VN HR Summit

From the Great Resignation to

the Great Reimagination

15 September 2022
 Agenda

Key Trends: From the Great Exhaustion

to the Great Reimagination

Navigating the Turbulent Times:

Transforming Work, Workforce and Workplace

Learning from the Greats:

Current and Emerging Solutions

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 What have we
learned since the
beginning of the
pandemic?

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We proved remote and hybrid can work…

68% of clients intend for their corporate AND

90% of employees feel that they are
workforce to operate in a hybrid environment1 equally or more productive working from home as
compared to working in a traditional office2

IN 2022…
37% 28%
52% 30%
53% 33%

The US will lead in terms of remote UK remote workers will
workers, with remote workers represent 52% of its workforce,
accounting for 53% of the U.S. while Germany and France will
workforce1 have 37% and 33% of their
workforce working remotely,
respectively1
India and China will produce some
of the largest numbers of remote
workers, but their overall
penetration rates will remain
relatively low with 30% and 28%
of workers working remotely,
respectively1

1. 2021 Return to Workplaces survey Executives weigh in on their return-to-workplace plans,” Deloitte, April 2021
2. “Gartner Forecasts 51% of Global Knowledge Workers will be remote by End of 2021,” Gartner. June 22, 2021.
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 …and digital business models can be accelerated

Worldwide, gig economy wages and In developing countries, the use of gig
participation increased by 33% in 20201 platforms increased by over 30%2

+28% ECommerce revenue in Europe

from 2018 to 20202 …were among a dozen companies that hired
~500,000 employees a week after pandemic
restrictions went into place3

GOLDMAN SACHS REPORTED

+23%
of new digital users in European

25%
online banking during COVID- increase in the number of
194 active users on the bank’s
institutional platform5

1. S. Mitra Kalita, “The rise of the independent worker: Why everyone wants to work in the gig economy now,” Fortune. April 21, 2021.
2. “Ecommerce in Europe”, ecommercenews. November 2021
3. Sarah Nassauer and Jaewon Kang, “Coronavirus Sparks Hiring Spree for Nearly 500,000 Jobs at Biggest Retailers,” The Wall Street Journal. March 23, 2020.
4. Frankfurt am Main, “Digitalisation in European banking: no time like the present”. Bankingsupervision.Europa. November 23, 2021.
5. Realizing the Digital Promise, Deloitte and Institute for International Finance, 2020

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But 2020 and 2021 ushered in the “Great Exhaustion”…

45% of UK employees say they have been expected to

work outside their regular hours while working
Gen Z workers are the least satisfied

56%
from home1 generation at work, with only

AND satisfied with work-life balance and 59%

Remote workers in the U.S., U.K., and Canada work 2.5 satisfied with their job overall4
hours more per day on average1
Before the pandemic, women made up more than
GLOBAL WORKFORCE SENTIMENT 3
50% of the country's workforce, 2

SINCE THEN 54% of respondents feel overworked

3M women dropped out of the workforce, and… AND

39% of respondents feel exhausted

42% of respondents feel burnt out
1. Jack Guy, “Employees working from home are putting in longer hours than before the pandemic,” CNN, February 5, 2021
2. Molla, Rani, “American Motherhood vs the American Work Ethic,” Vox., August 12, 2021.
3. “The Next Great Disruption Is Hybrid Work—Are We Ready? – Microsoft Work Index,” Microsoft, March 22, 2021
4. Rachel King, “What’s fueling ‘The Great Resignation’ among younger generations?” Fortune, Aug 26, 2021

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 …and led economists to coin the term the “Great Resignation” …

According to OECD, about 20M

fewer people are working than before
COVID-19 struck…
A Microsoft study of more than 30,000 global workers
…of these, 14M have exited the found that 41% of workers were considering quitting
labor market1 or changing professions this year1

Americans quit their jobs in April, May,

11.5M and June of 20212

One third of all German companies were reporting a AND

dearth in skilled workers in August. To make up for …according to the Bureau of Labor Statistics, the ratio of
shortfalls across industries, the country would need to job openings to hires, a proxy for the average time to fill
import positions, is at a series high3

400,000 skilled workers 1

1. Ishaan Tharoor, “The ‘Great Resignation’ goes global” Washington Post, Oct 18 2021
2. Philip Kane, “The Great Resignation is Here. And It’s Real.” Inc. August 26, 2021
3. Gad Levanon, “If the labor shortage continues, the US economy won’t be able to recover.” CNN, November 4, 2021

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 Quick Quiz

“When do you anticipate you will leave your current job ?”

www.menti.com
Enter code: 8296 0706

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 What do
CEOs think?

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CEOs continue to name talent-related matters as the biggest challenge they face today
The biggest challenge I face as a CEO today is:

“Maintaining culture and

“Ensuring the continued health cohesion in a largely virtual
and safety of my organization in world”
the context of an unpredictable
pandemic”
“Political polarization and
uncertainty is preventing
progress on critical issues such
“Delivering business
as climate”
outcomes in a low growth,
high inflation context”
“Keeping personal well-
being of employees aligned
“COVID-19 pandemic
with company's well-being”
which has affected literally
everything and all aspects
of doing business”
“Getting to a new
normal”

Note: Topics in the word cloud are edited for clarity.

