Issues

Workforce disruption: megatrends impact on the world of work

Niamh O’Beirne, Partner, People Advisory Services, EY Ireland looks at how disruptive trends on a global level will impact the future of work and what this may mean for governments and the public sector.

When we talk about disruption, we do not refer to it as solely stemming from technology or business innovations, but also external from influencing factors such as demographic shifts, globalisation and macroeconomic trends.

Today’s organisations, governments, healthcare providers and consumers are responding to disruption that would have seemed unimaginable even a few years ago. We’re witnessing this first-hand at EY, and are helping organisations across a range of sectors including the public sector to challenge entrenched thinking and seize the upside of disruption.

It is evident that the effects of disruption extend far beyond the business world. For example, ‘sharing economy’ start-ups such as Uber and Airbnb are already disrupting governments’ regulatory frameworks. Meanwhile some of the most disruptive technologies on the horizon such as Artificial Intelligence (AI) and robotics will not only disrupt corporate business models, but also society as a whole, influencing how public services are provided, altering relationships between governments and citizens, and reinventing the workforce. Indeed, one of the main factors driving reinvention within the healthcare sector is digital disruption.

Disruptive trends are reinventing the workplace of the future

The displacement of the workforce by technology and globalisation is not new, however the next waves of disruptive technology, including AI, robotics, virtual reality, the Internet of Things and sharing platforms are poised to fundamentally reinvent the workplace. We see the future of work evolving in two ways.

The gig economy

It was only a matter of time before technology fundamentally altered the nature and perception of how we work. A clear example of this is the emergence of the gig economy, which is the concept that in the future, people will increasingly have temporary jobs, or do separate pieces of work rather than working for one employer. This trend is transforming the talent landscape and is a simple reminder that organisations must continuously look at how they can attract talent and adapt their offering not only to consumers and clients, but also their employees. The forces of globalisation and technology innovation are not only rapidly shifting consumer preferences, but also our perceptions of the workplace of the future.

In the same vein, the rise of the gig economy is helping organisations address this disruption. Platforms such as Airbnb, Deliveroo and Uber have made the gig economy a well-established model in which contingent workers provide labour through short-term assignments. These contingent workers can be freelancers, independent professionals, temporary contract workers, independent contractors or consultants.

A recent US survey found that one in two organisations had increased their use of gig workers in the last five years, and two in five organisations expect to increase their use of the contingent workforce by 2020. As more organisations move to this workforce model, the implication for organisations in both the public and private sector is far reaching and the societal impact is even greater. Organisations are looking to the gig economy to help them scale up and down to meet customer and citizen demands, to provide services outside of the five day workweek, and to access talent that is in short supply. From a government perspective, gig economy start-ups are already challenging regulations governing the operation of hotels, restaurants, taxis and more. In the growing gig economy, workplace protections such as collective bargaining, the five day workweek, paid time off and insurance against workplace injuries and unemployment could all come under threat. Independent contractors in the gig economy have none of these protections, therefore governments will need to find the right balance, creating regulatory regimes designed for the future.

In a public service, areas such as healthcare, which is increasingly under pressure to deliver services seven days a week, 24 hours a day, against a backdrop of significant recruitment challenges, the potential for gig economy models to challenge the status quo may emerge.

There are also huge benefits to be gained by embracing this new model, by both organisations and workers alike. Organisations want to cut costs and improve their agility to meet constantly changing consumer demands, while contingent workers crave flexibility and control. By collaborating on ways to overcome the potential risks, organisations and workers alike can reap the benefits.

 

The machine economy

The next stage of disruption will be driven by Artificial Intelligence and Robotics, the mass disruption of labour and the rise of this “machine” economy.

AI is now disrupting jobs long considered immune to technological displacement. Algorithms have uprooted white-collar work in the financial sector such as high-frequency trading and are starting to do so in healthcare through the emergence of innovations such as mobile health apps, robotic surgery, robotic porters in hospitals and diagnosis by algorithm. These changes are also helping to drive huge benefits for society, such as fewer medical errors due to automation and reduced traffic fatalities through the emergence of driving technologies.

Although we are still in the early stages of these shifts, and it’s hard to know exactly how they will play out, history shows that automation surprises us with new sectors and forms of employment. Just as digital disruption spawned jobs for the likes of app developers, the machine economy is likely to generate jobs that we are unable to envision today. Indeed, while many fear that robots could put millions of low-paying jobs at risk by automating processes, we believe they could help to transform the workplace by allowing people to focus on higher value work that requires analytical interpretation and judgements; skills which machines cannot possess.

While the future of work will create challenges, we see a number of upsides. By embracing these disruptive forces, organisations will benefit from tremendous gains in efficiency and productivity in both customer delivery and business services. Time intensive processes like recruitment on boarding can be reduced from days to a matter of minutes, while government and healthcare regulations will become nimbler and respond to the needs of citizens and patients in real-time. There is no doubt the future of work will disrupt business, government and society, however if the challenges are embraced as an opportunity to transform public services for the better, rather than being perceived as an obstacle to navigate around, then these upsides will follow.

Niamh O’Beirne is a Partner in EY’s People Advisory Services, and leads the Performance and Talent portfolio.


Tel: +353 1 221 1074


Email: niamh.obeirne@ie.ey.com

 

 

 

 

 

 

 

EY’s People Advisory Services helps you understand, secure and improve your People Agenda. Getting the right people, with the right capabilities, In the right place, 
for the right cost, doing the right things.

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