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Digital Impact On Labor


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Christian Wernberg-Tougaard outlines some of the challenges of Social Welfare with respect to Labor and Unemployment at a conference in December 2009 in Madrid.

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Digital Impact On Labor

  1. 1. <Insert Picture Here>How digitalization is impacting Labour/EmploymentAdministrations in EMEAChristian.Wernberg-Tougaard@oracle.comDirector, Social Welfare, Europe, Middle East & AfricaGlobal Public Sector Industry Business UnitPresentation at Employment conference in Madrid, December 2, 2009
  2. 2. About me ... • Christian Wernberg-Tougaard • Leads Social Welfare at Oracle Industry Business Unit on Public Sector, EMEA • Nordic Public Sector Industry Lead • Macro economist – Major in Labor Economics • Worked with the impact of ICT on Public Sector for the last 14 years, including being: • Senior expert for the Danish Government / Parliament on technology issues • Expert for the European Commission (eInclusion Policy Support Program) and the European Parliament (RFID and Identity Management – ETAG and STOA). • Different director roles in EMEA for IT-industry companies working with Business Development, Strategic Marketing, Innovation & Transformation. Worked as a Management consultant • Head of Sector Danish Ministry of Science • Chairman of The Danish Board for Greater IT-security
  3. 3. Agenda• Political and economic challenges force transformation• The current crisis and Labor Market• Digitalization of Labor Market – best practise and things to come ...
  4. 4. Transformation of Public SectorPublic Sector Public Sector TRANSFORMATIONIndustrial Age Digitised Age • Paperbased • Rigid processes 1•More demanding citizens •Digital workflow • Flexible • Stiff approval 2•Global Economic and Political Pressures processes system • Difficult to 3•Ageing population and shrinking workforce Savings • Adaptable processes change processes •Escalating Social Services budgets • Self-service • Focus on • Easy extraction management, not •Welfare, Social and political change of productivity leadership Security data •Care for the Environment • Focus on ”when, • High where, who” •Migrating populations transparacy to rather than ”why, Service processes and how” privacy protection •Security threats & Technology •Low • Value-focus transparancy •Moving from industrial to knowledge •Homogenous •Multiple encoun- society and interoperable ters of data loss
  5. 5. The Age Challenge: triple bad newsfor Public Sector ... 3 1 • The most experienced employees are leaving as they retire 2 • There is not so many young people wanting to join public sector and the labour pool is decreasing 3 • As the entire labour marked becomes tight with scare resources, the salary gap between public sector and private sector will widen.3½ • And the increase of elders will challenge the social systems, the pension systems and the healthcare systems
  6. 6. Trends in Government Transformation INTEROPERABILITY GROWTH • Moved beyond system-to-system (S2S) • The Social Sector will grow rapidly – US integration to ensure Country-2-Country Bureau of Labor Statistics predicts a 22% (C2C) integration and interoperability. Open growth from 2006-16. Governments needs Standards and formats Worldwide. to act transformational. FLEXIBILITY EFIICIENCY• Governments demands systems to be • By implementing best practise from Social flexible and with high degree of COTS Service Industry Models, Governments will (Commercially Off The Shelf). Easy yield better quality for less, knowledge transformation of business processes and preservation and ability to shift resources rule interpretation to accommodate best towards care taking. practises will be demanded. MATURITY CITIZEN CENTRICITY• Governments wants to spend tax payers € • The citizens will appreciate the swifter efficient – solutions (HW+SW) and system services and the reduced case-handling intergrators (implementation/adaptation) time – especially if self-service capabilities must be highly mature (CMMI). are implemented. PERSONAL INTEGRITY TRANSPARANCY• Governments want to ensure that the • Yield high degree of transparency of the citizens have trust in digital solutions – as processes as citizens can see how rule distrust erodes the value creation of interpretation has affected their decisions, while digitalization, hence privacy needs to be digital case handling yields significant gains in protected. productivity to the benefit of the government and the citizen.
