People are the lifeblood of any organization.

They're so significant that intangible assets—things comprised of and created by people—make up 90 percent of all business value. There clearly would be no business without people. But managing them can be hard, especially in the new world of work.

In the new world of work, companies are running away from traditional working practices. In the new world of work, everything is changing. The workforce is changing. The workplace is changing. Work styles are changing.

Remember when … we had full‐time employees who worked in offices? And all they really wanted was a paycheck? Do you remember walking into your boss's office on a Friday to get a paper check, and then going to the bank to deposit it just so you can use your own money? Ahh, the good old days! That was when work was just a job. That was before robots took over. That was before the COVID‐19 pandemic transformed the workplace and business forever. That was then. This is now—the New Work Order.

This book is for not only managing—but embracing—the new world of work. Regardless of your role—be it a small business owner or CEO, CFO, COO, HR leader, or office manager, if you oversee your workforce or wear the hat of the HR or people leader of your business, this book is for you.

Our way of doing things has been able to get us to this point. But what got us here won't get us there. Not in the New Work Order. We believe that the idea of human resources as we've known it is broken, and it is time for a change.

The solution? It's a paradigm shift—a new approach called “people operations.” People operations is designed for the new world of work. It champions technology, data, and the employee experience to accelerate business priorities. People operations is a competitive differentiator for any business, but especially small and midsize businesses looking to punch above their weight and do more with less. It allows you to better focus your time and effort on things that matter most to you: your people and your business.

Our goal with this book is to arm you with a step‐by‐step guide for implementing people operations in your organization. Your employees, leadership team, and shareholders will thank you for it.

If you're new to HR—perhaps a business owner, operating executive, or accidental HR person—pay close attention to Part II of the book, where you'll learn about a refreshing approach to an ageless challenge. You'll learn how to skip building out a traditional HR function—or worse yet, wasting your valuable time and resources on administrative busywork—and instead, lean on technology to advance your workforce productivity to the next level.

If you're an experienced HR pro or feel you have a solid HR foundation in place, you'll benefit most from Parts III and IV, where you will walk away with new ideas and techniques to unlock productivity and profits. These are things traditional HR playbooks have overlooked or dismissed. We believe the setup in Part I is a valuable context in either case, and we encourage you to read straight through, but feel free to skip around. After all, it's your book. With it, we're including several of our most popular guides, tools, frameworks, and checklists for free. These will be referenced throughout the book and are available online. You can find additional details and instructions for accessing the accompanying tools in the Appendix.

Thousands of companies are doing things differently. They're embracing people operations. They're changing the game and we hope you do too. Thanks for joining us on this journey.

Here Come the Robots

Let's cut to the chase. It's only a matter of time until a robot takes your job. Your job in its current form, that is.

I mean, think about it. We used to ride on horse and buggy, and that buggy was built by human craftsmen. But the buggy was replaced by the car—originally the “horseless carriage.” Not only do machines build them cheaper and faster, they actually make them better. Machines provide a better user (driver, passenger) experience with things like air conditioning, entertainment systems, and panoramic sunroofs. They also make them safer with seat belts, airbags, and emergency braking. Finally, they unleash the full potential of transportation with fast, easy, mass production—putting automobiles within the reach of most households. And now, they drive themselves too (in many cases, once again … better than humans).

The human‐machine relationship is quite an interesting one if you think about it: friend, foe, or subordinate? Perhaps it's all of the above. We used to compete exclusively with other humans at puzzles and games. Now, we play against computers. And, who usually wins? Today, computers can beat humans at even the most skilled games like chess, Go, and Jeopardy. Even in most video games, you can only win if you allow the machine to let you (“easy” level = let human win). (see Figure 1.1.)

Humans versus machines has been a long‐running debate. Technology has been replacing jobs for hundreds of years. At the turn of the twentieth century, farms employed nearly half the US workforce. Today, they account for less than 1 percent. Buttons displaced elevator and telephone operators. ATMs replaced bank tellers. And, when was the last time you booked a trip using a travel agent?

