What is future proofing in business?

The idea of future proofing your business can initially sound abstract, making it difficult to create clear policies and strategies. However, future proofing for business simply means creating strategies that minimise, mitigate or eliminate foreseeable changes or challenges within your industry. In essence, future proofing can be viewed as a proactive form of risk management, focusing not just on immediate threats but on safeguarding the relevance, longevity and reputation of your business over time.

Why future proof your business?

There are several compelling reasons to consider future proofing your business. By anticipating industry changes, in addition to staying relevant, businesses can innovate, differentiate their products or services from competitors, and position themselves as leaders in dynamic markets.

Predicting potential risks also allows businesses to prepare for challenges such as supply chain disruptions, evolving customer behaviour and shifts in attitudes towards issues like sustainability, diversity and inclusion.

Additionally, future proofing can help businesses respond to rapidly changing hiring landscapes. For example, it can boost a business’s employer branding by predicting what future candidates will value in their jobs, benefits and perks, and enables organisations to adopt new recruitment strategies to attract top talent.

How to future proof as a business (and an employer)

To future proof a business, employers should focus on staying informed and embracing change, ideally with a clear strategy in mind. Incorporating change management into the process is an important part of adapting to new challenges.

The steps involved in future proofing can vary significantly depending on the specific needs of each business. However, there are several common strategies that all organisations can consider to build resilience and adaptability. In the next section, we’ll explore a few of these approaches.

Having a strong change management plan

Predicting the need for organisation-wide changes is one thing; successfully implementing them is another. A strong change management plan is essential for future proofing your business and ensuring that transitions are smooth and effective. Key aspects of a strong change management plan include:

• Ensuring your team has the right skills to respond to change, particularly when taking on new responsibilities
• Making sure changes are communicated well in advance and clearly through effective internal communications
• Hiring an experienced change manager with experience in successfully steering businesses through change

Use predictive analytics to prepare for the future

Building a data analysis team with expertise in predictive analytics is a powerful way to future proof your business. Hiring professionals skilled in this area or training your existing team can enable your organisation to use data-driven insights to anticipate challenges and opportunities. As highlighted in our guide to data analytics in HR, businesses can use HR people data to aid business transformation by:

• Identifying skills gaps, such as those in cybersecurity and AI
• Evaluating how businesses are meeting their diversity and inclusion targets
• Identifying weaknesses in fairness and inclusivity
• Understanding employee working styles

Predictive people analytics also helps businesses to reduce risks during large-scale transformations by:

• Helping businesses examine the effectiveness of policies on workforce well-being, inclusion and productivity
• Providing evidence for decisions that boost performance or restructure the organisation
• Measuring social and financial returns from new policies or training and development schemes

While highly effective, predictive analytics is also the most challenging form of people analytics, often requiring advanced technologies such as simulations, neural networks and machine learning. It may be beneficial to consider training an HR team in predictive analytics, or hiring professionals with these skills.

Predict what new talent wants

In our guide to attracting new talent, we found that the following steps help an employer brand stay relevant and attractive to the next generation of candidates:

• Demonstrating fair hiring and selection practices
• Taking meaningful action to source resources sustainably
• Supporting local communities and supply chains
• Having an authentic approach to diversity and inclusion
• Flexible working and remote working opportunities
• Providing job security
• Offering career progression opportunities
• Offering a competitive pension plan

While not all candidates share the same ambitions or priorities, it’s important to consider the ways in which candidates’ attitudes to businesses are changing. If in doubt, consider researching what perks and benefits are most valued by your current employees and target candidates.

Create an effective succession plan

Relying heavily on the knowledge and expertise of a few individuals can pose significant risks to a business. For example, if a C-Suite employee leaves without a suitable replacement, it can disrupt a business’s overall strategy and day-to-day operations. Additionally, knowledge workers or employees responsible for system implementation and management may be difficult to replace due to their unique skills or qualifications.

Creating a succession plan is therefore one way that businesses can future proof themselves. As outlined in our step-by-step guide to succession planning, key steps include:

• Identifying key positions within the organisation
• Identifying potential succession candidates
• Determining any necessary training for key positions
• Discussing succession plans with candidates
• Increasing coaching and professional development opportunities for these candidates
• Implementing a trial phase to test the succession

Keep identifying upskilling opportunities and potential future skills gaps

While businesses may already recognise skills gaps in areas like basic digital skills and cybersecurity, it can be equally important to anticipate future skills gaps that may emerge as industries evolve.

Soft skills are gaining ground here. Candidates with a strong ability to self-learn, such as through microlearning tools and a proactive problem-solving mindset can adapt effectively to new challenges. Additionally, those open to exploring new technologies and experiences can bring agility and resilience to your workforce.

Consider identifying early adopters of technology within the team and consult them on skills they believe will be useful in the future. Having an Employee Resource Group focused on emerging technologies can also provide ongoing insights into evolving digital skills, keeping your business prepared for upcoming trends.

Explore sustainable alternatives

Sustainability is a growing priority for UK consumers, who increasingly favour companies with clear environmental commitments. Candidates are therefore more likely to apply to organisations that demonstrate an authentic commitment to sustainability.

To stay relevant to environmentally conscious audiences and attract top talent, businesses should prioritise transparent environmental policies and commitments to sustainable practices. In our guide to impactful sustainability initiatives, we suggest actions such as:

• Conducting environmental and energy efficiency audits
• Hiring a chief sustainability officer
• Using more sustainable supply chains and resources
• Investing in renewable energy tech
• Creating circular economy products
• Strategically partnering with conservation groups and charities

Anticipate supply chain challenges

Geopolitical tensions and other global issues may continue to cause supply chain disruptions which can increase the cost of resources. Businesses can benefit from staying informed about these potential challenges and exploring alternative resources.

One effective solution may be working with more local supply chains. In addition to reducing dependency on global suppliers, local partnerships often provide a more sustainable option. Collaborating with local suppliers can lower environmental impact while fostering stronger relationships within the community.

Future proofing your business becomes more manageable with effective change management, proactive identification of skills gaps and understanding what future talent values in an employer brand.