By Jochem De Boer

Global public affairs manager, The World Employment Confederation

The latest OECD jobs strategy presented at the Ministerial meeting last month is an intelligent document.  It acknowledges that the world of work is changing and that HR businesses need to emphasise this and work with their clients to explore what it will mean.  As a key reference to guide labour market policies for countries around the world it consists of a comprehensive set of policy recommendations designed to promote both more and better jobs.

This latest document contains some trendsetting ideas on national labour markets including some very good recommendations for better and more diverse labour markets.  There are clear recommendations on the portability of rights as well as on the importance of lifelong learning.  There is also open recognition that promoting and upholding diversity will be key and that the challenges lie not with quantity but with quality.

Policymakers from both within and outside of the OECD countries would be well advised to read it and to use it as a basis for setting in place good labour market policies.  The good news for the recruitment sector is that the recommendations it makes will provide an important growth opportunity for HR businesses.  The down side is that if policymakers choose to ignore the recommendations it could have the reverse effect on the HR sector and business could decline.

So what are the main considerations to bear in mind and how is this changing world of work likely to impact HR businesses?

Well firstly we have to recognise that the OECD is considering issues that are largely the luxury of first world countries. In many of the OECD nations for example, the platform economy is viewed with suspicion as it could lead to undeclared work and fuel the growth of informal work.  However in markets such as India, South Africa and Indonesia this same platform economy is viewed quite differently and the advent of Uber drivers, Deliveroo couriers and the like is having the effect of ‘registering’ workers for the very first time.

Some companies have been quick to recognise the opportunity that this presents. Microsoft and the World Bank for example have set up a digital platform in Africa in order to match supply and demand in the new gig economy. In Latin America, meanwhile everyone working in the platform economy is allocated to a Union in what has effectively created a ‘closed shop’ system that recognises workers and affords them basic levels of protection.

The new gig economy is here to stay and there needs to be a system of social dialogue in place that accommodates increasingly diverse contracts and ways of working.  By recognising all forms of work as valid and creating a level playing field for workers, regardless of the type of contract under which they are working we can then design an effective resolution for mitigating labour conditions and a system that works for all.

The new OECD study, which is based on strong, solid research, was discussed at length during the May forum in Paris.  While examples of good work being undertaken across the globe were showcased, some would argue that the underlying message of the study is that the world of work as we know it is about to be hit by a veritable Tsunami that will totally upend the way that we view and manage work in the years ahead..

So where in this new brave new world of 24 hour, on-demand, task-by-task work, is the space for the likes of social dialogue and collective bargaining?  For markets that never had these things in the first place the new economy poses little threat, but to those in the developed world who have spent the past century in constructing systems to support workers and work, the new reality is literally turning the work order on its head.

I firmly believe that all too often discussions on the evolution of work are detached from reality. Now is the moment for the western world to wake up and smell the coffee.  Informal work is not something new – it is, and always has been, the global norm.  Over 70% of the world’s population work under this system.  By listening to workers and businesses on the ground around the world we have the opportunity to create a more pragmatic approach.

As long as discussions are centred on the erosion of rights and protections and the rise in informal work we will not see the bigger picture and be able to seize the opportunity. We need to stop viewing the future of work through our own, first-world lens and instead need to start capacity building to support HR business in helping their clients to navigate and thrive in this new reality of work.

About WEC

The World Employment Confederation is the voice of the employment industry at global level, representing labour market enablers in 50 countries and 7 of the largest international workforce solutions companies. The World Employment Confederation brings unique access to and engagement with international policymakers (ILO, OECD, World Bank, IMF, IOM, EU) and stakeholders (trade unions, academic world, think tanks, NGOs). Its main objectives are twofold: to help its members conduct their businesses in a legal and regulatory environment that is positive and supportive; to gain recognition for the positive contribution the industry brings to better functioning labour markets.

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