
World Bank/Chhor Sokunthea A garment industry worker sews garter to a skirt in Phnom Penh, Cambodia.
- An individual’s ability to earn a livelihood is changing and, in most cases, reducing. The impact of automation is redrawing the shape of all organizations. The World Economic Forum’s Future of Jobs 2018 report suggests the human share of labour hours will drop from 71% to 58% by 2025. Machines and algorithms will increase their contribution to specific job tasks by an average of 57%.
- The demand for human skills is not in decline. There is a net positive outlook for jobs despite significant job disruption, and human skills, as well as jobs with distinctly human traits, are still in demand. According to the Future of Jobs report, 75 million current jobs will be displaced by the shift in the division of labour between humans, machines and algorithms, but 133 million new jobs will be created as well.
- Finally, the employee-employer relationship is transforming for two reasons:
- We are clearly shifting to an increasingly borderless workforce in the form of the networks of people who make a living that is dependent on a specific company but work without any formal employment agreement with said company. Every company’s value chain consists not just of its own employees but millions of others including gig workers, contingent workers, partner employees and more. There is a greater need today than ever before to redefine an organization’s systems to embrace this outer core.
- We are also dealing with increased human longevity which is creating new challenges of living and working that will require greater flexibility than ever before. Employees need the ability to go in and out of the traditional employee lifecycle, moving from the usual part-time and full-time arrangements to more fluid ones that allow them the flexibility of committing more sporadically while also making time for family, reskilling, the pursuit of a purpose or personal passion, and so on.
- Driving transparency, accountability and action in the open talent economy in the form of new labour models that take advantage of this phenomenon in a responsible and sustainable way. There is evidence that suggests a distinct lack of social safety nets in this new labour model from wages to working conditions to diversity issues, and action is needed in this space.Committing to generating and sustaining employability across our value chain and not just the inner core, while continuing to drive our organizational transformation through the power of purpose and lifelong learning coupled with radical new ways of reskilling and redeploying talent.
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