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The aim of the survey The way we work in 2025 and beyond is to help HR teams prepare

for significant shifts in the workplace. It identifies key trends in six HR areas and predicts what
the workplace might look like in the future.

The way we work in 2025 and beyond
2 The way we work in 2025 and beyond

Contents Introduction and executive summary

Future of work and digitisation
Talent management 9
Compensation and benefits 13
Mobility 18
HR organisation 22
Culture and change 26
Conclusion 30
About the study 31
Contacts 33
3 The way we work in 2025 and beyond Future of work and digitisation
Digitisation and automation will make 20 to 30% of jobs obsolete over the next 5 to 10
years, but only 16% of companies feel they are ready for that change. Demographic shifts
will have a tremendous impact on the composition of the workforce and working practices.

Introduction and
Talent management
Major trends seen in the market are increased flexibility at work, the ability to design
your own job, open and ongoing feedback plus diverse career models. 49% of our survey

executive summary participants think that employees will be working for more than one employer at a time in
the future. HRs challenge will be to efficiently manage this diverse career landscape.

Compensation and benefits

Lifestyle incentives such as working from home and flexible working hours will become
important, plus a shift from individual to team and company performance bonuses. 50% of
our financial sector respondents say bonuses will become less important in their industry.

How we work and the type of work The aim of our survey The way we work
in 2025 and beyond is to help HR teams Global mobility will grow in importance, particularly for large firms with more than 100,000
we do is rapidly changing. By 2025 employees. Assignments will move to short-term projects of up to 3 months or a year. There
prepare for these massive shifts in the work-
many white-collar jobs will be at will be more cross-border commuters, living and working in different countries. Were
place. It identifies key trends in six areas of
least partially lost to robotisation HR and predicts what the workplace might also seeing the rapid emergence of employee mobility between different companies, as
and automation, while demographic look like in the future. organisations start to exchange talent on a temporary basis.
shifts will bring extra pressures to HR organisation
The study covers national and international
the workforce. HR teams are facing companies of different sizes based in HR will become fully digital not only in terms of applications and technology, but also in
challenges from Generation Ys new Switzerland, from a wide range of industries. the way big data is used to understand the workforce, equip employees with digital skills
attitudes to work, fewer fulltime Over 200 HR professionals took part in the and to develop new business models. HR departments will work with other companies as
part of a network, for instance for hiring and sharing talent. 81% say HR will follow the
employees and the pressure to deliver survey. These include global heads of HR
from major companies, many other heads trend of becoming a centre of excellence, with transactional work outsourced or processed
quick solutions in an increasingly fast- offshore.
of HR and business executives. The survey
paced and unpredictable business and interviews with HR executives were
environment. Culture and change
conducted in late 2016 and early 2017.
Digitisation is seen as the most important driver for cultural change. Agility and the ability
Here are the main findings of PwCs research: for employees to embrace change are therefore vital. Developing a strong and compelling
company culture will become a differentiator and distinctive factor in engaging and
retaining employees, particularly for companies sharing employees in their networks.

These trends are likely to radically change the trends, which we believe will have a major
way HR teams operate not just in 2025, but impact on the way we work.
also today.
As ever, we welcome your feedback and
There is no crystal ball to predict everything look forward to continuing the discussion
Charles Donkor that will happen in 2025. But our survey can together. Please visit us on Twitter at
Partner, People and Organisation at least provide a better understanding of the #pwcfutureofwork and add your comments.
PwC, Switzerland
4 The way we work in 2025 and beyond

Apps and Robotisation Deep learn- Operating Digital

technology and ing and model culture

Future of work
platforms automation big data company competencies
applications on physical algorithms borders become and behaviours
smart devices machines or which can teach permeable and that enable
and Cloud virtual themselves organisations human beings

and digitisation
solutions for applications and create build platforms to leverage and
organisations taking over predictive to interact with use digital
what were insights from a different and environments
formerly white- vast amount of independent to the max
collar human- in-house and market players
led processes external data to create value
for customers

Digitisation and shifts in demo-

graphics are the two key issues that
our participants believe will change
the way we work in 5 to 10 years
time. 88% cite technology break- Digitisation
Digitisation can be divided into five main
throughs and 74% mention demo- Weve already seen the changes automation pillars (see above).
graphic shifts. Most companies has brought to blue-collar work. Visit the
feel theyre not yet prepared for the factories of any manufacturing company and Digital transformation can only be
changes ahead. youll find hardly a living soul there. When successful if these five pillars are addressed Artificial intelligence and its
this development started to accelerate in the companions a short definition:
simultaneously and decisively. We see that
1970s, robots were denounced as job killers. the development of a digital culture is often
Artificial intelligence
By now, weve learned to live with it. neglected. This is a pity, as digital culture
Machines that are able to learn and
is the fuel that is needed to make the digital solve problems on their own.
But today were seeing similar changes for motor run.
white-collar workers due to the emergence Machine learning
of big data and artificial intelligence. Whats A recent PwC survey of more than 1,300 An advanced level of AI machines
new about this technology is that it no longer global CEOs backs up the importance of can learn without being specifically
solely depends on the input of people, but programmed to do so.
digital change.1 77% of CEOs we canvassed
can learn, adapt and generate algorithms on agree that digitisation, the introduction of Big data
its own, known as deep or machine learning. robots, Industry 4.0 and other technological Vast amount of available data waiting
Its also having a huge impact on how people advances, are by far the biggest megatrends to be processed and analyzed
communicate, collaborate and work. Man/ they are facing. Creating value through
machine interaction will become as common Deep learning
digital transformation is therefore seen as
as water cooler conversations between Multi-layered algorithms that enable
vital for success.
machines to imitate human skills
human colleagues today.
Computer program imitating a human
19th Annual Global CEO Survey, PwC, 2016 conversational partner
Technology at Work v2.0: The Future is Not What is Used to Be, Oxford University, 2016
5 The way we work in 2025 and beyond

So how many jobs Our survey finds that smaller companies feel 68% say their company
theyll lose fewer jobs than bigger companies.
will be lost? This is understandable, as smaller companies
understands what
52% of our survey respondents say that often also have smaller budgets to implement digitisation means
The advanced use of techno- 2030% of current jobs will be replaced by new technologies. They also have a smaller A significant majority of our survey
logy is already a requirement, digitisation and automation by 2025. 14% of overhead, in nominal terms, which means respondents, 68%, say they believe their
but it will become even more respondents think that up to 40% of jobs or that there are fewer jobs replacable. However, company understands what digitisation
important in the future. more will disappear in the future. the pressure to reduce costs or increase means. 29% say their company does not.
As technology rapidly evolves, innovation will also force small companies, Based on conversations with business and
we need to have people who These findings are lower, but still in line with sooner or later, to embrace digitisation to HR leaders we believe that the former
evolve with it. a 2016 report by Oxford University, which stay competitive. They therefore need to number is overstated. We still encounter
concludes that about 50% of US jobs are at understand how machines will enhance the a significant lack of knowledge and mis-
Christian Albrich risk from computerisation.2 productivity of white-collar workers. alignment in organisations when it comes
Chief Human Resources Director, Actelion to formulating a common understanding
Many jobs will not vanish completely, but HR should play a key role in identifying jobs, of digitisation and what it really means.
key task will be taken over by computers. which will or might be lost or partially lost
This move towards automation can be very due to automation and offshoring. HR also Its interesting to note that even though 68%
worrying in the workplace. But theres no needs to help address concerns about man/ of our survey say their companies understand
point fighting it. Business leaders as well as machine interactions and to start to develop a digitisation, only 57% of respondents think
employees need to learn how to interact culture and mindset in which this interaction their company has a clear understanding
with their machine colleagues to reduce can be successful. of the skills employees will need for a digital
anxiety. future (combined answers of completely
agree and mostly agree).

Survey question: In my company, we have a clear understanding of which digital capabilities will be needed of employees in the future. Please rate on a scale of 1-4: We believe that its especially important
for the workforce in Switzerland to rapidly
develop non-replaceable capabilities, such
as social and human interaction, machine
Mostly interaction, design and creative learning, the
Completely disagree Completely ability to switch constantly from one team
disagree agree to another (teaming) and project manage-
Mostly I don't ment skills. Its up to employees to be willing
agree know to develop these skills. However, its the
37% 15% responsibility of employers i.e. HR to
train employees and provide platforms to
5% 42% 1% develop the skills they need for the future.
6 The way we work in 2025 and beyond

and that being the first mover doesnt areas as somewhere not just to be creative,
always pay off. This attitude, however, but where older workers can simply rest and
28% Not prepared not only disregards the challenge of the
burning digital platform, but also misses

16% Well prepared the enormous opportunities it offers for our

firms, employees and country.
Furthermore, it will become increasingly
important for older workers to keep training,
even with their retirement well in sight.

56% Somewhat prepared Demographic shifts

Today, many workers stop training when they
reach 55 years of age, as they see retirement
as coming soon. But if theyre to stay fit for
74% of survey participants say that
work, older workers will need to keep
demographic shifts are a key factor for the
training and training programmes will
future of work. These trends include an aging
need to reflect their different learning needs
population, the fact that there are more
and styles.
women joining the labour market and the
higher birth rate in Asia and Africa compared
Working models will need to be adapted. Older
to Europe, potentially providing more talent
workers are more expensive for companies to
Survey question: In relation to anticipating the expected changes in the way of working. I think my company is: from these areas of the world.
employ. So new approaches are needed to keep
workers in the workforce but at an affordable
As retirement ages rise, companies will need
price. At the same time, older workers will also
to prepare the workplace for an increasingly
But only 16% believe elderly workforce. This includes making
need to adapt and give up some of the benefits
they have enjoyed in the past.
they are well prepared manual working practices and environments
for change easier for older workers. In the professional
The younger generations will have their own
workplace it also means training older
So are companies ready to deal with impact on the work environment. By 2025,
workers to effectively interact with virtual
that change? We find that even though a Generation Z, todays children and teenagers,
machines, and probably train them more
large number of companies believe they will be flocking into the workplace. Their
intensely than their younger colleagues.
understand digitisation, there is still a sense expectations at work are even more distinctive
of hesitancy when it comes to getting ready than those of todays Generation Y or millen-
HR departments will also need to help older
for it. nials. Generation Z are full digital natives and
workers to adapt to the increased speed of
expect multiple access routes to information
change. Change in work practices is becoming
Only 16% think that their company is well they need for their work. They feel at ease
faster and faster. But the older we get, the
prepared to deal with the change. 56% say only communicating through digital tools,
more difficult it can become for us to change.
At Mobiliar were already being their company is somewhat prepared and and have fewer interpersonal communication
HR departments will need to address this.
supported by robots. Were 28% think their company is not prepared at skills. They want not just regular, but constant
very happy with our progress, all. Given the speed of change, these results feedback as this is how they were socialised,
Companies should rethink how to design
even though were still in the are worrying. We believe there is a clear lack especially with the virtual and online environ-
workplaces. Recreation is no longer
testing phase. of urgency to get ready and fully embrace ments they grew up.
important just for software designers at
digitisation. Its part of human nature to Google, Facebook and the like. In other
Nathalie Bourquenoud
think that theres always time to adapt later workplaces we need to think of recreation
Head of Human Development, Mobiliar
7 The way we work in 2025 and beyond
believe that career progression and hiring
will be heavily influenced by data analytics.

