Since March, businesses in every industry have experienced drastic change. Shelter-in-place (SIP) orders made remote working mainstream, fast-tracked digital transformation, and forced organizations to take a long, hard look at developing viable business continuity plans that may not have existed prior to the pandemic.
New McKinsey research revealed that companies have accelerated the digitization of customer and supply-chain interactions as well as internal operations by about 4 years. The research also noted that digitally enabled products have accelerated by as much as 7 years. In other words, the future is now, and the workplace looks a lot different than it did just a few short months ago.
Although globalization had already given a boost to digital transformation initiatives, widespread digital adoption has been fueled by the need for contactless interactions, as well as the potential cost savings that can help offset the economic impact most businesses felt this year. The road ahead is not without challenges from streamlining operations, ensuring business continuity, and to supporting employees through all of the disruption.
Welcome to the Hybrid Workplace
A record number of people work remotely and will continue to do so. The fear of lost productivity held companies back from giving employees the flexibility to work remotely, but that myth has now been completely debunked. In the U.S., employees have saved more than 89 million hours each week in commute time alone since the start of the pandemic — or 44.5 million full workdays. That’s just one of the reasons Tech giants such Microsoft, Dropbox, Twitter, and others have already informed their employees that from now on, they have the option of working from home permanently.
As such, it’s likely that a flexible, hybrid working environment will be a hallmark of the new normal. This is great news for companies and employees alike. With the ability to work anywhere, people can accept positions at companies anywhere on the map and enjoy a better work/life balance. Organizations have a much broader talent pool to choose from, since they can hire employees regardless of where they live, and they can save on real estate and operating expenses by having fewer people on-premises.
But with these benefits come significant challenges, as well. Security, collaboration, and employee engagement could be barriers to the success of this new workplace model. In their rush to connect remote workers virtually when SIP orders were issued, many organizations were not able to address these challenges adequately. Only the businesses that had already modernized their infrastructures were equipped to transition employees to remote work without compromising essential issues such as security and seamless access to applications and resources on the corporate network.
Digital Transformation is an Imperative
To support the growing trend of hybrid working environments, digital transformation is no longer a nice to have — it’s a must-have. McKinsey reported that 85% of businesses have somewhat or greatly accelerated the implementation of technologies that digitally enable employee interaction and collaboration. And that’s good news, since it probably made the transition a little less daunting. PwC reports that companies that invested in technologies such as cloud computing, identity and access management, and modern network infrastructures prior to the pandemic were better suited to pivot to support remote working.