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Last Update: October 2024

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A framework for change in the global labour market

FOLIO Edition VII
Innovation & Technology

Whether a new pay transparency directive or the first European regulation on AI, employment solutions specialist Bettina Schaller is helping drive reform on issues redefining the workplace.

From ‘quiet quitting’ to micro-retirements and re-defining the work-life balance, one of the hot topics around the current labour market is our changing attitude towards the daily grind. “The fact is that people want to work less,” confirms Zurich-based Bettina Schaller, Head of Group Public Affairs at multinational employment solutions company The Adecco Group. “If we look at the latest data from the International Labour Organisation, it shows, in countries like Germany and the UK, that people aren’t working as many hours as in the past. It’s very worrisome for the international economy. I’m out there saying that aside from being able to pay the bills, work gives purpose and has value, both for individuals and societies.” 

Many factors are contributing to these shifting population mindsets but the red thread that connects them is the overall labour market framework which, Bettina believes, should be depoliticised. “In the run-up to an election, parties campaign on better jobs but when they get into power, the last thing they do is look at the labour market framework,” she says, citing President Macron as the first in recent times to do this once he took the reins in his first presidency stint. “He focused on labour and skills reforms, and now France is reaping the benefits, at least on this topic.” This labour market framework is also the basis for Bettina’s own broad remit, which includes driving global policy advocacy in key labour market bodies such as the World Employment Confederation, the G20’s Business 20 process and the Business at OECD Employment, Labour and Social Affairs Committee.

What’s needed is “a positive connotation around the importance of work and to incentivise people properly,” she continues. Of course, for many, one of the most obvious ways of doing this is remuneration. Yet despite much talk across the board, a material gender pay gap persists in many industries – something that the EU Pay Transparency Directive, which comes into force in 2026, is aiming to change. “It will oblige businesses to show visibility of pay levels, which will likely rectify some of the asymmetry in salaries between men and women doing the same job. I have a hope that this may then result in more participation of women in the workforce,” says Bettina. 

Her own career path was kickstarted while studying for a degree in International Relations and Political Sciences in 2000, when she heard that a group of activists in Switzerland were going to try to force a referendum on the issue of membership to the United Nations. “I joined a group of five students at the University of Zurich and we did lots of campaigning. Between us, we collected 40,000 of the 100,000 signatures needed,” she recalls. During that time, she met someone working for Credit Suisse, who hired her, and she immediately began to apply her “government affairs lens” to the financial services industry. 

In 2004, she sat for and passed the notoriously tough entry exam for the Swiss Diplomatic Service (only 10 from her cohort were accepted that year) and worked in Brussels as part of the Swiss Mission to the European Union. After two years she left the public sector and had her daughter, then moved to The Adecco Group. “I started with a blank sheet of paper and have moulded my function over the last 15 and a half years based on my understanding of what government affairs at a multinational company is,” she says. “I report to the global CEO, overseeing a team of 11 around the world.”

Organisations can’t source through one type of channel anymore: they have to be open to extending their workforce pool to meet productivity and profitability goals, whether that means hiring those operating in other geographies or being age diverse.

Today, flexible contracts – or a lack of – are another consideration for companies looking to adapt to evolving employment conditions. “I’m part of a group working on opening the minds of policy makers to allow for more flexible contracts and to make sure that when the regulatory landscape is created, that there's an equal playing field between the different forms,” she says. “The way the world of work is built, there is an advantage given to open ended contracts, both through how they are perceived but also by the systematic government frameworks. I’m showcasing that there is an interest among workers in having more choice.” 

To a certain extent, businesses in the future will have no option but to think outside the box on employment because the local workforce is dwindling. “The supply is just not there,” says Bettina. “Organisations can’t source through one type of channel anymore: they have to be open to extending their workforce pool to meet productivity and profitability goals, whether that means hiring those operating in other geographies or being age diverse.” 

While data shows that multi-generational teams are often the strongest, this can come with challenges. “For instance, there’s an issue of having the same educational norms to build on. We're starting to see how younger generations, because of technology, have a different academic baseline.”

Businesses, says Bettina, are also not putting enough emphasis on their existing talent. “One example is human resource heads. In the past, they were typically treated as minor members of a company rather than part of the leadership team. Since Covid, we’ve seen a substantial increase of instances where they have entered the strategic conversations at the highest level.” This is important, not only in terms of having full visibility of staff but also when it comes to putting protective measures in place, as the use of technology and AI inevitably grows. 

“At the most recent World Economic Forum in Davos, one question I put to leaders was whether they are investing the same amount of money in their people as AI,” continues Bettina, who has been a part of producing the first comprehensive regulation on AI, the EU Artificial Intelligence Act. “The answer was people but the balance is tipping towards the technology space and I think that’s a mistake. For The Adecco Group and the private employment services, the ethical and responsibility dimension is crucial.” 

Unsurprisingly, our trade union counterparts are adamant that representatives should have a say in how algorithms are built within companies, which could be complicated.

The legislation, which is being rolled out over the next four years, focuses on how AI can impact various spaces, including human resources. “The approach of regulators was that there is such a high risk of discrimination and bias that comes from AI and technology in human resources, therefore its use should be prohibited. We were able to demonstrate that we need more time to put in guard rails,” says Bettina, revealing that working groups are now looking at the potential need to regulate algorithmic management. “They are digging into the notion of whether algorithms can be let loose when it comes to deciding who and in which context humans should be put to work. Unsurprisingly, our trade union counterparts are adamant that representatives should have a say in how algorithms are built within companies, which could be complicated.”

The wider issue of appropriate worker representation is a thorny one. “I interact with union leaders regularly and in the best scenarios we agree. The impact is minimal though, because they are not representing an important enough proportion of workers to be considered a critical stakeholder at the table,” says Bettina, who suggests a reshuffling of the industrial relations model could be a possible solution. “This element of the system, together with many others, is still built around old frameworks and it’s not allowing us to be as transformative as we should.” 

For business, it has ripple effects that unfold on a daily basis. “The disruption that the world of work is undergoing has so many layers, that this topic falls ever lower on the list of priorities. I see the bigger picture and am in it for the long run,” she concludes. As the world of work navigates unprecedented disruption, Bettina advocates for a collaborative framework that covers all workers, ensuring businesses and policymakers co-create a resilient and inclusive future.

Bettina Schaller

You can get in touch with Bettina here

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