The New World Of Work Needs A New Social Contract

The COVID-19 pandemic ushered in perhaps the most disruptive period of any of our lifetimes. The economic fallout resulted in millions losing their jobs or having their lives upended as work was radically transformed. As we begin to emerge from this long nightmare, we must reflect not only on the lessons learned by organizations and workers, but also address the challenges that lay ahead, including a looming talent shortage, growing skills gap, and inequality in the labor market.

One thing is clear: The work world needs a new social contract that promotes equality, inclusiveness, and opportunities for all.

Although the World Economic Forum (WEF) has been foretelling of the coming fourth industrial revolution for years, nothing has sped up digitization like the pandemic. A recent McKinsey survey found that companies have accelerated their digitization efforts by three to four years because of the crisis, and the digital adoption of technologies leapt forward by an estimated seven years.

While this acceleration may lead to the loss of millions of jobs to automation and digitization, it will also simultaneously create new opportunities for millions of workers who have the necessary skills to adapt and thrive. In fact, a recent WEF analysis anticipates an overall net gain of 2.1 million jobs as a result of the digital transformation by 2025.

The linchpin, of course, is making sure workers are equipped with the skills for those new jobs, whether that means upskilling employees to work with new technologies, reskilling workers whose jobs have been replaced by digitalization, or training young people in school to work in roles that may not even exist yet. So far, skills training has not kept pace with digital change. Randstad’s recent Workmonitor survey found that 40 percent of workers around the world say they are struggling to learn new skills.

Part of the issue, as revealed by Randstad RiseSmart’s Skilling Today research, is the need for more democratized skilling. Nearly 40 percent of HR leaders surveyed said that they offered skilling opportunities to some – but not all – of their employees, with managers far more likely to be offered training opportunities than any others. Not only is offering these opportunities to all employees good for business and increases employee engagement, retention, and workforce agility, but it’s a key element of a broader social contract between organizations and workers that will ensure that both are prepared to meet evolving business and labor needs.

An equally important issue is what role the private sector, governments, and universities must play in helping workers acquire new skills. For example, in Randstad Sourceright’s recent Talent Trends survey of 850 C-suite and human talent leaders around the world, 92 percent said they felt it was their responsibility to provide reskilling opportunities for their employees, yet 68 percent felt that governments should be doing more to provide reskilling opportunities for workers, while 65 percent felt that universities could contribute more to providing reskilling support. It is critical that these stakeholders better collaborate to accelerate reskilling efforts for all workers.

Ultimately, this new social contract must embrace the notion of the Decent Work Agenda, a set of principles outlined by the International Labour Organization that aims to provide fair income, social protections, gender equality, and decent job opportunities. This is especially important given the disproportionate impact that the pandemic has had on women in the workplace, and women of color in particular.

Women lost 12.2 million jobs between February and April of 2020, nearly wiping out all of the gains women had made in the labor market over the last decade. Additionally, women have been slower to return to the workforce than men, with women’s labor force participation sitting at 57 percent a year after the start of the pandemic, the lowest number since 1988, and nearly 12 points lower than men.

COVID-19 also exposed the vulnerability of gig workers to such events and disruptions. Given that both workers and organizations are increasingly embracing the flexibility provided by contingent work as an alternative to full-time employment, businesses must realize that temporary workers still need many of the same benefits and protections that permanent employees enjoy.

On the private sector side, this involves creating a more complete employee value proposition (EVP) that supports temporary workers and makes them feel part of a team. At a basic level, this includes competitive pay, career development opportunities, flexible hours, health benefits, and the potential to convert a temporary role into a permanent one. For example, Randstad’s “One Randstad, One Family” program has reduced the hours that employees need to work to be eligible for benefits coverage, offered increased remote and flexible work and job-sharing opportunities, discounted childcare options, and retained health advocates who can assist workers with childcare and eldercare needs.

On the government side, regulators and lawmakers must ensure that workers are supported with more robust social safety nets like social security and protective rights to ensure that everyone has access to fair work and pay. For example, the Austrian government, in partnership with Oxford University, launched the world’s first universal jobs guarantee program, which promises employment to every worker who has been unemployed for more than 12 months. The program provides candidates with training and assistance to find work and guarantees a public sector job for three years.

There is no doubt that the COVID-19 pandemic accelerated existing trends regarding digitization and labor shifts towards more flexible work arrangements. While this transformation offers many positives for organizations and workers alike, it also highlighted gaps in skills and social protections that threaten millions of workers. It’s now more critical than ever that stakeholders work together to create a new social contract that provides equitable and inclusive opportunities for all workers in this ever-evolving digital labor market.

The original article can be found at: Staffing Industry Analysts