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Of all these challenges, workforce and workplace challenges are top of mind for CEOs

What external issues do CEOs expect to

What supply chain challenges has
influence or disrupt their business strategy
your organization experienced?
within the next 12 months?

Labor shortages 76% Labor/skills shortage 71%

Pandemic (e.g., future COVID-19… 56%

Production and/or
54%
logistics delays Supply chain disruption 46%
Input/raw materials
40% Financial/market instability/inflation 36%
shortages
Reduced logistics capacity Cyber risk (e.g., cyber attacks) 25%
39%
(any mode)
Geopolitical instability (e.g., political… 22%
Reduced manufacturing
20%
capacity Ideological polarization 10%
Maintaining quality 8% Crises of trust (e.g., spread of… 9%
standards
Natural disasters (e.g., flooding,… 7%
Other 6%
Other 4%

Deloitte Development LLC, Winter 2022 Fortune/Deloitte CEO Survey, January 2022

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 What do employees
want?

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Workforce challenges

Every nation and region faces different labor trends and challenges;
yet workers everywhere are interested in exploring alternatives under different circumstances

53% of workers in France,

55% in Germany and Japan, 25% of China’s workforce are
gig/freelance workers
60% in the United Kingdom
are open to looking for new jobs
in the next year
68% of Indian workers have
been considering switching
industries

42% of US employees would

quit if they weren’t given long-
term remote-work options

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 Work Trends across APAC 25%
of China’s workforce are gig/freelance workers,
increasing from 30 million to 200 million since 2016
68%
of the Indian workforce is considering 2x
switching industries with attrition rates Workers in Japan are twice as likely to say
rising from 10% to 20% in 2021 that their work cannot be performed
remotely due to lack of digitization
40% 53%
of the Vietnam workforce are unavailable, with of Hong Kong organizations have identified the new
migrant workers leaving the city to return to skills to operate successfully post-pandemic , but only
their villages causing GDP to contract by 6.2% 20% have started their “pay for skills” journey
in third quarter of 2021

80% 60%
of Bangkok workers must work onsite due to of Philippine employers are open to hiring employees from
digital infrastructure issues - the Thai another industry if they match the job requirements
government is using Youtube to equip citizens
with digital skills

85%
46% of Malaysian companies are focusing on internal
of Gen Z in Singapore are not choosing traditional mobility versus external hiring, with a focus on
employment and Millennials are experiencing one of the soft skills, including problem solving,
largest decreases in employment tenure at 3.05 years communication and strategic thinking skills

64%
Australian workers are the most productive working of New Zealand labourer and factory workers, 55% of
remotely (85%) BUT are also the most burnt out health & support services, and 52% of sales & customer
60% service, are planning to leave their current employer
of Australian knowledge workers are planning to 50% increase in 2021 with the number of workers
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leave their organization this year considering leaving their current employer 14
While there are differences by region, industry and demographic, several key drivers appear
common around the world

1 Compensation and pay

dissatisfaction 4 Work-life balance

2 Workplace culture and societal

impacts 5 Push for flexibility

3 Employee desire for agency and

choice 6 Digitization

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 The “Great Reimagination”

Workers have undergone a significant

introspective.

Now companies can consider how to move forward

to a reimagination of the work and the
workforce: how to attract, retain and empower
workers, and reimagine work itself.

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 How to respond to
the forces at play?

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 WORK

WORKFORCE WORKPLACE

These three elements, when applied in concert, unlock the capacity

of the organization to meet the challenges
of the Great Resignation

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We need to re-architect Work

COMMON ORTHODOXIES | WORK

Work should be focused Work is something to be Machines and
on eliminating waste and optimized, and humans technology will make the
optimizing processes must adapt to entire workforce
technology obsolete

FROM T A S K S AND
FROM O P T I M I Z AT I O N FROM S U B S T I T U T I O N
OUTPUTS

TO O U T C O M E S AND
TO A U G M E N TAT I O N TO C O L L A B O R AT I O N
VA L U E

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We need to unleash the Workforce

COMMON ORTHODOXIES | WORKFORCE

Hiring decisions should Traditional reporting We can only rely on off-
be based on credentials, lines should govern how balance sheet talent as a
degrees, and/or employees are short-term solution
experience assigned to projects

FROM A FOCUS ON FROM C A R E E R FROM O N - B A L A N C E

CREDENTIALS DEVELOPMENT S H E E T TALENT

TO A FOCUS ON S K I L L S TO T A L E N T TO W O R K F O R C E
AND C A P A B I L I T I E S MARTKETPLACES ECOSYSTEMS

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We need to adapt the Workplace

COMMON ORTHODOXIES | WORKPL ACE

You can copy and paste My team is only Collaboration tools can
how work looked pre- productive when I can only be used to simulate
pandemic and be see them in the office in-person
effective in hybrid in front of me interactions

FROM R E T U R N T O FROM L E G A C Y FROM S Y N C H R O N O U S

OFFICE STRUCTURES C O L L A B O R AT I O N

TO A D I G I TA L
TO H Y B R I D W O R K TO N E W W AY S O F
WORKPLACE
S T R AT E G Y WORKING
EXPERIENCE
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How should organizations respond and take action?

