IV Changing Nature of Work in the Digital Era

The Transformation of Work in a Global Knowledge Economy

Mirjana Radovic-Markovic

The Impact of Globalization on New Forms of Labor and Employment

Dynamic changes in the global labor market, the need for innovation and the integration of digital technology in the processes and coordination of economic transactions through digital networks known as ‘platforms’ have led to changes in business practices and forms of labor. The correlation between different types of changes in an organization indicates changes that have occurred using the electronic functions of the enterprise. This shows, thr ough numerous examples in Europe, a comparative advantage in implementing the new technologies that IT-educated employees have, as they adopt them as new ideas faster than others.

The platforms connect employers with workers from all over the world. The traditional relationship between employer and employee is also changing with the spread of new technology. This has resulted in tectonic stmc- nrral changes in the global labor supply (Diesel, 2019). Nearly 50% of companies expect that automation will lead to some reduction in the number of firll-tirne employees by 2022 (WEF, 2018). It is also expected to expand jobs and create new employee roles in businesses. Fust of all, companies are willing to expand the number of employees who will work in specialized jobs, whereas offering them more flexible engagements.

The global market has opened up innumerable opportunities for freelancers, who are outsourced to by firms worldwide. In line with outsourcing procedures, SMEs seek to reduce labor costs when hiring freelancers. Accordingly, ‘gig economy’ describes an economy based on the accomplishment of tasks and projects, which are increasingly being offered thr ough digital platforms and replacing full-time regular employment (Cie- sielski, 2019). Specifically, one of the mam differences between this type of employment and the traditional work arrangement is that in this case, workers are paid only for that particular job. Therefore, the jobs are not performed on the basis of permanent employment of people with certain knowledge, but a contract for the provision of a specific service is concluded (Radovic-Markovic, Bmjas, and Simovic, 2019).

These companies allow workers quick employment, which can include any type of job. A central argument in the Rockefeller Foundation reports is that platform work offers workers the ‘freedom' and ‘flexibility’ to work whenever and wherever they want (Rockefeller Foundation, 2013).

Jobs offered through ‘gig economy’ can be classified into two broad categories:

• 1. For workers with lower incomes and the less educated workforce (craftsmen, suppliers, etc.) who find it difficult to find a job and for whom this work is the mam sotrrce of income.
• 2. For workers with higher incomes and the more educated workforce who have other ftill-time jobs, whereas this type of work generally provides them with additional income.

Types of Platform Companies

Influenced by modem technologies, the way we do business changes and moves from internally focused to externally managed companies. According to the method of running companies, three basic types can be distinguished (Vucekovic, Radovic-Markovic, and Markovic, 2020):

• 1. Innovation platform companies;
• 2. Transaction platform companies;
• 3. Integrated platform companies.
• • Innovation platform companies. According to some insights, innovation does not occur within companies but is created by interacting with people in the external business environment. Through cooperation with people, new ideas can emerge. Namely, the best combination is if platform companies create the organization, processes and incentives that are necessary to incorporate external ideas. For example, many of the longest-running companies in the list of the world’s most innovative companies use platforms to access different data sources, which they then use to build new business models or develop new products and services (Ringel, Laidi, and Djenouri, 2019).
• • Transaction platform companies or multilateral platforms. These enable fast transactions between different types of actors. Transaction platforms are usually intermediary platforms. They provide access to third-party products and services on the internet (Yablonsky, 2018).

• Integrated platform companies. These are a set of software sendees that will facilitate communication between functional entities of the enterprise through computer operating systems, connected to computer and communication networks.