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It is well known that disruption has overturned older business models overnight. In recent years, this disruption has been aided and accelerated by technology interventions. According to Mr Nandan Nilekani (Chairman, Infosys), the biggest phenomenon we are witnessing is the shift of technological power away from organizations AND a shift of such power towards the hands of the customer/consumer. Employee/Industrial Relations will and is, increasingly being influenced with respect to the type of actors and the nature of the relationships between them. Let me unbundle some of the key issues, challenges and opportunities.
The 'Uberisation' of business modelling, to a great extent has been mirrored in OLA, Swiggy, Gaana.com, Flipkart, Book-My-Show, PayTM, etc. Owning physical assets has ceased to become a pre-requisite for delivering value to customers/consumers. Sharing/pay by use economy has enabled customers/consumers to better manage their income and spends and maintain a certain level of lifestyle, despite muted economic growth.
Such 'aggregator' models have triggered discussions around the world as to who are the employer and the employee/worker/workman. In the case of Uber/OLA, drivers are self- employed, but use the company's ride- sharing software platform and part with a portion of their earnings to the company. The related question is whether such drivers are to be protected with a guaranteed minimum wage/salary and other labour legislations that are available to similarly skilled workers. This dilemma is being contested in different courts across the world and we have not seen a clear direction. The employee-employer relationship - which is the bedrock of all Indian labour legislations - is under threat, with the emergence of such collarless employees.
Moving to another dimension, Employee/Industrial Relations leadership has to begin wearing new lenses while taking stock of their human assets. They should factor the fairness and equity of health (physical, psychological, rewards, growth) of 'all human resources' that are employed across the value chain, regardless of whether they are permanent, contractual, on/off rolls, etc. This will also be the trigger to move away from only site/location centric leverage in framing Employee/Industrial Relations policies/processes and generate traction towards the framing of 'sustainable human assets & their well-being'.
Another red-hot button is the lack of equity, when the salaries of the junior most employees and the senior most are placed side by side. It is estimated that the ratio of CEO compensation to the median salary of the junior-most employees in India, is in excess of 1000:1. Even in advanced/developed countries of the West, this ratio is around 500/600:1, while in the Eastern part of the world it is closer to 15/20:1 (Japan). It is also reported that 58.5% of India's wealth is owned by 1% our population while 80% of India's wealth is owned by just 10% of the population. These discouraging statistics needs to be viewed in context of the formal sector employment in India being limited to 8/9% of the population.
The above trend in inequity is likely to destroy collaborative efforts within/external to the organization. The collaboration is an important competency for the success of the business model that is increasingly moving to a network of 'a small core of permanent employees', a range of smaller/specialised individuals/set-ups, contingent staff, etc. The widening gap in equity is also reflected in the extent to which organization policies and attention is disproportionately assigned to the needs/wants/desires of Managers. The organization is 'consumed' in the 'high maintenance burden for a few employees' while moderate/minimal attention is paid to the needs/wants of the large number of the workforce.
If the differential between the salaries of the junior and the top most Managers are not reduced, the purchasing power of the former would come down, which in turn is not good news for the Indian economy. It is hence important to care and prioritise investments to build the mental and physical health and quality lifestyle for all employees. This also includes particular attention to the rest/recuperation and renewal for more and more employees who work 24 by 7 shifts and/or working for long hours with computers/other machines.
It is in this context that the concept of Universal Basic Income (UBI) is being talked about more loudly. Even in a prosperous country like Switzerland, UBI was put to vote. Though the vote was defeated, it is a bell weather for what may become paramount in lesser developed countries and societies.
Finally, one needs to call out the urgent need for Managers and other leaders of organizations/industry to pay heightened attention to small and elevating behaviours of high impact engagement; e.g., giving credit to others, generating joy and collaboration in the work place and building organization purpose into every employee's task and role.
Much to the surprise of many, it is premature to pronounce the demise of the art and science of sound, sustainable, competitive and mutually beneficial Employee/Industrial Relations.
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