According to Gartner, automation technology usually costs one‐fifth the amount of a US employee—that's 20 cents on the dollar, and one‐third the amount of an offshore employee (Gartner 2020). But cost savings aren't the only benefit of automation. Regardless of industry, technology also helps:

• Improve speed
• Improve accuracy
• Reduce risk and variance
• Enable 24/7 output or servicing ability

Prior waves of mechanization clearly brought productivity improvements. They also brought plenty of debate, disruption, and anxiety. In the early nineteenth century, English textile workers actually destroyed machines as part of the Luddite movement. TIME magazine ran a story titled “The Automation Jobless” in 1961. It raised fears of technology advancements, stating, “automation is beginning to move in and eliminate office jobs too.”

It is true that these breakthroughs often brought some short‐term job loss. But they also brought fresh opportunities. New jobs creating the machines and algorithms. New jobs overseeing and maintaining the machines. New jobs managing the additional output from the machines. New jobs to handle unforeseen impacts of the machines. New jobs to manage the new jobs. In the end, the innovations usually created more jobs than they displaced.

The transformation usually follows one of—and in many cases, a sequence of—the following scenarios:

1. Evolution: technology is introduced to automate manual tasks. Machines work alongside people. Example: ATMs and bank tellers.
2. Displacement: technology replaces an old job entirely. New categories of jobs emerge to manage machines and their downstream impacts. Example: buttons replace elevator operators; now we need security guards and elevator technicians.
3. Reinvention: technology automates lower‐value activities, freeing up cognitive and physical capacity. People take on more meaningful work, increasing the value of the entire profession. Example: once threatened by electronic trading systems, stockbrokers became wealth managers (cha‐ching!).

Digital transformation is profoundly impacting every profession and every industry. Advances in machine learning (ML), artificial intelligence (AI), and Robotic Process Automation (RPA) are bringing in a new age of automation. And it's changing the way we interact with our world.

So where do we go from here? If software is eating the world, the robots are hungry for more. Reports show that 50 percent of today's work can be automated (Manyika et al. 2017). That's half of all work. Half! Two‐and‐a‐half‐day workweek, anyone?

Economists predict that up to one in four workers—or 800 million people, globally—will lose their jobs to new technology over the next decade (Manyika et al. 2017). This was only accelerated by the COVID‐19 crisis. Companies in survival mode have been forced to get creative. They're deploying technology anywhere and everywhere. To create cost efficiencies, yes, but also to deliver a safe, convenient, digital experience for their customers and employees. Let's take a look at the types of tasks machines do well, and others that they don't (yet). (see Figure 1.2.)

In short, robots free humans from repetitive, administrative (and often boring) tasks. The key for humans who still want a job? Embrace and manage the automation. This allows people to take up more meaningful and intellectually stimulating work. According to McKinsey & Company, “All workers will need to adapt as machines take over routine and some physical tasks and as demand grows for work involving socioemotional, creative, technological, and higher cognitive skills” (Lund et al. 2019). When technology is embraced, it actually increases the output, and value—worth and pay—of the work being performed. This ultimately makes companies more productive. (see Table 1.1.)

Work is being reshaped. Business processes are being transformed. There are numerous benefits to automating the drudgerous parts of your job. From sipping on piña coladas beachside with your family to making more money by doing more valuable work … embracing automation has significant upside.

The takeaway? Robots kill jobs, but they create them too. Tomorrow's workers will have to adapt, change, and learn new skills. We all need to embrace a lifelong learning mindset that enables us to evolve. It allows us to grow our companies and our own careers too. As you read the rest of this book … we hope you do so with an open mind for change, progress, and growth. It's what will separate you from a robot. Robots want your job. Let them have it!

The Rise of the Fluid Workforce

Start. Stop. Pivot. If there's one lesson the first part of this century has taught us, it's our need to adapt. Quickly!

The digitization of our economy has dramatically changed who does what, and how. We've been forced to respond to volatile conditions—market, economic, and world events. Not just in business, but often on personal levels as well. The winners are the ones that take fast and meaningful action. With the pace of change accelerating, businesses need the ability to turn on a dime. One way to do this is by creating a more flexible, or “fluid workforce.” A fluid workforce is one that combines and connects regular employees with contingent workers—including temps, freelancers, independent contractors, consultants, vendors/agencies, and more. (see Figure 1.3.)

In this new workforce model, technology connects, aligns, and manages these blended teams. Skills and capabilities are built around priorities and projects rather than traditional business functions. Blended teams replace traditional department silos. Flatter, collaborative organizational structures replace hierarchical organization charts. The fluid workforce is designed, ground‐up, for agility. It embraces automation and change.