A friendly millennial environment may be Its clear that many stabilising factors are 57%
fully digital, but it also needs to be engaging perceived to be disappearing, not just in say most of
and creative. Millennials will be drawn terms of international politics, but also in our work will
to organisations that offer stimulating terms of personal and societal security. be carried out
atmosphere that creatively blends work and International challenges such as the shift 69% remotely, and
life. They expect to work in communities of in global economic power, concern about not in the office.
mutual interest and passion not structured terror attacks, regional conflicts and political
hierarchies. Consequently people manage- change are creating more uncertainty.
ment strategies will have to change so that
they look less like the pyramid structures we 20 years ago personal stability came from the
are used to today.3 family, membership of amateur sports clubs,
choirs, orchestras and other group activities.
Finally, given the multitude of generations Even a company offered stability as a place
in the workplace, its increasingly important where someone stayed from apprenticeship
for companies to find a way for different until retirement. But thats all changing. The
generations to work together effectively. need for security, however, is still here.
Different generations need to understand
each others values and ways of thinking. Especially Generations Y and Z are expecting
Companies will need to train different age their workplace to be more of a social
groups to work together well, providing platform than it is today. We therefore see
believe that employees
mutual support. that companies can and will play much more
will be working for several
of a social and caring role in the future.
employers simultaneously.
Theyre not only a platform to exchange
However, this is seen to be
Companies can make up labour for pay, but should also offer
more difficult to achieve for
for a sense of insecurity opportunities for social interaction beyond
work for their members. All of this will give
49% some sectors, such as the
Geopolitical and economic insecurity pharmaceutical industry,
employees a sense of belonging, feeling safe
are important trends. 41% of our survey due to the need for patent
and being cared for.
participants say that resource scarcity and and research protection.
climate change are key factors for change.
39% cite shifts in global economic power. The workplace will look The expectation of remote working is in line
This ties in with our recent CEO survey, with one of our other recent surveys showing
where 74% of CEOs said that geopolitical
very different in 2025 that nearly half of HR professionals expect
As the world gets more digital,
well need increasingly different uncertainty is one of their major concerns Our survey also sees great changes in how 20% of their workforce to be contractors
skill profiles. and 50% were worried about climate we work by 2025. or temporary workers within a few years.5
change.4 Platform-enabled companies like Uber,
Jean-Christophe Deslarzes Airbnb and others employ only a small
Head of Human Resources, ABB fraction of their whole workforce ecosystem.

Millennials at work, PwC, 2011
20th Annual Global CEO Survey, PwC, 2017
The future of work A journey to 2022, PwC, 2014; The Randstad Sourceright 2015 Talent Trend Report, Randstad, 2015
8 The way we work in 2025 and beyond

These may be extreme examples. But its employability, etc., if this talent is shared
worthwhile for any company to build between organisations? How can a distinct Virtualisation building trust and
scenarios about a future in which a much corporate culture be maintained or created a lasting culture when most teams
smaller percentage or perhaps even a if most talents are only around part-time? are only working virtually and/or for
minority of employees are employed full- Questions like these need to be addressed temporary.
time. The future may arrive much faster and by HR. But today were not seeing many HR Skills needed: ability to build and nurture
be more drastic than we anticipate. professionals actively working on compelling strong professional relationships through
answers. use of virtual tools.
Alternative work arrangements and exchange
of talents between companies will make Personalised employment
organisations nimbler and more agile. They
Future skills for HR teams managing complex and multiple career
will become more attractive employers as What are the skills that HR will need in plans efficiently.
employees ask for this flexibility. However, it future? According to new research from the Skills needed: develop personal career
also puts high expectations and demands on Institute for the Future (IFTF), PwC and other plans, act as career coach for employees.
HR. How can multiple work arrangements institutions, there are several main areas of
be managed efficiently? Who owns a talent HR capabilities needed in future:6 Change agility being able to adapt
and takes care of his or her development or quickly to new environments and engage
employees to do so as well.
Skills needed: strong culture transforma-
Predictive data analytics being tion and change management capabilities,
able to use people-related data to make strong human interaction skills, effective
predictions about dynamics in the communication skills online and offline.
Skills needed: data analytics, predictive Organisational development
modelling, programming, translating HR organisations will become more
analytics into business propositions. fluid and platform-based.
Skills needed: ability to design new
Digital HR using digital tools for governance, organisational models and
interpersonal interactions. processes that are agile and adaptive for
Skills needed: ability to use digital tools constant change, be deeply knowledgeable
and applications for most employee of design principles of platform- and
interactions. network-based organisations.

Digital employability handling

robotisation alongside human
workforces, man/machine interaction.
Skills needed: ability to interact effectively
with virtual machines, skills to enable
co-workers to address digital anxieties.

Future Work Skills 2020, Institute for the Future (IFTF), 2011
9 The way we work in 2025 and beyond

Its extremely important in

todays fast-moving world to
All this means that managing talent will see change not as a threat

Talent management
become more complex. but as an opportunity to be
courageous and open to new
Data and predictive analytics will become topics.
critical in talent management to keep track
of availability, preferences of resources and Jean-Christophe Deslarzes
performance. Data analytics will become Head of Human Resources, ABB
particularly valuable when combined with
data from other parts of the business, for
The challenges facing talent A more flexible work instance from sales or finance. We also believe
that talent analytics will help employees to
management, according to our environment make better-informed business decisions and flexible career paths available in their
survey, are flexible working, flexible Its clear from our survey that employees are elevate the role of HR. This is in line with company. Small companies, in particular,
career paths, contingency workers expecting a much greater say in the way they the trend were seeing of HR becoming more which dont have employees outside of
and managing employees working for work. Increased flexibility at work (25%) and strategic while transactional work is tending Switzerland, say that they often dont propose
flexible careers to their employees or manage
multiple employers, not for just one the ability to design your own job (23%) are to be outsourced.
seen to be the two major trends. In addition, flexible careers on a case-by-case basis.
company at a time. The question for
open and ongoing feedback and diverse Predictive analytics in talent management
the future is, therefore, who owns a career models are also seen to be important does not mean, however, that talent decisions We believe that the need for flexibility will
talent? HR teams need to ask whether for the future. will be made by a machine. Not at all. But it become greater in the future. Companies
a talent owns themself, or if they will be a very strong and solid basis on which will need to proactively manage talent and
be quick to adapt to changing needs. We
are owned by a company or by This fits very much into what we found in humans can make decisions on how to attract,
another PwC survey of milllennials at work.7 retain and develop specific talents. could even see the end of fixed employment
multiple companies. HR teams will contracts as we know them today, with a shift
This shows that Generation Y expects an
then need to decide who takes the engaging and creative working environment, to fully variable workforce models. Were
lead in nurturing talent and helping based on mutual interest and passion, with How to manage flexible already seeing an increase in a contingent
employees to train and develop. workforce and the emergence of talent
less of a pyramid structure than the one we career paths exchanges, talents owned by a network of
work with today.
In the future, we will see a strong shift from companies for which they work at the same
At the same time, we are seeing an increase vertical to horizontal career models or a mix time or consecutively.
in part-time workers and outsourcing (i.e. of both. Our survey shows that the most
contracting external service providers or common way today to offer flexible careers Companies therefore need to propose
One of the areas were about
individual consultants). We believe this trend is via open internal job market postings or flexible career paths, including horizontal
to explore with data analytics is
will continue due to the scarcity of talent on through a central career talent pool. and vertical career models, to attract and
to track the path of successful
the market and because people with creativity retain young talents. The difficulty will be to
talents and leaders at Actelion
and innovation skills will be highly in demand These measures, however, seem to work manage those different career models, ensure
and then recreate their career
in the future.8 mainly for companies with more than equal performance treatment plus ownership
paths so that we find similar
100,000 employees. 13% of our survey and coaching for the personal development of
talents faster.
participants say that they dont have any employees.
Christian Albrich
Head Global Human Resources, Actelion
Millennials at work: Reshaping the workplace in financial services, PwC, 2012
20th Annual CEO Survey, PwC, 2017
10 The way we work in 2025 and beyond

The inflection point will certainly

come when companies have more
people working form outside than
on a fixed contract. This will also
lead us to rethink our business

Christian Albrich
Head Global Human Resources, Actelion
11 The way we work in 2025 and beyond

Tracing talent they need to fit into our company culture and demonstrate In terms of career development, we propose a broad set
the relevant level of leadership capabilities. In short, we are of opportunities with traditional vertical movements, but
looking for the T-shaped professional one who has the right also by enriching the existing roles or via expert career paths.

