Technology transforms the way we work and organise our work relationships

Digitisation, robotics, machine learning and artificial intelligence are transforming the nature of our work, and where, when and how we work. But to what extent, and how can we manage this influx of new technologies and make them work for us? And what are the effects on the dynamics of our labour market? Today and in the future?

Over the next decade, we will not only face job losses, but see the creation of new jobs, too. New types of work are developing and new ways of collaboration between humans and machines are being introduced. New competencies must be developed, skills must be renewed, and the demand for tech-savvy workers is expected to rise even more. And all this in a working environment that is becoming more and more flexible and where the traditional roles of employer and employee are less common. To face these challenges successfully, governments, organisations and social partners must share a vision on the effects of tech in the workplace. The current position of the Netherlands is strong. But if we do not make additional investments in lifelong learning and developing the knowledge, skills and competencies required in this digital age, we will lose our advantage.

Therefore, it’s high time we did something about it and lead the world of work by example to the best solutions.

The Netherlands & Tech

Ours is an open and export-driven economy. Its dominant features are its international orientation and expertise of global markets, services and technology. Consequently, our labour market also has an above-average international orientation, supported by an excellent physical and technological infrastructure (i.e. internet connectivity and technological knowhow). But our current position holds no guarantee for the future. In today’s tech world standing still means decline.

The successful implementation of new technologies requires a state-of-the-art learning infrastructure. Organisations, government and individual workers in the Netherlands know this, but must also act accordingly. The connection between training and business needs to be clearer. A masterplan for the development of required competencies on a national scale must be adopted. Let’s call it Competent Nederland 2030. Employees and future employees must feel personally responsible for updating their employagility.

Retaining a favourable position on the labour market is a condition for successful innovation, productivity and preventing the social exclusion of vulnerable groups. This can be achieved by on-the-job training, job rotation, secondments and challenging out-of-the-box projects. There has been a lot of movement in these areas lately, but not enough. The funding shouldn’t be a problem. Both the European Social Fund and the sector-specific education and training funds in the Netherlands are willing and able to fund this. Nor is it a matter of awareness. The big problem here is the lack of a sense of urgency and this is why organisations and individuals still do not prioritise this theme.

Another major bottleneck is the mismatch in the demand and supply of talent, particularly in ICT, technology, construction, healthcare and education. The shortage of qualified staff is expected to rise sharply in the next five years and is the biggest concern for CEOs, according to PwC’s annual CEO Survey (2018 edition). Consequently, it is hard for employers in these sectors to fill their vacancies.

It is estimated that 21 to 35 per cent of all current jobs in the Netherlands are potentially vulnerable to automation. This will largely be compensated by many new opportunities the globalised ‘technium’ world offers well-educated, tech-savvy workers. Through the creation of networks, market platforms and virtual communities, technology also allows HR to improve matching and enables professionals to coach more people pro-actively.

At the same time, the omnipresence of tech is a threat to people who currently find themselves on the wrong side of the equation. Growing inequalities exist in today’s labour market and the gap between the haves (those with a steady income, job security and access to the financial markets) and have-nots (those with none of the above) is expected to widen even further. This poses a serious and fundamental challenge - not only for organisations, but first and foremost for society at large.

Important Questions

Hence, in our publication ‘Future of Work 2030 – a wake-up call for organisations, people and government’ we answer the important questions: how will the labour market develop over time? How can organisations prepare for a future that few can predict? What types of tech and skills and competencies are required to improve the agility of your workforce and foster it continuously? How can individuals shape their own future career and take ownership of their lifelong learning, development and preferred work formats? And first and foremost, how can our government and social partners give a huge boost to lifelong learning as a no-regret move to facilitate both the agility of organisations and mobility of individual workers?

Key solutions and calls to action

Own the technology debate Technology will affect every level of an organisation’s business and its people. The issue is too important to leave it to IT or HR alone. Therefore, organisations and people must develop on all levels an in-depth understanding of and keen insight into the changing technological landscape.
People not jobs Organisations cannot protect jobs against tech-related redundancies, but they do have a responsibility to their people. Nurture agility, flexibility and adaptability.
Data privacy and cyber security are top priorities Consider tackling these themes in a context that’s much wider than the GDPR, in an integrated approach - including business strategy, digital transformation and consumer protection.
Take lifelong learning one step further
- Organisations: empower individuals to take ownership and responsibility for lifelong learning and developing and investing in various social networks.
- Workers: prepare for a career characterised by different positions (as an employee, independent entrepreneur, student-worker) and be aware of the need to continuously upgrade the competences and skills required for these various roles. Remain flexible and agile, keep on investing in your market value and ensure your market profile is attractive, vivid and relevant.
- Policy-makers, legislators, social partners and education institutions: take responsibility and action in respect of lifelong learning and tech skills development.

Let's set an example to the rest of the world

Against this background, perhaps the greatest challenge facing the Netherlands is creating a cycle of lifelong learning for every worker. Our call to action for governments, individual workers, social partners, education institutions and training providers and others is to take collective responsibility and dare to make no-regret moves. Co-operation as stand-alone action is not an option. We must develop a shared vision on our work situation and labour market dynamics in 2030. The leading position of the Netherlands as a tech-savvy economy and society is at stake here. By taking the lead in this in the international arena, we will lead by example.

_{*This is the last blog of a series of four based on the publication ‘The Future of Work 2030 – a wake-up call for organisations, people and government’ by PwC People & Organisation. Previously we published our vision on the revitalisation of our labour market and two blogs in which the perspectives of inequality and flexibility were highlighted. Inequality, flexibility and technology are the three key themes of our publication. Download the full report here.}