Up to $1.4 trillion in revenue and $282 billion in new profit could be generated through digital tools automation, diversifying talent pool, and improving skills development amongst employees, reveals new Infosys report.
The global research report titled ‘Future of Work 2023’ highlights how the workplace of the 21st century will see more hybrid working and digital engagement, enabling firms to build more diverse and creative teams.
According to the report shifting to a flexible, diverse, and digital work model is correlated with 7.7 percentage points higher profit growth and 6.7 percentage points higher revenue growth.
Retention of employees is critical. Companies that increased their staff retention between 2020 and 2022 were almost a fifth more likely to see increased revenue and profit compared with those that saw retention fall during this period.
Almost two-thirds of senior executives practice remote working rather than in-office working and expect flexible or remote workspaces to grow in the future.
65% of senior executives concurred that incorporating remote working resulted in better staff retention. Companies that incorporated wellness initiatives, home office stipends, and reskilling programmes saw an increase in staff retention. Modernisation and automation of digital tools, compensation rise, and bring-your-own-device strategies were also impactful on retention.
Automation and modernisation of digital tools are set to become the top investment priority for firms in the next two years and expected to bring in up to $123 billion in profit.
Successful businesses of the future are likely to focus less on the employees’ work location and more on the mix of people who are working and how well they are supported.
Respondents cited collaboration, change management, and a constant evolution of future of work approaches as the top challenges faced by companies in implementing workplace transformation strategies.
“Organisations have realised that remote work is here to stay and that there is a pressing need to diversify and upskill their employees to boost business growth. The findings from the Future of Work 2023 report also showcase how businesses can drive growth, productivity, and profitability through the automation of digital tools and create more inclusive workplaces,” said Rajesh Varrier, EVP, Head of Digital Experience & Microsoft Business, Infosys.
The survey was conducted by the Infosys Knowledge Institute (IKI), the research arm of Infosys, and surveyed 2,500 senior executives and managers involved in workplace and workforce planning for large companies with more than $1 billion in annual revenue.