back technical skills, experience in the scientific field and at the

same time the breadth, meaning the right organisational
awareness and connectedness to the business and its
As already stated, people with scientific backgrounds are
driven by the content of their work. Some of them might not
strive to become traditional team leaders. Therefore, we offer
environment. development opportunities in deepening expert knowledge
of their domain as well as opportunities to develop in project
Christian Albrich, HR director of biopharmaceu- How do you ensure that the right talent want to teams.
tical company Actelion, talks about challenges, work for Actelion and not for your competitors? We have also dramatically increased the number of
technologies and trends in talent management. We are unique in terms of the scale and size of our international assignments across the globe. We really push
organisation, as well as our marketing capacity throughout people to move around and rotate between countries and
Overall, what do you see as your biggest challenges the world. That is why we compete with different companies functions. The main drivers for supporting international
to attracting and retaining the right talent in the in different geographical areas. The high level of science careers are business needs as well as the personal interest and
next 510 years? Where do you feel most equipped as well as our dedication to finding drugs that make a real development of people. This ensures that we have a pool of
or vulnerable and how are you planning to tackle difference to patients helps a lot in attracting the right people tomorrow who have a portfolio of skills that we can use
those challenges? talent. Candidates are also sensitive to the relative size of the for either vertical or horizontal career moves. Subsequently,
The biggest challenge is clearly to find people with the company, which helps them to have an impact in their role. these individuals effectively help our business achieve its
right expertise to help develop our business. The heart of strategic goals. Another positive effect is the development of
our business is drug discovery and development. For that, And what do you do to ensure that people are cultural awareness of employees, which is very important if we
Actelion in most of our talent sourcing initiatives Actelion willing to stay with the company? talk about the future of talent.
relies on people who already have the required expertise. What we have learned over the years, is that our people What we also do regularly is to rotate people between
Thus, our focus in on experienced hires. are motivated to stay because of the content of their work. locations to share knowledge for a specific business project or
Since we are operating in the pharmaceutical industry, we Of course, compensation and benefits are also important and topic. For example, someone from the USA might be coming
look specifically for specialist profiles in the areas of medical are competitive on that scale. People are driven mainly by for one month to headquarters and in exchange someone from
or clinical development, regulatory or research, which are the content of what they do; the scientific environment and here goes to the USA to learn how a specific topic is handled in
difficult to find. On top of the right training and experience, the portfolio of drugs they are working on. That is the main that entity. This exchange of employees is managed in a very
reason why we have been able to retain most of our people. pragmatic way, since we are a very agile and lean company.
Our turnover is relatively low compared to the industry.
We try to provide people with an environment that makes How do you reconcile the flexibility in career paths
sense for them, which is also easier because we are a smaller that you offer with the administrative workload?
company. In a smaller developing company, employees get We rely a lot on the people themselves to come up with
given more responsibility faster. People have many contacts ideas and proposals. We do not have a masterplan behind
internally or externally, so they see the immediate effect of this and handle it as it comes in an opportunistic way. When
their work. it comes to changing country, there is a particular financial
impact. However, we are willing to pay this price, because
Do you have flexible career paths at Actelion and there is this double advantage, as I stated earlier: it helps with
if so how are they managed? How do you support the development of our people, while also developing our
individuals in their career progression? business.
Christian Albrich
Head Global Human Resources, Actelion
12 The way we work in 2025 and beyond

Actelion has grown very fast over recent years, intentionally to exchange ways of working and experience. never be fully dependent on analysis of big data only. The
and is not a small start-up company anymore. This Overall it was very successful experience. human factor will always have to be and should be necessary.
means that the more you grow, the more processes If we look into the future, it will become more common One of the areas we are about to explore with data analytics
need to be institutionalised. What do you do as an practice, but also a big challenge in terms of administration is to track back the path of successful talents and leaders at
HR organisation to maintain this entrepreneurial and data protection. Actelion and then remodel their path so that we find similar
spirit? I also think that the number of contract and freelance talents faster.
One of the useful things we have as an innate part of our workers will increase. There is still a way to go before we
organisational design is the limited number of hierarchical inverse proportions between fixed and flexible contracts.
levels. We try to stay as flat as possible, because we want Specifically in the life science industry, the life cycle of our
to make sure that managers are also involved in projects product is very long (between 7 and 12 years) and we need
and operations. We believe that this helps to keep the a stable workforce that follows the process of the entire life
entrepreneurial spirit alive. Another approach that helps cycle. However, that inflection point will certainly come, and
us to maintain this culture here is to allow people to make companies will have more people working from the outside
mistakes. We look for people who are initiating projects on than with a fixed contract, which will also lead us to rethink
their own. Some efforts might not go well all the time, but our business model.
experimentation is allowed and tolerated.
Many studies have shown that the availability of key
What do you see as future skills and competencies skills remains a challenge for organisations, with
for talents and leaders to remain successful? fierce competition for talent. What measures have
As the entrepreneurial spirit is very important to us, this is you already and/or do you plan to take to address
something we look at during recruitment interviews. We also this at Actelion, particularly in the context of the
look at how hands-on and flexible people are. Furthermore, mass immigration initiative in Switzerland?
the passion people have for their job, no matter what their We are exposed internationally and therefore need to also
job is, is an important factor in the sourcing of candidates. We to represent that in our workforce. For instance, we need to
believe that passion and entrepreneurship are closely linked. attract to Switzerland people not only from the EU but also
The skill of being agile in many aspects is also very from the USA and China, for example. This is a challenge due
important. On the one hand, it is the ability to face the to the current restrictions. However, the collaborating with
unknown and learn from it. On the other hand it is agility Swiss authorities to manage specific cases works very well and
relating to the scope of responsibilities or organisational we have always found a good solution. Whatever happens in
awareness. The advanced use of technology is already a the future with the mass immigration initiative, I hope this
requirement now, but it will become even more important spirit stays as pragmatic and positive since half of our here at
in the future. As technology evolves rapidly, we need to have headquarters are currently not from Switzerland.
people who evolve with it.
Data and technology provide increasingly
Looking into the future, do you think that the important tools for talent management. Which
exchange of talents between companies will be innovative technologies and tools do you already
feasible, and how will Actelion manage this? use or plan to implement at Actelion?
Yes, I think this is definitely feasible. We have already Predictive people analytics is something that we started
exchanged talents between some of our Contract Research recently. We believe it is necessary to complement process
Organisations (CROs) and Actelion. This was done and intuition with analytics. However, in my opinion, HR will
13 The way we work in 2025 and beyond

These findings are very much in line with Shift from individual to
what we have found in other surveys. Our
survey of millennials in financial services
team performance
finds that jobs with meaning and interest are Its clear from our survey that teamwork

and benefits key to retaining talent.9 Generation Y want to

combine work and personal life and are not
willing to work punishing hours anymore.
is also becoming more important. 63%
of our survey participants say that team
performance will increase in importance.
Companies will need to adapt to fit these 41% say that the importance of individual
expectations. performance will decrease or stay the same.
This is what we are also seeing with our
We also believe that pay is as much about clients. Many companies now encourage team
fairness and recognition as it is about rather than individual performance.
On compensation, our survey is A flexible job with incentives. The need for open, clear and
pointing yet again to a more complex meaning and impact ethically strong reward strategies, such as A teams success can be measured by
picture for HR teams. Lifestyle equal pay, will become more important as qualitative performance, such as how
Lifestyle incentives are clearly becoming companies move from hierarchy models to effectively it works together, how it lives its
incentives are becoming more a more popular way of incentivising staff more flexible career models. Generation Y company values as well as by quantitative
important, meaning HR will need a in comparison to base salary. However, is more demanding and more willing to performance in terms of market penetration
deeper understanding of employees base salary is still important to our survey change employer if they feel that the reward achieved, financial targets hit etc. 72% of
lives and needs. Appraisals are also respondents. On the one hand, lifestyle strategy is not aligned with job expectations, our survey participants also believe that
incentives allow employees to satisfy their or simply is unfair. qualitative performance measurement will
increasingly based on qualitative and individual preferences, whereas base salary become more important in the future.
not just quantitative results. provides a certain stability and security. From our client work were also seeing that
its important to clearly communicate reward Were already seeing many companies
89% of participants in our survey say that strategies to be effective. A reward strategy moving away from classical performance
lifestyle incentives, such as working at home, needs to be understood by employees in ratings linked to bonus payments. Some
flexible working hours or extra holidays order to work and so a reward strategy can companies such as General Electric or Adobe
will become more important over the next only achieve its goal if its transparent and are focusing on company or team goals rather
510 years. 73% say that base pay is impor- clearly communicated. We also believe than individual performance.10
tant. These views are shared across all sizes that fixed contracts will be more and more
I would like to see recognition of company, big and small. appreciated as flexible and freelance work Appraisal systems in the context of
being further developed in becomes more the norm. performance management are changing too.
reward systems. I believe that Only a few of our survey participants, 22%, Ongoing conversations and check-in meetings
effective recognition, whether see long-term incentives such as shares and are replacing annual appraisals. Frequent
monetary or intangible, options as a useful tool for a wider employee forward-looking performance discussions and
engages the workforce and base. These are often used for executives coaching are also proving to be productive.
contributes to higher business rather than for all employees as theyre aimed Feedback now comes from peers and not
performance. at keeping key personnel within a company just from managers11 and is also based more
and demand administrative resources. on qualitative rather than quantitative
Jean-Christophe Deslarzes information.
Head of Human Resources, ABB
Millennials at work: Reshaping the workplace in financial services, PwC, 2012
14 The way we work in 2025 and beyond

We welcome this move. Relying on quantita- But theres an interesting insight from the what those new incentives will look like.
To maintain focus on the long- tive performance criteria in the past led to finance industry: 50% of our finance sector Bigger companies, with 50,000 to 100,000
term success of the company, unethical behaviour and/or non-compliant replies say that the importance of their bonus employees are more uncertain than smaller
Executive Committee members sometimes practices, especially in the will decrease compared to their base salary. companies. This may be because smaller
are required to build up a financial services industry. So recognising This is perhaps to be expected. Bonuses have companies can be more innovative, flexible
holding of ABB shares that the importance of values and qualitative been one of the most politically charged and less bound by regulation. We believe,
is equivalent to 4 times their behaviour, which is not just based on financial areas of new regulation since the financial however, that negative interest rates do
annual base salary, and for the results, will become critical in the coming crisis. Policymakers are keen to eliminate offer new opportunities, for instance to
CEO its 5 times. years. incentive arrangements they believe could provide employees with advantageous loans,
encourage misselling or excessive risk taking. preferential terms for investments or financial
Jean-Christophe Deslarzes The financial sector is also facing public support.14
Head of Human Resources, ABB Bonuses face an uncertain criticism over the level of remuneration and
future type of behaviour it seems to reward,12 while The right rewards strategy for employees
institutions now have to justify the bonuses of the future needs to include the following
Its unclear from our survey how bonuses will they pay. elements:
develop, with a relatively evenly split view
from our survey on what will happen over the A bespoke remuneration system tailored
Bonuses may also be losing out to the
next 5 to 10 years. 34% say the importance to corporate strategy and culture, but also
growing desire for lifestyle incentives rather
of bonuses will decrease, 33% say the adapted to the flexibility and work-life
than financial incentives.
importance of bonuses will increase and 27% balance wishes of employees.
think it will stay the same. However, bonuses are still key for CEOs and Tailor-made benefits offering,
executive management. CEOs and other acknowledging the new set of expectations
Survey question: I think that by 2025 the importance of bonus compared to fixed salary will: executives of SMI and SMIM companies and needs for young workers (including
receive 50% to 65% of their income in flexible working, job sharing, increased
variable pay, such as cash bonuses or equity- focus on lifestyle benefits).
based long-term incentive plans. Small-cap
Link pay to team and business
executives receive a smaller amount of
6% I don't know variable pay, but its still significant at 40 to
performance and move away from the
traditional individual annual performance
process linked to bonus.
27% Stay the same Promoting entrepreneurial behaviour
New financial incentives by employees by participating in the

33% Increase Half of our survey respondents say that

companys success.
negative interest rates will lead to new A well communicated, clear and ethically
financial incentives within the next 2 strong reward strategy based on the

34% Decrease to 5 years. But theres no clear view of companys vision and values.

