What are the different trends that are going to shape the new world of work?
The post-pandemic unwillingness of employees to return to the workplace has been well observed. This hesitation ranges from the phenomena of “silent resigning” to huge resignation. Other changes are occurring as a consequence of the subsequent economic slowdown: job offers have been withdrawn amid layoffs in technology firms that are frequently regarded as growth engines, and a STEM skills shortage has prompted calls for workplace skill enhancement and re-skilling programs and global competition for talent. The COVID-19 pandemic, however, did not cause many of the patterns we are today observing in the workplace.
Here are five shifts that appear to be here to stay:
1. Talent Mobility
Many opportunities for some employees to relocate between employment, industries, and countries have arisen as a result of the global competition for talented individuals. Top talent can now easily switch between employment or hold down many positions at once thanks to the normalization of remote work that has been hastened by the COVID-19 pandemic and propelled by digital technology for cooperation.
Owing to this, both individuals and businesses need to consider their employment options from a wider, global perspective, adopting a mindset of career mobility and the acquisition of transferable skills for a lifespan of multiple employment alternatives. We have yet to determine what this implies for labour mobility, but the future appears to promise greater trade tariffs and stricter border controls.
2. Digital Skills
The world of work has seen significant changes as a result of the digital revolution of several businesses. Corporations in every industry, including farming, banking, manufacturing, and media, are becoming technology companies.
“Employability” in this context refers to more than just “soft talents” including teamwork, communication, critical thinking, and emotional intelligence. Employability skills will become more and more focused on exploiting these digital technologies in the workplace as platforms for artificial intelligence (AI), robots, and the Internet of Things make inroads.
3. Restructuring Companies
Companies have been encouraged to restructure for relevance and competitiveness as a result of shifts to industry structures and upheavals in business models. General Electric and other businesses have separated, while Tata Group and other businesses have merged in response.
A rise in staff productivity is being demanded by holding firms like Alphabet that have avoided employment layoffs. Several industries remain unorganized, decentralized, and controlled by Small and Medium Enterprises (SMEs), which generate seven out of ten jobs, despite cash flowing into many growing countries. The quest of efficiency in businesses prioritizes the retention and hiring of individuals with skills and abilities that directly affect the bottom line, regardless of the market, industry, or strategy.
4. More work and less employment
With a shift away from human resources departments managing people and toward talent strategy teams investigating ways to address human resources demands, this has altered how firms approach recruitment. An all-encompassing picture of talent management at work is made possible by analytical methods for measuring performance.
Job searchers in businesses in the areas with the highest unemployment rates need to widen their perspectives beyond only looking for jobs to include researching work opportunities. To preserve the interests of workers, regulators in sectors where platform companies are dominant must advocate for benefits to be linked to employment opportunities rather than just employment.
5. Approach toward skill-based hiring
Companies are employing more frequently for skills supported by experience and less frequently for potential as a result of the need to produce short- to medium-term results.
As a result, graduate hiring has decreased. Many firms are substituting skill assessments for degrees as part of their hiring criterion. Only 11% of corporate executives “strongly agree” that graduates from colleges and universities possess the requisite skills. Calls for reform of higher education have resulted from this.
In order to provide relevant experience and help them develop their abilities, young people entering the workforce must accept work-integrated learning opportunities such as apprenticeships, placements, and internship programs.
Conclusion
The notion that “any job is better than no job” should be rejected by governments. From the standpoint of a poor worker, that might be true, but it doesn’t make much sense economically.
Poor-quality employment worsens inequality, wastes potential for productivity, and lowers aggregate demand, all of which are detrimental to economic growth and social welfare. To achieve this, governments must fight the desire to indiscriminately relax labour laws under the guise of promoting business.
Minimum wage laws, social security, and labour market initiatives like apprenticeship programmes and job search aid are all beneficial for work performance and can ease consumer spending during difficult times.
