TECH4GOOD
For ages, the rigid structure of the eight-to-five workday has been the cornerstone of the professional life of many employees. However, this traditional model shows signs of obsolescence for knowledge workers whose primary function revolves around applying expertise and information. It is also giving birth to a new phenomenon – the rise of independent workers or what many refer to as the gig economy.
Fueled by technological advancements and a growing desire for flexibility, a shift towards results-based work, untethered from set hours, is gaining momentum. The Covid-19 pandemic served as a catalyst. Forced lockdowns demonstrated that productivity does not hinge solely on office hours. Many companies adapted to remote work, and employees experienced the advantages of flexibility. A taste of freedom fueled a desire for a more balanced work-life. For many employees, their home is a much better work environment than an office.
Initially, many employers were not happy with this shift. When the pandemic restrictions were relaxed, businesses issued return-to-office (RTO) orders, which were met with negative reactions from most workers. The RTOs resulted in increased attrition, to the disappointment of many employers. But they soon realized that the benefits of work-from-home arrangements could be substantial. It can significantly reduce overhead costs associated with physical office spaces. They also see that increased flexibility can lead to a happier, more engaged workforce, which can translate into higher morale, better creativity, and a more productive workforce.
However, another shift is beginning in developed countries like America. Employers are beginning to ask: Why pay expensive salaries and benefits if employees are not in the office? Many companies opt not to, resulting in another trend: layoffs. It is an interesting development because employees are not being let go due to a lack of work but replacing those workers with AI tools or gig workers. It may not yet be happening here, but a recent survey by consulting firm McKinsey says independent work is rising fast, and 58 million Americans now identify themselves as independent or gig workers. What used to be seen as side hustle jobs is also becoming common for knowledge workers.
Beyond technology and the pandemic, a generational shift is at play. Millennials and Gen Z prioritize flexibility and autonomy over rigid schedules. They value experiences and personal fulfillment alongside career success. The traditional 8-to-5, often demanding long hours with limited control over work cadence, struggles to resonate with these aspirations.
The eight-to-five schedule originated during the Industrial Revolution, mirroring the regimented hours of factory production lines. Standardized work hours ensured efficient use of machinery and facilitated coordinated efforts among large workforces. Communication technology limitations necessitated physical presence in a central location to collaborate and share information. This model also fostered a culture of "presenteeism," where visibility during set hours was equated with productivity.
The tipping point arguably came with widespread internet and mobile technology adoption in the early 21st century. Suddenly, being connected and productive from anywhere became a reality. The Covid-19 pandemic further accelerated this trend, forcing a global experiment in remote work. The success of this large-scale, unplanned trial has undeniably reshaped attitudes towards traditional work models.
The move away from the eight-to-five work schedule presents both opportunities and challenges. On the positive side, flexible work arrangements can boost employee morale and well-being. Reduced commutes, especially in Metro Manila, allow for a better work-life balance and improved mental health. Additionally, flexible schedules can cater to individual productivity rhythms.
The benefits are also substantial for companies. Aside from reduced overhead costs associated with physical offices, a wider talent pool becomes accessible, as geographical location is no longer a barrier to recruitment. Furthermore, flexible work arrangements can attract and retain top talent who value autonomy and control over their schedules.
However, challenges also exist. Remote work can hinder communication and collaboration, mainly when teams are spread across different locations. Maintaining a sense of company culture and fostering team spirit can be more difficult in a virtual environment. Self-discipline and clear boundaries are crucial for success in a flexible work environment.
A critical drawback is the lack of job security and employee benefits that traditional full-time jobs offer. Moreover, the inconsistent nature of gig work can lead to income volatility, making financial planning and stability a constant concern.
The future of work for knowledge workers will likely be a hybrid model, with flexibility playing a central role. Companies that embrace this shift and adapt their management styles will be better positioned to attract and retain talent in a competitive landscape.
Although the eight-to-five workday may not entirely disappear, it's clear that the traditional workday is on the clock out for knowledge workers. As technology continues to evolve and employee expectations change, the future of work will be defined by flexibility, empowering knowledge workers to thrive on their own terms. ([email protected])
(The author is an Executive Member of the National Innovation Council, lead convener of the Alliance for Technology Innovators for the Nation (ATIN), vice president of the Analytics and AI Association of the Philippines, and vice president of UP System Information Technology Foundation.)