Smarter incentives: Turning the regulatory shake-up to your advantage, PwC, 2013
Executive Compensation & Corporate Governance, PwC, 2016
Smarter incentives: Turning the regulatory shake-up to your advantage, PwC, 2013
15 The way we work in 2025 and beyond

Culture of targets, robust performance management and sound balance to live up to the new expectations and perspectives of this
between company and individual performance. In order younger workforce. In turn, our reward system will have to be
to attract suitable talent, annual base salaries are usually revisited to make sure we also remain an attractive employer

performance set between market median and upper quartile. This is a

statement of intent in line with what we consider ourselves
to be an industry leader. Ambitious targets are set in the
to this population.
Moreover, I see an increasing pressure for more
transparency in compensation reporting from external
Groups annual and long term planning processes, and stakeholders. The challenge is that if this is not approached
variable pay aims at upper quartile when these targets are in a responsible way, it may be counterproductive to
Jean-Christophe Deslarzes, HR chief at ABB, on met. All performance metrics support the development of business. For example, the pressure to release financial
principles, challenges and trends in compensation. earnings per share (EPS) and cash return on investment targets embedded in our incentive plans might compromise
(CROI) and cover financial, operation, change and behaviour a companys desire to safeguard its business plans from the
aspects of the leaders. By measuring the entire chain of competition. One way to tackle this would be to have more
A compensation system is an important factor in value delivery, we make operations tangible and thus active and open dialogue in our stakeholder engagements.
attracting, retaining, and motivating key people. provide the basis for rewarding performance in a fair and
What are the compensation principles at ABB and objective manner. At the same time, this comprehensive How do you link compensation to performance
how do they best fit with corporate culture, long- coverage allows us to assess whether the financial results (What) and behaviour (How)? What do you see
term vision and the strategy of ABB? achieved are supported by the right way of doing things. as future trends?
At ABB, the Executive Committee (EC) and Board In addition, our compensation mix and levels are tested Let me first address an important principle behind our
certainly considers the Groups compensation system as a annually against benchmarks that include ABB peers and idea of performance. We believe that appropriate behaviour
very important factor in attracting, motivating and retaining appropriate markets in which we operate. makes an important contribution towards sustainable
people with the talent necessary to strengthen ABBs As we strive for our vision of providing power and excellent performance. Thats why we develop and articulate
position as a global leader in power and automation. Our productivity for a better world, the above principles support the behaviour that we want our staff to exhibit and then
compensation system is driven by the principles of being our corporate culture, which is best articulated by the cascade it throughout our organisation, along with the
balanced, competitive, market-tested and performance- following value pairs: safety and integrity, customer focus and necessary training and development workshops. These
driven with comprehensive key performance indicators quality, innovation and speed, ownership and performance, behaviors, which we call Values in Action, are based on
(KPIs). We link compensation to the Groups Next Level as well as collaboration and trust. the value pairs that I mentioned earlier: safety and integrity,
strategy as well as the People strategy through ambitious customer focus and quality, innovation and speed, ownership
Overall, what are the biggest challenges you see on and performance as well as collaboration and trust.
the horizon for rewards? Where do you feel most When it comes to linkages to compensation, our short-
vulnerable and how are you planning to tackle term incentive (STI) is the key element of our compensation
those challenges? system, driving both results (the What), and Values in
Firstly, as the world gets more digital, increasingly Action (the How). Our STI comprises a group scorecard
different competency profiles are needed. The 4th industrial (GSC) and an individual line of sight and individual (LSI)
revolution i.e. the Internet of Things, Services and People scorecard. The proportion of GSC and LSI is appropriately
(IoTSP), requires different and additional competencies weighted for different levels of staff in the organisation. As
and experiences and traditional compensation and benefit they have a wider span of control, the senior managers have
schemes may become challenged. At the same time, the a higher proportion of the GSC and, conversely, managers
millennium generation workforce will soon have to be further away from top management have a higher proportion
attracted, motivated and retained. The questions to answer of the LSI.
Jean-Christophe Deslarzes will thus be how our workplaces will have to evolve, in order
Head of Human Resources, ABB
16 The way we work in 2025 and beyond

The GSC measures group performance and the KPIs the aim is to communicate the business rationale, so that our In short, the VegV prohibits severance payments,
include a top line measure, an earnings measure, a cash compensation report is read from a perspective that seeks to payments in advance and commissions for certain M&A
measure, and a customer measure. So we can say that the understand our business drivers rather than from a desire to transactions. ABB is fully compliant in this respect and we
emphasis here is on results, and, specifically, group results. check off a list of remuneration features. I expect the extent see no major issues in its implementation. It supports the
The LSI scorecard on the other hand comprises four groups of and intensity of such engagements to increase as relationships fundamental philosophy of paying for performance.
measures in respect of the individual or his or her operating are strengthened through previous engagements.
unit financial, operational, strategic initiatives and behaviour At the same time, effective communication with our We observe a general rise in long-term equity
measures. So here, there is a mix of results and behaviour, internal stakeholders is important too. Here, I am thinking incentives in SMI companies in the last 10 years.
which results in the overall performance. The idea is to of our employees and their line managers where potentially What is the role of equity compensation and
reinforce the view that financial outcomes are driven by complex and sensitive subjects, like the evaluation of their ownership at ABB and how do you foresee this in
strong operational performance, aligned with our strategy and job grades, need to be communicated in a simple, structured the future? Are you expecting any new creative
executed with the right leadership and behaviour. and transparent manner. Our touch points with employees, equity vehicles?
Besides the STI, our other compensation elements also namely the line managers, HR business partners and service The Board aims to align EC members interests with those
support the drive for performance and appropriate behaviour. center providers, need to be adequately trained and equipped of shareholders. To maintain focus on the long-term success of
For example, an important consideration in the granting of as well. the company, EC members are required to build up a holding
annual salary increases and the size of awards of long-term of ABB shares that is equivalent to 4 times their annual base
incentives is an assessment of the individuals performance Only a strong board can implement an effective salary, and for the CEO, 5 times. This is a requirement that is
and potential. compensation system. What is your view on higher than market practice and ensures that executives have
Going forward, I would like to see recognition being the future role of the board and compensation skin in the game. We see equity compensation as a means
further developed in our rewards system. I believe that committee in particular? to earn this equity and currently our long-term incentive
effective recognition, whether monetary or intangible, I think that a strong board has the experience from other plans are settled in shares (with an allowance to part-settle
engages the workforce and contributes to higher business companies and a solid understanding of the perspectives of in cash in order to meet tax obligations). Not only senior
performance. I see recognition as a means to create a culture external stakeholders as well as of the management. I see the executives at ABB have an equity-related long term vehicle in
of appreciation of desired behaviour towards organisational role of the compensation committee as pivotal in fostering this their compensation package, but also the top 800 employees.
objectives through acknowledgment from colleagues, peers understanding. For example, meeting external stakeholders Furthermore, all 135,000 employees have the opportunity to
and leaders. together with management is an excellent way of hearing all participate in an advantageous stock ownership plan and thus
perspectives in an open dialogue, and enables compensation become and remain ABB shareholders.
While compensation systems are complex to grasp, committee members to better represent the interest of
all stakeholders need to understand them. Proper shareholders and balance them with managements views. The Thinking about the aging society, low interest
communication and transparency are key. How old paradigm of a compensation committee being a mere rates, pressure on pension funds and other pension-
do you expect the dialogue with shareholders and overseer will partly give way to one where the compensation related issues, what kind of solutions do you picture
other internal and external key stakeholders to committee is more of a coach and an influencer to for the future (e.g. flexible retirement age, invest-
develop in future? management, in addition to the obvious governance role of ment plans such as 1e plans, equity plans, etc.)?
Since 2012, ABB has been engaging key external preparing recommendations for the full boards decision- ABB is not alone in facing these challenges and our
stakeholders like investors, shareholders, proxy advisors making. employees too need to be made aware of this changing land-
and analysts in order to maintain a dialogue regarding our scape. For this reason, among others, we are moving towards
compensation strategy and practices, as well as to glean We are now 2 years on from the introduction of a more flexible design for the benefits we provide to our
valuable feedback from them in order to improve our system. VegV. How do you assess the impact of these new employees. In this way employees can tailor the benefits to their
While understandably there may be differences of opinion, rules and where do you see the trend going? individual needs and the stage of the life cycle they are in.
17 The way we work in 2025 and beyond

One of the benefits typically offered by ABB is pension

plans, which are mostly defined contribution plans. ABB
encourages its employees to enroll in such plans where this is
not mandatory, and to save as much as possible by providing
a company match to the amount the employee saves. We also
offer low-cost investment vehicles in some countries where
employees can defer variable compensation elements or make
voluntary contributions. In an increasing number of countries,
ABB offers flexible retirement, from early retirement to late
retirement, typically in the range of 6270 years of age.

Digitalization has a huge impact on the future

business model of ABB. How is that mirrored in
your reward strategy?

