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Read MoreThe Rise of Remote Work and On-demand Workforce
The democratization of information technologies managed to change our personal lives, and accelerated by the pandemic, the way we work. The way people are working the way might be completely changed in few years.
Remote work became such a standard that is classified as benefits in jobs offers as it offers flextime, flexplace, and it is family friendly. Similarly, a new type of workers emerged they are called Digital Nomads, they are peoples working fully remotely and travelling the world at the same time, we can see them making vlogs on social medias.
One interesting example is the YouTube channel Dynamo Ultima where Lexi and Cody are travelling the world in their self-transformed van while running their business in internet.
Why the Professional World is Changing ?
Because the technology allows it
Information Technology is one of the fastest growing sectors since the biggening of internet, year by year the humanity has access to more data, powerful and cheaper hardware, better software, and incredibly faster internet connection speed. Remote work and digital nomadism are consequences of technology development, without the amount of tech available today, it would be difficult to work efficiently outside of the workplace.
Because the job can be done on a computer
In developed country that have a dominant tertiary economy, a huge percentage of the work can be done remotely. For instance, in France, an estimated 34% of the population have remote compatible work. Working tools also diversified, most of the office work in now done on computer. Once the technology is sufficient and the infrastructure here, software companies developed new ways of communication and tools to work remotely (messaging, video calls, drive, remote desktop…).
Is it a problem or companies ?
For remote working and digital nomadism, organizations can perform almost the same way as before, their structure is not directly impacted. But technology allowed a new range of possibilities for workers that are transforming the structure of companies.
Freelance
On-demand workforce is one of these, even if it exists since the biggening of the civilization, models as freelance are growing faster than ever. A study conducted in 2017 says that “the majority of the U.S. workforce will be freelancers within a decade” (Edelman Intelligence, 2017). The world number of freelancers is estimated at 1.2 billion, representing one third of the total workforce and 36% of American reported freelancing (Khandelwal, 2022).
Freelancers claim trusting their client portfolio better than an employer, having more freedom and flexibility, and perceive freelance as a good career opportunity. Plenty of different platforms in charge of connecting freelancers to employers emerged proposing contract-based work as Fiverr or Jooble. There are also companies based on freelance labor as delivery or taxi digital platforms. Theses websites are technology solutions that are serving the democratization of Freelance.
Decentralized Autonomous Organizations
One of the major trends in technology is Blockchain, this technology fascinates people for its new approach. Blockchain main capacity is that it can be operated in a decentralized way. One good example is the main difference between a classical bank and the Bitcoin. In a Bank, user will pass by the bank because they trust it for managing their money, the bank is a trust centralized place. For Bitcoin, as every user help confirming the transaction, the trust come from every user, it’s decentralized. Decentralized Autonomous Organizations (DAOs) “stands to fundamentally transform organizing and governance. DAOs are blockchain-native, decentralized organizations that are collectively owned and managed by their members via smart contracts.” (Bellavitis et al, 2022). Those type of organizations use the blockchain technology to allow individuals to work in a truthful environment. Usually, every individuals have decision power and receive financial share of the project, the task management and control is also secured via the technology.
People trust toward senior executives and government official is declining year after year, workers are afraid to be used and mismanaged, trust in companies is becoming an important source of competitive advantage leading to more productivity and less burnout. Workers are looking for situations where trust is high, the most efficient way for them to do so is by becoming an actor of the decision-making process. Moreover, desire for control is one of the most important factors of intrinsic motivation. Freelance is a way to have more decision power as the worker can choose the missions, its working time, and its clients, the freelancer have more control on its work than an equivalent employee. DAOs members have some control power and are sure to work in a truthful environment.
Is it a problem or companies ?
With the rise of freelance, companies will need to find appropriate ways to transform their employees (Owned workforce) into volatile, project/task based and culture different workforce (Freelancers). Moreover, individuals will encounter difficulties such as effective communication, social interactions, and stability. Decentralization will also create difficulties because it’s a change of organizational structure, members of these organizations will have to govern and do their work at the same time.
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References:
Batut, C., Ministère de l’Économie des Finances et de la Relance. (2022). Le télétravail, un outil efficace face à la crise sanitaire ? (Report No. 304). Direction Générale Du Trésor.
Bellavitis, C., Fisch, C., & Momtaz, P. P. (2022). The rise of decentralized autonomous organizations (DAOs): a first empirical glimpse. Venture Capital. Advance Online Publication. https://doi.org/10.1080/13691066.2022.2116797
Bosinaki, E. (2021). Greece’s digital nomad visa: A tax perspective. International Tax Review, N.PAG.
Edelman Intelligence. (2017). Freelancing in America, 2017. Upwork And Freelancing Union. https://www.slideshare.net/upwork/freelancing-in-america-2017/1
Eisenberger, R., Rhoades, L., & Cameron, J. (1999, November). Does pay for performance increase or decrease perceived self-determination and intrinsic motivation? Journal of Personality and Social Psychology, 77(5), 1026–1040. https://doi.org/10.1037/0022-3514.77.5.1026
Mintzberg, H. (1978). The structuring of Organizations. Prentice Hall.
Khandelwal, A. (2022). State Of Freelancing: Statistics You Need To Know. https://elitecontentmarketer.com/freelance-statistics/
Shirmohammadi, M., Au, W. C., & Beigi, M. (2022). Remote work and work-life balance : Lessons learned from the covid-19 pandemic and suggestions for HRD practitioners. Human Resource Development International, 25(2), 163 181. https://doi.org/10.1080/13678868.2022.2047380