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Top trends impacting the global workforce in 2019

Artificial intelligence, people management and hiring practices are among the top six trends impacting the global workforce in 2019, according to a leading think tank.

The Workforce Institute at Kronos Incorporated asked its board members around the world what they think will be the most important workplace trends in the coming year, with employment law, flexible working and disaster management rounding out the list.

The full list of 2019 predicted trends is as follows:

  1. AI and machine learning unmask previously-hidden workforce data to make people-centric decisions. Artificial intelligence (AI) and machine learning will finally be woven into workforce management practices, revealing a treasure trove of data organizations have been collecting – but not using – for decades. With insight into their workforce data trends – like scheduling accuracy, absenteeism, overtime usage, and burnout – managers will be able to head-off potential issues before they arise. Intelligent automation will also free them from admin-heavy tasks – like managing schedules, approving time-off requests, and shift changes – while enabling data-driven decision-making that. Our board encourages caution here, though, warning that organizations must avoid a “one-size-fits-all” model.
  2. Historically tight labor markets and emerging technologies put people managers in the spotlight. With unemployment low and the exodus of baby boomers reaching critical mass, employers globally will face a historically tight labor market. Sourcing great candidates has never been more difficult, and retention will become an all-out dogfight. While an employer’s brand, innovative hiring technologies, and proactive recruiting practices are more important than ever, it’s organizations with the best people managers that will ultimately prevail. Organizations will place an increased focus on leadership development as a retention strategy – especially as Millennials assume middle management positions – and measuring manager effectiveness will be HR’s top challenge in 2019. If we’re right about prediction 1 above, then as AI and machine learning take over mundane managerial tasks, deficits in leadership competencies will be more readily exposed if managers aren’t using that extra time to support and develop workers.
  3. The changing face of education redefines trades and challenges traditional hiring practices. As the student loan debt crisis furthers the debate about the value of a college education and credentialing programs for job-specific skills emerge, tomorrow’s best employees may take an unconventional path to employment. Competencies that once required a degree – such as coding, robotics, and data analytics – are being redefined as skilled trades with the rise of certificate and micro-credential programs. As yesterday’s jobs become augmented by automation, new skills will be required for traditionally “blue-collar” roles. Employers need to revamp their hiring profiles and recruiting practices to tap into this new pool of qualified candidates who will staff the shop floor, store floor, hospital floor, and top floor of the future. Millennial parents, may urge their school-aged children to take an alternative educational path for a brighter financial future.
  4. Further fracturing of employment laws globally, nationally, and at the local level strain organizations. From minimum wage to sick pay, to fair scheduling proposals to the right to disconnect, governments around the world will continue to evolve employment laws. Ever-changing regulations around the world will put increased strain on organizations to avoid sanctions, fines, class action lawsuits, and reputation-damaging headlines. Technology will be vital for organizations to manage scheduling-related mandates, ensure unbiased practices, monitor fatigue and overtime management, and ensure employees are paid accurately and fairly – all while providing analytical insights that surface risky managerial practices otherwise buried in a sea of employment data.
  5. Employee-agnostic flexibility, consumer-grade tech, and the rise of the occasional time worker redefine “work your way.” All employees – salaried, hourly, and gig – crave control over when, where, and how they work. While employers have put more focus on flexibility and alternative work schedules, most have been slow to reengineer processes that underpin how the organization runs. Tools must meet employees where they naturally work – such as on their mobile phone, tablet, or favorite social networking platforms. The gig economy and emergence of the “occasional-time worker” will force organizations to replace traditional hiring and scheduling processes with systems that enable workers to choose when, where, and how long they work. Mobile-friendly processes, self-service features, and immediate access to real-time data in a consumer-grade technology wrapper will help drive the next iteration of the flexibility phenomenon, as predictability of anytime work will empower employees to be more productive, make more intelligent decisions, and be more engaged.
  6. Greater emphasis on disaster preparedness as part of a holistic human capital management strategy. Disasters large and small, natural and man-made, have unfortunately become the norm. Organizations worldwide have been challenged to respond effectively to increasingly frequent crises, with HR, operations, and payroll forced to take center stage in the lives of affected employees. With more emphasis on company culture, caring, and “doing what’s right” in a world where disasters – and a company’s response to them – are frequently in the news, there is a new level of expectation for an organization’s response, responsibility, and employee benefits. Organizations of all sizes must take a hard look at disaster policies, processes, and capabilities – including both taking care of employees in the moment and rebuilding in the wake of disaster, which will be near impossible for those operating on a DIY workforce management, HR, and payroll system. Sustainability plans that today primarily account for company assets and data will need to incorporate employees and their families.

