How IT is changing the jobs market

Some futuristic ideas take a long time to arrive. There have been predictions for perhaps 20 years that soon a huge number of people will be working from home using ICT – an idea often referred to as ‘teleworking’ or ‘telecommuting’. Now there’s evidence that as the web blooms and the recession bites, it might really start happening.

The Economist reports from the US, where 12 million (and rising) workers are embarking on life as a self employed ‘freelancer’ as an alternative to full-time employment or because they cannot find salaried jobs. And so long as the jobs market remains stagnant and workers’ continue to seek more flexibility to be able to look after parents or children the trend will continue.

Technology is also driving the trend. Over the past few years a host of fast-growing firms have emerged to deliver sophisticated software that makes it easier to monitor and manage remote workers. This makes teleworking more attractive for firms who are looking to cut costs (after salaries, premises are usually a firm’s biggest expense).

So whilst bosses look to find ways of making cuts, workers are benefitting from another notable trend: the range of work available on “e-lancing” sites is growing to include more complex and better-paid tasks. Recent projects on one site included a contract to a design for a luxury hotel in Barbados.
At the same time, online employment outfits have developed sophisticated software to screen workers and to manage their relations with employers. More controversially, one firm has developed tools that let employers check on work being done out of their sight. These include a feature that takes a screenshot of a worker’s desktop six times every hour, combining them to form a “work diary”, and another that measures overall time spent using a keyboard and mouse. It’s thought that employers are likely to outsource important projects only if they can track their progress closely. Workers may put up with such Big Brother monitoring if good work is available and the pay is exciting. Working out payment methods is another challenge for teleworking..

So will the growth of “e-labour” mirror that of e-commerce, which took longer than expected to catch on?

A few doubts:

Managers still like face to face contact with employees. E-communication is far from perfect.
Firms will have to address the criticism that they are just running ‘digital sweatshops’
Several legal issues need ironing out (think about insurance and health and safety implications).
Whilst working from home appears attractive, will it have a long term impact on motivation and employee satisfaction.