1. New Labour Reality? Maarten van Riemsdijk Universidad Pablo de Olavide Workshop International HRM Sevilla, 2013

2. Outline Introduction and Context Some Facts & Figures The Boundaryless career What will be the new work reality What can individuals and organisations do? Discussion

3. Fundamental Truth? We have in the west economies in which opportunity, insecurity, flexibility and uncertainty coexist (Arthur & Rousseau, 1996)

4. Some reasons why Need for flexibility increases in companies – Strategy, technology, (global) competition In Holland (Europe), demographic trends lead to predicted labour shortages Labour policies are being designed for more flexibility and longer working lives

5. Demographics: the Netherlands, The EU Demographic Development Europe Demographic Development Holland

6. Continuous training and adaption needed Large cohorts of people (baby boom) will leave the workforce over coming decade. Aging population leads to unsustainable costs (pensions) Too few young people to do the work Hence: older employees have to work longer Retirement age >65 (67 right now) Getting new workers will be a challenge

7. New labour Relations Assumption: This leads to a labour reality that is: more prolonged more flexible more volatile more precarious and uncertain But offers new opportunities and challenges as well (for some).

8. In it: Employees are more responsible for their own career biography and prolonged employability. Companies will be held accountable for employability in and outside of the organisation. Keeping up will be a joint interest of companies and employees alike.

9. Employees know their employment will be temporary; They should ask how the work enables them to develop and stay employed. Companies know work will be temporary, yet they need good quality people; What will they offer to attract them, and keep them developing?

10. Boundaryless careers ? “…..Boundaryless careers are the opposite of ‘organizational careers’ – careers conceived to unfold in a single employment setting”. (Arthur & Rousseau, 1996 p.5). Boundaryless career does not characterize any single career form, but, rather, a range of possible forms that defies traditional employment assumptions. The key concepts are flexibility, networking, marketable skills, and continuous learning, which workers exchange for performance in a career that unfolds across organizational boundaries (Sullivan and Arthur, 2006).

11. Overview Dutch labour market 1997-2011 by labour relation and duration. CBS statline 12-03-2012 Employees permanent Employees FlexibleAgencyOn callOther flexibleSelf employed Parttime 12 to 20 hours p/w Parttime 20 to 35 hours p/w Fulltime (>35 p/w) Yearsx 1 000 1996491154519116519072841813234443 1997505557321416419575545013934540 1998524460622518619573752514634599 1999546457822215320372654515284695 2000558453219511722180157816454694 2001558548618311518886564616684622 200256844571739918586767317914546 200356504381529419288067718594431 200455784541529920291068818794374 2005554249817911120893370219084363 2006559454120512121596271219644422 20075703601213137251100573820544517 20085847615205142268103873621744591 20095851579164148267103972122444504 20105743598166164268104971322814397 20115709606172187246107771023134369

12. Overview Dutch labour market 1997-2011 by labour relation and duration. CBS statline 12-03-2012 Employees permanent Employees FlexibleAgencyOn callOther flexibleSelf employed Parttime 12 to 20 hours p/w Parttime 20 to 35 hours p/w Fulltime (>35 p/w) Yearsx 1 000 1996491154519116519072841813234443 1997505557321416419575545013934540 1998524460622518619573752514634599 1999546457822215320372654515284695 2000558453219511722180157816454694 2001558548618311518886564616684622 200256844571739918586767317914546 200356504381529419288067718594431 200455784541529920291068818794374 2005554249817911120893370219084363 2006559454120512121596271219644422 20075703601213137251100573820544517 20085847615205142268103873621744591 20095851579164148267103972122444504 20105743598166164268104971322814397 20115709606172187246107771023134369

13. Type of labour relation 1996- 2010 expressed by age group 199619971998199920002001200220032004200520062007200820092010 x 1 000 Total5 4565 6285 8506 0426 1166 0706 1426 0886 0316 0406 1356 3046 4626 4306 341 Permanent contract, fixed hours4 6484 7674 9355 1505 2905 2515 3235 2775 2135 1845 1925 2205 3305 3255 237 15 to 25 years 455 448 432 497 526 531 537 507 454 422 405 406 425 402 356 25 to 35 years1 5221 5441 5791 5911 5891 5261 4551 4021 3481 3031 2631 2281 2191 2041 169 35 to 45 years1 3471 3911 4291 4771 5441 5641 5881 5661 5611 5631 5751 5451 5561 5211 477 45 to 55 years1 0651 1021 1841 2381 2501 2441 2841 3021 3131 3361 3611 3911 4281 4541 458 55 to 65 years 259 282 311 348 381 386 460 500 536 560 587 650 702 744 776 Limited duration, possibly permanent & fixed hours 163 185 211 223 220 269 291 292 277 267 304 376 408 401 382 15 to 25 years 58 66 69 62 60 71 73 71 68 75 82 88 90 85 25 to 35 years 75 86 99 104 95 112 119 118 107 110 123 151 156 146 145 35 to 45 years 23 22 31 39 44 57 66 70 65 59 70 94 105 100 91 45 to 55 years 6 10 11 16 19 26 30 29 30 26 31 41 51 55 50 55 to 65 years... 2. 3 3 5 5 4 5 8 9 10 11 Limited duration, ≥1 year with fixed hours 100 104 98 90 74 65 71 80 88 90 98 107 109 125 15 to 25 years 32 40 25 26 20 23 25 28 30 32 34 25 to 35 years 45 42 46 37 30 24 26 31 36 38 40 41 47 46 35 to 45 years 15 14 18 15 14 17 15 16 18 21 22 27 24 45 to 55 years 6 6 7 7 7 6 6 8 9 9 11 12 13 15 55 to 65 years... 2 2.. 3 3 3 3 4 4 6 6 Agency work 191 214 225 222 195 183 173 152 179 205 213 205 164 166 On Call Labour 165 164 186 153 117 115 99 94 99 111 121 137 142 148 164 Other non permanent 128 135 126 121 119 131 128 138 147 150 153 174 183 186 185 Other no fixed hours 62 61 69 82 102 57 55 57 62 78 84 80 83

