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Published in: INTED2014 Proceedings, International Association of Technology, Education and Development (IATED), Madrid, 2014, pp. 5351-5358. ISSN 2340-1079, ISBN 978-84-616-8412-0

PROVIDING UNIVERSITY STUDENTS WITH SKILLS FOR FUTURE WORK ENVIRONMENT Jaroslava Kubátová Palacký University Olomouc (CZECH REPUBLIC) [email protected]

Abstract There are several important trends which have changed the current work environment and thus also the skills we need to be successful and productive workers. As recent studies have shown, these trends will be even more massive in the future. The first goal of this paper is to point out the most important trends and their drivers which reshape the ways of working. To find these trends we have analyzed research studies conducted by the Institute for the Future, Regus Company, Millennial Branding and ODesk or Elance. We have found three main trends. First, due to a dynamic technological development it is not possible to predict for which specific work categories universities have to prepare their students. However, we can define the key drivers that reshape the work environment and to identify key work skills needed in the next decade across different jobs and work settings. Second, flexible work arrangements, allowing employees a greater choice as to when and where they work, are offered by growing numbers of employers. Speaking about flexible work arrangements we refer to virtual work (on-line work). Virtual workers use information and communication technologies for mutual communication and delivering their work. Not only is it cost-effective for the employers, but also the workers are more productive, creative and satisfied thanks to a better work-life balance they are able to achieve. The third trend is the most actual. A growing number of people, mainly young professionals, decide to work independently as freelancers. They consider themselves entrepreneurs and offer their human capital by entering the open on-line labor market. Big on-line talent markets such as ODesk, Elance, Guru, or Freelancer are growing. Moreover, independently working professionals have started using coworking centers instead of home office. Coworking centers offer not only working space and related services but also an opportunity to meet other professionals. This environment is very favorable for the emergence of innovative ideas and projects. To prepare our students for on-line work in the current global environment we have included special courses in our study plans. Since 2009 we have taught two courses in the virtual world called Second Life. The courses are Live in Second Life and Virtual Work. In 2013 we introduced a new course called Virtual Teams Management. This course is taught in a professional on-line environment for virtual collaboration called Capsa. Thus the second goal of this paper is to share our experience with this teaching. We meet our students mainly on-line but also have face-to-face sessions where we discuss our experience. Mainly in Virtual Teams Management flipped learning is used. At the end of the term we receive feedback from our students which provides a valuable background for continual innovation of the courses. It is evident that the traditional labor market continues to struggle worldwide, but the future is optimistic for on-line work. On-line work is a good way how to find professional fulfillment and to achieve a satisfying work-life balance. Providing university graduates with skills for a future work environment means also a contribution to a sustainable social and economic development. Keywords: flexible work, coworking, skills for future work environment, universities

1. INTRODUCTION Current research has shown that many economies face a paradoxical situation when dealing with relatively high unemployment rates while at the same time they have difficulties staffing free positions [1], [2], [3]. Particularly, this applies to jobs requiring a high degree of qualification, i.e. the staff should hold university degrees. In this article we are trying to answer the question of how universities may contribute to solving this problem. To be able to answer it we first have to find out if it is possible for

Published in: INTED2014 Proceedings, International Association of Technology, Education and Development (IATED), Madrid, 2014, pp. 5351-5358. ISSN 2340-1079, ISBN 978-84-616-8412-0 universities to prepare graduates with such comprehensive knowledge and skills that would meet the needs of employers. We also need to look into the preferences of the students or graduates, and establish whether or not the employers are able to meet their needs and demands. On comparing these findings we can propose to both universities and employers how to adapt to the current situation and achieve a generally more favorable situation.