The younger generations have different needs, expectations

and aspirations going beyond salary and bonus. Do you rather
see this as a challenge or an opportunity? (please explain)
18 The way we work in 2025 and beyond

Mobility will move to long-term assignments. However business

strategy is still very important in any global
short project-based mobility decision.
Our survey shows that global mobility
projects are likely to get shorter, with Data analytics and
employees working abroad on assignment digital mobility
for up to 3 months or a year. Our survey technology will be key
also predicts an increase in the number of
Mobility will become much more The larger the company, commuters, employees living and working Only 10% of our survey participants say they
complex than today. Mobility will the more important global in different countries. align business strategy, talent management
take place not just from headquarters and workforce planning systematically. This is
mobility will be in the This trend certainly fits the constantly a number, which we expect to grow.17
to subsidiaries but also between future changing business landscape and caters for
different countries. There will be a the flexibility of Generation Y. Short-term Global mobility programmes are costly,
Our survey shows that global mobility is
wider range of mobility programmes, becoming increasingly important, particularly assignments also make it easier to integrate particularly when entire families are
from project work to very short-term for larger firms. 73% of respondents working employees back home and easier to measure relocated, while return on investment (ROI)
assignments, very long-term and in companies with more than 100,000 return on investment (ROI), as this can be can be unclear. They can be complex, for
employees think that global mobility will linked to the success of a project. instance achieving new quota requirements
continuous long-term assignments. for women with international leadership
be more important in the future. These
Well also see more mobility between The challenge will be to make sure teams experience. This will influence companies
assignments can include setting up a new
companies sharing talents. All office, placing a key manager on location have the right employee in the right place strategic direction and therefore their global
of this will require more efficient or simply using global mobility as a tool at the right time, with all the necessary mobility decisions. Companies also need to
management by HR teams. to increase employer attractiveness or immigration, tax and social security measures be ready to respond to immediate business
development opportunities. We also predict in place too. Companies will need to create needs. All of this requires close monitoring of
that there will be a 50% increase in global new policies and programmes to be mobile- whos ready to go on assignment.
mobility by 2020.15 ready for instance using job swaps between
two employees in two countries.16 Otherwise However, very few companies appear to
assignments may become time-consuming and be doing this. In a recent mobility report
a heavy burden for business and HR teams. we found that only 9% of international
employers canvass their key talent annually
Well certainly put more We believe its also important to consider to find out which employees are ready for
emphasis on Global Mobility assignments based on business strategy and a mobility assignment. Almost 30% of
as a way to grow and develop not just cost, as is often the case. The increase international employers have no process in
talentBut to develop that, in local skills in many assignment countries place to know which employees are ready for
itll be very important to offer has reduced the need to send employees on a mobility assignment.18
opportunities to young talent to
work abroad.

Karsten Breum
Chief Human Resources Officer, Panalpina
Talent Mobility: 2020 and beyond, PwC, 2012
Is your organization mobile ready, PwC, 2016
Survey of Global Mobility Practices, PwC, 2016; 2016 Global Mobility Trends, BGRS, 2016; Talent Mobility 2020 and beyond, PwC, 2016
19 The way we work in 2025 and beyond

Survey question: I think the attractiveness of

international assignments for employees coming to
Switzerland will increase. Please rate on a scale
of 14:

3% 9%

Completely Mostly Mostly Completely I don't

disagree disagree agree agree know

Compliance, costs and salaries of new employees arriving in Nevertheless, 65% of our survey participants
Switzerland to meet minimum local wage say that Switzerland will become an even
immigration controls levels. These salaries are often charged back more attractive assignment location for
will be the main mobility to a local region and this can negatively employees in the future, due to high salaries,
challenges in the future influence the results of local companies. political stability and the high quality of life
(combined answers of completely agree and
Our survey finds that costs related to the high There is also concern about immigration mostly agree).
Swiss Franc and immigration controls are two controls, particularly from the health
Weve already seen that
main areas that are seen to be challenges for sector, which relies heavily on international
long-term assignments are
mobility over the next 5 to 10 years. employees. Ensuring immigration compliance
decreasing slightly and instead
processes are mobile-ready can be challenging.
theres an increase in short-
term assignments. Thats mainly
Financial services and consulting are mostly One solution, we believe, would be to set up We predict that
concerned about the high Swiss Franc. a centralised immigration team within your
because younger colleagues
Switzerland has one of the highest salary company to build up specialised knowledge,
there will be a 50%
want an experience rather than
levels in the world. In our client conversations coupled with strong data management.19 increase in global
long-term assignments.
were also hearing the challenge of raising mobility by 202020
Karsten Breum
Chief Human Resources Officer, Panalpina

Is your organization mobile ready, PwC, 2016
Talent Mobility: 2020 and beyond, PwC, 2012
20 The way we work in 2025 and beyond

Theres a lot the opportunity to work abroad. So its much more about these countries, particularly those with the political stability
encouraging and developing talent than about filling gaps. I to attract investment. Latin America is another interesting
will be arguing for Panalpina to be doing this more in future. market where we also see good development and growth

more dialogue How do you in your industry see development in

terms of global secondments?
opportunities, and where Panalpina is likely to be even more
strongly represented in the future. The circumstances in
Russia are fairly difficult at present, and its hard to predict
In the past it was the company that informed the employee how theyre going to develop over the next five or ten years.
that there was a secondment opportunity in a particular The same applies to Africa.
Karsten Breum, HR Director of logistics group country. The total package was good enough for the
Panalpina, and Adrian Englert, Corporate Head employee to work there for several years. Now theres much While were on the subject, what are the main
of Compensation and Benefits at Panalpina, talk more of a dialogue, with both parties discussing their goals challenges you see for Panalpina and its staff in
about challenges and trends in global mobility and expectations throughout the entire secondment. Were terms of secondments in Africa?
management. offering employees support tailored more closely to their Youve got to remember that the situation and dominant
perspectives and family circumstances. Employees may be corporate culture varies a great deal from one African
Research by PwC has revealed that organisations seeking a change for different reasons. On the employer side, country to the next. You have to take many different things
see their talent strategy as an increasingly the question is more often what investment it wants to make into consideration. The first is the general preconception
important component in a globally mobile to fill a position. about working in Africa. Its not a part of the world that most
workforce. people are necessarily familiar with. In certain parts of Africa
What role will the talent strategy play in your How do employers have to change their current there are problems with security, and the whole culture of
global mobility management going forward? behaviour to make global mobility more successful doing business is very different from what people in the West
In the future well certainty be placing greater emphasis on in the future? are used to. In this regard you have to make sure that people
global mobility as a vehicle for encouraging and developing Globally mobile staff are a group of people we now have are properly prepared and aware of the type of problems,
talent within our multinational organisation. We operate in to look after much more actively. The main thing is to be challenges and compliance issues they could come up against
more than 70 countries, and naturally need an international open and transparent, and manage mutual expectations in a region like Africa. The second point to consider is the
way of thinking and an international understanding of our with the aim of avoiding surprises and disappointments. For unpredictability. In Africa we have to contend with a lot of
industry and the field in which we do business. To develop these reasons we have to communicate proactively to make unforeseeable developments. Its part of daily business. The
this approach it will be very important to give young talent sure that things develop in line with our expectations. Its future is a tricky question. I think that Africa has rightly
important for employees to always be kept in the loop so that been attracting a lot of attention for a long time. But these
even after the secondment is over we can benefit from their are growth markets. The question is how quickly Africa can
experiences and continue to harness and develop their talent. develop its potential.
That way we keep our people motivated.
How would you rate the impact of digitisation on
What destinations for secondments are set to gain global mobility management, for example in the
in importance at Panalpina? form of mobile app technologies?
Southeast Asia is going to be a powerful driver of growth. Geolocalisation and geotagging are certainly things that
This will certainly include markets such as Bangladesh, have proven to be beneficial in the past. In some African
Myanmar and Cambodia, where theres a lot of potential countries were able to use an app to pinpoint the location
for us. Im also convinced that theres plenty of potential in of staff on secondment. This means that in the event of
Eastern Europe. Were seeing powerful growth in some of instability were able to find out in real time where our people
Karsten Breum
Chief Human Resources Officer, Panalpina
21 The way we work in 2025 and beyond

are, and if necessary help them with evacuation. Systematic scenario the number of potential candidates is generally debriefing, but theres no ongoing dialogue during the
data analytics can also be used to help make secondments limited, and we might have to persuade the person to accept secondment itself. This task is usually given to the local line
as successful as possible. Were mainly interested in two a job in a more difficult working environment. manager or HR people. We believe its essential to continue
things: We want our staff to do a good job in their position, this dialogue to make sure the process adds value. Globally
and we want them and their families to find their feet in their Gender and diversity statistics show that female mobile staff are a group of people that you have to manage
new surroundings. If one of these two boxes isnt ticked, employees are usually under-represented in the actively, and this also has to involve the organisation at home.
the secondment is very unlikely to be a success. Apps will global mobility community. How important is We need to manage expectations so they know why theyre
definitely play a growing role in this. The technology will help gender diversity management in this context? there and for how long, and know when were going to initiate
us when it comes to providing information and administrative In terms of gender diversity, assignments abroad are the dialogue on their return home. The more effectively you
tasks such as filing tax returns. But theres no doubt that apparently not very attractive for women. So far the logistics can manage expectations, the more likely you are to avoid
settling in requires hard work, especially on a social level. For industry hasnt succeeded in attracting and retaining women. disappointments, resignations or conflicts of interest. The
this reason human interaction is still very important. This also applies to Panalpina, and its a situation thats main thing is to be open and transparent. Its about listening to
reflected in the global mobile workforce. Were working with your staff, not just moving them around like pieces in a board
Can you outline the desired profile for an employee universities to change perceptions. But that takes time. Is game. If, for example, their family isnt managing to settle in,
on secondment in the future? gender diversity important for me? Yes, for two reasons. If we also have to address that issue and respond. Even if they do
Id certainly welcome greater diversity among the staff we youre unable to attract women to your organisation or retain settle in very well, we have to think about the options too. The
send on secondments abroad. Our talent development should and develop them, youre missing out on a large part of the more transparent and proactive you are, the more options you
reflect the regions of the world we operate in. So for me its talent pool. The other reason it can be important to address have; otherwise you run the risk of being without alternatives
just as important that young Brazilian, Indian, Chinese and gender diversity is that women can bring a different dynamic because you havent prepared a successor. So you need clear
Hungarian talent see Panalpina as an attractive employer and to leadership teams. answers to the questions of why you need a mobile workforce,
get the opportunity to work abroad. People on secondment and what the benefits are from both the organisations and the
still primarily come from developed countries, because Do you think that your global mobility programme employers point of view. Bringing all these things together
thats where the organisation is headquartered. In the future will yield the desired return on capital? What needs requires work.
country managers could also come from Brazil, India, China or to change for the returns to be greater in future?
Hungary. Its about the availability of talent and giving these It would be a disaster if the answer to this question were no.
people equal opportunities to be successful in an international The answer is yes, I think its a profitable investment. Naturally
environment. you have to evaluate the extra costs that international
secondments entail each time. You have to be sure that the
How are compensation packages for people on additional expense is worth it. Either you believe its going to
secondment set to develop? be very difficult to find someone to replace this person, or you
I think it will be much more personal than it is now. do it to build your pipeline of talent. Usually the second case
Traditionally a one-size-fits-all approach was taken to many involves a lot less investment, but its an investment that will
secondments. Now the package will tend to reflect supply and definitely be worthwhile.
demand and the specific assignment within the companys
guidelines, of course. There are basically two different How do employers have to change their approach to
scenarios for a secondment. The first is where we send staff make global mobility more successful in the future?
on secondment so that they can develop. The second scenario Its vital to create a dialogue and offer support throughout
comes into play when we want to bring very specific product the entire secondment process. Usually mobility experts
know-how or experience to a country. Under the second are involved at both ends of the process, recruitment and
22 The way we work in 2025 and beyond

