The New Normal
People & Organizations | A Picture of Now!
The expression “the new normal” became part of our lives in 2020 with the beginning of the COVID-19 pandemic. It entered our house, bringing a negative connotation that came to symbolize a phase of change, for which none of us were really prepared. But the truth is that changes are a constant of life. In fact, one of the only variables that we can be sure of is really- change- and these last two years have been no exception.
After two years of transformation, we entered a new phase— a “new normal”. Some people call it the recovery phase, but we need to be careful when we use this term so that we do not fall into the temptation to try to recover what no longer exists. It is foolish to try to turn around ignoring all the changes that each of us has gone through (individuals and organizations) looking for the same people and organizations we were. We need to be aware that everything has changed. We are no longer the ones who we were, and the way we lived and interacted before is a reality without return.
We passed from a VUCA (Volatile, Uncertain, Complex, and Ambiguous) world to a BANI (Fragile, Anxious, Non-linear, and Incomprehensible) world much more challenging and complex managing, of course. But more difficult it will become if many of us continue to resist believing and accepting that everything is different.
We all changed! The people, the organizations, the market, the work, the life, the world, etc., and we change all the parts, not in parts, not just on weekdays. Nor did we change some things in us, and others do not. We all changed! Therefore, let us be more empathic and human, and forget the recipes and models because, as they are increasingly serving only to be consulted and then adapted to the reality of each context, whether individual, collective or corporate, now or in the future.
We all have to leave for a true “Walk The Talk”, that is, to make our actions consistent with what we think, feel and say. Unfortunately, even today, we come across people who think and feel the real change, but then when they come to action, they try to put into practice the models and recipes of the past. There is a resistance and, in fact, ignorance and a very large lack of experience, so it is necessary, to risk, experiment and above all, to make it different so that it is possible for today’s organizations, add value to everyone within the context of this “new normal”.
But going back to the beginning, if the changes were always part of our lives, then what was different this time?
On one hand, the speed of change has increased, the impacts are increasingly deep and global, the world is more connected and everything is being disruptive. On the other hand, there was indeed a clear chance of paradigms. Before, we were one thing or another. Now we are everything. We exchanged the “or” for the “and” and we are corporate and entrepreneurs at the same time. The world has moved from location to global and virtual. We changed from a more centralized and business-focused world to a more democratized and value-centered world.
Perhaps we can group in five distinct dimensions most of the changes that have bring us to this “new normal”, and which have significant impacts on all of us, on our work, and on the organizations of which we are part:
New Behaviours
In these last two years, we have been forced to reinvent ourselves. We had time to think about our lives, evaluate our purposes, and define new plans and objectives. Many of us have changed residence, relationships, ways of working, work, and even country.
And in fact, work suddenly came into our personal lives like never before, and vice versa. Nowadays we should not even talk about Work-Life Balance, but about Work-Life Integration. If we once sought to find a balance between our personal and professional life, today this integration is such that it is increasingly impossible to separate one thing from another. If before we planned our lives due to the location of our work, today this is no longer totally true, on the contrary, we started to plan our work and our professional career according to our life purpose and our individual values. The worker merged with the individual in such a way that increasingly when talking about managing people and human resources, we will have to do so holistically, globally, and transverse.
Several work models emerged. We went on to value flexibility as never before and more, the hybrid work model, reconciling the remote and the face-to-face work, became a reality, as well as asynchronous work, and the desire to work on projects and goals, as by the way, already existed in some work areas and/or some professions.
On the part of individuals, there was a greater concern with their professional and personal fulfillment. On the part of organizations, an increase in their concern for issues related to the happiness and well-being of their workers. Finally, organizations begin to believe that happier employees are more effective and more productive and that the only way to “retain” is to work on“Employee Experience” strategies. In terms of human resources, one begins to talk much more about increasing commitment, than in retaining employers, and happiness at work begins to be truly a concern, as well as mental health, prevention of burnout situations, and the general well-being of employees.
