Employees are looking for flexibility, autonomy, and work-life balance, while companies need to invest in developing skills and creating an inclusive work environment. Sustainability, digitization, and automation are key trends affecting the future of work. A "new agreement between employer and employee" is emerging, based on mutual cooperation and respect. Creativity, cooperation, and flexibility are key skills for success in the new reality of the labour market. For more than 10 years, we have been describing changes in the labour market through the framework of 4 significant factors:
1. Demographic changes
The Slovak labour market faces a serious challenge - uneven representation of generations. More people retire than go to school. This trend will worsen in the coming years. In 2030, the strong generation of "Husáks' children" will reach retirement age, which will lead to a 10% drop in the active population. The number of employees in Slovakia is constantly decreasing due to demographic reasons, as well as legislative irregularities, and as a result of massive early retirement. The solution is to look for talent in underutilized groups and invest in employee development and retraining. Automation and artificial intelligence will also partially help mitigate the impact of labour shortages.
2. Technological revolution
Automation, digitization, robotization, and AI are quickly changing the way we work and transform the form and content of work roles. The development of generative artificial intelligence is very fast, and we know from experience that technology has proven to be a powerful ally that augments rather than replaces human capabilities. Harnessing the potential of artificial intelligence to drive growth and increase productivity will require companies to put people first. In connection with the introduction of new ways of working, we encounter two challenges. The workplace needs to be digitised but also humanised. The goal should be to enable people to connect with others, build meaningful relationships, and realize themselves in creative and ethical ways.
3. Competitiveness
In an era of economic uncertainty and intensifying competition for talented workers, companies must take measures to attract and retain quality employees while strengthening their sustainability commitments. Employees today are increasingly looking for meaningful work, flexible working hours that fit into their lifestyles, opportunities to constantly develop new skills, adequate compensation, and management that cares about more than just profit. To succeed, companies must demonstrate their positions on social, political, and environmental issues. By investing in people and sharing their values and commitments, companies can gain a competitive advantage.
4. Individual choice
In connection with the so-called consumerisation - consumption of work, a new relationship between employer and employee was created. People want to approach work similarly to other areas of their lives – according to their own time and in a way that suits their individual needs. Just as consumers choose products and services that fit their lifestyles, today's employees want to work for companies that care about their careers and well-being, and align with their personal values. Companies must adapt to a workforce that wants more flexibility, tailor-made work, and alignment with personal priorities, as people look for jobs that allow them to seamlessly combine work and personal life.
The pandemic transformed the dynamics of the work environment and triggered discussions about the priorities of employees compared to the needs of employers. This situation led to the emergence of new working principles, where flexibility, autonomy, and skill development became key. Employers and employees thus find themselves in a new working environment, which leads to the need for a new set of relationships. Employees emphasize the balance between work and private life, a new form of career growth, well-being, and shared values. At the same time, there is a rapid pace of automation and ecological transformation.
We are witnessing the transformative impact of generative artificial intelligence, which is shaping new sectors of the economy and increasing demand for specialized skills and the ability to adapt. In an environment of these changes, and with a growing shortage of people with the necessary profile, it is extremely important to focus on untapped potential in the labour market through diversity, equality, inclusion, and belonging.
This article was published in Career Guide 2024 and brought to you by