14. Labour relation of Dutch employees 1996-2012 by contract type (and self employed) CBS Statline March 2013

15. Average job tenure some EU countries expressed in years OECD extracted March 2012 USA: 1996 3.8 years; 2002 4.4 years ( US bureau of labor statistics; sept 14 2010)

16. Job tenure some EU countries 10 years and over expressed as % of total working population CBS statline March 2012

17. BUT The cohort of young people (25-45 years) in the labour population has decreased substantially (47% 1999 to 39% 2012). Relatively, the cohort of over 45 years has increased (36% to 44%, remember people have to work longer as well). This group shows much less labour transitions, so the slight decrease is larger in reality.

18. Job tenure 5-10 years some EU countries expressed as % of total working population CBS Statline March 2012

19. Conclusion There seems to be some scant evidence that: – Labour relations might be fundamentally shifting But No evidence that: – People become more mobile in their career. However: – Companies say there is a shift, and do act on it. – Government says so too and adjusts its policies. – People ‘feel’ something is happening We need to take a closer look!

20. RELATIVITY OF HR SYSTEMS LEPAK & SNELL

21. Human Capital Theory (Ben Porath, 1965) C it = (1- λ)C t-1 + μI t – C= Human Capital – I= Individual – t = Time – λ = Depreciation – μ = Investmentquote – I = Investment

22. Depreciation of HC (De Grip et al 2011) Technical – Peoples’ productivity depreciates because of – General wear and tear (getting older) – Atrophy » Lack of use » Work below your level Economical – The market value of your productivity depreciates – The content of your knowledge becomes obsolete – The industry you work in goes down

23. Economical Depreciation 1. Function related depreciation – Technological progress and organisational change or strategic choice: Hence competencies and knowledge of employees are no longer sufficient or even no longer relevant. 2. Industry- and company specific depreciation – Caused by reorganisations of company closures, eradicating industry specific skills and knowledge – Changes in the professional structure in an industry, leading to lower or no demand for some knowledge and skills.

24. HC Theory Why do Job Hoppers experience lower salaries over their careers? Why is it so hard for the unemployed or re- entrants to find a job? Why do companies not invest in ‘general’ knowledge and skills? Why do older people get less training?

31. Companies need More adaptability Functional flexibility Longer employability at competitive level Be attractive to new generations Offer employability rather than job guaranty

32. Maybe HR policies should change Become more differentiated, different offers for different groups of employees. Be less geared towards permanent contracts – Offer temporary jobs right from the start – Force employees to be functionally flexible Different jobs, changing job content – Realistically discuss the work future of individual employees. Use yearly appraisal talks – Offer not only company specific training but labour market related training opportunities

33. We are far off Very few companies look ahead Very few managers allow their best workers to train/educate themselves Very few companies can predict technological change and its impact on work Strategic personnel planning is still very traditional Individual workers should therefore take the lead!

34. What can you do? Essential is to be employable (able to get and keep a job) In the modern career individuals need to be in pursuit of ‘‘opportunities to obtain training, enhance their human capital, and remain marketable” (Cheramie, Sturman, & Walsh, 2007, p. 360).

35. Career Adapt-Ability 4 C’s Concern about the future helps individuals look ahead and prepare for what might come next. Control enables individuals to become responsible for shaping themselves and their environments to meet what comes next by using self-discipline, effort, and persistence Curiosity prompts a person to think about self in various situations and roles. Confidence: exploring experiences and information-seeking activities produce aspirations and build confidence that the person can actualize choices to implement their life design. Savicksas & Porfeli 2012

36. Thus when vocational tasks, occupational transitions, or work traumas occur, the adaptable individual is: A.Timely becoming concerned about the vocational future, B.Immediately taking control of trying to prepare for one's vocational future, C.Start displaying curiosity by exploring possible selves and future scenarios, and D.Strengthening confidence to pursue one's aspirations.

37. Proactive personality Workers with an innate willingness to change are the driving force for success of individuals and competitive advantage of organizations (Fuller Jr. & Marler, 2009) The prototypic proactive personality is described as ‘‘one who is relatively unconstrained by situational forces, and who effects environmental change” (Bateman & Crant, 1993, p. 105). SO: Be pro-active!