better planned projects, taking longer in the initial stages to ensure a positive outcome.

Data

Data transformation is set to be a busy area this year as organisations look to better understand customer needs by utilising increased volumes of consumer data and acting upon those insights as quickly as possible for competitive advantage. As such, automation platforms that enable data teams to provide rapid strategic information should become more commonplace this year.

Payments

By 2022, online payment fraud is estimated to rise to €100bn across Europe. As part of PSD2, Strong Customer Authentication (SCA) was introduced by EU regulators to reduce this amount and make the web a safer place for transactions. The SCA’s two-factor authentication came in towards the end of last year, but the FCA has now given firms extra time this year to implement a full conversion to the new regime. As the customer journey and customer experience are also set to play more important roles for organisations from every sector in the coming years, fast, user-friendly digital identity and authentication will become must-haves this year.

Linked to customer experience, 2020 will inevitably see the launch of new digital payments vehicles, such is the speed of innovation in that sector. The digital payments market is expected to grow at an average of 18% a year until 2023, with mobile and contactless platforms already responsible for more than 20% of all card payments worldwide. Payment tech is already moving into voice assistant devices such as Alexa, Siri and Google Home and we expect to see the adoption of these, and new methods, increase this year.

Agile

Specialist Agile talent was in serious demand throughout 2019 and we see no sign of that relenting through 2020. With the number of digital transformations either underway or yet to begin, combined with the sheer volume of legacy systems across all sectors that are on their way out, the need for Agile professionals is here to stay for the foreseeable future. Software development is by nature a progressive sector, so the role of the Agile expert may change with advances in tech combined with some streamlining through experience, but we expect demand to remain as high as ever.

Information Security

espite best intentions, 2019 saw a number of high-profile cybersecurity incidents in organisations from a range of industries, with the result that more resources are to be invested in cybersecurity this year, particularly by financial institutions. Improved technology doesn’t only end up on the side of security of course, meaning cyber criminals are also more equipped and sophisticated and therefore able to exploit any weaknesses. The battleground may move more to the cloud or mobile this year as more businesses increase activity in these areas, but the hackers will be set to expand upon and add to the buzzwords of 2019 – deep fakes and ransomware – especially in the face of a skills shortage in cybersec.

M&A

Much the same as in 2019, there is still enough geopolitical and economic uncertainty worldwide to theoretically slow down activity in mergers and acquisitions, but in our experience of hiring patterns, it is only having a minor effect. Tech disruption continues to drive deals and strategic partnerships; and tough times in some sectors should see an increase this year in stressed and distressed M&A, as businesses either diversify or offload. Transformation requirements mean that again this year M&A will be a faster route for some than doing it organically, so we expect to see similar results to last year in terms of demand for skills in this space.

Regulatory

IBOR (interest rate benchmarks that have been used for decades) are undergoing global reform and the impact is expected to be huge. LIBOR, the most widely used, is due to be replaced at the end of next year, so 2020 is expected to be a challenging year for many in terms of risk and disruption as they prepare for the adoption of its alternative reference rate (ARR) replacement.

On top of the usual everchanging nature of the regulatory landscape due to the introduction of technological advancements or geopolitical changes, IFRS17, the incoming new global financial reporting standards in the Insurance sector, will be back on the agenda in 2020, despite its effective date still being debated and potentially delayed. Set to transform this industry, its impact will be huge and specialist skills will be in great demand.

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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!