FM sector increases hourly pay for skills-short roles as Brexit looms

Facilities management firms are turning to financial incentives to lure top contract talent as the Brexit vote drives EU citizens out of the UK, according to new data.

Engage Technology Partners says its pay data has revealed that since the vote to leave the Bloc in 2016, hourly pay for skills-short roles has increased, with maintenance positions in particular noting an uptick in money.

Handymen and mechanical maintenance professionals reported the greatest increase in the three years since the vote at 13% and 10% respectively, while electricians saw a 5% rise in hourly rates.

This data has been revealed amid news from the CIPD that talent shortages are already being felt ahead of the UK’s exit from the EU next year. According to its latest Labour Market Outlook report, a third of employers of EU citizens have reported that the Brexit decision has led to an exodus of these professionals from their UK base.

Drey Francis, Director at Engage, said: “For Facilities management firms, maintaining reliable access to a team of maintenance professionals was already an issue before the Brexit vote. Since the decision was made to exit the EU, this issue has deteriorated further, with many of the FM firms we have a relationship with reporting that availability of these professionals is one of their biggest concerns going in to 2019.

“Given how sparse some of the talent for these roles is in general, it’s perhaps no wonder that employers are turning to financial incentives to attract staff. However, this isn’t a sustainable approach. Of course, we still need to wait and see what happens in terms of the agreement on the Freedom of Movement for the UK, but action can be taken now to improve staffing efficiencies in order to better cope with the expected upheaval in Spring 2019. For example, where FM businesses have widespread operations, there are often resources that can be utilised in other locations, but a lack of visibility of this information is preventing hiring managers from tapping into these staffing pools.”

Global corporates ‘want flexible office space’

Two thirds of global corporates plan to increase their use of flexible co-working and collaborative space over the next three years, according to new research.

Knight Frank’s ‘Your Space’ report polled senior executives at 120 global companies which collectively employ in excess of 3.5 million people worldwide and occupy an estimated 233 million sq ft of office space, equivalent to the total amount of office space in Central London.

The reports shows global corporates intend to operate increasingly from flexible, serviced and co-working spaces, which, they says, create a more collaborative working environment and offer the freedom to expand and contract quickly according to market conditions.

The reports says that despite the proliferation of co-working and serviced office operators the majority of global corporates still occupy office space on a traditional lease model. Two thirds of companies surveyed reported that co-working, serviced and flexible office space comprise 5 per cent or less of their current office space. A small minority, less than 7 per cent, said that flexible workspace exceeds a fifth of their total workspace.

However, Knight Frank’s research reveals that the proportion of flexible space within companies’ portfolios is set to increase dramatically. Over two thirds, 69 per cent, of global corporates plan to increase their utilisation of co-working spaces, and 80 per cent expect to grow the amount of collaborative space they use over the next three years.

Furthermore, almost half (44 per cent), stated that flexible space will constitute up to a fifth of all office space in the next three years. An additional 16 per cent estimated that as much as half of their workspace globally would be flexible space within the same time period.

Over half of companies (55 per cent) identified increased flexibility as the main driver of this change, with a significant proportion (11 per cent) stating that the sense of community fostered among workers was the key benefit. A further 11 per cent stated that the greater speed to becoming operational was the primary reason for selecting co-working or serviced office space ahead of more conventional office space.

75 per cent of respondents stated that personal productivity linked to wellbeing and happiness, would increase as they shift towards a new flexible and collaborative model of occupancy that is more in keeping with today’s business structures and working styles.

Dr Lee Elliott, Global Head of Occupier Research at Knight Frank, said: “This research underlines that a decade of global economic uncertainty has reshaped how many of the world’s largest companies view workspace. Shorter business planning horizons, together with the emergence of new, more agile corporate structures has driven demand for flexible space which enables companies to react to change quickly.”