the 1990s, to separate HR policy-making, The majority of HR professionals are

HR organisation
administration and business partner roles. confident that their organisation is ready to
35% of our respondents think it will not be deal with the upcoming changes. 58% say
the operating model of the future, 34% think they are agile enough to cope (combined
it will be and 30% are not sure. Interestingly, answers of completely agree and mostly
more HR executives think it will be outdated agree), with 39% saying they are not
(45%), than their HR team members (28%). (combined answers of completely disagree
This ambiguity towards the prevailing HR and mostly disagree). Interestingly, a higher
operating model may be due to the fact that percentage of smaller companies (83%) say
Digitisation is going to be a huge sea Is the Ulrich Model after almost 30 years, HR organisations are they are ready for change. This is perhaps due
still struggling to reap all the benefits of the to flat hierarchies and less complex decision-
change for HR organisations. But outdated? Ulrich Model. making.
most HR teams vastly underestimate Creating an agile organisation is becoming
the impact of digitisation on their increasingly important. Organisations need Our survey also shows that companies
own work and on the organisation to adapt more quickly to new conditions for will be increasingly reaching outside to HR will be more strategic,
they serve. They also think of digitisa- products, services, systems and processes. HR create collaborative networks of companies less transactional
tion in too narrow terms thinking will need to restructure too in order to help to working together, for instance to hire or share
achieve this change and to become agile itself. staff. More than half (57%) of our survey HR is often seen as a passive, service-oriented
digitisation means just apps and new respondents say that they will be generating support function. But given the demands
technology, while undervaluing the Survey participants are evenly split over value in the future through multiple business of tomorrows workplace and business
impact and worth of automation, whether the Ulrich Model will still be relevant networks, such as strategic cooperation with environment, HR is at a crossroads and will
need to change tremendously.
robotisation and big data to their in 2025. David Ulrich created the model in other companies.
company. HR teams are also failing to This understanding of change has been
understand the importance of trans- Completely clearly embraced by our survey participants,
forming company cultures into digital disagree who see change as a chance to enhance the
cultures. Mostly Mostly Completely I don't role of HR. 79% say that HR will become
disagree agree agree know a centre of excellence by 2025 while HR
transactional tasks will be outsourced.

32% 42% 16% 4% Change is a permanent
Survey question: My HR organisation feature of our business,
is agile enough to adapt swiftly to future and to stand still is to step
developments. Please rate on a scale backwards.
of 1-4:
Hans C. Werner
Group Leader of Human Resources and Member
of the Group Management Board, Swisscom
23 The way we work in 2025 and beyond

This view was shared throughout all sizes of Few companies have As such, the future HR organisation could
company and industry, but particularly voiced look like this:
In todays fast-moving times,
in finance, chemicals, pharmaceuticals,
teams dedicated to
its extremely important to see
change not as a threat but as health care, consulting and the public sector. new trends such as Cloud applications covering all HR
an opportunity, to be brave and digitisation processes to create effective employee
to embrace new topics. The survey also reveals that HR will and manager self-service online.
Even though more than half of our survey
need to change and be agile to meet new
participants say that they are ready for
Hans C. Werner requirements such as coaching, HR analytics Employee applications give the workforce
Group Leader of Human Resources and Member change in the workplace, 70% say they do
and digitisation as well as the ability to lead an Amazon-like experience during their
of the Group Management Board, Swisscom not have any dedicated HR staff or teams
change. We agree with this and believe that interactions, including:
for new trends such as digitisation, culture
the future role of HR professionals will need a
transformation or organisation design. The A very easy-to-use application
more proactive mindset and focus on business
smaller the company, the fewer dedicated Recommendations of what employees
strategy. This will include a wider people
resources there are for these topics. with similar profiles have done or
remit, incorporating and influencing other
aspects of the business beyond HR. accessed, for instance training they
Instead, their dedicated staff members or have completed or looked at
teams are still tied to topics such as change
Ratings and comments
management or HR compliance. 45% say
they have a person or team responsible for Chatbots convenient voice-led
change management and 47% say they interaction with machines
have a person or team responsible for HR
All possible transactional work is
compliance. This is a trend that seems to run
outsourced or processed offshore.
through all industries and sizes of company.
Traditional Centers of Expertise (CoE)
We often hear from our clients that HR is still
like Talent, Performance Management,
not strategic enough. Key future business
HR Reporting, Systems, Reward , etc.,
requirements, such as fostering innovation,
are complemented by CoEs for Predictive
supporting growth, analytics and workforce
Analytics, Culture Transformation,
planning, M&A or instigating culture
Employee Community, Lifecycle Manage-
transformation, are not sufficiently met. Such
ment and others.
strategic topics are mostly only occasionally
addressed by HR organisations.
Strategic business partners support line
management and sit in leadership
We believe that in the future, there will be
a function within HR focusing exclusively
on selected business priorities, bundling all
Dedicated teams or professionals are
relevant HR expertise to provide a concerted
established within HR for some key
support to the business.
business priorities, for instance innovation
in research, bundling all relevant HR
expertise, to offer a one-stop solution.
24 The way we work in 2025 and beyond

Orchestrating Swisscom has gone through two fairly substantial constantly having to ask how urgent it is to initiate a change
reorganisations in the last three years. What role process. Its essential not to underestimate the importance of
did HR play in developing and implementing these having a good feel for when this readiness for change is there

change reorganisations?
Key to the success of transformations of this sort is the
interplay and involvement of all the relevant stakeholders.
and when the right moment is. Depending on the situation,
your strategy might be running ahead of the maturity of your
organisation, and you wont be able to go about closing the
So we place the emphasis on getting staff involved early on gaps this creates until later on. Or you might have the wisdom
and keeping the phase of uncertainty as short as possible. and foresight to proactively address issues that arent yet
Swisscom HR director Hans C. Werner talks HRs main role at the development stage is acting as a completely ripe for the picking in strategic terms, but which
about challenges and trends in organisational sparring partner for managers and as an advocate for you see as potential problem areas going forward.
development and the role of HR. staff. When it comes to implementation we see our role
as orchestrating organisational changes for employees, Whats Swisscoms stance on new methods
Swisscoms 2020 strategy rests on three pillars: making sure communications work as well as possible, of collaboration, innovative platforms and
building the best infrastructure, offering the mitigating the aspect of change that is often perceived as a crowdsourcing?
best experiences, and realising the best growth threat, and getting the right mindset across. But sure, major Were very open to these things. Having said that, they
opportunities. To what extent can the present or organisational changes like this first have to be processed. dont all work equally well in every area. To assume the
future organisation of Swisscom facilitate the Nowadays change is an integral part of our business, and if substantial operational responsibility involved we need
achievement of these three objectives? you stand still you take a step back. perfectionists and people to drive the process. There are
Our corporate structure is heavily geared towards certain safeguards we have to comply with. But especially in
our 2020 strategy. With divisions for infrastructure and What are the core components you consider in the innovation and product development environment, we
customer experience and a specific unit for digital business, change processes? consciously allow more freedom of discretion. This is the only
were able to cover various aspects that are essential to For us its essential that in the midst of internal change way of unleashing the power and potential to harness new
delivering our strategy. Were also constantly reflecting and we dont lose our focus on customers, and that if customers ideas to make sure we and our offering continue to develop,
regularly consulting with management on what we need notice any change at all, its that were are up differently in a and of getting customers closely involved in the development
to be addressing in the retail, SME and business customer positive sense for example the customer has fewer people process. If we want to improve the customer experience we
segments. But besides our structure, the main pillars of our to deal with following the change. Its just as important to have to dismantle old processes and pull together across
future development will be our technological backbone and carefully weigh up how urgently a change is needed. Is it corporate boundaries. Here were already having a lot of
innovatory power. sufficient, for example, to simplify only certain processes, or success with collaboration based on scrums and tribes. At the
are major organisational changes necessary? Restructuring same time we have select, specially trained teams working
always also creates upheaval and uncertainty within the on pilots to test new management models such as Holacracy.
organisation. You have to keep this phase as short as possible. Were learning an awful lot in the process: what works for
In HR we see our role as providing managers with close and us, what can be transferred to other areas, and how it can
effective support with implementation. be combined with other approaches, many of which already
You always have to weigh up the optimum time for the exist. This is an exciting development.
organisation to implement changes of this sort. Its like
walking a tightrope: on the one hand the organisation needs What skills do you believe are essential for
a stable framework and backbone. On the other hand you employees to keep pace with changes in the
also have to create a platform for growth opportunities to employment market?
develop, even if this also involves uncertainty. So were I think that especially in our fast-moving times, its
Hans C. Werner
Group Leader of Human Resources
and Member of the Group Management Board, Swisscom
25 The way we work in 2025 and beyond

