Future of Work: A Changing Competitive Landscape, An Examination of Equity, The Hybrid Workplace & More
September 10, 2021
As Summer turns to Fall, many had planned on the pandemic being behind us and starting a more “normal” return to work for the third of Bostonians whose jobs have afforded them the flexibility of remote work. While Massachusetts ranks the most innovative state in America by Bloomberg and has led breakthroughs that have helped the world navigate through the pandemic, we still lost 560k jobs in the pandemic and saw half of small businesses close. This made very clear what we need to do as a state to retain talent and jobs and keep our economy competitive and vibrant. As our business leaders and employees navigate continued uncertainties, the Boston Chamber of Commerce kicked off its “Future of Work” series to help guide businesses and government to act on the innovation, agility, and empathy required to support our vibrant, diverse workforce and communities, bolstering the region’s competitive edge in the global marketplace.
Last month, the state issued a “Preparing for the Future of Work in the Commonwealth of Massachusetts” report to discuss the vision for the Commonwealth and our business community and how pandemic-driven trends will impact the region’s economy and public policy decisions moving forward. On August 30, a panel made up of the following thought leaders gathered virtually to discuss the key takeaways and next steps based around the report and their experiences from government, academia, public health, and industry:
- Dr. Paula A. Johnson, President, Wellesley College
- Secretary Mike Kennealy, Housing and Economic Development, Commonwealth of Massachusetts
- Jules Seeley, Senior Partner, McKinsey & Company
- Scott E. Couto, Head of North America, Columbia Threadneedle Investments
- Micho F. Spring, Chair, Global Corporate Practice & President, New England, Weber Shandwick
Here are the key takeaways:
We Have to Be Competitive to Keep Our Economy Vibrant
Human capital is what drives our economy, and the retention of talent is more important than ever. In a changing competitive landscape, we have to have a competitive mindset as a state.
As Dr. Paula A. Johnson commented, “Higher education has a major role to play in creating a competitive advantage. The diversity in higher education in the state offers solutions for highly skilled workers and rapidly growing areas like STEM, all the way to retraining. The need to better connect higher ed with industries across the state could never be greater. The Chamber kicked off a Higher Education Leadership Council at the center of the work pipeline into a broad array of STEM fields. It provides an opportunity to improve access for women and minorities and figure out how we change the culture in these growing areas.”
With more employees working remotely, Bostonians now have the option of working outside the city, or the state, to retain their salary and lower their housing and/or commuting costs. We are a vibrant economy with strong healthcare and financial services industries, but with the costs associated with housing and childcare, we are seeing these critical enablers driving job growth outside of Boston. Employees living in smaller spaces or newer to their career are more likely to want to get back to the office and be visible but affording housing downtown can also be a real challenge for young professionals.
As Secretary Mike Kennealy, Housing and Economic Development, Commonwealth of Massachusetts, commented, We have in our economy, particularly in greater Boston, vast numbers of people working in technology, professional services and financial services, in jobs that can be done remotely, and they may choose to make their lives outside of Massachusetts. It’s something that ought to be concerning to all of us.
Inequities Have Been Exacerbated
Looking at the unemployment data and the groups most impacted by the pandemic, we see societal inequities in the 10-15% higher unemployment rate among Black Americans, or the fact that it takes women 18 months or longer to get back to where they were post-pandemic as they bear the largest burden of the childcare challenges associated with the pandemic. Women taking so long to get back to work as well as the inequities in groups impacted by unemployment both affect our economy. We also see deep-seated challenges in different industry sectors. The Latinx community, for example, is highly represented in the hospitality industry– the restaurants, hotels, and other businesses impacted so heavily by the pandemic.
As Jules Seeley emphasized, “In order to bring women back to work, we need to create roles with flexibility. Relatively few companies have adapted off hours. We need to think of the hours employees need to be accessible (not just at the office) and create part-time or flex options. We need to understand what the workforce needs and be adaptable and flexible based on the needs of the organization.”
We Are Re-Skilling & Upskilling Employees at Record Levels
Automation, eCommerce, digitization and COVID accelerated the significant shift of up to 400k job transitions. These are real transitions in reskilling a new type of work or pay proposition, or even new industries.
Given that the state needs to retain 30-40k workers each year in the next decade for economic growth, we had to look at how we train, upskill, and re-skill workers as quickly as employers need it. Secretary Mike Kennealy calls this a “talent calling card in Massachusetts to ensure successful career pathways regardless of background or zip code.”
Read more about the MBCS here.
We Have a New Center of Gravity
The nature of work has shifted to hybrid with many folks now working 1-3 days each week from home. The center of gravity has shifted away from the urban core.
Scott Couto, head of North America for Columbia Threadneedle Investments, said his company had been moving toward a hybrid work model before COVID-19 took hold, starting with thinking about what tasks could be done from outside the office. I thought that it was the definition of insanity to ask a young professional who sits in front of a computer screen and maybe talks on the telephone for a big part of her day to drive an hour to get into the office, to drive an hour home, when the technology exists to facilitate all that engagement remotely, he said.
What does this mean? Prior to the pandemic, there were a quarter of a million people in and out of Boston for work each day. The shift into hybrid work has impacted office buildings and ancillary businesses, hotels, coffee shops, restaurants, or what we would call the “economy of the core.” With the Delta variant impacting the timeline on return to offices and hybrid work arrangements meaning less volume in the city each day, Massachusetts instituted the largest state-sponsored small business relief program in the country in an effort to help curb the impact on small businesses.
As Couto continued, “For some younger professionals, they move out of urban areas and rely on public transit. We need a focus on more housing near public transit, and, as many organizations move to a hybrid work model, we need to invest in a downtown that provides an environment where employees want to come and interact. It is important that we work to make Massachusetts as competitive and equitable as we can.”
While we continue to navigate the changing landscape, and all the associated economic, housing, educational, financial, and other impacts, questions of how to tap local talent and keep company culture strong when remote work is so prevalent are just a few of the many questions on our minds. We hope you will continue to follow the “Future of Work” series, and if you missed or want to rewatch the full kickoff event, you can watch now.