It's 2040 and the competition for talent that came to prominence in the early 2020s has only intensified. The pandemic tested and disrupted worker-employee relationships beyond anyone's imagination. In the years that followed, employers faced unprecedented pressure to attract and retain talent. During this shift, some employers faltered while others thrived. Those that succeeded did so because they recognized that in the new normal, employers had to bolster their employee value proposition — focusing on building loyalty and trust with their workforce.  

The relationship has fundamentally changed between employers and employees and between workers and work itself. Employers established new work programs and loyalty plans that completely redefined their relationship with their employees. Unlike the bilateral, interdependent constructs of the past, it now resembles a group of loosely coupled ecosystems. Employees select the organizations they identify with and relate to the most based on if their ongoing relationship reflects their own personal values. Traditional employer-employee relationships still exist, but there are many more ways to contribute and feel part of an organization, taking a page from the gig economy. Organizations now have the chance to selectively interact with individuals based on their advertised reviews and ratings, and distributed worldwide platforms manage all of this.

personal interactions are now more critical than ever. The boundaries between personal and professional interactions continue to blur, as employers no longer invest in a physical workspace but rather in communal campuses that serve multiple communities including mature and young companies, as well as academic institutions and public sector organizations. In one such location, campuses for hospitals, universities, and health-tech and pharma companies are prevalent and connected as those experienced by their employees for their professional and personal engagements.  

Despite the fundamental shifts in how and why people work, the most significant change to the employee value proposition of 2040 is that well-being and mental health have become employers' top priority. 

Employees are encouraged to participate in activities that they enjoy and are always provided with opportunities to give back to their communities. Employers are increasingly aware of stress — and take active steps to provide support. 

Why has this happened?

Life never really went back to what it was before the pandemic. The ongoing risk to public health and the emergence of new variants meant that the need to work from home lasted longer than many predicted. It became the new normal. 

After almost 10 years of going in and out of restrictions, no one wanted to lose the newly found freedoms they gained during the pandemic, particularly the choice of where and when they worked. Corner offices and impressive titles representing job satisfaction never returned and weren't particularly missed. 

In 2020, workers realized that the one-sided power dynamics they shared with employers no longer represented their values. Employers initially reacted by increasing salaries but quickly realized that money had ceased to be the primary motivator for their workforce. Both their and their employees' focus shifted to a more holistic value proposition. 



Today, in 2040, employees feel more empowered than ever before — thanks to the flexibility and transparency of new working methods and fundamental shifts in the employer-employee relationship. There are increased levels of engagement, trust and loyalty, with work executed as a service rather than an obligation. The gig economy has become "the economy" and leading to gig workers receiving the same level of protection as employees. 

At first, remote working negatively impacted employees' well-being due to a lack of face-to-face interaction which lead to feelings of isolation, loneliness and limited networking opportunities. AI and machine learning (ML) have made it easier to identify stress and treat mental health issues — and to help ensure that steps are taken to address this such as taking time off work or increasing face-to-face interaction. The most successful employers have merged from the disruption by thinking creatively and laying the foundation for the flexibility and freedom that employees now cherish. 



Tracy Chu

Tracy Chu

KPMG in Hong Kong (SAR)

Payal Parmar

Payal Parmar

KPMG in the UK

Sign up to be notified for new content

You’ve successfully logged in.

Please close this pop-up in order to get back to the page.

Please provide the following information to register.

The email format is incorrect. This field is required Incorrect email format. Please enter corporate email address.
This field is required
First name
This field is required
Last name
This field is required
This field is required