2. METHODOLOGY The fact that on present-day market demand for knowledge work exceeds its offer is proven by current research carried out by the companies Hays plc. [1], ManpowerGroup [2], and PwC [3]. While dealing with the question of how universities can contribute to solving the imbalance on the current labor market, we start from the premise that this imbalance is caused by current trends to which the economic system including the companies and educational institutions failed to react. That is why we have gathered current results of research projects regarding this topic, compared and synthesized them in order to find concrete trends which influence the current work environment the most. Our most valuable sources were the Future Work Skills 2020 study [4], research on the relation between work flexibility and output carried out by the company Regus [5], and two research projects which two significant on-line market places (ODesk [9] and Elance [10]) had elaborated. Following upon the established trends we are sharing our experience with three courses taught at the Department of Applied Economics of the Philosophical Faculty of Palacky University in Olomouc (KAE FF UP). These courses are aimed at preparing the students for the current work environment. In order to establish the extent to which the students are aware of the current situation in the work environment, at the end of the winter semester of 2013 we organized a questionnaire among the students who had just finished two selected courses. The findings of this questionnaire shall be used for further innovation in teaching. Based on the synthesis of information from the research projects applied and our experience with our students we have proposed how employers can effectively react to the new trends. However, we put a greater emphasis on recommendations for universities since we have a possibility to influence this area of the educational system more actively.

3. THE MOST IMPORTANT TRENDS AND THEIR DRIVERS WHICH RESHAPE THE WAYS OF WORK The quoted research projects which prove the imbalance of the current labor market have proposed three groups of measures to be taken to remove the incongruity between the needs of employers and the available workforce. The first group of measures concerns governments which should support the solution to the problem both politically and financially. The second group of measures concerns the necessary reform of the educational systems and collaboration between governments, schools and companies. The third group of measures concerns companies and recommends that they accept new human resource strategies focused on the solution of the situation described above. Experience tells us that it is difficult and takes a long time to accept institutional measures. The problem of incongruity between the needs of the labor market and available workers is quite burning and requires a flexible approach. University departments may react by offering courses giving the students an opportunity to properly prepare for the current situation. That is why in the next part of the article we are seeking the most important trends and their causes which influence the ways of current and future work. Among others we started from the study Future Work Skills 2020 carried out at The Institute for the Future in 2011. [4] The authors of the research build on the assumption that the current technological, economic and social changes are so quick that there is no point in predicting what kind of work positions will exist in the future. Such predictions are very often wrong. Instead of that they recommend focusing on the most important factors of changes, estimating what kind of changes they will incite, and subsequently determining the skills which will be necessary for being successful on the labor market. The output of the Future Work Skills 2020 research project is a specification of six factors inciting changes – the so-called drivers of change, and ten skills which will be required on the labor market. Additionally, we have briefly clarified both the causes for changes and the required skills. There are complicated and complex relations between the individual drivers of change and the required skills which are shown in Tab. 1.

Published in: INTED2014 Proceedings, International Association of Technology, Education and Development (IATED), Madrid, 2014, pp. 5351-5358. ISSN 2340-1079, ISBN 978-84-616-8412-0 Tab. 1 Relations between Drivers of change and Skills needed in the future [4], processed by author Six drivers of change Extreme longevity Computational world Superstructed organizations

Globally connected world

New media ecology

Rise of smart machines and systems

Ten key skills needed in the future New Media Literacy Transdisciplinarity Design Mindset Transdisciplinarity Cognitive Load Management Crosscultural Competency Design Mindset New Media Literacy Virtual Collaboration Crosscultural Competency Novel and Adaptive Thinking Social Intelligence Virtual Collaboration Cognitive Load Management Computational Thinking New Media Literacy Novel and Adaptive Thinking Sense-Making Social Intelligence

