Dunlop’s system theory (1958) describes how industrial relations is a sub-system dependant on technology, markets and economic power and distribution. There are three groups of actors described in the system theory and these are managers, organisations and government institutions. The shared beliefs of these actors binds the entire system together.
Due to technology, we are within a period of industrial change; the “normalisation of 24/7 services” (CIPD, 2015). Consumers are able to shop online 24/7, purchase fast food at any time of any day but are also connected to their employer, every hour of every day. Technological advancements have enabled us all to use our smart phones, laptops and other devices to access the internet, write emails and complete work related tasks from almost anywhere.
Changes In The Employee – Employer Relationship
Technological advancements affect the relationship between actors in a number of ways. Firstly, according to Deloitte (2014) “hyper-employment” can be damaging to organisations as “the always connected 24/7 work environment is overwhelming workers, undermining productivity and contributing to low employee engagement.” A study by the Chartered Management Institute found that “‘always on’ managers are now working 29 days extra a year and are suffering rising levels of stress” (CMI, 2016). This can create conflict between the employee and employer as productivity may be high as employees and employers have a consistent communication connection via technology, however, as stated by the CMI, this ‘always on’ culture can have a detrimental effect on employee’s health and wellbeing therefore increasing absenteeism, presenteeism and sickness absence. So, potentially not so productive after all.
Changes In The Labour Market
Secondly, it is estimated that 1.3 million people are engaged within the gig economy that is still growing (CIPD, 2018) this rapid growth transforms the traditional ‘employee’ status as companies are able to work flexibly by only paying workers where there is demand for their services (Rozman, 2018). This also decreases risk of tribunal, grievances and the task of handling performance and behaviour if those working are not classified as ‘employees’. The Company could simply decide not to use the services of a worker (such as a sub-contractor) however the process is not so simple to terminate an employee’s contract without high risk in return.
This growth also transformed the traditional nine-to-five job as employees leave to become self-employed and regain control over their work life balance (Burn-Callander, 2018). Therefore, we can see that a rise in the gig economy has led to a review of employee engagement strategies to change from the needs of the core group to self-employed and sub-contractors (Atkinson, 1984) to retain working relationships with ex-employees to retain their specialist knowledge, fundamental to the organisation and maintaining performance levels.
In order to retain employees, organisations are moving to more explicit shift work which may enable a work/life balance and are moving away from the traditional 9-5 day. Flexible working is also on the rise to enable a better work/life balance in a new economic society (Taylor, 2017). However, according to a recent article by People Management (Howlett, 2019) there is particular balance required to achieve productivity and a positive working culture and to positively impact your health and wellbeing, three days or more of remote working could “cause a deterioration in the quality of co-worker relationships”.
Changes In Legislation
Thirdly, in 2017 France gave their employees the ‘right to disconnect’ by law and requires organisations to establish set hours when employees should be sending or responding to work related emails (Morris, 2017). Similarly, a bill is being discussed in New York when employees could refuse to answer out of hours communications and not be legally responsible. With the introduction of this legislation, it is hoped that pressure would be alleviated (Settembre, 2019). There is an argument that responding to emails whilst commuting should be considered as part of the working day, as so many commuters regularly use this to get work done.
Risk Mitigation
Fourthly, technology can be used to mitigate risk in HR, for example via employee relation workflows. Management and HR are able to keep track of employment relations ‘cases’ online and follow particular steps and procedures as per the ACAS Code of Practice and Company policies on grievance and discipline. This can help the employer to ensure they adhere to timelines and capture all information necessary (such as notes and letters) and avoid straying from process.
Well programmed software can also ensure that a Company adheres to GDPR regulations and mitigates risk of fines. Employees have the right to have inaccurate data rectified, by having HR software that employees can access and change their own data, this puts the responsibility back onto the employee to manage. This gives the employee ownership of their data and transparency at the same time as mitigating risk. This could enhance the employee and employer relationship, especially if the employee is mobile or a remote worker and cannot access the HR department face to face.
However, in 2018 Amazon introduced AI to streamline their hiring process but it turned out that the technology was sexist towards female candidates due to the algorithm programmed was based on previous data favourable to male. In addition, the ‘always on’ culture and remote working can blur the fine line between the work and home life balance and could potentially breach working time regulations.
Impact On Company Performance
Lastly, technology can be used to increase performance and reach organisational goals by simply having an intranet or home page available to staff to remind them of the organisational goals and values.
HR software can also provide a range of analytics. Talent analytics can calculate and estimate who high performers would be that may require further challenge but also lower performers who may require additional support or capability considerations. Talent analytics can also provide calculated suggestions in terms of succession planning and a risk analysis of employees may leave the Company. This saves Company time but also can identify strategic avenues for the workforce. Again, this can enhance the employee and employer relationship whilst also contributing to organisational goals.
PWC use a ‘work allocation algorithm’ (Faragher, 2019) to deploy consultants on new projects and reallocate consultants on existing projects. From this, they have seen a reduction in travel time, decreased bias in work allocation and an improvement to the work-life balance.
In conclusion, there is clear change in the relationship dynamic between managers, organisations and the government as well as employees and employers. However, in order to continue to contribute towards organisational successful, the actors must retain shared values to reach shared goals. “A multidimensional and heterogeneous company runs the risk of falling apart if there is no common vision and a shared set of values to lead it towards common goals.” (Scullion and Linehan, 2005).
So, is technology a friend or foe of employment relations?