“While co-working and serviced office operators have grown rapidly over the past five years, driven largely by start-ups and the freelance economy, this is only the tip of the iceberg with latent demand from global companies set to emerge over the next three years.”

William Beardmore-Gray, Global Head of Occupier Services and Commercial Agency at Knight Frank, added: “The demand for flexibility is the single biggest threat – and opportunity – to owners of office space. The recent boom in co-working is indicative of a structural change within commercial real estate whereby companies desire space that is flexible, highly serviced and aligned within the realities of doing business in an age of disruption. Some co-working operators have capitalised on this already, but it is imperative that owners and developers react to the new reality where customer is king.”

Revealed: Britain’s most bizarre health and safety rules

Not being allowed to give a colleague a paracetamol, filling out a form to use plasters and a ban on birthday cake candles are among Britain’s most bizarre health and safety rules.

Researchers who polled 2,000 workers also found one in five aren’t allowed to change light bulbs in their workplace.

And another fifth are banned from wearing flip-flops in the office amid safety concerns.

The study, conducted by international animal charity SPANA, also found some workers are only provided with plastic knives and forks, while others must tuck in their shirts when shredding paper.

The study also found more than a third of respondents believe the health and safety laws in their workplace are too strict.

One noted that a wound as minor as a paper cut was required to be logged in their company’s ‘injuries book’.

Another wasn’t allowed to change the clocks on the wall to fit in with daylight savings – being forced to call an engineer to complete the task.

And a bamboozled employee was shocked to find that tinsel was banned from their Christmas decorations, ‘in case someone got tangled up in it’.

It also emerged nearly four in 10 respondents are happy to break rules in their place of work they deem unnecessary, or generally don’t agree with.

One fifth have fallen foul of management and been disciplined for ignoring what they believed to be an overly-strict ruling at work.

In fact, for 14 per cent of respondents, things got so bad that they considered looking for a new place of employment.

Half of British workers think health and safety regulations have got stricter since they started working at the company – with the average employee having been in place for more than eight years.

More than four in 10 have even had to utter the immortal words “It’s health and safety gone mad” after some new rule was introduced.

And one in four said they’d have preferred to work 50 years ago, when health and safety regulations were much less strict.

Although of those who have been injured in the workplace, a quarter admit they were contravening health and safety rules at the time.

THE TOP 40 BIZARRE HEALTH AND SAFETY RULINGS

1. No leaving doors open, as it’s a fire hazard
2. No wearing of shorts
3. No heavy lifting
4. No open toed sandals in case you drop something on your foot
5. Do not wear flip-flops in the office due to safety concerns
6. Do not change light bulbs
7. No running
8. Do not climb a ladder
9. No drinks near a PC or laptop
10. No toasters
11. Only allowed hot drinks in certain areas
12. Do not give each other painkillers, such as paracetamol
13. Do not take get any medication from the first aid box
14. No candles on someone’s birthday cake
15. Do not take a plaster without filling out a form
16. No heaters
17. No open windows
18. Must hold handrail when walking up or down stairs
19. No tinsel to be put up anywhere near work stations
20. No hats
21. Do not carry drinks up or down stairs
22. No carrying boxes
23. Water bottles only – no cups or glasses
24. Nobody is allowed to bring nuts into the building
25. No Christmas tree to be put up
26. No fans
27. No eating while walking
28. No turning things off
29. Do not shred documents
30. No hot drinks
31. Do not attempt to remove paper jams from the printer
32. Do not move office chairs
33. Must wear a headset to be on the phone
34. Do not share food food from home, such as cakes, with colleagues due to the potential food poisoning risk
35. No balloons in the building
36. Employees must clock out before engaging in chit-chat
37. No facial hair
38. Anything left on your desk gets thrown in the bin
39. Only plastic knives and forks to be used
40. No more than one personal item on your desk

FM Industry Report: 36% of parents don’t know what an apprenticeship is

Parents of young people in the UK don’t know what an apprenticeship is, signaling a wider awareness problem which is impacting career choices and creating a skills gaps in key industries. 

The research, conducted by ABM UK, follows news of the T-levels programme and the Apprentice Levy – which aim to present young people with more choices in educational pathways.

However, at the same time reports from the UK government show a decline in new apprentices for March 2018, which are down 28 per cent compared to the same period a year ago.