Extreme longevity is a reminder of the fact that people in good health live to be very old and are able th to work well beyond their 65 year of age. Thus, both individuals and companies must reconsider their approach to career, family life and education. The skills New Media Literacy and Transdisciplinarity are most closely related to this change factor. New media literacy represents the skill to critically assess the content of new media, create their content, and use these media across more disciplines. Computational world expresses a massive increase in collecting data regarding various phenomena, their being processed, and usage of obtained results. The above-described requirement of Transdisciplinarity and also Design Mindset are related to this change factor. Design Mindset is the skill to establish accord between work environment and the tasks being tackled in order for the environment to support the results achieved. Superstructed organizations express the quality of present-day organizations to cross their own boundaries. This takes places thanks to available technologies which enable subjects outside the organization to be involved in the processes. Working in superstructured organizations requires a lot of skills, especially Design Mindset, New Media Literacy (for both see above) Cognitive Load Management, Crosscultural Competency, and Virtual Collaboration. Cognitive Load Management expresses the skill to sort out and use information based on its importance using various tools and techniques. Crosscultural Competency is the skill to cooperate with members of various cultures and in various cultural environments. Virtual Collaboration expresses the skill to cooperate while working in virtual teams which only meet on-line using information and communication technologies (ICT). Globally connected world refers to the growing global interconnectedness and diversity which influences an ever widening area of organizational activities. This phenomenon requires the abovedescribed skills of Crosscultural Competency and Virtual Collaboration, and also Novel and Adaptive Thinking and Social Intelligence. Novel and Adaptive Thinking lies in the skill to think and find solutions outside the usual boundaries and practices. Social Intelligence is the skill which makes communication easier and strengthens collaboration. It lies in understanding the others and adapting communication to their needs. New media ecology refers to changes in ways and tools which we use for communication. These changes require the skills of Cognitive Load Management, New Media Literacy (see above), and Computational Thinking. Computational Thinking is the skill to create abstract concepts from available data and use correct arguments based on them. Rise of smart machines and systems refers to the fact that still more and more routine work can be done via the use of technologies. The above-described skill of Social Intelligence then remains the privilege of man and distinguishes people from smart technologies. The skill of Novel and Adaptive Thinking is, in the given context, also necessary. Another related skill of Sense-making lies in the

Published in: INTED2014 Proceedings, International Association of Technology, Education and Development (IATED), Madrid, 2014, pp. 5351-5358. ISSN 2340-1079, ISBN 978-84-616-8412-0 ability to understand a deeper sense and importance of the message. These thought combinations are on such a high level that they cannot be programmed.

3.1. Popularity of independent work among companies The results of the study Future Work Skills 2020, which refer to the big importance of computerization, virtualization, and globalization of work, correspond to the findings made by the company Regus. In 2013 Regus had an independent research carried out among 20 thousand companies in 95 countries of the world. [5] This research was focused on the relation between work flexibility and work performance. Work flexibility is, in this research project, determined as a possibility given to workers to choose when and where they would want to work. Thus, flexible work is predominantly of virtual (online) nature, and the workers use ICT for their mutual communication and work. The study results confirm that companies support flexible work because it brings desired results. Specific data are shown in Tab. 2. Tab. 2: Effects of flexible work [5], processed by author Effects of flexible work Increase of workers' productivity Increase of responsibility and improvement of workers' time management Speeding up the decision-making processes Improving the quality of decisions Expansion of business contacts Increasing workers' creativity

Percentage of respondents confirming the effect 75 % 77 % 64 % 65 % 70 % 74 %

The results of the 2013 research can be compared to the results of a similar research project from 2012 [6]. Satisfaction of companies with the effects of work flexibility had improved between the respective years. The question of whether companies intended to employ greater numbers of freelancers, i.e. independent, temporarily hired experts, was asked in the research of 2012, which was carried out in 88 countries of the world and 16 thousand companies took part in it. More than a half of companies (51 %) confirmed this intention.

3.2. Popularity of independent work among young professionals The employers' using flexible work arrangements corresponds to the interests of an ever increasing number of workers. Regarding this topic the company PwC [7] asked the representatives of Millennials, i.e. young people born between 1982 and 1994. More than two thirds (70 %) of them fully or at least partly use flexible work arrangements. Synergy of these trends supported by the expansion of ICT leads to a worldwide growth of the number of virtual workers. Based on a prognosis by the company IDC 1.3 billion workers will be working in this fashion by 2015, which accounts for 37.2 % of the global workforce. In 2010 there were 1 billion such workers [8]. Besides the increasing absolute number of virtual workers it is also interesting to see an increasing number of people who choose the career of freelancers instead of getting a traditional job. Freelancers use the so-called on-line market places, also known as talent markets. Here at these market places on-line work demand and offer meet. Operators of these market places offer a whole range of concomitant services supporting their proper functioning, especially ensuring proper work assignment, its completion and subsequent remuneration. Examples of these market places are Elance, oDesk, Guru or Freelancer. Two of them – Elance and ODesk – have recently published research studies which they had outsourced, in order to better understand their clients on the work offer side, which means freelancers. (It is interesting that at the end of December 2013 these two market places announced their merger). Research results are interesting signals both toward universities and employers. A research project carried out by the company ODesk focused directly on Millennials. [9] This research took place in February 2013 and over 3,000 workers, who were active on oDesk for at least a half-year, took part in it. Two thirds of the respondents were Millennials. The research has shown that Millennials approach business in a novel way. According to 90 % of them it is not important for an entrepreneur to set up a business, but claim it is innovative thinking, creativity and finding one's own way instead of copying usual entrepreneurial patterns that symbolize the enterprise. Over 60 % of the respondents recommend getting a university degree as a condition for their successful enterprise. Especially for employers it is important to know that 50 % of the

