New research from the Korn Ferry Institute demonstrates than human capital is 2.33 times more valuable to an organisation than its physical global capital.
The results of the research seems to contradict many media reports on how the future workforce will become more and more automated and technology led. As our children become increasingly savvy with technology and its potential, both in education and at play, it is easy to believe that work in the future will follow suit. However, this global research suggests that organisations who invest in technology at the expense of investing in their people do so at great risk. Critical success factors continue to be human. The ability to lead, manage, inspire, engage, motivate and drive people to perform to fulfill their potential will be the difference between organisational success or failure.
Nov. 17, 2016 —A global study of CEO perceptions by Korn Ferry (NYSE:KFY) finds a startling lack of top-leader focus on, or confidence in, the value of the people in their organizations, while they instead are putting a higher value on technology and tangible assets. Korn Ferry conducted in-depth interviews with 800 business leaders in multi-million and multi-billion dollar global organizations on their views concerning the value of people in the future of work. Among the key findings: Sixty-three percent say that in 5 years, technology will be the firm’s greatest source of competitive advantage. Sixty-seven percent say that technology will create greater value in the future than people will. Forty-four percent say the prevalence of robotics, automation and artificial intelligence (AI) will make people “largely irrelevant” in the future of work