The research surveyed 2,000 British parents of children aged 11 to 16 and 2,000 children aged 11 to 16.

With 36 per cent of parents of children aged 11 to 16 unsure what an apprenticeship is, it’s no surprise that the majority (68%) of young people don’t know either, despite being at the age that they will start to make decisions about the direction of their career. 

However, Mum and Dad are in the driving seat when it comes to career choices. When asked who or what influences these decisions, Mum and Dad together were number one (66%), followed by teachers and school (41%), the lessons children enjoy (31%) and then friends (14%).  

ABM UK Director Adam Baker said:“We were shocked to find a genuine lack of knowledge on apprenticeships amongst parents, and that many still consider them to be a last resort for children who fail their exams. It shows a need for a more unified approach and a better way of communicating, especially with parents, whose influence alongside teachers is critical. 

“When a young person is set to choose a university, there’s a huge amount of support from schools, parents and educational bodies such as UCAS. We need similar representation for apprenticeships and technical careers to ensure young people in the UK don’t miss out on enriching, lucrative and credible career options. It’s vital we give parents and schools more informationand empower them to show children all the options open to them.

Further findings revealed that for those parents who knew what an apprenticeship was, just 14 per cent considered it to be a good option, with three times as many parents (42%) saying that they wanted their children to attend university, despite crippling tuition fees and long-term debt prospects.  

The top reasons given for not encouraging their child to undertake an apprenticeship were that they were thought to be poorly paid (43%), because they see it as a last resort for those who fail their exams (37%), and that apprenticeships don’t lead to successful careers (17%).

The engineering and facilities management industries are particularly disadvantaged by the awareness gap; 60 per cent of young people said that they were unlikely to even consider working in engineering or facilities management, with over a third (39%) saying that they wouldn’t consider working in this area because they didn’t know anything about it. When asked,just a quarter of parents said they would encourage their children to consider careers in these areas

ABM UK commissioned the research as part of its initiative to attract new talent to the engineering and facilities management industry. In January this year it welcomed 36 West London schoolchildren into the pilot of its first-ever Junior Engineering Engagement Programme (J.E.E.P).

Plans are in place to extend the scheme to further schools from September 2018. The move recognised that, despite government initiatives like the Apprenticeship Levy and the introduction of T-levels, businesses have a responsibility to safeguard the future, too.

Baker added: “Our programme aims to actively recruit new talent into the industry – it’s time to shake off the view that technical careers are about oily rags and no prospects. In reality recruits in this sector are in such high demand that graduate apprentices are earning between £26,000 and £30,000 just a year after qualifying – usually before they’re 20 years old – and they have no debt. 

“This is an issue we need to tackle now. We know that business leaders across the industry acknowledge that shortages of skilled staff will impact the success of their business, making it clear that filling the knowledge gap doesn’t solely sit with the government or parents. It’s everyone’s responsibility – including industry bodies and commercial enterprises – to collaborate in fixing the problem.”

In her role as an advocate of ABM UK’s J.E.E.P programme, Stemettes co-founder and CEO Dr Anne-Marie Imafidon, said: “The report told us that just 16 per cent of young people considered technical roles to be ‘for boys’, but we know that 89 per cent of the UK’s current engineering workforce is male. That means that for 84 per cent of young people, a gender barrier has been crossed and that engineering and facilities management is well positioned to set the standard for better balance in the future. To make this happen we need to leverage the influence that parents and teachers have by giving them the right information.

“University is often publicised as the ‘only’ route but this is not true. Apprenticeships are a fantastic viable alternative, which allows young people to earn while they learn and then, often before they are 20 years of age, have debt-free foundations from which to build a solid, well-paid career. For many, this is the perfect route to a fulfilling and successful career – not enough people know about the breadth and availability of apprenticeships.”

British Institute of Facilities Management CEO Linda Hausmanis said: “We welcome this important research by ABM UK and the excellent J.E.E.P. initiative. The facilities and workplace management industry is currently experiencing a serious skills gap preventing it from reaching its full economic potential. This is a diverse industry with relatively low barriers to entry and yet excellent prospects, supported by a career pathway from entry to executive level.”

“The awareness gap to potential opportunities highlighted by this research evidences a long-suspected need for concerted, early intervention to promote facilities management as a career of choice and its technical education route of entry. BIFM has recently partnered with the Department for Work and Pensions to that end and is seeking further opportunities for collaboration on this important matter to identify and encourage the next generation of facilities management professionals.”