Published in: INTED2014 Proceedings, International Association of Technology, Education and Development (IATED), Madrid, 2014, pp. 5351-5358. ISSN 2340-1079, ISBN 978-84-616-8412-0 freelancers from oDesk originally had a traditional job but left it in favor of independent work. Another 18 % of the freelancers were made redundant in their previous jobs which led to their becoming independently working experts, which they still are. In case of Millennials, the transition to freelancing was more frequently a free decision (57 %) than a situation initiated by the loss of a job (13 %). Among the most frequently cited reasons why the respondents chose freelancing were freedom (69 % of freelancers), the possibility to choose the type of work (66 %), unlimited possibility of income (63 %), and control over their own work (62 %). The results of the research by ODesk can be compared to the results of a research study outsourced by Elance in 2012. [10] 3,000 users of this online market place took part in this research. Also this research saw the trend of inclining to freelancing instead of traditional jobs, and the reasons given were very similar. Most freelancers on Elance are involved in two to six projects at the same time. A significant part of freelancers (70 %) declare that they feel happier now in comparison to the time when they had a traditional job and 79 % state that their performance is better as freelancers. Over 40 % of the respondents mentioned they would likely be employing other freelancers soon. Most freelancers (56 %) prefer to work from home but some start to prefer working at so-called coworking centers; 11 % of freelancers and 13 % of Millennials work at such centers. Coworking st centers started appearing at the turn of the first and second decades of the 21 century as a reaction to feelings of certain isolation and a lack of social contacts felt by workers working from home. At a coworking center workers can rent a workplace equipped with all the necessary technologies, and also use other additional services which are commonly available at such centers. A coworking center also has an important social role – meeting of professionals and a mutual exchange of knowledge and experience which may lead to many synergic effects, give rise to creative ideas and starting new collaboration. Coworking as a way of independent work will probably have another great impact on the changes of the labor market since it encourages other opportunities for independent flexible creative work [11]. By comparing the results of the presented research projects we have arrived at the conclusion that there are three important trends which change work environment and thus also the requirements for workers: 1. In respect to the speed of technological development it is impossible to predict the positions in which present-day college students will work in the future. However, the requirements they will have to meet and the skills they will have to have are already known. 2. Flexible work arrangements have started being increasingly popular with both companies and workers. Flexible work is enabled not only to company employees but companies also temporarily hire independent professionals. 3. An increasing number of people are making the decision to become independent professionals, especially from the group of Millennials. These professionals consider themselves as entrepreneurs and use on-line market places to get contracts. Coworking centers have recently gained popularity among independent professionals as places where they can comfortably work and also gain work-related contacts.

4. PREPARING STUDENTS FOR NEW WORK ENVIRONMENTS – EXPERIENCE FROM KAE FF UP Monitoring trends on the labor market is one of the most important activities performed by universities in order to prepare their students for them. In accord with the appearing technological possibilities for performing work we have gradually implemented optional subjects at KAE FF UP which should give the students a possibility to gain skills necessary for their professional life. At the beginning of 2009 we started the course Virtual Work. This course is taught in the environment of the virtual world Second Life, its goal being to prepare the students for the environment of virtual work. The content of the course is being continually innovated both based on the development in the field and also based on feedback from students. However, it is always focused on topics such as virtual work specifics, advantages and disadvantages of virtual work, communication in virtual environment, and the development of collaboration in virtual environment. Besides first lesson which takes place in a computer classroom, students then connect for all the subsequent lessons from their homes or other places, however, they cannot communicate face to face. Teaching blocks have both a theoretical and a practical part. In the theoretical one, students under the leadership of their teacher prepare presentations on given topics, thus learning virtual presentation skills at the same time. In the practical

