As the effects of the coronavirus continue to reshape our world, 2022 will see several factors accelerating the shift to a more digital, hybrid future.
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As the effects of the coronavirus continue to reshape our world, 2022 will see several factors accelerating the shift to a more digital, hybrid future. Below are some considerations of what will come next, and how organizations in Greater Worcester can position themselves for success.
New digital advances are key to growth
In 2022, it will be critical for companies to further digitize their offerings and operations using new and emerging technologies, such as artificial intelligence (AI), machine learning (ML) and data analytics. In a Deloitte Insights global study of 441 executives across industries, 73% reported piloting or adopting AI. Organizations are learning they don’t need large IT departments to do so, as more off-the-shelf AI and ML solutions become available. In addition, digitalization will become a greater priority in unexpected areas of the business:
• Mergers & acquisitions – Digital transformation can help to accelerate M&A deals and make companies more attractive acquisition targets. Those engaged in the M&A process are finding digital technologies helpful in reducing transaction time and costs and delivering greater value to buyers and sellers.
• Succession planning – Digital transformation should be considered as business leaders think about the company’s long-term trajectory. A comprehensive succession plan should include a roadmap for leaders to assess where they stand on digital readiness, evaluate opportunities and risks, earmark digital investments, plan for disruption, and position the company for growth.
Embrace emerging trends in talent
Digital capabilities can help companies become more effective at recruitment and retention. While many companies hope to continue returning workforces to the office in 2022, many are offering remote or hybrid work options, which rely heavily on digital solutions.
As more companies try to balance a mix of in-person and remote work, they will find these digitally driven workforces present new opportunities to unlock productivity and collaboration. By removing geographical constraints on hiring, companies have more flexibility to hire from a wider and more diverse talent pool.
One-third of American companies have reported difficulty finding the talent they need, and the situation is expected to worsen. Companies can focus on benefits to attract and retain employees. Financial benefit plans and wellness resources, employee education or affinity groups – often part of a focus on diversity, equity & inclusion – will be more important than ever.
Focus on ESG efforts to realize sustainable growth
The White House recently stated climate change poses significant risks to the U.S. financial system and put forth a roadmap for creating a more climate-resilient economy. Companies are responding: according to a recent RSM survey conducted in partnership with the U.S. Chamber of Commerce, nearly half of those surveyed said their organization was either acting to reduce its net carbon emissions to zero or had already reduced their emissions to zero. Companies should consider implementing a meaningful environmental, social, and governance (ESG) framework for every stage of the business life cycle.
Employees have become more aware of and interested in corporate ESG goals and postures. For companies in 2022, clarifying ESG targets and frequently communicating progress will be paramount. This will benefit not only talent attraction and retention but also customer acquisition as the spending power of Gen Z, a generation strongly engaged in environmental and social issues, grows.
In 2022, it won’t be enough for a company to develop and sell a good product. How the company develops, markets and delivers the product will need to be increasingly digital, and take ESG factors into greater consideration. Companies recognizing the possibilities of digital transformation, while keeping the values of their employees and customers in mind, will be better positioned to address the business challenges in the year ahead.
John Pajka is vice president and senior relationship manager for commercial banking at Bank of America in Worcester.