WORK WORKFORCE WORKPLACE

Refocus the work Find talent in new places Cocreate office space
Optimize processes to achieve Explore new talent pipelines Rethink the “physical/digital” workplace
the most effective outcomes to maximize the workforce experience
Leverage workforce ecosystems
Reconsider the talent composition for the right
Rethink the work skills at the right time Improve the digital
Eliminate low priorities tasks workplace
and activities Create new opportunities for Leverage the right digital tools to drive
existing workers productivity and engagement
Give employees the kind of time, resources, and
Rearchitect the work support they need
Redesign with technology Focus on culture and collaboration
against new outcomes Reskill your workforce Bring individuals together both virtually and
Identify learning gaps and support dynamic physically to create the right environment for work
solutions for reskilling

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 What have other
organizations done?

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Activating a future ready workforce – Skills-first Model
Strengthening the culture of continuous “Our business environment is changing so rapidly and the skills
learning as a competitive advantage needed to compete look so different than they did even five to
• Becoming a Skills Based Organisation seven years ago. Many of our people processes that HR as a profession
(SBO) emerged as the next obvious step has institutionalized for decades were built for a different, slower, much more
from Cargill’s digital learning stable environment. They weren't built for the speed and agility that our
transformation, which started back in businesses require from us today.” - Julie Dervin Head of Global L&D
2017 and has created continuous
learning momentum
Getting Clarity on the WHY is essential
• Cargill’s first step was to define ‘their’
business case for the shift to skills with
clarity on the impact and change that is
going to help Cargill move forward
It’s a shift to a new Operating Model
• Cargill recognized that at a macro-
organization level, the biggest challenge is
changing the whole landscape and the
operating model – shifting mindsets
• Cargill started by establishing a
common language for skills and a
holistic framework to help them think
big, start small and move fast, with
intention and focus
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24
Activating a future ready workforce – Digital Immersion
Upskilling to a digital democracy where everybody can affect change

Through Digital, Petronas aspires to be a data-driven organisation, adopting new ways of working to
deliver new value. SWITCH is the Digital immersion programme in Petronas that is enabling and
elevating digital mindsets, skills and capabilities across the organization. SWITCH introduces Digital in a
fun and interactive way through micro learning tools and gamification. As part of the programme, the
SWITCH Station – app and website – engage employees in lessons and challenges to learn more about
Digital and to test and develop their digital skills.
Highlighting Petronas’ commitment to becoming a data-driven organization, Petronas implemented the
Citizen Analytics programme in 2019, empowering employees with data analytics skillsets while
accelerating Petronas’ transition towards becoming a data-driven organisation. Participants are able
to apply the skills, tools and applications learnt to address business challenges and to use data to
discover new insights, to bring significant value to the industry.
The Petronas Digital Academy is also being established with the aim to drive digital adoption and
digital capability en masse. Petronas are looking at learning institutions and government agencies,
and trying to drive and propagate digital learning within Malaysia, beyond Petronas.

“We need to democratize digital within the whole group…the organization cannot just depend on one
digital transformation department or CTO. Rather, each individual must be able to affect change.”
- Aadrin Azly, Petronas Chief Digital Officer
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25
Activating a future ready workforce – Talent Marketplace
The trend for marketplace adoption
accelerated as COVID-19 impacted
both the supply and demand sides of
talent, triggering a need for greater
agility around workforce
deployment and talent preservation.

The talent marketplace enabled “60% of projects are global, “The AI-powered platform “Before our talent marketplace,
Unilever to rapidly unlock now opposed to before the uncovers hidden talent that the LinkedIn held the data on the skills
300,000 hours of work by talent marketplace was Bank would never have known of our people…not us. We now have
redeploying 9,000 employees deployed. Teams were existed, matching employees with that data that allows us to have richer
during the pandemic to address previously resourced only by a range of career opportunities, and more meaningful and future
the new business demands that looking for someone you many of which are linked to skills focused workforce planning
mattered most. knew by face or through needed for the future of banking. discussions about the workers we
somebody. “ “ need and have”
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26
 “You can’t use an old map to
explore a new world”

Albert Einstein

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27
 Yun-Han Lee
Director, Organization Transformation

Thank you! Human Capital

Deloitte Consulting SEA
yun-lee@deloitte.com

Vo Kim Thoa
Senior Manager, Organization Transformation

Human Capital
Deloitte Consulting SEA
Kivo@deloitte.com

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