
As the world’s fourth industrial revolution unfolds, profound transformations are taking hold within the office landscape.
Professor Steven Dhondt offers a reassuring message to EU citizens worried about job losses due to automation: relax, there’s nothing to fear.
Dhondt, a renowned expert in work and organizational change at the Catholic University of Leuven in Belgium, has spent the past four years researching the impact of expertise on job roles. Based on a recent EU analysis undertaken on the challenge, he emphasizes opportunities rather than threats.
Proper imaginative and prescient
‘While it’s essential to foster innovative enterprise strategies and provide adequate support, vision is crucial in not perceiving technology as a threat,’ Dhondt emphasized. ‘Significantly, leveraging this tool consistently will ultimately shape our future and foster innovative employment opportunities.’
The rapid acceleration of digital technologies worldwide is widely regarded as the fourth industrial revolution, bringing about fundamental transformations in how people live and work.
The fourth industrial revolution is likely to be defined by the widespread adoption of automation, robotics, and artificial intelligence, which are already transforming industries at a rapid pace. The concept of Industry 4.0 has evolved into a phenomenon commonly referred to as “Business 4.0”.
“The Luddite movement in the 19th century, sparked by the introduction of computerized spinning machines in the wool trade, echoes similar concerns today regarding the impact of AI on jobs, reflecting broader questions about employment practices and the labor market,” said Dhondt.
He’s also a senior scientist at TNO, the Netherlands-based independent research organization.
The European Union initiative led by Dhondt examined how businesses and social programs could better accommodate employees as they navigate the challenges posed by technological advancements? The initiative, known as [initiative name], kicked off in January 2019 and concluded in June 2023.
While the advent of self-driving cars and AI-powered robots promises significant economic growth and societal advancements, it also raises concerns.
According to a study conducted by the European Centre for the Improvement of Vocational Training, more than seven in ten EU residents share concerns that emerging technologies will displace people’s jobs.
Native successes
Researchers at Beyond4.0 investigated European firms that have successfully empowered their workforce by adopting proactive and forward-thinking strategies.
“We shouldn’t view expertise as a threat; instead, we must harness its power to shape the future and create innovative job opportunities.”
– Professor Steven Dhondt, BEYOND4.0
In a bid to remain competitive amidst technological advancements, the iconic family-owned Dutch glass manufacturer, Metaglas, took a bold decision to augment its in-house talent pool by investing heavily in employee development.
By implementing a more transparent communication framework, Metaglas empowered employees to have greater influence on the company’s strategic direction and product development.
The MetaWay transfer programme has enabled the corporation to retain employees while generating revenue that is subsequently reinvested in the workforce, according to Dhondt.
The instance highlights the pivotal role that managers’ strategic decisions play in the overall success of an organization, underscoring its importance in the corporate sphere.
According to Dhondt, organisational administrators hold the key to determining whether the availability of expertise serves as a facilitator or a hindrance. “If administrative decisions exploit specialized knowledge to diminish job quality, the very existence of employment is put at risk.” When administrations leverage expertise to create job opportunities, employees and organizations are more likely to invest in learning and development.
The Metaglas case has directly fueled a discussion aimed at sharing best practices more widely across enterprises.
Dhondt underscored the importance of collaboration between European companies and vocational training providers, fostering synergies that empower individuals to thrive in their careers.
Beyond 4.0 examined the case study of Oulu, Finland, once touted as the premier hub for mobile phone giant Nokia. By the 2010s, the decline of Nokia’s smartphone business posed a significant threat to Oulu’s economy, as thousands of skilled engineers were laid off, risking a “brain drain” in the region.
The successful collaboration between Nokia, Finland’s native universities, and policymakers led to the development of new companies, including digital spin-offs, which ultimately preserved a significant pool of engineers in the country’s central region – historically a hub for trade in wood products, such as tar, timber, and salmon.