Today's most successful businesses are building fluid workforces to:

• Move and change quickly
• Scale up and down efficiently
• Find specific skills for specific priorities and projects

  

• Tap a broader and more diverse “boundary‐less” talent pool
• Reduce unnecessary costs (pay as you go/need)
• Reduce overhead costs (tax and benefit savings)
• Avoid unnecessary investment in reskilling workers

Experts estimate the cost savings in real estate space and office expenditures alone can reach $10,000 per year per employee (Hussain 2019). Beyond the clear business benefits, there are several factors driving this shift to the fluid workforce. One is an increasing volume and accessibility of freelancers, or “the gig economy.” This creates newfound work opportunities in the form of project work, or gigs. The duration of work can range from days to months, or even years. Gig workers can help small businesses get through large projects or peak times, or become a long‐term part of the team.

The gig economy brings work of all types and levels to people everywhere. Freelance workers can stitch together paychecks from several gigs to create the equivalent pay of a full‐time job. They get the ultimate in flexibility, work/life balance, and control.

Freelancer platforms like Upwork connect workers with all types of gigs in seconds. These sites allow businesses to hire for a specific project or for ongoing work that doesn't justify a full‐ or even part‐time role. Workers are paid through the site, and typically pay a flat fee or percentage of their earnings to stay on the job. From fractional CFOs and consultants to graphic designers, work of all types is being gigified. Freelancers are projected to outnumber full‐time employees by 2027 (Upwork 2017).

Another type of contingent worker is the contractor, or independent contractor. These work directly for a company, either as needed, on call, or for specific projects. The work they perform can be remote or in‐house and they run the gamut of skill sets. Contingent workers aren't just ride‐share contractors. They can be entry‐level workers through highly skilled scientific, technical, and executive staff—and are typically sourced directly via word of mouth, referral, and social networks.

Temporary workers, or “temps,” are also a type of contingent worker. Temps are typically provided by third‐party staffing agencies to augment existing staff. Often, they're used for a temporary surge in demand, such as seasonal work for the holidays or to support a new product launch or expansion.

This movement to a fluid workforce opens up the door for virtual globalization, or boundary‐less hiring. Finding the right person with the right skills at the best cost—regardless of where they are. With contingent workers, you don't have to deal with the same complexities of full‐time employees. Think about work visas, payroll taxes, health insurance, or office perks. No kombucha, no problem! You can also release them whenever you want, no “performance improvement plan,” severance, or awkward conversation.

Although there are a ton of benefits to tapping this new workforce model, it comes with new responsibilities, too. It requires a culture that embraces the fluid workforce—including open communication, inclusiveness, and transparency. Businesses must embed technology to connect, track, and empower these dynamic teams. It requires proper documentation (don't screw this up!), flexible time and payment systems, unique benefit offerings, and open collaboration tools for everyone. We'll go into more details throughout the book. We'll use the terms “employees” and “workers” interchangeably for continuity purposes, but in all cases we are referring to a fluid workforce consisting of various classifications of workers. It's important to keep in mind how the ideas presented apply to various types of contingent workers. (see Table 1.2.)

The Office is Dying … Kind Of

There's a lot of debate about the role of the office in a postpandemic world.

One thing is certain, it's changing. People used to move to work. Now, increasingly, work moves to people. As more companies shift to the fluid workforce, work is moving people out of cities, offices, and even desks. Studies show that approximately 80 percent of work is now deskless (Emergence Equity Management 2018). Today's work is happening in the field, on the fly, from home, and on the go. People are working wherever and whenever they want. Or, as their family, schedule, and circumstances allow.

This is just the beginning. The gig economy and modern work technology have created “digital nomads.” Not tied down to any particular location, these digital nomads travel from spot to spot while working remotely. They may work from a cafe, a cool hotel, or a beach in Costa Rica. Countries such as Barbados, Bermuda, and Antigua are even offering tax incentives and work visas to attract digital nomads. It's less about work/life balance and more about work/life integration and harmony. Vacation, errr, work trip, anyone?

