ReimagineWork: Trends and Innovations Shaping the Future of Work

ReimagineWork
Trends & Innovations Shaping the Future of Work
November 2023
© 2023 Reach Capital. Confidential. All rights reserved.

About
Reach
Capital
Reach Capital is the leading early-stage investor in education and
future of work, funding people and ideas that empower humans
across their lifetimes.
We believe massive global businesses will be built at the intersection
of education and economic mobility, and there is no better way to
improve lives than through increasing access to opportunity.
Reach Capital Partners
© 2023 Reach Capital. Confidential. All rights reserved. 2

3
The concept of
work is changing
rapidly across
the globe.

Where We Work
While just four years ago
many of us worked at
offices or onsite, today
people are increasingly
working in remote and
hybrid environments.
4
Percentage of workers
empowered to take
advantage of flexible
working arrangements
before and after COVID
Sources: McKinsey & ADP Research Institute
of Americans can
work from home
5 days/week
of Americans can
work from home
1-4 days/week
23%
35%

Flexible work is important
to ~60% of US workers
(1 = not at all, 5 = completely)
When We Work
Source: Workable 5
There is a growing preference
for time flexibility that
better aligns with our daily
lives and responsibilities.
7%
11%
23% 24%
34%
1 2 3 4 5
45% of businesses now offer
staggered or flexible work
schedules post-COVID

For Whom
We Work
More people are choosing to
work independently or for
themselves, as freelancers,
gig workers, or self-employed
contractors.
Source: McKinsey 6
of Americans (58M
people) identify as
independent workers,
up from 27% in 2016
36%

How We Work
Source: Deloitte 7
Workplaces are
leaning away from
rigid job structures
and hierarchies,
and towards
agile, flexible
environments.
of business executives believe
Fractionalized Work is the
best way to create value for
workers and the organization.
This is when workers flexibly
flow to tasks, assignments,
and projects based on their
skills and interests.
60%
19%
Traditional Work
21%
Broadened Work
When worker roles and
responsibilities are structured
around broad problems to be
solved or outcomes to be achieved.
How business executives want to organize
work to create value in the workplace

Why We Work
Sources: Deloitte & NSHSS 8
Younger workers are
pushing back against the
“live to work” mentality
and increasingly prefer
workplaces that invest in
their wellbeing.
Percentage of bosses
and Gen Z workers
who feel work is a
significant part of
their identity
86%
OF BOSSES
61%
OF GEN Z
67%
Of highschoolers want to
work at companies that will
enable them to learn skills
to advance their careers

9
Percent of change in skill
sets for jobs since 2015.
By 2027, this number is
expected to double.
Sources: LinkedIn & Gartner
Average number of skills
required for a single job has
increased 10% annually since 2017
2017 2018 2019 2020 2021
2017 Skills New Skills
12.6 13.1
15.7
17.0
18.5
25%
In this new world, the skills we need to
succeed have changed drastically…

10
© 2023 Reach Capital. Confidential. All rights reserved. Source: Our World in Data
…especially as the pace of technological
change is increasing faster than ever before.
100%
80%
60%
40%
20%
1915 1940 1960 1980 2000 2019
Automobile
Washing Machine
Home AC
Computer
Internet
Social Media
Podcasting
Tablet
Amazon Prime
Share of U.S. households adopting specific technologies over the last century

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© 2023 Reach Capital. Confidential. All rights reserved. Source: World of Statistics
AI is the newest wave of disruption, at
unprecedented speed and scale…
0 100 200 300 400 500 600 700 800 900 1000
Telephones
Mobile Phones
ChatGPT
Months
2 Months
How long it took 100M people to adopt...
75 years
16 years

12
Of occupations
today could be
partially automated
by AI
Sources: Goldman Sachs & McKinsey
2/3
…causing labor disruptions at a magnitude
we’ve never before experienced.
of hours worked
today could be
automated by 2030
30%

13
© 2023 Reach Capital. Confidential. All rights reserved. Sources: World Economic Forum
In this world, businesses increasingly value
high-order, human-centered skills and traits.
Share of organizations that consider the following to be
more or less important in the future
Declining importance
Increasing importance
Creative thinking
Analytical thinking
Technological literacy
Curiosity and lifelong learning
Resilience, flexibility and agility
0 +25 +50
73%
72%
68%
67%
66%
Net Difference
+75

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“As attitudes and expectations around the
workplace evolve, employers are navigating
how to create work environments that
recognize employee needs, help employees
thrive, and also meet business objectives.”
- Dermot O’Brien
Former Chief Transformation Officer at ADP
For employers, this will require re-thinking
how they build and support their labor force.