extremely important to see change as an opportunity rather situation where only top management is getting the support questions concerning key things like their role, compensation,
than a threat, to be fearless, and to be open to new things. of HR business partners. We deliberately opted for a different the KPIs and their bonus. But from an employers point of
Its all about keeping yourself fit for the employment market. approach and made sure that middle management would also view, information like this is not so easy to define once you no
As an employee I have to keep evaluating where my journey continue to get support with their issues. Often managers have longer have standardised pay bands and other criteria to go by.
could take me, what path Im on, and what new path I intend less experience in change processes and daily HR business, Here there are still clear discrepancies between the way career
to take. At Swisscom we place great emphasis on a culture because in most cases they have operational duties in addition models are traditionally handled and the challenges that await
of development so that our staff can systematically gather to their management role. us with future models.
experience and train on an ongoing basis.
How do you make sure HR staff have the right Do you think that in 2020 or 2030 the role of HR will
How do you at Swisscom deal with the fact that role business know-how? be to actively shape organisational changes within
profiles are changing, and that the skills you now Our HR people regularly visit teams in the business units the company?
need will be different in, say, five years time? to experience first-hand how they work and what challenges Let me quote Mr Daimler from the beginning of the last
Were a great believer in shared responsibility when it they face on a daily basis. Thats always very exciting for century: Global demand for motor vehicles will never exceed
comes to keeping fit for the employment market. Its essential me. The kind of experience you can gain, for example, from one million, if only for a lack of chauffeurs. I believe that
for both parties, the organisation and employees, that people accompanying a service technician for a day, is incredibly were at a similar point now to Gottlieb Daimler back then.
stay permanently on the ball and actively shape their own valuable. Our HR business partners are also part of the We dont really have any idea of whats to come. I beleave in a
development. We use a well-founded strategic approach to management team, and get to experience the business first- dramatic increase in offerings in connection with digitisation,
HR planning that helps us evaluate what skills and knowledge hand in this way. self-service technologies and data analytics. Data analytics will
are needed when and where within the organisation. In a enable us to foresee developments early on and take proactive
forward-looking, proactive environment, leadership teams and Traditional career models could soon be a thing of measures. In return we will naturally have to make sure we use
employees assume responsibility for themselves at an early the past. People are predicting the rise of project these data appropriately and avoid breaches of confidentiality
stage, and plan scenarios over a longer timeframe. They think and part-time work on a freelance basis. Even so, between the organisation and its employees.
about the influence these scenarios will have on job profiles, roles must have clear responsibilities as well as
what changes are necessary, and what action is required to management structures and processes to support
create new areas of work. In more than 90 per cent of these them. How is Swisscom preparing for this?
instances, a solution is generally found that enables both the Were permanently monitoring and thinking about the
employer and the employee to move forward. changes taking place in terms of career models and job
profiles. Only recently this prompted us to modify our job
Do you at Swisscom have in-house organisational architecture, and change and streamline our management
experts dedicated to business development and structure. But these new models of collaboration will
organisation design? If so, what is their role in undoubtedly require more adaptation as time goes on. The
organisational development projects? questions that are arising are exciting and challenging: What
Yes, we have experts of this sort. Our entire HR organisation will job profiles look like in a holacracy? How do you evaluate
is geared towards transformation and development. Business a job under a holacracy? How much is this work worth in the
partners, transformation agents and transformation coaches marketplace? All these questions will be of key importance in
account for a large part of this. Theyre brought into ongoing the future. Were entering uncharted territory. HR will have
projects as required, acting as advisors. Last year we modified to operate flexibly and independently of fixed structures.
our HR business model. This also involved cutting jobs. In There will be additional challenges, especially from the point
many cases following a reorganisation of this sort you see a of view of employees, who understandably want answers to
26 The way we work in 2025 and beyond

Rigorous collaboration beyond silos Ambiguity is accepted as a given.

Culture and change

and company boundaries. Nothing is black or white anymore. People
Using crowd knowledge and know-how accept that the world is in a state of flux.
to develop products, services and/or Core foundations and presumptions can
accelerate sales. change quickly and organisations need to
be able to adapt with the same speed.
Embracing a failure culture as a
consequence of risk-taking. Share and you shall be given.
To be agile and flexible decisions have to Accept the fact that only open businesses
be taken quickly. Not all the consequences that allow the exchange of intellectual
We believe that the value of culture Corporate culture is the key to tomorrows
of decisions can be thoroughly assessed property will be successful in future. If
is underestimated and is therefore success. Its built on a delicate mix of values,
beforehand. Its therefore acceptable to you share with the market other players
behaviour and mindset. It should be checked
not nurtured enough. Every continually and developed step by step. But
fail from time to time. However, if you fail, will share with you and everyone will win.
company has a culture, like everyone you need to fail quickly, learn from it and This attitude and mindset of openness,
any change needs time. Youll need to define
move on. transparency and selfish altruism will
hasa character, good or bad. But your core company values and ensure you
ensure future success.
organisations are neglecting to have the buy-in from corporate management. Organisations are in constant beta.
improve their company culture. Begin any change with a pilot, start with Theyre always running pilots and
This certainly mirrors what our recent CEO
groups of employees who will be positive constantly improving newly developed
This is unfortunate, because culture to change and make sure throughout the solutions. Products and solutions are
Survey tells us. 69% of CEOs say that its
has a huge impact on attracting and more difficult for business to gain and retain
process that your culture change programme quickly disseminated to potential
trust in a digitised world and 93% of CEOs
retaining talent as well as helping is aligned to your corporate strategy. customers to test. Customer feedback is
say that its therefore important to have a
employees to feel engaged in the used for continuous improvements.
strong corporate purpose thats reflected
workplace. No hierarchies are replacing flat in their organisations values, culture and
Digitisation and change
hierarchies. behaviour.21
Our survey identifies digitisation as the most This is not only in terms of structure but
important driver for change in company also in terms of mindset and behaviour. But how you introduce digitisation is also
culture. Good ideas dont recognise titles or salary very important. From our project work we
grades. Therefore, all ideas, suggestions see that successful digital transformation
Digitisation originated in the late 1990s with and contributions are welcomed regardless depends very much on a successful change
the short-lived but still influential dot-com era of rank. This leaves everyone feeling in culture and attitudes. Its not just about
Robots are already providing and has only gained sustained momentum in entitled to challenge everybody and no one technology. Digital transformation will only
Mobiliar with support ... the last few years. Its therefore not surprising feels offended by it. be successful if employees alter their mindset
Our goal is to use this that a clear understanding of a digital culture as well as understand and embrace new
technology to offer a range of is still in its beta version. However, at least technology.
services. We are very pleased some core elements of the digital culture can
with our progress so far, now be identified: In our survey participants say that change
although our robot is currently initiatives in their companies are for the most
still in its test phase. part clearly communicated (70%) and have
clear leadership buy-in (68%).
Nathalie Bourquenoud
Head of Human Development, Mobiliar
20th Annual Global CEO Survey, PwC, 2017
27 The way we work in 2025 and beyond

In our project work, however, we also see We believe that self-organised and agile Company culture as a
that the cultural change of digitisation teams will become the norm. Were already
The future will centre on
is often left too late and introduced with seeing agile teams starting to move into more
key differentiator
tasks, roles and projects. The
required tasks will be identified too little thought. People often think that traditional work environments and we believe 63% of our survey participants say that
and profiles will be generated cultural change happens faster than it does that this is a trend that will continue with the company culture will grow in importance.
using this information, regard- in practice. They often expect results after a growing use of contractors and freelancers. This is based on the assumption that by 2025
less of conventional roles. year, when change usually needs at least 3 most companies will be working in networks
This increases flexibility for years to become fully visible. However, finding agile staff still seems to be and sharing employees and resources.
employees, while also reducing a challenge. According to our recent CEO
hierarchical structures. More survey, CEOs list adaptability as one of the A distinct company culture will therefore
work will be done as part of Agility most important skills they need in the future be crucial to differentiate a company and
teams, based on an order or but they also say that creative and innovation make it attractive for talent. If employees
Survey participants list the ability for
a project. skills are some of the most difficult to find.22 are working for different businesses at the
employees to change, the encouragement
Here too HR could and should play a role in same time, then they will have the chance
of agility in all business processes and the
Nathalie Bourquenoud defining the specific skills and capabilities to make direct comparisons and be more
Head of Human Development, Mobiliar
quick adoption of new technologies as being
required to be innovative and creative, likely to switch employers if they dont like a
important topics.
identify alternative sources to recruit these companys culture. If a company cannot bind
talents and help to create an environment in an employee by a full-time contract, then
which these talents want to stay and thrive. they will need to attract and motivate talent
through culture instead.

Survey question: Assuming that companies will work more/exclusively within business networks in 2025, company culture will become This is backed by another survey showing
that 60% of business leaders feel culture
is more important than strategy or an
operating model for long-term success.23
Were also seeing that Generation Y want to
work for socially conscious organisations,
rather than putting so much emphasis on
their pay packet. They also want to identify
with their company culture. This will mean
that companies need to create a strong and
competitive corporate culture to retain their
23% 63%
younger talent, particularly in an increasingly
fluid talent market.


