Government keeping in touch with digital transformation of workforce

A global sea change in how digital technology is affecting the labour force has been picked up in New Zealand, according to global consultancy Accenture, whose latest report on the worldwide landscape shows firms are putting people at the centre of their new strategies.

Accenture's annual technology vision report maps trends in the digital economy, and the 2016 update has found firms are moving beyond merely experimenting with new technology to integrating it into everyday business in order to respond to shifting consumer and business demands.

The report says that change includes what it calls a "people first principle" in how companies adapt to accelerating automation, a more fluid workforce, a greater focus on the platforms delivering service, using data to predict changes in the economy, and maintaining trust in an age where information isn't limited to geographical boundaries.

Accenture Technology ANZ managing director Jane Livesey says New Zealand's government is adapting to a digital environment.

"We are seeing the government starting to think about the way that it utilises skills and labour," Ms Livesey told BusinessDesk. "Government is definitely an area in New Zealand where some evaluation is occurring to keep up with the latest and greatest, particularly as they go through digital transformation."

The government has put the technological shift at the forefront of its policy goals, setting a goal of achieving 70%  of people's most common transactions through digital means as one of its top 10 priorities.

One example is  Inland Revenue's programme to overhaul its systems as it not only upgrades ageing infrastructure underpinning the tax system but also looks to improve the way it deals with taxpayers and change the nature of its workforce.

Ms Livesey said New Zealand businesses are also training their people how to use technology to do business differently, with the telecommunications and financial sectors leading the way.

That's seen the likes of the major banks upgrade their online offerings to adapt to how their customers interact with them, whereas a company such as Spark NZ has transformed itself in a shift away from traditional fixed-line phone services and into mobile and data driven business.

Other sectors in New Zealand may take a little longer to start adopting the shift, with the country facing "less of a competitive marketplace" removing some of the pressures on firms to be ahead of their rivals, Ms Livesey said.

The automation of manual jobs and increased flexibility in the workforce through the use of contract roles has triggered fears in some circles that it will simply lead to fewer jobs, but Ms Livesey said the experience of the manufacturing sector, which has been an early adopter of automation, is that companies have typically had to fill new roles created by the technology shift.

Accenture predicts 40% of staff in the next five years will be in freelance roles, where they take their skills to businesses on a short-term basis Livesey describes as "tours."

The current government has increased flexibility in labour law, introducing new rules last year including arrangements where employees can request work hours that suit them, the ability to negotiate rest breaks to meet work flows, provisions to protect vulnerable workers, a faster turnaround for Employment Relations Authority decisions, and a series of changes to collective bargaining to reduce ineffective negotiations.

It's also an area where the opposition Labour party is looking to pursue new policies, with finance spokesman Grant Robertson earlier this month attending a Future of Work Forum in Paris organised by the Organisation for Economic Cooperation and Development. He's reported as being interested in Denmark's "flexi-security" model, which pays workers who lose their jobs a relatively generous, time-limited form of unemployment benefit in exchange for greater ability to hire and fire quickly.

(BusinessDesk)