Digital Transformation - Effects on the World of Work and Employees

Digital Transformation
Effects on the World of Work & Employees
Dr. Peter Vogel / www.petervogel.org / info@petervogel.org / @pevogel
© Monique Mardus

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Dr. Peter Vogel
Digital Transformation: Effects on the World of WorkJune 16th, 2015
 Founder & Chairman of HR Matching AG
 Head of Competence Center Technology Ventures Uni St. Gallen
 Partner of the Futurework Forum
 PhD on Active Labor Market Policies
 Author of “Generation Jobless?”

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Outline
 Digital transformation insights
 How digital technology has changed our lives
 Digital natives
 How digital technology impacts the workplace
 The importance of unplugging & employers’ responsibilities

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Digital Transformation Insights
Global use of digital technologies
Source: wearesocial (01/15)

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Year-on-year growth of the digital world

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Monthly global mobile data usage (in Millions of GB)

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Source: Globalwebindex (2014)
% of internet users who personally own the following

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Outline
 Digital natives

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How Digital Technology has Changed our Lives
“We are
changing the
world with
technology”
- Bill Gates -

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It affects the way we teach and learn…

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It affects the way our children spend their leisure time…
Huffington Post: “Our kids are getting less time outside than chickens or prisoners”
Telegraph: ¼ of UK children spend less than 30 minutes outside playing… PER WEEK!!!

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How many times have we pulled out our cell phones while having dinner?
It affects the way families interact at home…

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It affects our relationships…
Insights from a recent Bayer survey:
 1/4 of women admit that email & internet are disrupting their sex lives
 2/3 of participants admitted their partners do not make enough effort in the bedroom

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It affects our social interactions…

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It changes our brain structure…
“The way adolescents of today learn, play, and interact has changed
more in the past 15 years than in the previous 570 since
Gutenberg’s popularization of the printing press. The Internet,
iPads, cell phones, Google, Twitter, Facebook, and other modern
marvels unleash a virtual gusher of information to the plugged in
teen brain.” (Jay Giedd, 2012)
The brain’s plasticity is particularly pronounced during adolescence
and scientists observe changes in the human brain as a result of
the digital revolution!

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It can lead to “Digital Dementia”…
 Overuse of digital technology is resulting in the breakdown of
cognitive abilities that are more commonly seen in people who
have suffered a head injury or psychiatric illness.
In order to reverse it, experts suggest a digital detox via:
 Actively using the head for memory training
 Reading physical books instead of ebooks
 Learning a new language
 Playing a new instrument to use & connect both parts of the brain
 Physical training to activate the blood circulation

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 Information overload
 Constant distraction
 Social media anxiety
Source: naldzgraphics.net

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Individuals use their smartphone 100-150 times per day – on average!
Detrimental effects on health
 “Sitting is the new smoking” (Forbes, 2015)
 Text neck syndrome
 Gameboy back

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…
 Text claw
 Sleep texting
 Depression
 Phanton Phone Vibration
 And as secondary effects of reduced physical activity the usual
suspects: Obesity, cardiovascular problems, etc

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Outline
 Digital natives

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Digital Natives
…and it’s getting worse!
Everything we just learned is even more pronounced for digital natives!
Digital Natives Baby Boomers
Wireless Internet 62% 35%
Texted in the past day 80% 35%
Median # daily texts 20 5
Have a social network
profile
75% 30%
Posted to profile in
past 24h
32% 9%
Source: Pew Research Center

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Digital Natives
Technologies that have influenced today‘s youth
(adopted from „Generation Jobless ©)

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Generational Emergence
The GI and Silent Generations (1901-1945)
• Life before TV / WW I and WW II
• Respect hierarchy
The Baby Boomers (1946-1964)
• Work on typewriter / revolutions
• Distrust authority
Generation X (1965-1982)
• Work on word processor / tough economic times
• Don’t trust anyone
Generation Y (1982-1990)
• Work on computer / growing up in stability
• Environmentally conscious / Dual-income parents
Digital Natives (Gen Z) (1991 – present)
• Virtually connected / exposed to a global competition
• Worried about future / seek flexibility / reduced loyalty
EvolutionRevolutionRevolution

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Characteristics

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Everyday’s Life of Digital Natives
Cisco survey of college students (18-30y) in 18 countries revealed:
Status updates for breakfast
 90% get dressed, brush teeth, & check smartphones as morning ritual
Online all the time
 60% find themselves compulsively checking their smartphones for news
 Of those surveyed, 87% have a Facebook account
 10% have Facebook always up
 90% upload photos to internet sites, 62% share videos
 20% admit to texting while driving
Technology at the table
 46% text, email or check social media during meals with family / friends
Source: Cisco Connected World Technology Report 2012

