Preparing for the Future of Work

"The future of work is not something that happens to us; it is something we create." – Unknown

In this article, we review the recent report from the World Economic Forum, “The Future of Jobs Report 2025”. In doing so, we also extract some of the key insights for Australia.

The purpose of this report is to provide business leaders with a clear roadmap for navigating the profound changes shaping the global workforce. As technological advancements, demographic shifts, and new economic demands transform the nature of work, this report highlights actionable strategies and insights to help organizations not only adapt but thrive. By focusing on key areas such as workforce trends, the skills gap, and practical steps for future-proofing your organization, the report empowers leaders to proactively shape their business strategies for long-term success.

Introduction

By 2030, the workplace as we know it will look drastically different. Machines are expected to handle nearly half of all work tasks globally, spanning industries such as manufacturing, where robotics are revolutionizing production lines, and retail, where AI-driven inventory systems optimize stock levels. Businesses must adapt quickly to survive and thrive in this evolving landscape. Australia, in particular, faces unique challenges—an aging workforce and fierce competition for skilled talent. Yet, this is not just a story of challenges. It’s a story of opportunities for bold leaders who are ready to embrace change.

The World Economic Forum’s Future of Jobs Report 2025 provides a roadmap for navigating these seismic shifts. Below, we break down the report’s key insights, actionable strategies, and opportunities that will help leaders prepare their organizations for the future of work.

Global Workforce Trends: Opportunities and Challenges

The Good News: New Job Creation

By 2030, 170 million new jobs will be created globally, according to the report. This includes high-demand roles like:

• AI specialists - non-technical and technical

• Cybersecurity experts

• Renewable energy engineers

• FinTech developers

• Autonomous vehicle specialists

• Healthcare

• Education

These jobs reflect how technological advancements, sustainability efforts, and innovation are reshaping industries.

The Flip Side: Job Displacement

While 170 million new jobs will emerge, 92 million jobs will be displaced globally over the same period. Roles that are highly automatable, such as clerical work, some administrative positions, data processing, and repetitive manufacturing tasks, are at the greatest risk.

Jobs are rising due to AI, automation, green economies, aging populations, and digital demand, while declining roles stem from automation replacing routine tasks, shifting consumer preferences, and businesses optimising costs and seeking increased efficiencies.

This shift underscores a growing demand for reskilling and upskilling initiatives to prepare employees for new, tech-enabled roles.

Australia’s Unique Hurdles

Australia faces major workforce challenges, including a lack of skilled workers (noted by 65% of businesses) and talent shortages worsened by an aging and shrinking working-age population, which 53% of employers see as a key issue by 2030. On top of this, the labour market is experiencing high "churn," meaning many jobs will disappear, while new ones will emerge, requiring workers to transition into different roles or industries. This constant change affects 38% of roles over the next five years. Adding to the difficulty, 43% of organizations face resistance to adopting new ways of working, slowing the solutions needed to tackle these issues.

The Skills Gap: Preparing for Jobs That Don’t Exist Yet

The report highlights a stark reality: 59% of global workers will need retraining by 2030. But training for what? Many of the most in-demand roles don’t yet exist.

The key lies in fostering human-centred skills that machines can’t replicate. These include:

• Critical Thinking: Making sense of complex problems.

• Complex Problem-Solving: Approaching challenges with structured, innovative solutions.

• Creativity: Innovating and applying new ideas.

• Emotional Intelligence: Building relationships and understanding others.

• Leadership: Inspiring and managing teams through uncertainty.

Why Are Human-Centred Skills So Important?

As machines increasingly take over routine tasks, it’s the uniquely human abilities—our creativity, emotional depth, and problem-solving skills—that differentiate us. For instance, while AI can generate patterns from data, only a human can interpret those insights in the context of a company’s unique culture, goals, and market dynamics.

Think of human-centered skills as the glue that binds technology and business outcomes. They create the innovation, empathy, and leadership required to bridge the gap between machine-generated output and human impact.

The Chess Master and the AI

Imagine playing chess alongside an advanced AI. The AI can calculate millions of moves per second, but it’s the human player who determines the strategy, makes intuitive decisions, and adapts to unforeseen circumstances. Similarly, in the workplace, AI provides the tools, but human skills direct the game.

Practical Steps for Business Leaders

For businesses, the future of work demands bold action. Here’s how you can get started:

1. Conduct a Workforce Skills Audit

Assess the current skills in your organization and identify the gaps. Where are you lacking critical capabilities for the jobs of the future?

Understanding how jobs will change is a critical component of this audit. Jobs are not static—they are collections of tasks. Leaders can identify tasks for full automation, collaboration, or human effort by analysing workflows. For example, repetitive tasks like data entry are suited for automation, customer service bots complement human problem-solving, and tasks like creative brainstorming remain uniquely human. By categorizing tasks, leaders can better design future-ready roles. Recognizing these nuances helps businesses design roles that maximize both human and technological strengths.

Examples:

• Fully Automatable Task: Data entry can be handled entirely by AI systems, saving time and reducing errors.

• Human-AI Collaboration: Customer service chatbots can handle basic inquiries, while humans step in for complex problem-solving or empathetic conversations.

