Innovation, Flexibility Needed By Businesses To Face Challenges: ILO-IOE Study

Global companies and businesses would be facing huge changes as providers of jobsand need to innovate and become flexible to tackle those challenges, concluded a new study report that was released Wednesday jointly by the International Labor Organization (ILO) and the International Organization of Employers (IOE).

According to the research conducted by the ILO, IOE and the Bureau for Employers’ Activities (ACT/EMP), the significant issue is a skills gap because about 78 per cent of the corporate executives participating the study have opined that the skill needs of the future employers are not be provided by schools.

“The report confirms that companies, together with business and employer organizations, that embrace connectivity and digitalization will be the winners in this competitive landscape,” said IOE Secretary-General Roberto Suarez Santos.

There is need for businesses for development of common solutions through Employer and Business Membership Organizations (EBMOs) because it would not be possible for businesses to meet the challenges by itself, said the report called ‘Changing Business and Opportunities for Employer and Business Organizations’.

The trends that are radically altering global business models were also identified in the report.

Those trend would take place regardless of are regardless of the size, sector or location of business as well as irrespective of technological innovation, global economic integration, climate change and sustainability, demographic and generational shifts, and a global shortage of skilled labor.

“Technological innovation is by far the most influential trend, and is fundamentally changing the way companies add value to products and services,” said ACT/EMP Director Deborah France-Massin.

“At the same time, we find that the greater penetration of technology increases the demand for ‘human’ skills such as creativity, problem-solving, communication and collaboration.”

The global trend that presents the largest overall impact on business was technological innovation, identified 56 per cent of the respondents participating the survey.

Companies are also being negatively impacted by tax/regulatory and business environments, and the further harmonization of global corporate governance because of global economic integration.

One of the significant trends for business, according to the opinion of 37 per cent of executives, was the increasing exposure to global economic and political uncertainty.

Businesses were also being negatively impacted because of a declining working-age population. 62 per cent of the companies participating in the survey form Europe agreed to this while 58 per cent of Asian companies agreed with this.

45 per cent of Latin America and the Caribbean companies and 39 per cent of African companies also said that their businesses would be positively impacted if there is an increase in the workable youth population.

The survey found that the most active supporters of changes in the skills agenda were the small- and medium-sized enterprises (SMEs) because the survey found that the proposal for updating education systems to meet skills needs was supported to by 84 per cent of small businesses.

(Adapted from XinhuaNet.com)

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Categories: Creativity, Economy & Finance, Entrepreneurship, Strategy, Sustainability, Uncategorized

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