Work was already going virtual. The COVID‐19 pandemic just fast‐forwarded it a decade. Businesses responded to the need for social distancing by transitioning their teams online. Jobs once considered onsite or office work only, were forced to transition. Through this process, there were a few interesting discoveries. First, more work is successfully being done virtually than we previously imagined. Much of this is technology‐driven. Second, productivity for virtual work materially increases for most jobs. Eight out of 10 workers say their productivity increases, and most executives agree. And, 9 out of 10 employees say more flexible work arrangements increase morale (Curry 2020b). Not having to commute and less office distractions are major factors. And finally, the obvious cost savings. There's less overhead for office space, property taxes, building supplies, security, and office perks.

This is no fad. Following the pandemic, three out of four CFOs say they intend to continue to shift some employees to remote work permanently (Gartner 2020). But, before we write the office eulogy, let's get real. The office isn't really going to become completely extinct. However, its purpose and format are forever changing. Businesses are shifting the purpose of the office from permanent working space to flexible collaboration and meeting space. It's there for those who need it, when they need it—more for “hoteling” and meetups now. This will place an important role in the new world of virtual work. People crave social interaction and connection. And of course, in some businesses, it's imperative for production, operations, and customer interaction. In some of the same ways WeWork disrupted office space, the new world of work is following suit. Businesses in every industry are reducing their real estate footprints and lease terms in favor of flexibility. (see Table 1.3.)

This shift in workplace dynamics ushers in new challenges. How do you manage communication and ensure everyone is in the loop? How do you prioritize and oversee work across a distributed team? How do you avoid employee burnout? How do you coordinate schedules and workflow across different time zones? Managed effectively, a distributed, fully engaged workforce is an advantage. But left to traditional workplace methods, things can fall apart. Today's most successful people leaders have made this leap. So can you.

Your Employees Don't Work for You

The workforce has changed. The workplace has changed. You know what else has changed? Work style.

Traditionally for most people, a job was … well, a job. The accompanying approach to oversee the work was a military type top‐down management style. Direction was set by company leadership and passed down through the ranks. Orders given, no questions asked. “Sir, yes sir!”

That's all changing. People no longer are content to be treated like an order taker, or replaceable cog on the assembly line.

Today's workforce is unique in its generational diversity. There are five distinct generations in the workplace, each with their own experiences, motivations, and expectations. There is some common ground. All generations value fair pay and benefits. Beyond that, things get tricky. Traditionalists, Boomers, and Gen Xers tend to be more deferential to authority. They respect firm direction from management. However, a command‐and‐control approach will likely backfire with younger generations. Millennials and Gen Zers put more value on workplace flexibility, culture, and purpose. They really care about the employee experience. And then, there's technology. Think about it. Boomers like phone calls—“hey, let's chat.” Millennials prefer text and instant messaging—“just ping me.” Gen Z? They want in‐app notifications with emojis. Oh yeah, we almost forgot the traditionalists … we're going to need to meet up and “talk about it”—in person. (see Figure 1.4.)

All of this is in a state of flux. Younger generations grew up with technology. It's an integral part of how they operate. But it's catching on with traditional generations—“digital immigrants” are rapidly adopting consumer technology as parents and grandparents flock to apps like Facebook and TikTok too. According to research by Workfront, this is creating some common ground when it comes to technology in the workplace:

• 88 percent of workers say technology is an important part of the employee experience.
• 91 percent of workers say they crave modern technology solutions.
• 84 percent of workers say businesses today are missing opportunities by not moving to more modern solutions.
• 86 percent of workers say this year's respondents say next‐generation employees expect workplace technology that looks more like Amazon and Instagram.
• 94 percent of workers say searching at work should match the ease of Googling (Workfront 2020).

Some things are becoming pervasive. Today's workers want to have a voice and make a difference. They want mutual trust and respect. They want collaboration, community, and flexibility. They want to learn and grow. And, they want to have a little fun along the way. But, importantly, today's workers—in every generation—have more choice than ever before. From gig and independent contractor work, to working from home for companies in other countries, they have options. If you don't provide a workplace environment that fulfills these needs, someone else will. At the end of the day, as an employer, you work for your employees, just as much as they work for you! Your job is to create a company and culture that's better than competitors and alternatives. To create a workplace that attracts and retains the best people for the jobs. One that allows them to learn, grow, and do their best work—for themselves and your company. (see Table 1.4.)