20th Annual Global CEO Survey, PwC, 2017
Stay the same Less important More important 23
The 2013 culture & change management survey, Strategy&, 2013
28 The way we work in 2025 and beyond

HR sees itself as before it gets implemented. Were working on combining capabilities arent yet completely mature. Digitisation will
this perfectionism with greater agility, particularly when it also change customers insurance needs. Take self-driving
comes to projects. The big challenge is how to maintain the cars or properties with state-of-the-art building technology:

being in the lead present level of quality while establishing a culture of making
mistakes that allows us to try out new things.
Because Mobiliar has been successful for so many years, its
innovations of this sort are having a major impact on peoples
needs and expectations in terms of their insurance. An
insurance company has to constantly keep up with new needs
not always easy to break out of established ways. This success as customers develop new ways of behaving and thinking.
is the result of our staffs commitment and the way they A particular challenge is striking a balance between good
Nathalie Bourquenoud, Head of Human work. But we cant rest on our laurels. We have to prepare personal contact with customers and the steadily growing
Development at Mobiliar, on the drivers of cultural for the issues of the future, including digital transformation. desire for things to be handled electronically. We are noticing
change and the role of HR. So in terms of culture we have to negotiate a path between that customers often prefer to take care of as many steps as
the distinctive quality that makes Mobiliar so successful and possible electronically without a lot of personal contact. But
How would you describe Mobiliars corporate an emerging need to respond rapidly to new situations with in the event of a claim, many customers seek and value direct
culture? agility and a willingness to change. personal contact with their advisor. Its crucial to manage this
The culture within Mobiliar is very highly developed in tightrope walk between electronic approaches and good, old-
two areas in particular. Firstly, were firmly committed to What is Mobiliar doing to increase the fashioned personal contact properly. This requires redefining
simplicity. Were uncomplicated, clear and understandable. psychological pressure so that theres a greater your unique selling proposition.
Secondly, we have a pronounced customer focus partly willingness to change within the organisation?
thanks to our general agencies, which operate locally, very To keep on coming up with things that get customers What will be the most important steps as your
close to customers, flexibly and autonomously. In the event of excited you need innovative ways of thinking and innovative organisation prepares for the future?
a claim the specialists can respond with expertise and agility, solutions. So for us the key is to highlight the requirements An important aspect will be building up the necessary
which helps in terms of customer focus. and changing habits of our customers to make the urgent pressure. This is done primarily by showing the changes
The culture at our management offices is somewhat different. need for change clear within Mobiliar. That way we can taking place with our customers. Were doing this partly
Unlike the general agencies, the office in Bern is a large get our people out of their comfort zone. Were constantly by communicating and raising the awareness of our staff
organisation with over 2,000 employees. Here theres more showing our people how customer behaviour is changing familiarising them with the issues by ensuring a transparent
of a feeling of a 300% solution culture. Everything has and how personal customer contact will evolve in the future. flow of information and showing them important
to be thought through in detail and be more than perfect Customers want to be able to use other channels as well as strategic goals. Naturally our communications channels
having personal contact with the general agencies. What we are geared to digital; for example we also get messages
need is a multichannel strategy that enables communication across via video.
any time via any medium. Customers expect the flow of But physical changes are also a key factor. Its hard to change
information to be adapted to the new possibilities for employees attitudes if they dont see any changes in their
example theyll no longer accept a form as the only standard working environment. For this reason were also adapting
format. the physical work environment. Were building a new world
of work by removing as many walls as possible in our office
What will be the decisive factors driving cultural spaces and creating different zones where people can go
change in your industry? to concentrate, to share, to get things done, to reflect, and
Digital transformation and big data will be key drivers so on. This way the change takes place in peoples physical
of corporate culture. We have to apply new methods experience of their working environment as well as in
that allow us to analyse data adequately, even if these their heads.
Nathalie Bourquenoud
Head of Human Development, Mobiliar
29 The way we work in 2025 and beyond

What will be the key competences in the future? right to tell the other one what to do, you have to shift the
Weve talked a lot about whether the competences that focus. In situations like this Mobiliar tries to show the added
will be required in future are only technical, or whether they value that comes from cooperation.
also encompass values and behaviours. Weve come to the
conclusion that the most important competence in the future Employment relationships will be different in the
will be a willingness to change. We believe that flexibility, future. Permanent jobs will tend to be less common
curiosity and openness to change will be key elements in the and give way to flexible contracts. How do you view
job profile of the future. We also see great opportunities in this trend?
interdisciplinary approaches. Im convinced that well no longer have traditional
Another major focus is encouraging staff to take responsibility functions in future. Sooner or later the current set-up, with
for themselves and develop entrepreneurship and self- functions and job descriptions, will disappear. In the future
management skills. everything will revolve around tasks, roles and projects. Itll be
about defining what tasks have to be completed. On the basis
How are transformations handled within your of this information profiles will be created, independent of
organisation? classic roles. This will give staff more flexibility but also lead
The HR department sees itself as being in the lead. In to flatter hierarchies. There will be more work in teams on the
our HR strategy weve set down our vision of how Mobiliar basis of a specific job or project.
can continue to be successfully managed in ten years time.
Actions are developed on the basis of this vision. At workshops Looking forward to 2020: how many robots will be
with the line we can find out precisely what the personnel working at Mobiliar in comparison with the overall
requirements are and develop HR strategies for specific areas. staff?
This way we assure effective strategic personnel planning. No one can say for sure precisely how things will be in
2025. Were working on the assumption that in comparison
Assuming that well be increasingly working in with now well have made a quantum leap in terms of
networks in the future, what do you think the intelligently networking people, machines and things and
implications are in terms of the importance of that the forms way work is organised will also have evolved.
corporate culture? This means that as an organisation we already face the
In the future well definitely be working more with partners challenge of going down innovative paths to make sure that
and networks. Mobiliar is very much on this track. Last year, our people are equipped for the digital world of work, and that
for example, we got involved in the Scout24 online platform, we make optimum use of the potential of new technologies for
which has gained a strong position in property and cars, the benefit of our customers
two core areas for Mobiliar as well. This type of partnership
is a great way of harnessing synergies and driving our own
development forward.
The trend for networks means we also have to build new
competences. Given that alliances of this sort are often formed
on the basis of equal partners, skills such as influencing also
become more important. When one partner doesnt have the
30 The way we work in 2025 and beyond
Companies need to start building a vision of how the new world of work could look.
This should be influenced by whats happening internally, what other companies
are discussing and what trends are influencing people in business. Based on this,
companies need to build a small number of possible scenarios. For instance, what if

Conclusion only a small proportion of your employees will work full-time? What if 50% of your
current professional jobs will be automated in 510 years? What if you share a large part
of your talents with other companies? Companies then need to discuss the possible
implications and devise a step-by-step roadmap for the future of its work journey.

There should be greater use of data analytics to track a more complex HR picture, Data
analytics should ideally be linked to data from other parts of the business, to feed into
strategic decisions for the company and potentially elevate the role of HR. HR needs to
Its clear that HR is at a crossroads We asked our survey participants to envision
the future of work in 2025. However, we build an understanding and vision of what people analytics should look like and how it
and change is a permanent feature can start preparing for it today.
think the answers we received reflect
of the profession. But as Hans C. the world in 2020, rather than beyond.
Werner, Head of Corporate Human Nevertheless, its a clear mandate for HR to Company culture will become more important, not just because of the demands of
Resources at Swisscom says, change not only in the way it operates but Generations Y and Z, but also to differentiate a company from its peers when sharing
standing still is a step backwards. also in the way it supports the business. talent within a collaboration network.

Our recommendations are: Digitisation is not just about changing technology, its also about changing attitudes.
So we recommend parallel programmes to introduce a change in culture as well as a
change in technology. We also recommend this should be done in good time to allow
mindsets to change over years, not months.

New systems need to be put in place to create and monitor new forms of incentives, such
as lifestyle incentives based not just on quantitative measurement but also qualitative
measurement and peer feedback.

Centres of excellence should be set up to help with the more complex and individual
landscape we are seeing in HR, for instance to understand immigration for global
mobility assignments or to help coach and train for more flexible careers, or to support
employees in further training and learning.

Get ready for change. Rethink how you allocate your own resources; whether you have
enough dedicated staff assigned to digitisation or to flexible working and whether your
HR organisation is agile enough to face change.
31 The way we work in 2025 and beyond

About the study Role in HR

Our PwC Survey The way we work 5 % other executive function

17 % HR BP or regional/divisional
in 2025 and beyond was carried out HR Manager 13 % other management role
in collaboration with HR Today.
We surveyed over 200 HR professionals 6 % other
28 % HR specialist (e.g. recruiting,
from all over Switzerland, including compensation & benefits, talent
many heads of HR and business management, mobility, HR technology,
payroll, etc.)
leaders. We also conducted in-depth
21 % Head HR (executive function)
interviews with the global heads of
HR from ABB, Actelion, Mobiliar, 10 % HR administration/support
Panalpina and Swisscom. The survey (i.e. transactional services)
was conducted in the autumn of 2016, 202
the interviews between participants
autumn 2016 and
early 2017. Companys current employee headcount in Switzerland

9 % more than 10000

20 % 150
12 % 300110000

12 % 10013000 15 % 51150

10 % 5011000
16 % 151300
6 % 301500

Number of HR professionals surveyed,

all based in Switzerland:
32 The way we work in 2025 and beyond

Companys current global employee headcount

4 % Information unavailable
17 % 1150
17 % No employees abroad
9 % 151500
5 % Over 100000
5 % 50001100000
14 % 5012000
12 % 1000150000
17 % 200110000


2 % construction industry 5 % education

19 % other 5 % chemicals/pharmaceuticals
4 % transport and logistics 9 % consulting
2 % tourism/food service industry
3 % energy sector
10 % public sector
4 % metal industry 13 % financial services
1 % luxury goods (watches, jewellery, etc.)
7 % healthcare
3 % communication and media
6 % IT/electronics 1 % food and beverages
3 % engineering and production 3 % wholesale and retail
Authors Interview Your partners for
partners the future of work

Charles Donkor Jean-Christophe Deslarzes Hans Geene Robert Kuipers

People and Organisation Head of Human Resources Leader People and Organisation Reward
PwC, Switzerland ABB
PwC, Switzerland PwC, Switzerland

Alina Slobodjanjuk Christian Albrich

Christian Buchert Jos Marques
People and Organisation Head Global Human Resources
PwC, Switzerland Actelion Global Mobility Reward
PwC, Switzerland PwC, Switzerland
Katia Cremer Karsten Breum
People and Organisation Chief Human Resources Officer
Pascal Dewarrat Robert Schulze
PwC, Switzerland Panalpina
Global Mobility Global Mobility
Jasmin Weisshaar Hans C. Werner PwC, Switzerland PwC, Switzerland
People and Organisation Group Leader of Human Resources and
PwC, Switzerland Member of the Group Management Board
Charles Donkor Gill Sivyer
Human Capital Consulting International Organisations
Nathalie Bourquenoud PwC, Switzerland PwC, Switzerland
Head of Human Development

2017 PwC. All rights reserved. PwC refers to PricewaterhouseCoopers AG, which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.