Over the last few years, a lot has been written about “The Future of Work.” Everyone from McKinsey to the World Economic Forum have made predictions regarding skills shortages, the need for training and skills development, and the future of jobs.
But what about the technology that is enabling the massive disruption in work. Last quarter, we set out to explore the financial performance of publicly-traded “Future of Work” companies, or those companies focused on enabling technology to managing people, pay, productivity, and progression.
Our work has resulted in the creation of the Future of Work Global Index. The Future of Work Global Index is an index of 31 publicly-traded technology companies globally focused on delivering cloud solutions that address the changing workforce. The index including companies from 10 countries with public exchange listings in 7 countries including Japan, Australia, Canada, and even Norway.
How has the Future of Work Global Index performed in the market, you ask? It is safe to say the technology companies enabling the “Future of Work” have witnessed hypergrowth. Over the last 5 years, the Future of Work Global Index is up over 365%. The performance is 6x better than the S&P 500 over that same period and 4x better than the NASDAQ composite.
In the last year alone, while the S&P 500 grew an astounding 29% growth, the Future of Work Global Index gained over 52%.
We believe the convergence of significant macro-trends in the market have attributed to the strong growth of “Future of Work” companies including:
- digital transformation and the rapid adoption of cloud technologies in the enterprise
- low unemployment forcing companies to investment in technology solution to more effectively streamline critical HR processes
- workforce globalization requiring new investments collaboration and productivity tools
- rapid automation of jobs and the need to reskill the global workforce
For more details, please visit The Future of Work Global Index. Over the coming weeks we will be further dissecting the Future of Work Global Index companies to better understand the underlying insights behind Future of Work companies.
(Cross-posted @ Arcadian Insights - Jason Corsello)