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Everyday’s Life of Digital Natives
Work and personal time blend and overlap
 More than 30% use their smartphone in the bathroom
 75% use their smartphones in bed
 50% would give up sex for one month instead of their smartphone
 40% would feel anxious (“part of me is missing”) if without smartphone
 67% spend same amount of time with family / friends online & in person
Friends & Identity
 81% believe that people have different online / offline identities
 < 50% said that their online / offline identities are the same

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Outline
 Digital natives

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Effects of Digital Technology on the Workplace
It has helped us organize…

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…at least the physical space. But messy people will always be messy
…and then there’s the digital data dilemma (where’s that file again?)

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Home office call centers…

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2015
Remote work & remote learning…

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Benefits of using mobile devices to connect employees and work
Source: HBR, 2015

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Executives’ perspectives on which technologies are, or will be…
Source: HBR, 2015

Advantages of technology at work
 Technology improves communication using diverse technologies
 Skype
 Virtual conferences
 Share screens
 Cloud
 Encouraged innovation and creativity
 Ideation portals
 Central knowledge databases
 Brainstorm
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+

 Improved Human Resource Management
 Improved screening and processing of applicants
 Time saving hiring processes
 Tracking employee performance & efficiency
 Time saving
 Automation of tasks  productivity increases
 Reduction of human error
 Information accessibility
 Mobility enhancing – access from anywhere
 Home office
 Remote work
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+

Disadvantages of technology at work
 Causes distraction at work
 Social networking
 …
 High maintenance costs
 Buying & maintaining new technology is expensive
 Makes employees lazy
 Employees will not use their brains as much anymore but instead let
computers & software do the work
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-

 Affects workplace relationships
 Virtual communication eliminates face-to-face communication
 Employees become more reserved and self-centered
 Riskiness
 Data security
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-

Technology preferences
 75% believe that websites will become less prominent in our lives and
21% believe websites will be replaced by apps
 >15 % use smartphones to take notes during meetings
 40% would allow the carrier to get access to all the data on the phone
in return for unlimited data service
Evaluation of current work life
 50% prefer having a flexible (anywhere / anytime) workday instead a
traditional, scheduled 9-5 workday
 25% of employees are allowed to work from home
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Digital Natives @ Work

Implementing greater work flexibility
 >50% consider themselves available for work 24/7
 2/3 of employees believe that companies with flexible work structures
have a competitive advantage of the classical 9-5 office hours
 They are unwilling to accept a lower salary for increased flexibility
Glancing into the Future
 Most believe smartphones & wearables will be most important work
device by 2020
 Physical offices will still be there, but much smaller and flex desks
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Task Performance
 60% of professionals believe digital natives are able to perform tasks
faster than older employees, especially when allowed to use mobile
devices and apps instead of laptops or desktop PCs
Human Resource Management
 60% of HR professionals are willing to hire a candidate by only
interviewing him or her using video conferencing
 Most HR professionals are concerned with digital native’s job skills
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Future Workplace
 Shared / flexible office desks
 Multiple / connected devices to always access work-related documents
 Split between office & home work
 Performance rather than presence
 Inhouse health consultants
 Daycare services to boost work-life-balance
 Digital detox advisors
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Outline
 Digital natives

Employee’s access to work-related material from home has created a
conundrum for managers:
Do you want your employees to be available 24/7 or do you want them
performing at their peek levels after having taken a digital detox?
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Managerial Strategies in the Digital Era

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4 Ways to get Employees to Unplug
 CEO & Top Management must be onboard or else employees will
feel uncomfortable to unplug
 Managers must resist after-hour or weekend mails to their employees
 Turn off your company email after hours (Example VW)
 Use digital detox as part of your employee value proposition and
recruiting efforts

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What Swisscom Can Do for Clients (B2C & B2B)
B2C
 Further promote solutions such as the “My Time” application
 Collaborate with insurance companies to offer discounts to clients
that purposely disconnect from their phone or at most use it to track
their sports activities
B2B
 Offer corporate solutions that help companies manage the digital
detox of their employees
 Offer executive trainings for sustainable digital use at work

Dr. Peter Vogel
Peter Vogel Strategy Consulting
Seuzach - Switzerland
Mail info@petervogel.org
Twitter: @pevogel
Web www.petervogel.org
Thank you for your attention.

Digital Transformation - Effects on the World of Work and Employees

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