What Trends Are Shaping the Future of Work, and What Are the Main Drivers of Change?

The world of work is changing, driven by rapid technological changes, shifting workforce expectations, and the evolving global economy. Businesses are reimagining their strategies to stay competitive, workers are demanding greater flexibility and autonomy, and governments are reassessing policies to keep pace with these developments. In this dynamic environment, Deel is stepping up to help organizations navigate the complexities of managing a global workforce.

Deel's Advisory Board on the Future of Work

To better understand and influence these shifts, Deel has established an Advisory Board on the Future of Work. This board, composed of seasoned former policymakers and regulators, provides crucial insights into the evolving employment landscape. Their expertise helps Deel stay ahead of the trends that are reshaping work and ensures that the company remains a leader in the HR tech space.

So, what are the key trends defining the future of work, and what forces are driving these changes?

The Rise of Borderless Workplaces

As businesses expand globally, the need to hire talent from different parts of the world has become paramount. Charlotte Corley, a former Commissioner of the Mississippi Department of Banking and Consumer Finance and a member of Deel’s advisory board, highlights this trend: “Work is definitely becoming more and more borderless. Global business growth and the advancement of technology are changing the way and how we work. To compete globally, companies need to consider expanding their operations beyond domestic markets.”

Elaine Chao, Former U.S. Secretary of Labor and Deel advisory board member, adds another layer to this perspective by focusing on the challenges that come with global labor mobility. "We are in an era of globalization where labor is mobile, and talent is really the determining factor in an enterprise's success," Chao points out. She emphasizes that as companies hire talent across borders, they need robust HR systems that simplify the complexities of global workforce management while complying with various labor regulations.

The advancement of asynchronous technology has made it possible for teams to collaborate across time zones, making location less relevant. However, as businesses expand globally, they must navigate a complex web of regulations and compliance requirements. This is where companies like Deel, with their focus on simplifying global employment, play a crucial role. Charlotte’s experience in financial regulation and Elaine's insights into labor policies are invaluable in helping Deel and its clients manage the complexities of global compliance.

Changing Worker Expectations

Today’s workforce is increasingly prioritizing flexibility, work-life balance, and opportunities for remote work. Heidi Heitkamp, former U.S. Senator and Deel advisory board member, emphasizes the importance of understanding these changing expectations: “One of the changes that we don’t talk enough about is the change in workers’ expectations. What does work away from a business place look like? It’s all about flexibility… the workforce is changing, and the interest of the workers is changing.”

Elaine Chao echoes this sentiment, highlighting the pandemic's role in transforming worker expectations. "COVID has had a tremendous influence—flexibility and freedom in wanting to do work in a way that the individual worker desires," Chao explains. She points out that the labor participation rate is still lower than it was pre-COVID, indicating that workers are now seeking greater freedom and work-life balance. Employers must adapt to these new expectations to attract and retain talent, especially in industries where flexibility can be accommodated.

The COVID-19 pandemic accelerated the adoption of remote work, and as businesses navigate the post-pandemic world, the demand for flexibility remains high. Workers are no longer content with traditional office-based roles; they want the ability to work from anywhere while maintaining a work-life balance that suits their needs. As a result, companies must adapt to these expectations or risk losing top talent to more flexible employers.

The Impact of Technology and AI

Technology, particularly artificial intelligence (AI), is another major driver of change in the workplace. AI is transforming everything from recruitment to performance management, enabling companies to operate more efficiently and make data-driven decisions. Seth Harris, former Acting U.S. Secretary of Labor and Deel advisory board member, sees AI as a key factor in the future of work: “Technology is going to continue to be a driving force in changes in employment… Artificial intelligence, no doubt, is going to play a huge role in the workplace for years to come.”

Elaine Chao also acknowledges the role of AI and technology in the evolving workforce, noting that "we are now seeing the advent of artificial intelligence that is dramatically changing the way in which we work together." She believes that AI will supplement much of the learning that workers need to stay current in their jobs. However, this technological shift also raises important questions about how the private sector and government should regulate these new advancements to ensure they benefit both businesses and workers.

Global Business Growth and Compliance

As companies expand into new markets, the need for global compliance has never been more critical. The regulatory environment is constantly evolving, and businesses must stay ahead of changes to remain competitive. According to Charlotte Corley, “There’s a lot that comes with global business growth, including the need to prioritize global compliance and adapt to many and constantly changing regulations.” It’s crucial for companies to have a strong compliance framework in place to navigate the complexities of global expansion.

Elaine Chao adds that governments play a pivotal role in supporting businesses by creating a regulatory environment that fosters innovation and growth. "Governments can help a great deal if they just do no harm," Chao states. She advocates for "reasonable low tax rates and less overly burdensome regulations," suggesting that a balanced approach to regulation can encourage entrepreneurship and vibrant economies. By working closely with policymakers, Deel aims to ensure that its products and partnerships comply with the latest regulations, positioning itself as a leader in the HR tech space.

Environmental and Social Drivers

Beyond technology and regulation, environmental and social factors are also shaping the future of work. Climate change, in particular, is expected to have a profound impact on global migration patterns and the labor market. Seth Harris highlights the significance of this issue: “Climate change is going to play a tremendous role… It’s going to accelerate migration, drive invention and innovation, and force those of us in the global North to focus more closely on the issues of the global South.”

As the effects of climate change become more pronounced, businesses will need to adapt to new realities, including the displacement of workers and the need for sustainable practices. Elaine Chao underscores the importance of stable economic and security environments, noting that "countries in which there's not peace and security are not going to be cauldrons of economic dynamism and activity." Companies that proactively address these challenges will be better equipped to thrive in the long term.

By staying ahead of these trends and adapting to the drivers of change, Deel is not only positioning itself as a leader in HR tech but also playing a pivotal role in shaping the future of work for businesses and workers around the world. The Advisory Board’s emphasis on labor mobility, regulatory balance, and technological adaptation ensure that Deel remains at the forefront of the evolving employment landscape.