But returning to the topic of the purpose, this was undoubtedly one of the behavioral changes with the greatest impact at all levels. Not only in us as workers but also in our organizations, which had to redefine their purposes, goals, and strategies in this BANI world. The problem arises when there are mismatches between expectations, loyalty, and commitment of individuals and organizations, giving rise to internal conflicts and emotional stress.
These conflicts of purpose, between workers and organizations, have led to a considerable increase in phenomena such as “The Great Resignation” or “The Big Quit”, in which collaborators end their contractual bond even without any other project or ensuring another job. These phenomena have caused significant changes in the world of work, not only have increased the problem of talent scarcity to work based on traditional models and bonds, but have also contributed to an increase in the GIG Economy community and economy, or that is, an increase in the number of entrepreneurs such as freelancers and services providers. This “uberization” of work is increasingly more and more and organizations must also be prepared for it, and find new ways to relate to these new workers, considering them and integrating them into their workforce to respond to their needs.
On the other hand, this trend also meets the paradigm alteration related to the infamous “Shortage of Talent”. For increasingly more, organizations will have to go looking for skills to meet their needs, contrary to what they have done, which is looking for people to perform certain functions. These new work models also come to facilitate, and promote, a closer approach between the real offer and demand.
Data & Technology
We live at a time when speed is faster than ever. Organizations had just adapted to the General Data Protection Regulation (GDPR), as well as recently forced to a higher and deeper level of digital transformation.
Technology is available and today it is common in our vocabulary to use buzzwords such as Artificial Intelligence (AI), Machine Learning (ML), Big Data, Internet of Things (IoT), VPN, Cyber Security, Robotics, and Automation, among others.
With the COVID-19 pandemic, the digital transformation was mandatory, and even the most resistant organizations had to accelerate their digitization strategies compared to the problem of stopping or even ceasing to exist. The most digitized companies that had their main processes computerized were those that initially had fewer impacts with the arrival of the pandemic. Thus, new and more investments were required in the áreas of IT, as well as in the formation and acquisition of new workers’ skills. Quickly emerged new tools and platforms that allowed them to do remote work anytime, and anywhere, and Cloud platforms had their maximum exponent, as well as collaborative tools.
All these changes have come to stay, not only because they have already been designed for current and future work models, as they are already rooted in our habits and, even when we are in person in the organization, we use exactly the same tools as when we are remote.
But the truth is that many routine tasks can be automated and will be performed by robots leading to the eventual extinction of some professions, but giving rise to others. Some studies refer that, due to technological advancement and the adoption of technology in organizations, by 2030 Portugal could lose about 1.1 million jobs, but in contrast, they can be created between 600 thousand and 1.1 million new jobs. Once again, there is talk of a transformation at the level of work, models, skills, and attitudes.
In Human Resources Management, digital transformation in areas such as R&S (Recruitment and Selection), Payroll, compensation and benefits management, as well as other innovations, at the level of onboarding processes, training and development, and engagement of employees, is already notorious. All of them to optimize processes and create the best experience for the employee. But the transformation did not stop here. People Analytics, for example, is entering human resources like never before. Peter Drucker said that what cannot be measured, cannot be managed, and people management is no exception. More than ever, it is necessary to manage based on real data and human resources managers have, like never before, a predominant role within organizations. They will have to assume themselves as Strategic Managers, leaving their traditional organizational niche, and moving to the decision-making center, with adequate, real, and assertive information, to support the design and definition of organizational strategies that integrate people and promote business development.
The technological advancement provoked by the pandemic has accelerated changes in the world of work, the economy, the way we relate, and in the society of a general form, and organizations must be prepared to manage and incorporate this technological revolution, into their strategies, without never forgetting people who are their most important stakeholder.
New Generations
Diversity within organizations is no longer negotiable, and it is not only about cultural, religious, gender, preferably or sexual orientation diversity, but also diversity at the level of the different generations that now integrate organizations. Generational diversity has always existed in the world of work, but more than ever a multiplicity of generations with different ways of being and being in life, with very different beliefs and values, causing serious challenges to the management of people and Human Resources.