According to Dhondt, some Nokia engineers ventured to a local hospital to collaborate on “e-health” initiatives, while others shifted their focus to Finland-based Stora Enso, a leading paper manufacturer.
Today, Oulu boasts an unprecedented array of cutting-edge employment opportunities that far surpass the innovative heights reached during Nokia’s golden era. The Beyond4.0 workforce presented the region as a thriving entrepreneurial ecosystem, one that could serve as a valuable reference point for shaping policies and practices across Europe.
Revenue assist
When individuals were out of work, the project also seemed to introduce new forms of welfare support.
Researchers from Finland analyzed the outcomes of a two-year experiment, where participants received a “universal basic income” (UBI), to assess the viability of an innovative model dubbed “participation earnings.”
In the UBI experiment, participants received a monthly stipend of €560, provided without any conditions or expectations. While Universal Basic Income (UBI) is often touted as a potential solution to the challenges posed by automation, the Finnish trial analyzed by BEYOND4.0 suggests that UBI might actually undermine the fundamental principle of social solidarity.
Participants in the undertaking’s revenue generation program are required to engage in a community-benefiting activity as a condition of receiving financial support. This could potentially encompass programs that cater to seniors or children.
While ongoing development efforts focus on specifics, the BEYOND4.0 team has announced collaborations with the Finnish government and the parliamentary agenda now includes deliberation on this initiative.
Dhondt anticipates that the project’s insights, complemented by support for well-being, will enable other organizations to more effectively navigate the evolving technological landscape.
Employment matchmakers
Dr. Aisling Tuite, a labor market expert at Ireland’s South East Technical College, is another researcher dedicated to helping individuals adjust to technological advancements.
“We aimed to create a product that would be equally valuable for job seekers and those helping them.”
– Dr Aisling Tuite, HECAT
With a focus on innovation, Tuite has explored how digital technologies can empower job seekers in finding suitable employment opportunities.
Under the auspices of the European Union, she spearheaded a pioneering initiative aimed at empowering out-of-work individuals by providing them with opportunities to acquire new skills or find employment through a more inclusive and accessible online platform.
Conducted over a period of approximately three years, from February 2020 to July 2023, this comprehensive initiative brought together a diverse group of researchers from Denmark, France, Ireland, Slovenia, Spain, and Switzerland.
Recently, numerous countries have implemented innovative labor-market insurance strategies that leverage computer-based tools to generate detailed profiles of employees, empowering career counselors to efficiently target those who require the most support.
While a highly targeted approach may initially seem effective, Tuite cautioned that it often forces individuals into jobs that aren’t necessarily well-suited for them, ultimately leading to job retention difficulties.
“Unfortunately, our current employment strategies often fall short of achieving their intended outcome: placing individuals in meaningful roles. Instead, they merely shuffle people from one position to another.” What most people crave is tailored support and personalized guidance. We aimed to create a product that would be equally beneficial for job seekers and those assisting them.
Able to run
The HEAT’s online system seamlessly integrates newly posted job openings with expert career guidance and real-time insights into the current labor market.
The system has been thoroughly examined throughout the project, and a beta model is now available for use in all EU countries where data is provided.
According to Tuite, identifying job availability and positioning oneself for optimal hiring is crucial.
The system showcases job openings by location and quality, providing granular insights into professional opportunities and labor market trends, including emerging job types and average time-to-hire in specific sectors.
According to Tuite, feedback from those involved in the assessment was overwhelmingly positive.
A woman remembered a younger female job applicant expressing newfound confidence in exploring new career options, while another shared that understanding the typical duration of “job waits” alleviated the anxiety associated with job hunting.
In the near future, Tuite is optimistic that HECAT’s researchers will uncover the underlying systems governing public sector employment services within several European Union countries over the coming months.
Interest in this project is growing rapidly across European Union public employment organizations, and we’re thrilled by the momentum.
This information remains current as of 21 September 2023, referencing Steven Dhondt’s role at the Netherlands Organisation for Applied Scientific Research (TNO).
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