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The Impact of Digital Transformation on the Job Market

19 de August, 2018

I recently came across a report done by Deloitte about current trends in the job market. I was impressed by the  expectations of the younger generations: 43% of Millennials expect to leave their job within 2 years (and only 28% want to spend more than 5 years in the same job).

For the Generation Z (born starting from the late 1990s), the number is even higher: 61% expect to leave their job within the same time frame.


The first question I asked myself jokingly was, “I am a Millennial, and I getting to the 5 years mark at Tinder: should I be worried?”.

The second was: “Is it then that something is changing dramatically in the labor market?”.

This is obvious.
The truth is that THE WORLD IS CHANGING. We are in the middle of the 4th Industrial Revolution, namely in the middle of the Digital Transformation, characterized by the combination of technologies that are merging the physical, digital and biological spheres – and that can lead to Singularity, the moment when advances in technology will make machines smarter than people (according to Ray Kurtzweil, futurist and director of Engineering at Google, Singularity will take place in 2045).

The advance of technology is not linear but rather exponential, society is highly fragmented, as the political scenario is – and this transformation has led to the infamous VUCA scenario: Volatile, Uncertain, Complex and Ambiguous.

Moments of crisis present enormous opportunities, of course, but at the same time enormous challenges: about our role in the labor market, about the way we sink in knowledge, about how to deal with people.

All of this is reinforced by what Zygmunt Bautmann’s theory of liquid relations, which reports that technology has lowered the barriers to interacting in society, predicted: digital platforms allow for job search and talent scouting with tremendous speed.

In the VUCA scenario, most Millenials show a need to be comforted, as they are pessimistic about the prospect of political and social progress, and express concern about social equity, inclusion, and environmental and economic sustainability.

ALL THIS POINTS TO A HUGE DISCONNECT BETWEEN THE EXPECTATIONS OF THE NEW GENERATIONS, GROWN UP INTO THIS DIGITAL WORLD, AND THE MOST TRADITIONAL COMPANIES THAT HAVE NOT ADAPTED YET.

Therefore, the range of skills that the HR sector needs to recognize and develop in this scenario is totally different from the past, as well as the priorities of current workers are different than before.

What is IMPORTANT to workers in this scenario?

The Deloitte report points out the top 5 elements:

1 – remuneration (this is not surprising at all)

2 – a positive corporate culture (this is also something that has been talked about for a long time).

Everything pretty obvious, so far.

BUT now we get to the interesting part:

3 – flexibility (of schedule, location, tasks, etc.)

4 – development opportunities (particularly of soft skills, such as self-awareness, self-confidence, ethics, and critical thinking)

5 – diversity (of all forms).

What does this all tell us? The first 2 are key factors for talent ATTRACTION – AND WE’VE SEEN THAT THIS IS NOT THE PROBLEM HERE, because they are issue that companies already manage well (although they still have to make major improvements in Culture).

The last 3 are key factors of LOYALTY, or, migrating to the terms of the digital world, RETENTION. THIS IS WHERE THE PROBLEM LIES, AND THIS IS WHERE THE COMPANIES NEED TO ADAPT. We may even be good at making attractive job descriptions and proposing great salaries to talented young professionals, but we still do not have a working environment ready to make them want to stay and become loyal.

Getting inspiration from the world of Mobile apps, it is proven that 80% of the users who downloaded your app today will uninstall it within 3 days.

Not as fast, but the same is happening in the job market, with high turnover rates.

We have to change with urgency!

The Digital Transformation is also changing the range of skills that are important to develop and identify in this scenario. For recruiters then, what are the characteristics to look for in a potential candidate?

  • COGNITIVE FLEXIBILITY (the ability of our brain to think about multiple concepts contemporaneously, and to switch between different areas of knowledge quickly)
  •  CRITICAL THINKING (the attitude of challenging the status quo, and finding gaps in products, processes, and markets. Also because if we think things are fine as they are, we are totally mistaken).
  •  SPECIALIST IN HUMAN BEHAVIOR (the major reason for failure of start-ups is the lack of sufficient demand for your product or service: it is important to be able to perform socioeconomic and psychological analysis that go beyond the numbers).
  • DIGITAL ALTRUISM (someone who puts the human being at the centre of the business experience, and that is really moved by the purpose of helping people. Someone who does not stick to B2B, B2C or traditional business models, but focuses on H2H: Human-to-Human).
  • GOAL-ORIENTED (without making sustainable financial results and being profitable, we are going nowhere).

If we do not recognize these characteristics and if we do not adapt to them, we will miss the enormous opportunities that this scenario provides.

I can say the over the last 4 years at Tinder I learned a lot.

Focused on creating a work environment based on flexibility, development and focus on the human side, we have been able to set up a global team of professionals, and human beings, with a FLEXIBLE mind, an INNOVATIVE mind, and an ALTRUIST mind.

The same applies to Zen.

The same applies to Filmr.

It is important you do the same.

Your challenge is to create a flexible work environment that values ​​diversity and provides personal development to bring and retain the best people for your business.

We are talking about facts, not about hypotheses.

We are talking about real experiences, not about possibilities.

Because eventually, it’s not about how smart the person is, that’s about how much she can adapt.

It’s not about how much she is talented, it’s about how flexible her mental code is.

It’s not about how much you pay your employee, it’s how much help her develop.

LET’S VALUE MORE gaps in the Curriculum.

Let’s value extraordinary experiences.

Let’s value people who do not take things for granted, who challenge their own beliefs, and who do not always choose the easy path.

Let’s value failures, also because suffering is nature’s preferred incentive for change.

To wrap up, I want to get back to Deloitte’s report and touch upon what I think is the most important result of it: this new generation of employees places greater value on leaders who are committed to having a positive impact on society.

BE ONE OF THEM.

Only then you will be able to bring in and retain the best talents.

 

Ciao,
I'M ANDREA

ENTREPRENEUR. PUBLIC SPEAKER. NOMAD. CONTENT CREATOR. INVESTOR. MINIMALIST.

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