Time for Change in HR

There has never been a more exciting time to be in Human Resources. In the next two years, there will be change on a scale comparable with the events during the Industrial Revolution.

The interesting question is  – how many HR personnel are ready for the change? There are three factors all happening at the same time that will change the world of employment forever.

The first of these factors is that of significantly reduced employment. With populations living longer than ever before, there will become a bottleneck in employment. Already, its interesting to see how many people are doing menial jobs – many of which have one or two degrees their aspirations for the fabulous career has not materialised due to less jobs being available. In many countries, the minimum age for retirement is 65; with forecasts of it going up to 70 years of age this year. To compensate, perhaps to push the problem back Germany has just started to introduce a 28-hour working week

The second factor is a concept now taking shape and discussed this year at the world economic forum – paying people not to work. Its official title is Universal Basic Income. It become very popular this year as Governments worldwide realise job growth is ending. UBI is also known simply as basic income. According to the advocacy group Basic Income Earth Network (BIEN), the essential principle behind basic income is the idea that all citizens are entitled to a liveable income, whether or not they contribute to production and despite the particular circumstances into which they are born.

BIEN Lists the following 5 Defining Characteristics of Basic Income:

1. Periodic: Distributed in regular payments
2. Cash payment: Distributed as funds rather than, for example, vouchers for goods or services
3. Individual: Each citizen (or adult citizen) receives the payment, rather than each household
4. Universal: All citizens receive the payment
5. Unconditional: Recipients are not required to demonstrate need or willingness to work

In the most common UBI implementation, identical periodic payments are made to all individuals and the tax system ensures that funds are returned to the system from those with higher incomes. Usually, the amount is gauged for subsistence: enough to take care of the individual’s basic needs but not enough to provide a lot of frills.

UBI is one example of a guaranteed income model. The main alternative model is a Guaranteed Minimum Income (GMI) system, sometimes called a Basic Income Guarantee (BIG), which involves varying needs-based supplements designed to ensure that all citizens have enough to live on. In that system, only low-income.

Recently, UBI has been in the news as one way proposed to support a workforce displaced by automation. Musk, Zuckerberg and many others believe that robots and AI-enhanced software.

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