There are still those who think that the problems related to the management of multiple generations within an organization are a myth. But the truth is that even having a people management policy that considers that each individual is different from his fellow man (and being practical, it is difficult to have personalized people management at the level of each worker) when analyzing the behavior of workers, it is verified that there are patterns related to the generations to which they belong.
The new generations, namely the Millennials generation, and others in the coming years will represent a large part of the percentage of organizations’ workforce. These are generations that have already grown at a time of major technological advances, much more digital and collaborative, and easy access to information. They are always connected and enjoy sharing openly, transparently, and in real-time.
These generations collaborate and communicate differently. They bring much value to organizations, such as new ways of working, approaching problems, new attitudes and understandings about their own work, with new approaches to how the work should be done and how the worker should be seen by the employer. They bring new expectations, and new and different values. But they also bring many demands and come to add a significant set of changes to organizations, forcing them to a deep adaptation from the way they work, how they define their codes of dress and conduct, the way they relate and communicate, and even to the level of compensation and benefits management.
It is a real challenge in today’s world within organizations and it is up to managers of people and Human Resources to warn and awaken the necessary consciences, namely the top and intermediate (still from previous generations) leaders to their existence. More than ever, listening to and feeling workers is critical for organizations to be more empathic and human and it is the responsibility of Human Resources managers to lead this process of change.
Mobility
Mobility is another undeniable reality. Technological advances allowed each of us to work anywhere through laptop computers, tablets, and smartphones as long as there is an internet connection. It is common nowadays to work on the subway, on the bus, at the airport, on a terrace, a whole set of non-traditional workspaces. It is the total connection, anytime, anywhere. Once again, the worker mixes with the individual in being, time, and space.
Mobility has come, associated with new work models, to also allow new ways of being in life, such as digital nomadism. Eventually still with a little significant expression in Portugal, it is a tendency to consider, as it allows decentralizing the work and the generated value, promoting the development of some local economies considered “more disadvantaged”. From March 2020, many people who were in the big cities moved to the interior of the country, to their origins, and others to the surroundings in search of better conditions and quality of life. These people do not want to return to the big cities and this behavior change also influenced organizations that, on the one hand, were decentralizing their workspaces, on the other hand, more easily integrating, new ways of working, such as the remote, asynchronous and project work.
Globalization
Globalization has been talked about for decades, but the truth is that we have passed from a local world to a global and virtual world, the latter being the most global ever. Nowadays any company regardless of where they are headquartered can work anywhere in the world, regardless of whether it is a large, medium, or small business, or even independent workers or freelancers. The current context we live in brings together all the necessary and sufficient conditions to sustain a change in the world of work and organizations like never seen before. Organizations must once again adapt to this reality rethinking and redefining the best strategies for their development, passing in some cases, including the review of their structural models, leaving more traditional models, and adopting more collaborative and competitive models such as matrix or network models.
In conclusion, this “New Normal” that we live now and that is here to stay, a mixture between VUCA and BANI worlds, causes a significant set of challenges for all of us, individuals and organizations.
A change of mentality is urgently needed in companies and organizations for new approaches to the current world of labor, which has become more free and competitive. The social contract that frames the work is changing, altering the power relations between organizations and workers. The work will become an experience that has to be designed together by the organization with its workers, involving all the benefits for both (organization, employees, and individuals).
Strategy, Resilience, Empathy, and Flexibility will be the base words of the “new normal” and leaders will play an increasingly important role inside and outside organizations. In this sense, the participation of People and Human Resources managers, who should have a strategic and central place in the organizational structure to support this whole process of transformation and development, should be essential.
Present and future organizations thus have a huge challenge ahead: They will have to be more human and empathic by increasing their focus on people; they should work hard on the employee’s commitment and experience; they will have to transform their value proposition and bet on new talent and Employer Branding strategies; they should support, form, and enable leadership, with sufficient skills so that they can lead these change processes; and reconcile all transformation processes (including technological) with strategy, people, and business (market).