ABM UK has already collaborated with suppliers and clients who see the value in taking action, and the company will be looking at competitors for their involvement as the initiative develops throughout 2018, the Year of The Engineer.  

For full details of the research commissioned by ABM UK, or ABM’s Junior Engineering Engagement Programme (J.E.E.P) visit www.jeep-abm.org

Technology ‘crucial’ in the battle for greater service sector productivity

Technology is a ‘crucial’ factor towards greater productivity and employee satisfaction, helping the services sector run more effectively as a result.

That’s the conclusion of a new report by Kronos, Empowering the Employee: How Technology Will Play its Part in Creating a More Efficient Workforce in the Services Sector, which outlines the challenges currently being faced by the FM sector, such as Brexit, the skills shortage and underperformance, with the direct result creating squeezed profits and an air of uncertainty for providers.

The report addresses these issues and suggests the service providers should embrace technology and help stimulate working practices and operations.

However, it claims that the services sector has yet to understand the full potential of technology advancements, such as robotics and workforce management tools.

“The services industry is up against it when it comes to delivering in the face of current market pressures,” commented Gavin England, EMEA industry marketing manager Kronos.

 “Skills shortages mean that businesses are struggling to efficiently move goods and fulfil orders, and the potential impact of Brexit means that there needs to be a major focus on improving operational efficiencies and streamlining core processes, while keeping staff morale high.

“The pressure to increase bottom-line profitability in the face of such challenges is very real, and one of the most effective ways that this can be done is by empowering managers and employees to do their jobs more effectively with the resources they currently have.”

IRENA reveals latest renewable energy data

Companies in 75 countries actively sourced 465 terawatt hours (TWh) of renewable energy in 2017, an amount close to the overall electricity demand of France, according to a new report from the International Renewable Energy Agency (IRENA).

With the continued decline in the costs of renewables, the report suggests, corporate demand will continue to increase as companies seek to reduce electricity bills, hedge against future price spikes and address sustainability concerns.

Corporate Sourcing of Renewables: Market and Industry Trends, the first global assessment of trends and policies in corporate sourcing of renewables, shows that renewable energy sourcing by private sector companies, made possible with the right policy framework in place, can be a key factor in the world’s pursuit of a sustainable energy transformation in line with the objectives set out in the Paris Agreement.

According to the report, environmental and sustainability concerns, social responsibility and reputation management and economic and financial objectives are the three primary drivers of corporate sourcing.

“Renewable energy sourcing has become a mainstream pillar of business strategy in recent years,” said IRENA Director-General Adnan Z. Amin. “While environmental concerns initiated this growing trend, the strengthening business case and price stability offered by renewables can deliver a competitive advantage to corporations, and support sustainable growth.”

The findings of the report show that half of the over 2,400 large companies analysed are voluntarily and actively procuring or investing in self-generation of renewable electricity for their operations. Of the companies in the study, more than 200 source at least half of their power from renewables. Electricity self-generation is the most common sourcing model, followed by unbundled energy attribute certificates (EACs) and power purchase agreements (PPAs).

“Corporations are responsible for around two-thirds of the world’s total final electricity demand, making them central to, and key actors in, the energy transformation,” continued Mr. Amin. “As governments all over the world recognise this vast potential, the development of policies that foster and encourage corporate sourcing in the electricity sector and beyond will inject additional needed investment in renewable energy.”

The report finds that the corporate sourcing trend is widespread and dynamic, with companies participating in the practice coming from various sectors. By volume, the majority of renewable electricity was consumed in the materials sector while the highest shares of renewable electricity consumption are found in the financial (24 per cent) and information technology (12 per cent) sectors. Countries in Europe and North America continue to account for the bulk of corporate sourcing.

Of the companies analysed in the report, only 17 per cent have a renewable electricity target in place. Three-quarters of those targets will expire before 2020, representing a significant opportunity for corporates to develop new medium to long-term renewable energy strategies and targets that factor in improvements in renewable energy technology and cost declines

The report is a contribution to the Clean Energy Ministerial “Corporate Sourcing of Renewables” campaign, co-led by China, Denmark and Germany and co-ordinated by IRENA.

