Davos Takeaways: With Compassion We Can Reinvent the Way We View Our Workforce

Usually, the World Economic Forum takes place at the start of the year, in January. But if you cast your minds back to January, it was that moment in time before Russia invaded Ukraine, before the markets crashed and recession became a word we all hear on a daily basis. Spending time at Davos last week in Switzerland, it felt like all the conflicts were left behind us.

People from all walks of life and all areas of the world sat and shared thoughts, ideas and lunches. With so many nation conflicts happening around the world, we all share responsibility in looking for ways to solve them. Here are my thoughts from the event, which I hope can spark the fire of conversation.

What are the skills of the future? Compassion and empathy

During an insightful session on the skills of the future, an interesting topic was raised. We all need to look for more ways to share and collaborate as a group, to think about what we lose by being increasingly connected to computers and phones rather than the human beings around us. This was only exacerbated by COVID-19, but we need to look for ways to add greater balance. Go back to basics, encourage our kids to play more, invest in sports and spend time in groups.

So, what are these skills of the future? After a huge investment in cloud and data, the time has come for organizations to think about maintaining this infrastructure. New professions have developed, data analysts, data operations teams, implementation and migration experts. Individuals who gain these real-world skills will be able to be part of a global company’s fabric, without ever needing to gain a university degree. In fact, a degree is becoming less and less relevant.

In order to act with compassion and empathy, and to bridge the gaps in equal career opportunity for all to create a meritocracy based on skills not credentials – companies need to act boldly, and remove a university or college degree as a criteria altogether. This is great for the business too, uncovering candidates that often get ignored by the algorithms – a category known as “hidden talent.” Research from the Harvard Business School proved companies who “intentionally seek out hidden workers are 36% less likely than others to face talent and skills shortages.”

Some organizations have already taken this leap – IBM for example has eliminated college degree requirements for many roles. However, countries also need to follow suit, stepping in and removing university degrees as a prerequisite for immigration. Education is important, but with new skills needed in the workplace more than ever before, a university degree doesn’t equate to talent or professional capabilities, and degrees remain expensive and a barrier to entry for so many.

Who are the workers of the future? Global citizens of the world

In this new world, I often hear it said it’s the employees who are calling the shots, demanding greater flexibility and personal development, and setting new definitions for what they expect from the workplace. However, it’s not businesses who are struggling to adapt to this new reality – it’s governments.

Remember the Gig Economy revolution? Where people could become Uber drivers by night and TaskRabbit performers by day, deciding when and how they wanted to work? The government has increasingly implemented regulations that make it difficult for Gig workers to be classified as independent contractors, rationally claiming that drivers need to be covered by insurance or protected from a loss of income in case of a recession.

But what about the new kind of Gig economy workers – the digital nomads? These workers were encouraged by their employers during COVID-19 to work from anywhere, and in some cases the location-agnostic policies have continued even post-pandemic. These workers want the freedom and flexibility to work from anywhere, and the enterprises they work for are happy to comply.

Unfortunately – the governments are not so quick to catch up. In many cases, employees need work permits even to work for a single week in a new location. Companies are coming unstuck while ensuring employees are covered in terms of medical insurance, pension coverage, or a whole host of other benefits and compliance laws.

Even when governments are jumping in with both feet – and offering legislation that allows workers to compliantly relocate with an easy work permit process, and often a competitive tax environment, it’s not all rainbows and butterflies. In reality, when employees relocate from Europe to the UAE for example, the employees reduce their income tax by 60-80%, and suddenly Europe is losing significant taxes.

Why are we waiting for the future? It's time to reinvent payroll

Governments need to come together to think about the individual as a global person rather than a citizen tied to specific local rules and regulations. Each worker should have their unique identifier, and countries by and large should work together to set similar withholding processes, adopt the same methods for deducting pension contributions, and align benefits and medical contributions. After all, in reality most countries already share very similar systems.

Imagine a streamlined system of payroll globally where there weren’t specific rules relevant to only a single region. Where workers could move across borders and work with autonomy and control, without adding shadow payroll, or tax and accounting experts to every out of the box transaction or request. It would be scalable, cost-efficient, and would support countries in gaining more income tax to support their infrastructure and governments.

I believe that we are up for the challenge! Let’s get the world of today ready for the global citizens of tomorrow.