In the past 11 months, we’ve witnessed the rise of new workplace practices alongside the reinforcement of existing ones. One prominent trend has been the integration of artificial intelligence (AI) into daily organisational operations. Many companies are leveraging AI to automate repetitive tasks, significantly enhancing efficiency while enabling employees and leaders to focus on high-value activities. A notable example is TCS’ Ignio platform, which automates critical back-end IT processes like system monitoring and infrastructure management.
Some organisations have gone a step further and utilised AI to enhance decision making by adopting a more data-centric perspective or to elevate customer experience. By analysing vast amounts of data, AI provides strategic insights for decision-makers and delivers personalised recommendations to customers, boosting engagement and satisfaction. Reliance’s Jio Brain and Haptik’s chatbots are examples of this evolving development.
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A key outcome of this shift is the growing emphasis on reskilling and upskilling employees and equipping them with the necessary expertise to address the rapidly evolving needs of today’s workplace.
These initiatives align with academic research demonstrating that digital skill training boosts productivity, especially among workers with lower expertise. Combining employees’ experience with AI tools promotes greater innovation and creative problem-solving.
A third significant trend that has gained momentum since the pandemic is the shift from the traditional 9-to-5 office routine to more flexible work arrangements. Since the pandemic, organisations have transitioned from fully remote set-ups to hybrid models, where employees split their time between working from home and coming to the office.
A 2024 report by the Project Management Institute highlights a 57% increase in hybrid work arrangements from 2020 to 2023, with the trend expected to grow in the coming months.
Several factors, such as lengthy commutes in Tier 1 cities, advancements in technology infrastructure, and employees’ concern for work-life balance, have been key drivers of the change.
A recent study published in the journal Nature provides strong evidence supporting the benefits of hybrid work models. In a large-scale experiment, the authors randomly assigned half of the employees in a firm to work five days a week from the office while the other half worked three days in the office and two days remotely.
The study found no difference in performance or promotion rates across the two groups. However, employees with hybrid work arrangements reported greater job satisfaction and had reduced turnover than those who came to the office all five days.
These benefits were more pronounced for women and those with long commutes. The experiment also shifted the perceptions of managers, increasing their approval of hybrid arrangements.
Another crucial aspect of work-life balance is employee mental health and well-being, which has gained significant attention post-pandemic.
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Several companies have increasingly focused on raising awareness, destigmatising concerns related to mental health, and offering support through employee assistance programmes.
In fact, the emerging Gen Z workforce (those born between 1997-2012) places a strong emphasis on mental health and well-being.
A survey by Handshake showed that nearly 90% of Gen Z prioritised mental health over opportunities for collaboration, training, or mentoring at work. Similarly, LinkedIn’s 2023 Workforce Report highlighted mental well-being and work-life balance as critical priorities for young Indian professionals.
The younger workforce’s intolerance to toxic work practices is evident from the criticism Narayana Murthy received for endorsing a 70-hour workweek.
Lastly, Indian companies have intensified their commitment to environmental, social, and governance (ESG) principles. This is partly driven by SEBI’s mandate for the top 1000 listed companies to file business responsibility and sustainability reports (BRSR).
Notably, a PwC India report showed that over half of India’s top 100 companies voluntarily disclosed their Scope 3 emissions data relating to their carbon footprint for FY 23, even though it is not mandatory.
Companies like Axis Bank and Infosys have set ambitious goals to reduce their carbon footprint and eventually reach net-zero emissions. It is expected that with greater awareness and further regulations, organisations will have to prioritise ESG practices as a central component of their operations.
A well-aligned workplace drives productivity and reflects the evolving priorities of employees and organisations. As trends like AI integration, upskilling, flexible work models, mental health focus, and ESG adoption reshape the workplace, they signal a fundamental shift towards more inclusive, innovative and sustainable practices.
Organisations that embrace these changes thoughtfully will retain top talent and position themselves as leaders in an ever-changing global landscape. The future of work lies in the balance between technology, human well-being, and purposeful business strategies.
Hemant Kakkar is associate professor, (organisational behaviour), Indian School of Business.
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