There are plenty of organizations in Latin America that have a classic culture and hierarchical structures with different levels of rigidity. New organizations with an innovative culture that bet on team work and collaborative structures, are challenging the labour market.

By Martín Padulla

The Latin American productive framework is changing. The weight of the entrepreneurial ecosystem is becoming increasingly heavier. The fast growth of these organizations, which are organized in a very different way, with a strong technological basis, a new type of leadership, and strongly oriented towards service quality and customer experience, challenges traditional businesses.

Traditional businesses feel the classic business culture crumble under their feet, and see that charismatic leadership no longer has the same transformational capacity. These leaders are beginning to perceive the limits in transformation, both in terms of quantity and quality.

New generations that join companies demand room for innovation, a higher level of involvement, they want to participate and work in teams. They want to have a role that has an impact, to be part of organizations that have a purpose. Such needs generate discomfort for two reasons: older executives are starting to say farewell to organizations, and, in just a couple of years, 75% of workforce will be made of millennials. These changes are closely linked to the possibility of being attractive to an ever scarce talent.

This context coexists with a technological development that includes cognitive automation. Existing jobs are already undergoing transformations: some jobs disappear, and new jobs that could not even been imagined a few years ago, are created. It is key to understand that humans can develop skills that technology cannot perform. To do so demands greater sophistication and skills’ training based on the current and future demand. But never based on the past.

Promoting an innovation culture that puts technology in its place and grants value to talent seems key. Creating interdisciplinary teams that include different roles, enable ideas to flow and take risks.

The most resilient organizations are basing their structure on projects, which are conceived as collective processes based on collaboration. This, inevitably demands different kinds of formal work, diversity of labour contracts and of ways of connecting talent with organizations. Hence, the concept of Total Talent Management is strategically mentioned as a proper way to manage complexity in extended, open and innovative organizations.

These new economy organizations do not only challenge traditional businesses, but also labour markets, their structure and the legal framework that supports them.

It is becoming more frequent to hear traditional businesses’ leaders say: “I need to uberize my company”. Such claim demands a change of paradigm and a large dose of adaptability.  It means going from a hierarchical organization to a collaborative organization that breaks down barriers, includes and aims at reaching the highest potential to attain a common goal.

Clearly, the more we cling to rigid structures with traditional hierarchies, the further away we get from the huge potential that the collaboration era brings for us. Hierarchical organizations tend to repeat status quo.

But, can we do it? What are the restrictions for innovation in the region? Is Uber a disruptive company or an informal organization that functions against the law? There are elements that prevent innovation and neutralize any possibility for disruptive innovation, which is the type of innovation that enables us to access products or services never imagined before.

The first group is shallower, and it is possible to work against them: “passion killers”; closed compartments, focus on short term results, fear for failure or for making mistakes, constantly working on urgent matters, risk aversion, the typical phrase “this is the way we have always done things around here”.

The second group is deeper and less accessible for organizations: “outdated laws”, regulatory frameworks that support a reality that no longer exists and neutralize the legal update needed to fit the current context. Companies and workers need flexibility and security, different kinds of labour contracts that block the possibility of informality and promote a new, different way to access benefits. A more modern and pertinent way to connect is being loudly demanded. Disruptive technologies get it, but regulatory frameworks don’t.

There are around 1.4 billion people who are mobile workers today, and many of them are remote workers. Some are entrepreneurs, others are freelancers, and others have temporary contracts. Diversity.

This is a huge challenge for Latin America. It is the challenge of becoming part of the World, and the possibility of being a key player of the future of work.

Not only organizations need to innovate. Workers and governments also must adapt to a cultural change that has come to stay. Speed, creativity and efficiency to reach consensus among the three parties involved will be key to become a truly innovative region.

About Martin Padulla

Founder and Managing Director of staffingamericalatina. Martin Padulla is Sociologist (USAL), MBA (UCA) and labour markets expert. He published “Flexible Work in South America” and “Regulatory framework for private employment agencies in Latin America” two books about the new realities of work in Latin America.

Follow Martín Padulla on Twitter: @MartinPadulla

mpadulla@staffingamericalatina.com

About staffingamericalatina

It is the unique independent digital media specialized in Latin American´s labour markets.

Produce and spread contents, researches and developments about issues such us Employability, Youth Employment, Training for Employment, Decent Work, Private Employment Agencies, Active policies for employment, Teleworking, Public and private actions for the creation of decent work, Green Jobs and Corporate Social Responsibility.

It is the meeting point for companies, providers, candidates, service´s companies, academics and independent professionals of Latin America.

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