The New World of Work
Over the past decade, a growing number of organizations have been transforming their working practices. Traditional office space is being replaced by lounge areas and quiet rooms; permanent workplaces are disappearing in favour of flex-working and working from home. The world of work is slowly changing, but what are the origins of this New World of Work? And what impact does it have on organizations?
The New World of Work is all about flexibility. Replies like "at the office" and "from nine to five" are no longer in response to "Where" and "When". Instead of the organization, the employees themselves are responsible for where they spend their time, be it at the office or from home. The organization, for its part, should move towards an ethos of freedom, responsibility and trust where the focus is on results, instead of number of hours worked. The hype of the New World of Work is mostly based on social change, its main issue being the ageing of the labour force, which is expected to lead to a substantial labour shortage in the near future. According to the statistical office of the European Union, Eurostat, the current unemployment rate in Europe is 9 percent, although this figure is expected to increase to 15 percent in the next seven years. If we want to maintain the current employment rate in the European Union by 2050, then we will have to overcome an employment deficit of 30 million people. A possible solution would be to introduce partial retirement; staff will then be required to work for a longer period of time, but less frequently. Nevertheless, the labour shortage will stimulate organizations to adapt to social and technological developments and the needs of their staff. In all of this, flexibility is essential. In July 2009, Dutch telecommunications company, KPN, introduced the New World of Work into their organization. All staff members have been given the option to work independently of time and location, but there are a few guidelines to adhere to. "You have to continue to meet with one another", explains Henk van Tilborg, KPN’s HR Services manager, "Which is why it is important to inform others of your availability and schedule your appointments accordingly". In the past couple of months, KPN’s management has communicated its vision on the New World of Work through awareness sessions. During these sessions, they established a number of ground rules that still allow for some individual interpretation. They gave all staff members a laptop and everyone now has access to his or her colleagues’ calendar. In the next step of the implementation process, the managers sat down with their own department to discuss possible changes and new rules. "The members of each team discussed how they wanted to collaborate. For example, in our HR department you are expected to work at the office at least two days a week. These rules give our staff a sense of certainty", says van Tilborg. There are also a number of departments that have not yet adopted the methodology of the New World of Work. "We have no problem with that; we provide the basics and everybody is free to adjust them to suit their own needs", explains Van Tilborg. The most visible element of the New World of Work is the change in office space. Rooms and offices are being replaced by open spaces and meeting areas. It is this makeover that has moved employees to the centre of the organization; however, the available desk space has also been reduced to a minimum. Prior to the implementation, KPN made an overview of the various job types and the office space required to perform these jobs. Based on this, they were able to calculate the necessary floor space. "After that, we tried and tested if the calculated space was sufficient", says Van Tilborg. The office building currently consists of four types of areas: conference rooms, quiet rooms, meeting rooms and open spaces. They no longer have separate offices. "Even the managing director doesn’t have a private office", Van Tilborg adds. Staff at KPN are allowed to choose their own workplace at one of the 100 KPN office buildings in the Netherlands. Employees are continuously searching for a better work-life balance. And, as a result of the labour shortage, they can now demand more from their employers. For example, the newfound flexibility in office hours allows them to attune their working hours to school hours. Working from home then enables full integration of home life and career, which simultaneously forms the crux of the New World of Work. To what extent can employees still be involved with current office issues when they only work at the office one day a week? Working from home is not even an option for every job type, as Van Tilborg explains. "At the office, you always need a receptionist to pick up the phone and welcome guests, and a telecom shop always requires a shop assistant. These staff members can, however, decide on their own schedule. Secretaries, for example, can spend a day at home to manage the appointment schedule, while they take the kids to their swimming lessons in between. The New World of Work is accompanied by a new sense of freedom and responsibility, but it can also have a number of adverse effects. A lack of guidelines, ground rules and agreements can create a feeling of uncertainty among staff members. Another pitfall is structural overtime caused by employees wanting to prove their productivity at home, as Van Tilborg elaborates. "It takes a bit of getting used to. At first, when I was at home drinking coffee with my wife during office hours, I felt a little guilty. Your first instinct is to compensate for this time that you’re not actually working, but you tend to forget that you also have coffee breaks at work with your colleagues. The line between work and private life is slowly fading, which means you have to define your working hours at home or else you will be working continuously." Managers can also find it challenging to manage employees who work from home. After all, how do you maintain the synergy and involvement within such a team? In the case of KPN, the involvement has unexpectedly increased. "The staff members have been given more freedom and trust; in turn their employer comes across as sympathetic", tells Van Tilborg. "The exclusion of private office spaces has also enabled managers to keep an eye out for developments within the team." Further development on both the personal and professional level is important to new employees. That is why the New World of Work focuses on skill-based work, which is no longer geared towards experience or education, but rather on performance. When a person is good at something, the organization looks at how the individual can best put these skills to use, and develop them. In such cases, the motto is ‘the right person for the right job’. However, the increasing need for employees with higher education and competencies can also lead to wage inequality. As a result of the employment deficit, the competition for the best staff is even referred to as the ‘War for Talent’. Another element of the New World of Work is the room for initiative. We can see employees demanding and receiving more responsibility; they do not only apply their competencies in their own job, but are stimulated to develop their talents on other levels. In this way, entrepreneurship is being encouraged and employees can further develop within an organization.
When the New World of Work is introduced into an organization, employees tend to see each other less but communicate more. The lack of personal contact is then compensated for using communication technology: employees ‘talk’ to one another via online chat, mail, video conferences or over the telephone. Furthermore, the introduction of Unified Communications – one tool for every type of communication – has made it easier for employees to discuss, deliberate and ask questions. KPN has also established a number of communication technologies for their introduction of the New World of Work, but their use was not properly explained to the staff members, explains Van Tilborg. "I really did not understand how a chat function could improve efficiency in my job – it was something my children played with. Communicating with people through chat certainly takes some getting used to."
The urgency of a labour force shortage is an important factor in the introduction of the New World of Work. However, the flexibility that accompanies it is useful in many situations. During the cold weather spells of last December, for example, KPN was able to anticipate accordingly. "One Thursday, every staff member received an email which read: ‘Extreme weather is predicted for Monday, so please take home your work tomorrow if you are working from home’. That Monday, we saw 50 percent more people than usual working from home", says Van Tilborg. KPN expects to fully implement the New World of Work by 2010. Van Tilborg adds optimistically that "The first results are promising. A recent poll showed that 100 percent of our employees would recommend KPN as an employer due to the positive impact of our changing work practices." KPN
The New World of Work is…
Flexibility at the office
Flexibility in office hours
"Working from home enables full integration of home life and career"
Flexibility in job description
Flexibility in communication
"Employees are encouraged to develop their talents"
The Future of the New World of Work
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