New working and organisational models

How New Work can ensure innovative strength and future viability

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October 2024


Everyone is talking about New Work, but many people only associate it with working from home and part-time work. Half of all employed Germans are already working from home. However, New Work concepts can enable innovations that are needed in view of the many transformative challenges facing the German economy, especially small and medium-sized enterprises (SMEs) in Baden-Württemberg. These developments affect the competitiveness and innovative capacity of companies and require new strategies in order to assert themselves in an increasingly technology-driven and digitalised economy.

New Work approaches and their potential

New Work concepts offer a wide range of benefits that are particularly important for SMEs in Baden-Württemberg. Flexible working hours, remote working and a good work-life balance can increase the attractiveness of a company and contribute to employee satisfaction. Satisfied employees tend to be more productive and motivated, which in turn increases the company's ability to innovate.

Promoting creative and collaborative working environments, such as open office structures, co-working spaces and digital collaboration tools, can improve collaboration and knowledge sharing. Promoting lifelong learning and training staff, especially in communication skills, also helps to sharpen creativity and solution-orientated skills that are necessary for innovation. Here too, digital tools such as e-learning platforms can offer a cost-effective option for SMEs. This leads to an increased capacity for innovation, as employees work in a supportive environment that favours new ideas and creative solutions. In addition, flexible working models and remote working contribute to sustainability by reducing the need for office space and minimising commuting.

Different understandings of New Work

Frithjof Bergmann, as the founder of New Work, saw this as a profound transformation of the traditional wage system, in which people should have the freedom to do work that they really want to do. This emphasises personal fulfilment and self-sufficiency in work. The New Work Charter, on the other hand, emphasises five central principles: Freedom, personal responsibility, meaning, development and social responsibility, which are to be integrated into everyday corporate life .

Another understanding of New Work aims to increase the psychological empowerment of employees by taking measures that promote the experience of meaningfulness, self-determination, influence and competence in the workplace. These approaches aim to increase the well-being and satisfaction of employees. Another focus is on promoting autonomy in terms of working hours and location by supporting mobile working and working from home.

Current focus on personal responsibility and corporate culture

An important aspect of New Work is the focus on employee empowerment. However, this requires that employees are also given the necessary authority and decision-making power to fulfil their responsibilities. This requires a culture of trust and acceptance of mistakes. The aim is to switch from a "command and control" management culture to respectful management that takes employees seriously and gives them responsibility.

Corporate culture plays a central role in the implementation of New Work. An inclusive and equal-opportunity corporate culture takes generational differences into account and creates a working environment in which all employees feel valued and supported. Error culture and participation are other important elements that contribute to a positive corporate culture. Increased employee participation can be promoted through targeted concepts and tools, whereby HR departments, works councils and managers should work closely together.

Management and organisational models

New Work questions traditional hierarchical management structures and promotes an understanding of leadership that is based less on control and more on participation and encouragement. Managers should act as coaches who set the framework and focus on collaboration. Clear and transparent rules are important in order to utilise the potential of New Work.

The organisation of work and tasks must also adapt. The shortage of skilled labour requires new approaches, such as the "grey-collar approach", which blurs the boundaries between traditional blue-collar jobs (production, trades, etc.) and white-collar jobs (office jobs) and makes them more attractive through the use of technology and automation. Such changes can also be part of New Work.

Need for regulation and opportunities

New Work also requires new regulations that go beyond traditional labour and collective bargaining approaches. These regulations can be developed by labour and management to support flexible working models and individual responsibility. Teams can have their own independent regulations, but these must be compatible with the company in order to avoid isolated solutions.

The implementation of New Work offers many opportunities, such as flexibility, improved collaboration, increased motivation and agility. At the same time, there are risks such as uncertainty, excessive demands and dependence on technology. According to a study by the Fraunhofer Institute, the effects of hybrid working models are predominantly positive, but less presence in the company can also lead to social erosion. Companies therefore need to carefully weigh up these risks and develop strategies to minimise them and maximise the opportunities.

 

Recommendations for the implementation of New Work

The successful implementation of New Work requires a clear plan and the involvement of employees. Companies should reflect on their culture and goals and take these into account when designing new working conditions. Education and training are key elements in providing the necessary skills and knowledge.

A training concept that is published on the intranet and offers live and recorded training sessions can effectively support employees. Digital collaboration tools are also important to facilitate collaboration and accelerate digital transformation. An important point is that New Work is not a rigid approach, but rather a modular principle that can be customised to suit any company. The concepts do not have to be implemented 1:1 and there does not have to be a complete cultural change straight away. Implementing the first steps and individual measures can already bring about the desired improvements in the working environment and help to overcome corporate cultural challenges.

Conclusion

New Work offers numerous potentials to successfully meet the challenges of the modern economy. SMEs in Baden-Württemberg can increase their competitiveness through flexible working models, the promotion of creativity and collaboration, sustainability and adaptability. An inclusive and equal-opportunity corporate culture that promotes personal responsibility and participation is just as important as adapting management and organisational models. Regulations and education are also crucial in order to exploit the opportunities of New Work and minimise the risks. By proactively adapting to this new world of work, companies can be innovative and remain successful in the long term.