• Exclusively Human Task: Creative brainstorming sessions, where empathy and abstract thinking are essential, cannot be replicated by AI.

This approach ensures that each role in your organization is optimized for the future, blending efficiency with human ingenuity.

2. Embrace Skills-Based Hiring

Move beyond traditional degree requirements. Focus on what candidates can do through skills assessments, portfolio reviews, and practical simulations.

Suggestions for Implementation:

• Adopt Work Simulations: Use real-world scenarios to evaluate candidates’ abilities.

• Collaborate with Educational Institutions: Partner with universities or online platforms to recruit candidates with proven skill sets.

• Highlight Soft Skills: Ensure job descriptions prioritize critical thinking, collaboration, and adaptability alongside technical skills.

This hiring approach not only widens your talent pool but also aligns your workforce with the evolving demands of the market.

3. Invest in Dynamic Training Programs

Support continuous learning for your workforce. Prioritize adaptability, resilience, and creativity over rigid, outdated training manuals.

Ideas for Training Programs:

• Microlearning Modules: Deliver short, focused lessons employees can complete quickly.

• Cross-Functional Training: Allow employees to explore roles beyond their current scope to foster innovation.

• Real-Time Feedback Systems: Use AI-driven platforms to provide immediate and actionable feedback during training.

Dynamic training helps employees stay ahead of technological advances and equips them with the tools to thrive in shifting job landscapes.

4. Foster a Culture of Innovation

Encourage experimentation, reward creativity, and empower employees to contribute bold ideas. Concrete methods to foster this include organizing hackathons, where teams collaborate to solve real business challenges, and hosting regular innovation challenges with tangible rewards. Additionally, creating mentorship programs that connect employees with leaders in different fields can inspire new perspectives and creative problem-solving. Creating a safe space for risk-taking is essential for long-term growth.

Building an Innovative Culture:

• Idea Labs: Set up dedicated spaces or virtual platforms for brainstorming and problem-solving.

• Recognition Programs: Reward employees who propose innovative solutions, regardless of outcome.

• Leadership Workshops: Train leaders to cultivate curiosity and support experimentation within their teams.

A culture of innovation not only boosts employee morale but also keeps your organization agile in the face of disruption.

5. Integrate AI Responsibly

Think of AI as a tool to augment human potential, not replace it. For instance, in healthcare, AI-powered systems can assist doctors by analysing patient data for early diagnosis, while the doctors focus on delivering personalized care. In education, AI can personalize learning paths, allowing teachers to concentrate on fostering creativity and critical thinking. Similarly, in manufacturing, AI optimizes production processes, enabling workers to focus on quality control and innovation. By leveraging AI in these ways, businesses can unlock new levels of productivity and human ingenuity across sectors. Train employees to work alongside AI by offering internal or external learning opportunities focused on technology integration.

Steps for Responsible AI Integration:

• Run AI Awareness Programs: Educate your team on the capabilities and limitations of AI.

• Focus on Collaborative Roles: Identify where humans and AI can complement each other, such as data analysis paired with human interpretation.

• Ethical AI Policies: Develop guidelines to ensure AI implementation respects privacy and fairness.

Responsible AI integration not only enhances productivity but also builds trust among employees and stakeholders.

The Role of Government and Policy

Business leaders can’t navigate this journey alone. Government policies and public-private collaboration are vital. Key areas for government action include:

• Funding for Reskilling: Ensure affordable access to training programs.

• Flexible Learning Pathways: Encourage the use of online platforms and micro-credentials.

• Raising Awareness: Promote future-ready skills through public education campaigns and career counselling.

Why Human Skills Will Define the Future

As technology takes over routine tasks, human skills become increasingly valuable. Think of it this way: AI might analyse medical data, but only a human doctor can deliver a diagnosis with empathy and understanding. This human-machine partnership is where the true magic happens.

Conclusion: Creating Your Future

The future of work isn’t just coming—it’s already here. Leaders must act decisively, embracing change with a proactive mindset. To succeed, businesses must start with a skills audit to identify gaps and align their workforce with future demands. They should adopt skills-based hiring practices, invest in ongoing, dynamic training programs, foster a culture of innovation, and integrate AI responsibly to enhance human potential. These strategies, when implemented together, will not only enable organizations to adapt but also empower them to lead in the ever-evolving work landscape. Start by conducting a thorough skills audit to align your workforce with emerging demands. Shift your hiring practices to prioritize real skills over credentials. Invest in dynamic training programs that foster adaptability and innovation. Build a culture where creativity thrives, and integrate AI responsibly to augment human potential.

Success in this new era requires bold action, a focus on human-centred skills, and collaboration across all levels of business. By taking these steps, you won’t just adapt to the future of work—you’ll shape it.

Reflective Questions for Leaders:

1. How well does my current workforce align with the skills needed for the future?

2. Are we prioritizing human-centred skills in our hiring and training practices?

3. What steps have we taken to foster a culture of innovation within our organization?

4. How can AI be better integrated into our operations to enhance, not replace, human potential?

5. What partnerships or resources can we leverage to accelerate our transformation efforts?