View and download the Executive Summary of the report here.

Europe FM

European FM market ‘moving toward service integration’

Integrated facilities management (IFM) continues to represent the fastest-growing segment of the European FM industry, according to a new report from Frost & Sullivan.

It says the industry will continue to move toward service integration and sophisticated advisory services focussed on business productivity.

While European clients are demanding added value and innovative solutions, with areas such as workplace management, sustainability, data analytics, and energy management all growing in popularity, multinational companies are likely to be challenged by national FM vendors moving into IFM and heightened merger and acquisition activities.

“The European IFM market is yet to see full consolidation. However, this will change in the next few years as firms add to their service capabilities by building hard FM skills and moving towards more integrated offerings,” said John Raspin, Partner at Frost & Sullivan.

To survive and thrive in this highly competitive market, Frost & Sullivan says IFM companies need to embrace key market trends, including:

  • Cloud-hosted analytics to drive remote management for technical services and preventative maintenance;
  • New business models such as anything-as-a-Service (XaaS) models to utilise technology to shift from CAPEX to OPEX;
  • Social and demographics changes such as technology, labour force, and workforce change management to increase value creation;
  • Industry Mega Trends such as industrial internet of things, artificial intelligence, augmented reality, and intelligent robots to transform IFM services across Europe in terms of service delivery options and customer behaviour.

“Commercial multinationals have long taken the lead in reaping the benefits of IFM,” added Raspin. “With lessons learnt from the commercial market, industrial multinationals are expected to increase their presence in this market whilst also bringing new, challenging demands for vendors.”

Facilities Management

Facilities Management market set to reach $1,887 billion by 2024

The bundling of FM services by suppliers is driving significant growth in the sector, according to new research from TMR.

Its new report predicts that the global FM market is set to rise at a 13.6% CAGR to reach $1,887 billion by 2024, up from $606.4 billion in 2015.

TMR says an increasing number of companies have been providing bundled FM services – a combination of soft and hard offerings – in order to improve the efficiency of business processes and deliver quality and valued services to their clients.

The report cites several companies in the UK, including 14forty FM Support Services and G4S plc, that have been bundling security, cleaning, reception, food & hospitality and workplace management.

On the other hand, the report points out that single-point delivery services have successfully helped improve services and brought down overall cost.

Companies have also found that total FM services provide central control to the entire facilities management operation and minimise complexities in delivery.

Overall, more companies are aiming toward a reduction in maintenance and operation costs, which means facilities management has emerged as the ideal solution for firms in the short, medium, and long term.

The report asserts that FM services have been supporting companies in reducing capital expenditure and increasing investments in primary services, a goal which it says most organisations strive for.

Energy consumption is also a now a major consideration for firms when choosing their FM partners – as such, by developing an integrated design for business operations, FM services are now in high demand from companies seeking to curb their energy usage.

Healthcare FM

Global healthcare FM market to be worth $577.9bn by 2025

A new report from Transparency Market Research (TMR) says the global healthcare facilities management market is prospering, and that demand will continue to increment at an impressive CAGR of 13.4% between 2017 and 2025.

The report estimates the global market for healthcare facilities management to be worth US$577.92 billion by the end of 2025, significantly up from US$187.35 bn in 2016, with the competitive landscape anticipated to offer new opportunities for both prominent as well emerging players.

TMR segments the global healthcare facilities management market into hard services including plumbing, air conditioning maintenance, fire protection systems, mechanical & electrical maintenance and fabric maintenance, plus soft services including cleaning and pest control, laundry, catering, waste management, security and administrative services.

Among all these, the soft services sub-segment of cleaning and pest control is currently experiencing high demand, and is expected by TMR to remain most lucrative throughout the forecast period, based on the fact that maintaining a clean environment in the potentially highly contaminated surroundings of healthcare facilities is paramount.

Geographically, the report rates North America and Europe as most profitable regions, wherein a number of developed countries have robust healthcare infrastructure. However, the vastly populated region of Asia Pacific, which houses a number of emerging economies, is projected for the most prominent growth rate during the forecast period.

TMR cites the popularity of medical tourism and increasing disposable income of the urban population as the primary reasons why a number of key companies in the healthcare facilities management market are having a foray in Asia Pacific.