  7. 7. Agenda• Political and economic challenges force transformation• The current crisis and Labor Market• Digitalization of Labor Market – best practise and things to come ...
  8. 8. Why change Labor Marked policies ? Spain: 19.8 Call for short term actions Call for long term actions
  9. 9. Sh or tRLabor Marked – recession actions un Source Employment Working Paper No. 35, ILO 2009
  10. 10. Sh or tR Labor Market ecosystem un Structural and transitional unempl. Increased supply - Work Sharing Training (Employability) In employment (”chômage partiel” – France) PES JSA programs Recent research has shown that a 3% Unemployment Benefit Scheme increase inIncreased supply – Create new Jobs Reduce fear of Unempl. unemployment leads Australia – ”Hire a fired” (subsidy) to: Social Benefits 2% drop in road kills Japan – Housing / Anti-Homeless 3% increase in suicides Increased supply – TrainingSweden – 20% time cut unsubsidized 21% increase in alcohol The Weak / Migrant Workers can be used for training related deaths Korea – 250.000 LowIC Jobs granted Out of employment teme os elfar Which on a family / ys re/ al W Creation of Public Jobs, Wage social welfare holistic point of view can take Ec ctu ociSubsidizes and lower Social Contribution 10-20-50 years to tru e S ”repare” ras ThAbbrivations: InfPES = Public Employment Services Job portals, Labor Agencies Matching,JSA = Job Search Assistance peer networks, weak citizens jobLMP = Labor Marked Policies
  11. 11. PES future considerations ...• The traditional role of PES has been on making citizens unemployed employed (able). Will this change? What about securing skills and workability among ”endangered” workers in case of crisis? How will this impact PES organisationally ?• Should PES become more active in risk-assesments of citizens – telling citizens that they should be upgrading their qualifications as they are in a ”high-risk industry” ? And that kind of proactive action towards the citizens – what would that demand from a organisational point of view ?• The choices done today in PS will remain active in PS for 10-15 years – what choices should be done today to prepare for the labor marked of tomorrow?
  12. 12. Agenda• Political and economic challenges force transformation• The current crisis and Labor Market• Digitalization of Labor Market – best practise and things to come ...
  13. 13. Sh or tR So – how can digitilization help ? un Citizen-centric• Make systems that are easier for citizens to use Presentation • Many citizens that are out-of-job has not been on forced to use ICT in their job – they are novices on Siebel @ UWV the ICT requirements... the eWeak!• Make rules and regulations clear to citizens Presentation • Most lay offs are not aware of the complex rules and on regulations -> visualizations and guides as well as screening tools can be beneficial OPA• Increased turn-around-time – reduce vacancy time Presentation • Using skill profiles together with advanced matching on technology will reduce the ”in between job” waiting ELISE / WCC time and provide better citizen service
  14. 14. Sh or tR So – how can digitilization help ? un PES-centric• Fight Fraud • As many citizens can see increased utility from Presentation recieving benefit it might be tempting to claim more on than you are eligible to. Rules engines and good OPA metadata can protect you against this.• Benchmarks Presentation • To know how to go somewhere, you need to know on where you are... remember to have good Business Intelligence CWI• Consolidate metadata and establish 360 Presentation • By having a value-chain based approach to PES digitilization (360 degree view) and securing on information consolidation PES’s are able to provide ”Evolución del much broader services to citizens more efficient. Modelon”
  15. 15. So – how can digitilization help ?• In the long run ... • Prepare for the flexible future – the amount of policy changes that the recession has demonstrated will be ”everyday” • Migrate LEGACY to COTS environments • Use RULES and BUSINESS PROCESS ENGINES • The biggest challenge of 2015 – to maintain Labor Supply sufficient • New ways of working – collaborative and utilizing Web3.0 • Labor-Saving Technologies – Danish Government invest €500m in joint-venture research to examine / POC. • Training, training and training of workforce to climb the value-chain (transition towards more and more knowledge-based economies) • Interaction with people in work as well as unempl.
  16. 16. If you want to learn more ...