8 The Driving Force

The role of people and culture in digital transformation. How strategic workforce planning and standardization contribute to an agile future.

People make the difference. This is the common thread running through many digital transformation projects and the conviction of today’s leaders. Everywhere, individuals can be identified who have made a significant impact. What sets them apart is their expertise, perseverance, risk awareness, and courage. However, while these qualities are vital for today’s world, the world of tomorrow and beyond will also require vision, leadership, and persuasive power.

Strategic Workforce Planning

Strategic workforce planning is fundamental to understanding the workforce of tomorrow and the day after. Strategic goals must be translated into the necessary capacity and qualities of employees. For instance, increased attention to security issues due to the rise of technologies like quantum computing means not only hiring more security specialists but also educating other employees about the challenges of this new world, enabling them to identify risks and opportunities early. Consequently, all organizations will need more employees with IT knowledge and digital skills in the future.

In addition to workforce growth, efficiency gains are also occurring in many areas. Most lifecycle-related upgrades directly impact the number of administrators required. For example, an upgrade from SAP ECC to SAP S/4 HANA (SaaS) can reduce the number of administrators by up to 30%. The reason is that more processes are digitized, and less customization is required in an S/4 HANA solution. This is just one example, but in general, most system upgrades significantly affect how many people are needed for management.

Eight to Ten Employers per Career

Employee turnover is the third key element. In a recent discussion with ABN AMRO, we observed that finding new young talent, driven by high turnover rates, was their biggest challenge. Despite offering the best working conditions, young professionals no longer commit to long-term roles. The bank estimated that the average tenure of an employee at a company is approximately five years. This has significant implications for organizations, the labor market, and potential employees themselves. Over the course of their careers, people are expected to work for eight to ten different employers. Compare this to individuals born in the 1930s, who typically had one or two employers.

Given the labor market is expected to remain tight until 2100, top talent will frequently be recruited away. Another challenge highlighted in the discussion was that a manager, for the first time in her career, led a team comprising five different generations: employees in their 20s, 30s, 40s, 50s, and 60s. Each generation had distinct needs, talents, and points of attention. The concept of “the employee” is long obsolete.

A strong strategic workforce plan integrates all these aspects. Crucially, this is not a one-time analysis but an evolving understanding. The world around us does not stand still. Today, skills in artificial intelligence are in high demand; tomorrow, it might be skills in video generation or 3D imaging.

People in Today’s Context

Increasingly, people are overwhelmed by information, often uncertain whether it is accurate, complete, or truthful. Declining skills in reading, writing, and arithmetic mean that people need more time to formulate answers to the complex questions this information raises. At the same time, organizations are demanding more from employees: they are expected to be proactive, innovative, and productive while also possessing knowledge and experience. Today, many people are experiencing change fatigue. They may have just adapted to a new methodology (e.g., SAFE Agile) only to find themselves needing to master DevOps.

Addressing today’s challenges requires enabling employees to work with trust, engagement, and the right skills and knowledge. There must always be room for making mistakes. This demands management that can inspire employees and employees who are willing to adapt to newly required knowledge and skills.

Case Study 1: Serious Gaming to Increase Agility

Background

The goal was to make employees more customer- and results-oriented within a future-proof work model. This was the challenge that a department presented to QA Consulting, prompted by the increasing digitalization of operations, new big data challenges, and the need for faster, more decisive action for their clients.

Challenge

The organization faced challenges in communication, internal collaboration, and maintaining its corporate culture within a diverse team.

Approach

QA Consulting developed a tailored change program combining a new organizational structure, competency profiles, change management strategies, and a game (“serious game”) to engage employees in the change process. Using the ADKAR model (Awareness, Desire, Knowledge, Ability, and Reinforcement), the program fostered awareness of the necessary changes, a willingness to embrace them, and knowledge of the required competencies. A key innovation was the development of a card game that allowed employees to step into someone else’s role and learn which competencies are most useful in various situations. This was a new approach for the department and an opportunity for employees to understand the need for change.

Result

The organization saw improved employee satisfaction, enhanced collaboration with users, and a step toward a new corporate culture.

What Did QA Consulting Learn?

Change is a complex process. Many people experience change fatigue or struggle to understand why another change is necessary. Serious gaming is an accessible tool to overcome resistance and engage employees in the desired changes on their own terms.

Standard Practices

Experiences from successful, agile IT organizations demonstrate that there is significant standardization in how people work. These standards are often supported and enforced by systems. For example, documentation, often lacking in many Agile organizations, is enforced by technology: a task is not considered complete until it is properly documented. Agile working requires iron discipline from all participants.

Today’s world can be effectively managed within these standards by teams themselves. The key is to operate within priorities set for the next three months. Work estimates are evaluated every two weeks, and a culture of transparency is essential. This means employees must be able and willing to show what has been achieved and to be vulnerable. Management must provide the space for this. The involvement of leadership (business, IT, and Board) is crucial. For example, Ralph Hamers (formerly of ING) visited teams quarterly to discuss their challenges and highlight the importance of their work.