15
They have to build nimble, skills-oriented
workplaces that can adapt with rapid change.
“As the skills and mindsets that workplaces
need are rapidly evolving, and far more quickly
than ever before, employers have to reinvent
their talent and learning ecosystem to enable
employees to learn-unlearn-relearn constantly
and much more effortlessly.”
- Guillermo Miranda
Former Chief Learning Officer at IBM
and Boeing

Identify the skills
people have
We believe the
transformation will
be powered by a skills
engine that can:
01
02
03
Understand the skills
the workforce needs
Close the gap as
quickly as possible
16

A Skills Engine
17
What does a skills engine look like?
Generates high-signal
first party data
Leverages improved skills
inference technology in
the flow of work
Unifies data and planning
systems through an adaptive
and dynamic architecture

Generates high-signal first party data
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Provides AI-powered, objective
assessments for over 7,000 defined
skills across 60 job domains
Delivers accurate and reliable
assessments for technical talent
backed by over 2,800 hours of
research and validation
A Skills Engine

Leverages improved skills inference
technology in the flow of work
19
Helps employees acquire and apply
power skills in the flow of daily work
and helps companies attain deeper skills
intelligence across the organization
• Intentional Learning
• Empowering Leadership
• Collaboration & Influence
• Storytelling
• Analytical Thinking
• Taking Ownership
• Resilience
• Embedding Diversity & Inclusion
A Skills Engine

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“For most businesses, [skills] information
lives across multiple, disconnected systems
and doesn’t update as people develop...
This is where an AI skills-inference platform
can help by creating a clear and consistent
skills taxonomy specific to each organization
that adapts automatically as the business
evolves.”
Source: World Economic Forum
A Skills Engine

Unifies data and planning systems through
an adaptive and dynamic architecture
21
Helps employers power their workforce
planning by unifying skills data from
different sources into a single, universal
taxonomy with a real-time view of what
they have today and need tomorrow
A Skills Engine

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Such an engine will
enable key behavioral
changes in how we
attract and support
the workforce.

Skills-Driven
Hiring
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In a world where the skills
needed today are changing
rapidly, employers will
increasingly hire for skills
instead of relying on
degrees and pedigree.
Sources: LinkedIn Economic Graph & LinkedIn Future of Recruiting
of recruiters on LinkedIn
search for candidates
using skills data
45%
20%
Of jobs listed in the
US do not require a
four-year degree, up
from ~15% in 2021

Skills-Driven
Hiring
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“There is so much more to candidates than past
or current titles. Skills-based hiring is a much
more human-centered approach than relying on
degrees and pedigree, and will help further
unlock and diversify talent pools.”
- Maisha Gray-Diggs
Vice President of Global Talent, Inclusion &
Experience at Eventbrite

Skills-Driven
Development
25
To find skilled workers,
employers are turning to
non-traditional education
providers and programs
specifically designed for
their needs.
Trains healthcare staff and
works directly with employers
to find and place talent
Prepares students for in-demand
digital careers and partners with
employers to provide skills-
based training and upskilling
80%
Of graduates secure
a job within 2 months
+ ~25% pay increase
90%
Of graduates secure
a job within 12 months
+ $25K salary bump

Learning In The
Flow Of Work
26
Provides sales reps with insights
and recommendations on how
to close more deals based on
customer interaction analysis
Helps users complete, explain,
transform, and generate code
as an AI pair programmer
Source: Salesforce
3 in 4 knowledge workers
prefer to learn in small
moments throughout the day
Once employees are onboard,
they need opportunities to
learn quickly and in their
work setting, also aligning
with the skills needed
by the company.

Content Iteration
& Refinement
27
As the skills that are needed
change rapidly, content
becomes outdated quickly.
Employers will need tools to
generate new, relevant
pathways as soon as possible.
Helps manufacturers build
mobile-optimized and AR-
based training content in
minutes using existing content
Helps employers create and
share content 10x faster with
its AI-powered learning
management system

Agile Talent
Management
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Employers will leverage
real-time insights to align
their workforce with
business goals, using data
to plan new hires and
redeploy existing talent.
Connects a company’s existing
systems and harvests skills
insights from tools where
employees actually work
Generates insights to find and
develop talent using deep-learning
AI and a skills-driven approach

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This new future of work —
skills-oriented, worker-
centered, and nimble
— holds opportunities for
startups and investors alike.

30
Most businesses plan to upgrade or adopt HR
and workforce development systems in 2024...
Source: CompTIA
Large firms Medium firms Small firms
Learning / Training
Talent Mobility / Marketplace
Adopting new
Upgrading
Skills Inventory / Career Pathways
Platform and system investments planned by
business organizations in the year ahead
88%
82%
75%
81%
70%
55%
78%
69%
59%

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...and invest in “on-the-job” learning as a core
workforce strategy over the next four years.
Source: World Economic Forum
81%
80%
46%
26%
24%
22%
13%
Invest in learning and training on the job
Accelerate the automation of processes
Transition existing staff from declining to growing roles
Outsource significant areas of work
Expand the use of contract work
Hire significantly more permanent staff
Reduce the current workforce significantly
Share of surveyed organizations planning to…

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© 2023 Reach Capital. Confidential. All rights reserved. Source: Skyquest Technology Consulting
The global corporate learning and
development market is forecast to double
between 2022 and 2030.
Global Corporate Training Market Size ($B)
$364 $386 $414 $447
$487 $533
$589
$656
$737
2022 2023 2024 2025 2026 2027 2028 2029 2030
$737B+
Estimated size of global
corporate training
market by 2030

Connect With Us
Building something
to support the
future of work?
Reach out!
Send us your pitch at
reachcapital.com
33
linkedin.com/company/reach-capital/
reachcapital.com/learn
Follow and read:

Contact Reach
474 Bryant Street
San Francisco, CA 94107
reachcapital.com
info@reachcapital.com

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