In a study released two weeks ago, Oxford Economics and SAP discussed their findings on the current state of companies and the future state of the workforce. The research focused on the unique and fluid nature of today’s eligible employees, and the inability of companies to adapt. The study was so relevant—especially for organizations looking for the next step in business efficiency—that PayStream Advisors wanted to share the findings with our own readers.

According to the study, the global business world is facing a more diverse work environment than it has ever seen before, and this diversity has arisen from several generations in one workforce, multiple geographies, and the combination of unique skills, experiences, and work habits. An increase in freelancers and long-term contractors is also prevalent, changing the way companies hire. Oxford Economics and SAP say that although these changes point toward a major opportunity for productivity, talent development, and employee engagement, “most companies are unprepared to capitalize on it.”

Workforce 2020, an independent, global study by Oxford Economics with support from SAP,, reveals that most companies do see that they should change to meet the change of an increasingly international, diverse, and mobile workforce, but the majority of those companies don’t have the strategy, culture, and solutions to put that change into action. The research even shows that many companies that actually have future business objectives are failing to successfully carry out those initiatives.

Why are there so many barriers between the old way and the new? According to Edward Cone, managing editor of Thought Leadership at Oxford Economics, “the C-suite is out of touch with HR on business strategy and priorities, and workers are not getting what they want from their employers in terms of incentives, benefits and training.” More specifically, the study provides six workforce issues companies are facing today—issues that are said to challenge the prevailing opinion on HR in the business sphere.

Some of these issues stuck out to PayStream especially; one of which was the fact that millennials are misunderstood in today’s workforce. Many companies with an influx of millennials are not changing their strategies to adjust to the wants and needs of these new hires, and this is in large part due to generational misunderstanding. However, the study also shows the opinions of millennials and non-millennials are actually very similar: the two groups show close sentiments toward compensation, company loyalty, and career and income goals.

“Millennials are a major challenge for companies. As the single largest and most tech-savvy workgroup, they also represent a significant opportunity,” said Mike Ettling, president, HR Line of Business, SAP/SuccessFactors. “Companies that can excite millennials about work, train them to fill in gaps on experience and adapt to their style of working can build a workforce that can successfully execute on the objectives of today and adapt to drive advantage for the business of tomorrow.”

Another issue that was especially noteworthy was the notion that the talent gap is widening among today’s businesses. Companies are requiring more technology in their business models, but are not providing the proper training and development for their employees to utilize this technology—in short, they seem to be setting themselves up to fail.

An important thing this Workforce 2020 study has revealed is that today’s businesses’ inability to change is often due to a reluctance to change. This trend has been seen in PayStream’s own research, as the number one reason organizations show hesitation towards an automated AP process is the belief that current processes work. However, evidence shows that manual financial processes do not work, and are instead only outdated and inefficient methods that have no place in today’s business world. The study has confirmed this: if the world’s business environment is rapidly changing and if companies do not rise to meet the change, they will fail to thrive in the global sphere.

In a PayStream Advisors online piece on millennials in the workplace published earlier this year, we strove to answer the question of how P2P departments could adapt and reorganize to fit the millennial generation in their organization. The answer: it starts with being open, honest, and realizing that change is inevitable. The Oxford and SAP study reiterates that point, and offers important advice to companies looking for the next step in innovative corporate strategy and optimized business processes. It’s not just about employing the next-generation technology to propel a company to greater success, it’s also about employing—and supporting—the next-generation workforce.

“When it comes to preparing for the future of work, knowledge is power,” Ettling said. “Tomorrow’s workforce will be more diverse and work differently. Companies must understand this and develop new strategies that support diversity and foster a new level of employee engagement and collaboration — or they will ultimately remain stuck in the past.”