The Employer of the Future: Freedom in Connection

At QA Consulting, we believe in the motto **freedom in connection.** This means we, as an employer, move with our employees. For example, one of our employees recently received a temporary job offer in Canada with a UN organization. Many employers might try to hold such employees to notice periods or see such opportunities as a threat. We do not. Instead, we viewed it as a chance for the employee to gain new knowledge in an international environment. We adjusted the notice period accordingly and expressed our intention to stay in touch, support where necessary, and welcome the employee back after a year. This is what we call sustainable connection. Even if employees choose a different path after such projects, we maintain contact.

The future demands a culture where, despite hybrid working, we remain connected, share knowledge, and retain expertise both within and outside QA Consulting. It also means providing employees with the opportunities they seek. Letting go of the idea that employees will stay with one employer for a significant portion (or all) of their careers. Letting go of offering one-size-fits-all solutions for all employees. Letting go of old patterns that may have always worked but now require renewal. This calls for a refreshed approach.

Celebrate Your Employees’ Successes

Today’s labor market demands that employers focus on recruiting new employees, planning ahead through strategic workforce planning, and, perhaps most importantly, doing everything they can to retain employees. But how do you achieve that?

It all starts with onboarding new employees. Is enough attention given to their start? Are colleagues aware that a new team member is joining? Assign a buddy to the new hire so they have a dedicated point of contact for questions. Provide an extended onboarding period and continuously engage in conversations about their experience.

For employees who have been with the organization longer, it is essential to offer growth opportunities. Particularly for individuals with around five to seven years of work experience, there is a strong need for self-improvement and development to the next level. Providing these opportunities is crucial. Offer training plans, access to learning platforms, and regular conversations about employees’ career aspirations. Recognition and appreciation are equally important. Celebrate successes, give compliments, and maintain transparency about areas for improvement. Recognition is not just about positive feedback; constructive feedback is also a valuable form of respect.

Different Generations in the Workplace

Employee satisfaction stems from various aspects of work, including working conditions, work-life balance, development opportunities, culture, autonomy, and leadership. The diversity of generations present in the workplace makes it challenging to maintain high levels of employee satisfaction for everyone. Where younger employees may prioritize work-life balance and development opportunities, older employees may focus more on job security and remuneration.

To address this diversity, employers must adopt a flexible and inclusive approach. Examples include flexible work arrangements like hybrid working, allowing employees to decide how to use holiday hours, and greater flexibility in work schedules. Additionally, organizations must keep up with technological advancements. Younger generations expect this as a given. They quickly adopt new technologies like ChatGPT, UDIO, and Pimeyes and understand the opportunities they bring.

Fear of Change and Resistance

Older generations are often more resistant to change. Offer training to help them adapt and invest extra effort in demonstrating the benefits of these changes. In terms of communication, it is crucial to raise awareness that everyone communicates differently. Younger generations may prefer email or chat, while older generations might prioritize personal contact, such as phone calls or face-to-face meetings. Employers should enable all forms of communication while maintaining a clear vision of what the organization stands for. What tools should be used for which purposes? What is expected of employees? And what factors should they consider?

Emphasize the importance of collaboration. Create understanding by actively highlighting both the differences and similarities between employees. Sharing knowledge is critical, especially given the aging workforce. Organize sessions where different teams share what they do and how they do it. Facilitate opportunities for employees to connect across organizational divisions, such as hosting innovative lunch sessions where teams brainstorm on specific topics together. This helps employees across the organization get to know each other, making them more likely to seek each other out for collaboration and knowledge exchange.

Employees as the New Gold

As we enter the next decade, it is essential for organizations to adapt to the rapidly changing work environment to remain relevant and competitive, and above all, to retain their employees. With an aging workforce, the outflow of employees will exceed the inflow. The answer lies in treating employees differently. Organizations must view them as the **new gold** and the driving force of the future. This requires thinking outside traditional boundaries.

1. Accelerated Adoption of Hybrid Work Models

Permanent contracts remain the preferred model for younger employees, but as they age, the demand for flexibility grows. New hybrid work arrangements will become the standard. Organizations will need to not only make work locations and hours more flexible but also create structures that support employees in achieving a balanced work-life dynamic. This requires technological solutions that ensure connectivity and collaboration regardless of employees’ physical locations.

2. Lifelong Learning and Continuous Development

The ongoing evolution of technologies and business models calls for a culture of lifelong learning. Employers must invest in continuous training and development programs to keep employees up to date with the latest skills.

3. Greater Focus on Diversity and Inclusion

Diversity and inclusion, encompassing people from various backgrounds and age groups, will increasingly become the norm. Already, we see retirees returning to the workforce or even starting new careers. The growing diversity of employee backgrounds, driven by demographic changes, will have a significant impact. Managing a diverse workforce requires policies and leadership that actively promote different perspectives and experiences. This will lead to more innovative solutions and stronger organizations.

4. The Importance of Well-Being and Purpose in the Workplace

Employees are increasingly seeking jobs that provide not only economic but also personal fulfillment. Organizations that create environments fostering well-being and where employees feel valued will attract and retain talent. This includes providing mental health support, recognizing achievements, and cultivating a culture that encourages learning from mistakes rather than punishing them.

At QA Consulting, we believe that a future-focused approach offers organizations the chance to retain talent, anticipate changes, and create a workplace that positively impacts employees and fosters stronger connections.