Trend: New organisations of work

A trend indicates a direction of change in values and needs which is driven by forces and manifests itself already in various ways within certain groups in society.

A transformation in the organisation of work approaches us and it is expected to be large and varied with different trajectories. The transformation will include new leadership styles and steer decision-making processes toward more responsibility, co-determination and empowerment of workforces. Also, new organisations of tasks within companies and global networks through project-focused approaches to operations is leading to more self-responsible project teams, as well as a gig-economy work, with an increase in freelancers and micro entrepreneurs. There is an increase in spatial (mobile/remote working) and temporal flexibility of work based on technologies, such as communication technologies, sensors, 3D printing and remote servicing and maintenance, which have a regional dimension –therefore coming with impacts on the location of production and workforces. 

New ways of working, i.e. new organisations at work and working practices are driving company decisions at all levels, including by affecting sustainability values - which are becoming more relevant for the attractiveness of the company as an employer. In addition, they affect the commuting intensity of a workforce, as well as the location and space-intensity (offices) of company sites. With telecommuting, flexible schedules and the increasingly wired (and wireless) world, the boundaries in and outside of the workplace have become increasingly blurred – and employee demands are growing. Research has shown that remote working could save 18 billion road kilometres, thus cutting emissions, in addition to less paper and plastic usage and in some instances reduced power consumption. The tasks of Human Resources and related job types will become more important, e.g. to enable the workers to work self-determinedly and be responsible for projects remotely. Team development and team building needs emerge.

This Trend is part of the Megatrend Changing nature of work

Manifestations

Developments happening in certain groups in society that indicate examples of change related to the trend.

Work is organized more around projects than positions

Leaner and more agile organisations that are focused on identifying value from the customer perspective are appearing. The organisation and design of work is transforming to more agile and simple structures, moving away from traditional multilayers. Trends show less (slow to react) hierarchical structures. Hierarchies are being replaced by cross unit organizational groupings with fewer layers and more decentralized decision-making and the digital transformation is boosting the trend toward ‘vertical restructuring’. Vertical restructuring refers to project work when an employee takes on higher-level responsibilities along with their regular (job description) tasks. This eliminates functions and departments, streamlining decision-making, and brings employees with varying skillsets together, moving beyond ‘boxing’ individuals based on their current job descriptions. Project-level activities rely on more agile implementation.

Signals of change: Business and Industry, Mercer

Life-phase oriented work

The new ways of working marked by digital transformation and remote work, more agile project-based approaches and changing attitudes towards work are leading to new working time models. There is growing interest in the individualisation of working time, job-sharing arrangements (where two or more people share one full-time job), or life-phase oriented working time (changing depending on professional and private life phases). These are increasingly augmented with individualised career advice systems using machine learning to create personalized roadmaps for learning, resources, and work opportunities. Not only is the shape of life-long careers changing, with telework and flexible work, the periods of productivity are changing as well. Adding to the two typical work peaks for knowledge workers – just before and after lunch, a ‘third peak’ is emerging in the evening between 18h and 20h. However, the access to this flexibility is limited and mixed, blurring the borders between work and private life also has its downsides for those with access to it, and inequalities for those without.

Signals of change: More than Digital, Microsoft, WEF

Increasing self-employment and gig-economy

Organisations are becoming less likely to provide lifelong careers and job security. In the expanding ‘gig economy’, temporary and part-time contracts make up a sizeable part of the job market. Some employees are increasingly willing, some are forced to consider short-term contracts for increased flexibility, as employers minimise expenses and the number of permanent, full-time contracts - an outcome being more disposable workers with low wage security and fewer rights. It is no small thing not to have employment-related health insurance, or paid leave. Around half of the gig workers globally lost their jobs during the pandemic and others lost much of their income too.

Many roles can be classified as a part of this growing model, including: self-employed freelancers, consultants, contractors, temporary contract workers, etc. In many cases the gig economy is about exchanging work for money through apps on digital platforms, using the cloud and relying on ratings for services (Task Rabbit for example).

A broader search for fulfilment in ones working life is making a growing number of people add passion-driven gainful activities alongside their main employment. People are experimenting with approaches to monetize their knowledge and skills within hobbies and passion projects in ‘spare-time work’. This may require limiting their engagement in their full-time job, dubbed as ’quiet quitting‘, or not going above and beyond at work and merely meeting the job descriptions without giving ‘110%’.

Signals of change: Gallup, U-Eco, WEF, Digital Journal, Davidson's Passion Economy Daily Philosophy

Interesting questions

What might this trend imply, what should we be aware of, what could we study in more depth? Some ideas:

• What if employees and applicants define the rules of work and contract conditions?
• How can we get to a future of work where the European social model is preserved and reinforced?
• How can we respond to the new challenges of a fragmented globalised world and reap the benefits of technological innovation?
• What if inequalities in access to flexible work increase?