HR4.0: Shaping People Strategies in the Fourth Industrial Revolution

White PaperHR4.0: Shaping People Strategies in the Fourth Industrial Revolution December 2019In collaboration with Saudi Aramco, Unilever, and Willis Towers Watson 2World Economic Forum 91-93 route de la CapiteCH-1223 Cologny/GenevaSwitzerlandTel.: +41 (0)22 869 1212Fax: +41 (0)22 786 2744Email: contact@weforum.orgwww.weforum.orgWorld Economic Forum®© 2019 – All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, including photocopying and recording, or by any information storage and retrieval system. REF 10122019This white paper has been published by the World Economic Forum as a contribution to a project, insight area or interaction. The findings, interpretations and conclusions expressed herein are a result of a collaborative process facilitated and endorsed by the World Economic Forum, but whose results do not necessarily represent the views of the World Economic Forum, nor the entirety of its Members, Partners or other stakeholders, including the reviewers. ContentsForeword __________________________________________________05Key Findings ______________________________________________07Introduction _______________________________________________09HR 4.0: Six Imperatives for the Workforce of the Future ________111.Developing New Leadership Capabilities for the 4IR ____112.Managing the Integration of Technology in the Workforce 133.Enhancing the Employee Experience _________________164.Building an Agile and Personalized Learning Culture ___185.Establishing Metrics for Valuing Human Capital ________206.Embedding Diversity and Inclusion ___________________21Summary: Framework for Action ____________________________23HR 4.0 Case Studies ________________________________________25Unilever ______________________________________________25Saudi Aramco ________________________________________27PwC _________________________________________________28ING __________________________________________________28Major Energy Company ________________________________28AT&T _________________________________________________29Upwork ______________________________________________30IBM __________________________________________________30Infosys _______________________________________________31MTN Group ___________________________________________31Haier ________________________________________________31Acknowledgements ________________________________________33Notes _____________________________________________________35References ________________________________________________36Project Team ______________________________________________37 4 5The Fourth Industrial Revolution (4IR) is blurring the lines between people and technology, fusing the physical, digital and biological worlds. The impact of those changes on the way people work and businesses produce value will span all industries, economies and societies and redefine the future of work. Businesses and governments will need to adapt to these changes and support the workforce transition at the same time. If managed well, the future of work may be one where many more people are able to fulfil their full potential.HR 4.0, a framework for shaping people strategies in the 4IR, is an initial response to this challenge. In this White Paper, we examine the changing role of companies in shap-ing people strategies and the role of the human resources (HR) function as a key driver in defining how work is expe-rienced, how it is done and how the workforce evolves. As businesses seek more holistic strategies to prepare for the future of work, CEOs are turning increasingly to the human resources function to evolve rapidly and adapt to the chang-ing demands. HR professionals are finding themselves at the front line of helping their organizations and leaders to drive technology absorption, foster innovation, enable new work models and, ultimately, attract, retain and develop the workforce of the future. The first part of this paper explores why the Fourth In-dustrial Revolution creates the impetus for transformation in people strategies and HR practices as well as the implica-tions of specific drivers of change for organizations and their workforce.The second part of the paper outlines what business leaders—including Chief People Officers / Chief Human Re-source Officers (CHROs), CEOs and other C-suite leaders—can do to respond through six imperatives highlighted in this paper, including practical models and case studies.The third part of the paper describes how organizations are already responding to the need for change, with exam-ples of emerging roles, technologies and critical skills for the future of HR. This paper is the outcome of a series of consultations with selected Chief Human Resources Officers and other experts to identify emerging challenges and a range of po-tential interventions to address them. It aims to start a con-versation among business leaders on proactively m