BITCI Leaders’ Group Worker of the Future Progress Report

INTRODUCTION The focus of the Worker of the Future is the Adaptive Workforce Economy. This refers to the increased trend towards project or gig based working, and the associated increase to freelancing / contractor type working There has been a shift towards these trends for a number of reasons: From a labour supply perspective, today’s workforce seek greater autonomy and flexibility from their workplace. More than ever before, workers are technology enabled to be able to work independently and to be part of a greater purpose and direction From a labour demand perspective, there is an increased demand for niche skills that are difficult to attract and retain. Furthermore, in today’s dynamic environment, organisations require agility in how they are structured and how they are resourced

Progress of actions captured THE JOURNEY SO FAR The Worker of the Future group explored the theme of the Adaptive Working Economy and developed a framework of ideas to address the opportunities and challenges that it presents Workshop 1 10th July 1 Following the initial workshop, sub- groups were developed to progress two actions captured: Develop a view of the “good” and “bad” characteristics of the Adaptive Working Economy Draft a questionnaire to gather the views and practices of “The Mark” organisations with regards to this trend Progress of actions captured 2 The Worker of the Future group reconnected to further refine the framework, provide an update on the actions from the previous session and to agree next steps Workshop 2 1st September 3

KEY OUTPUTS Framework of Ideas Description of the “Good” and THE “BAD” Characteristics of the Adaptive Working Economy Draft Questionnaire to gather empirical data on Best practice and Possible gaps in terms of how organisations are currently operating with regards to the adaptive working economy

Output 1: Framework of IDEAS The aspects of the ‘adaptive working’ economy discussion were broadly grouped into five themes: IDEAS Employment Laws Career Path samples for Freelancers Redefine HR approach to employability High speed Wi-Fi remote offices Contribute to skills development in the economy as part of the mark Develop description of the ‘good’ and the ‘bad’ characteristics of the adaptive working economy Employer role in financial planning Regulation Use our voice HR Structures / Employment Law & Regulation Digital Skill Development and Education Digital Infrastructure & Organising for Adaptive Working Lifecycle and Financial Planning 1 2 4 5 6 7 8 3 Good & Bad of the ‘Adaptive Working’ Economy 9

OUTPUT 2: Description of the “Good” and the “Bad” Characteristics of the Adaptive Working Economy (1/3) Opportunities Challenges Flexibility and Autonomy Adaptive workers can chose how, where and when they work Unfair Treatment Adaptive workers have reported being unfairly penalised for not being available when requested ADAPTIVE ECONOMY WORKERS FACE A NUMBER OF OPPORTUNITIES AND CHALLENGES Work-life Balance 65% of adaptive workers say that they are satisfied with their work-life balance1 Isolation & Disconnection Adaptive workers have reported feeling isolated and disconnected Financial means 58% of adaptive workers are part of the more traditional workforce and are using digital platforms to supplement their primary income 2 Lack of Benefits Adaptive workers do not benefit traditional employees including benefits and supports (e.g. pension, holidays, sick leave) Technology Enabled Digital platforms allow freelancers to find more assignments, market their skills, manage various clients and accept secure payments Limited Learning & Development Opportunities L&D opportunities are often not available either. 35% of gig economy workers cite this as an obstacle to their development 3 Sources: 1 McKinsey & Company, Independent Work: Choice, Necessity, and the Gig Economy, 2016 2 CIPD, To Gig or Not to Gig? Stories from the modern economy, 2017 3 CIPD, To Gig or Not to Gig? Stories from the modern economy, 2017

OUTPUT 2: Description of the “Good” and the “Bad” Characteristics of the Adaptive Working Economy (1/3) Opportunities Challenges Organisational Agility The adaptive working economy enables employers to be agile in attracting talent on demand, without committing to the full-time employment of those workers Ambiguous Employment Regulation There is a lack of clarity in how employment regulation applies to the adaptive working economy SIMILARLY, ORGANISATIONS ALSO FACE A NUMBER OF OPPORTUNITIES AND CHALLENGES Access to Critical Skills Organisations using the adaptive working economy can tap into a broader talent pool for niche, difficult to attract skills Loss of Tacit Knowledge In using adaptive workers, organisations risk loosing tacit knowledge from the organisation when they move on Reduced Labour and Associated Costs Organisations benefit from reduced overheads associated with full-time employees (benefits, office space, learning and development) Risk to Brand and Reputation There is a risk of damage to the brand and reputation when organisations have less control of who is providing services

OUTPUT 2: Description of the “Good” and the “Bad” Characteristics of the Adaptive Working Economy (3/3) Opportunities Challenges Inclusive Workforce The adaptive working economy enables those that may desire more traditional employment to enter / re-enter the workforce (e.g. returning mothers, returning emigrants) Financial Planning The lack of financial planning education and support for adaptive workers places great pressure on the State to support those that have not taken a long-term view on their financial planning (e.g. pensions) FOR SOCIETY MORE BROADLY, THE ADAPTIVE WORKING ECONOMY PRESENTS OPPORTUNITIES AND CHALLENGES Lessened Concentration / Pressure on Infrastructure in Cities With a number of adaptive workers working from home or alternative offices, there is less pressure on the infrastructure of our cities Digital Literacy In a large part, the adaptive working economy requires a level of digital literacy to maximise the opportunities of the digital platforms. This can be very challenging for certain cohorts of the workforce (e.g. elderly workers) and can therefore exclude them

OUTPUT 3: DRAFT QUESTIONNAIRE Lifecycle and Financial Planning HR Structures / Employment Law & Regulation Do you offer formal advice on pensions? Do you offer “flexible” benefits? I.e. giving employees an option to decide between pension / healthcare / education? Are all employees enrolled in your pension plan? Is there a period of tenure before pension eligibility is secured? Do you operate “zero hours contracts” today? Do employees have an option to avail of / opt out of same? Is there a minimum number of hours per month / quarter / annum supported by the company? Do you operate a banded hours system for working hours? Do you review actual hours worked against contracted hours regularly with a view to amending? What employment law regulations would you wish to see changed? Would you support BITC working with other agencies to lobby for those changes? Would you support a review of IDA and Enterprise Ireland granting systems to accommodate a greater accommodation of flexible working? Digital Skill Development and Education Digital Infrastructure & Organising for Adaptive Working What training is in place to develop the skills for the future? Do you operate a formal partnership with the education sector? Are employees provided with education and training each year? Is that training mandatory or optional? Does training encompass both “technical” and “soft” skills? Do you have a formal approach to employees operating in the “gig” economy? Do you operate a formal “work from home” policy? Do you accommodate high speed broadband for flexible working?

NEXT STEPS Definition: Further develop the descriptions of “good” and “bad” characteristics of the Adaptive Working Economy, to include societal impact Interview Questionnaire: Refine questionnaire to ensure completeness and robustness Interviews: Worker of the Future group to identify leaders to be to interviewed in order to gather empirical insights. Interviews to be conducted by the Worker of the Future Group Position Paper: Start to develop a position paper outlining the best practice and recommendations in enhancing the Adaptive Working Economy