The world of employment changed dramatically after the economic crises of 2008. It is clear that the labour market is a different ball game today. Lifelong employment is becoming a myth, the workforce is graying and there is pressure to change the demographics of the workforce to adhere to among other affirmative action prescriptions. The reality is that the possession of superior training, experience or even scares skills is no guarantee to be employed or stay employed. The paradox of the modern labour market is that employers stress that the shortage of correctly skilled workers is a critical factor in becoming or staying market leaders compared with the figures of unemployed highly educated workers that increases steadily.
Recently qualified professionals also have a different view of their future careers than their parents. According to Bjorn Veenstra newly qualified highly educated workers indicate their desire for the “freedom” to work independently in contrast to be permanently employed. Most of the professionals plan to set up their own venture in the future.
The management of human capital will change dramatically in the following years and companies must adopt new skill management principles to still attract the best workers. The career planning of dynamic highly educated workers will also echo this new landscape in the world of work. Veenstra believes that in the next 5 years there will be a shift from labour contracts to talent contracts. Within 10 years it will be standard practice that the individual worker will offer their skills and talent independently or in a group on the market place.
The prominence of a talent contract will enable the individual to offer his specific skills and talent just in time to the employer. The employer of the future will need specific skills independent from the age, ethnic group or other factors of the applicant, that may have an impact on the traditional employment contract. Talent contracts is known by flexible work hours, the length of the employment can be extremely short (hours or days) to years and are based on the knowledge or skills that the employer needs. The level of remuneration will be determined by the degree that the skill or knowledge is scares.
The downside of this development from a permanent employee to an independent contractor is that the contractor bears all the risk and uncertainty. To address this Veenstra suggests a talent stock exchange.
A talent stock exchange is seen as the opposite of an employment agency where a group of experts join there talents and market their skills jointly to the market. This co-operation can provide security and sustainability to the members. Employers will also benefit from a talent stock exchange because it is a cost effective way to increase their critical capacity.
Due the explosion of the internet and social media such as LinkedIn, facebook and twitter, workers are no longer developing their professional profile based on where they are employed, but focus now on their own personal branding. Career planning of the future is not to strive to be employed by the right employer, rather it is now all about personal branding, marketing of your skills and nurturing your networks.
André Beukes is an EU Management Consultant to international companies doing business in Europe.
He provides clients with practical business support that makes a real difference doing business in the EU.
“Put simply, I am here to help you meet your challenges. I believe in the importance of doing things correctly, meaning risks are reduced and problems are avoided.”