Published in: INTED2014 Proceedings, International Association of Technology, Education and Development (IATED), Madrid, 2014, pp. 5351-5358. ISSN 2340-1079, ISBN 978-84-616-8412-0 part students acquire the necessary practical experience and skills in the form of various activities and games. To give our students a better possibility to become acquainted with the environment of Second Life itself, we subsequently started a course named Live in Second Life. This course is taught in a computer classroom and is focused on the abilities of the students to use the tools of the Second Life environment. With the development of new on-line tools and environments students in this course become acquainted also with other possibilities of virtual collaboration outside Second Life. The latest course we started is called Virtual Teams Management. This course was first offered in the winter semester of 2013. It is recommended to students of the master's program, who are expected to have deeper knowledge of general management and human resource management. The course was started in reaction to the expanding practice among companies to set up ad hoc teams whose workers share no common history, do not meet in person, only on-line, and may come from various parts of the world and thus various cultures. The goal of this course is for the students to try out the role of a member or leader of a virtual team. The course is based on the principle of flipped learning. The teachers play the role of a company's management which gives the team (students) complex longterm tasks. The task is set during a personal meeting between the “management” and “team members”. For the first task the team leader is appointed by the “management”, for further tasks the team can choose their leader on their own. The tasks are set regarding the required output and deadline, but not work procedure. Team space was created for the virtual team in Czech environment for virtual teams Capsa. Here, both the team and management have a lot of tools at their disposal to manage and perform virtual work. Task settings are found in Capsa and solutions are posted there as well. Students also had technical articles designated for self-study available there. To solve the given tasks the students could use any on-line tools for collaboration. Because it is teaching, and a certain amount of control of the team is necessary, the students had to attach a report to every accomplished task identifying the way they solved it and the tools they used. It was enriching even for the teachers since they gained an overview of new tools and environments used by the students. It was interesting to find out that the students were not using Capsa for communication but immediately created a group on Facebook which they used together with other tools during the whole semester. The nature of the tasks was creative team work so the output could not be assessed by right – wrong. After deadline there was a meeting with the teachers whose first part was a broad discussion about the students' experience from their virtual collaboration. The questions the students were asked were inspired by managerial coaching so they led the students to realizing various aspects of the acquired experience and seeking other opportunities of virtual collaboration. A second part of the meeting between the students and teachers was devoted to the topic on which the next task was focused. During the semester we discussed the forming of virtual teams, taking up team roles including leadership and intercultural aspects of collaboration. Also these segments of teaching were led in the form of activities or games followed by a discussion about acquired experience. For the teachers, all the discussions and reports on fulfilling the tasks were a precious look into the heart of a virtual team which they can use for further teaching. As mentioned above, this course has only been taught once. Feedback from the students – the first virtual team – was positive. There were seven students in the team which is a very suitable number for a team. A disadvantage is that only a small number of students can take part in this course. We suppose that there can only be up to 15 students per group, provided they would be divided into two teams. This would enable us to compare experience from fulfilling the tasks. On completing the course the students stated that they had expanded their experience leading a team, acquired experience with working in a virtual environment, learned to use new tools for virtual collaboration, understood the limitations and possibilities of virtual teams' work and intercultural aspects of work, and gained experience with virtual collaboration. As a suggestion for improving the course they mentioned the requirement to have more practical materials and studies from companies available. These suggestions will be used while innovating this course in the next academic year. As we have already mentioned, courses aimed at developing work and collaboration skills in a virtual environment are optional. We wanted to find out whether the students who signed up for the courses of Virtual Work and Virtual Teams Management realize the above-mentioned changes to work environment and actively prepare for them. That is why we gave the students of both courses a short questionnaire (each course was attended by seven students with two students attending both, thus giving us 12 unique opinions). The first question was: In your opinion, which knowledge will be important on the labor market in 3-5 years? The students most frequently mentioned the ability to speak foreign languages, creativity,

Published in: INTED2014 Proceedings, International Association of Technology, Education and Development (IATED), Madrid, 2014, pp. 5351-5358. ISSN 2340-1079, ISBN 978-84-616-8412-0 flexibility, knowledge of ICT, the ability to adapt, good time management, the ability to work in a team, good communication and complex knowledge of multiple fields of study. The second question was: In your opinion, what kind of knowledge will be important on the labor market in more than 5 years? The students mentioned professional knowledge of IT, the ability to work in on-line environments, the ability to make quick decisions and find solutions, innovative thinking, logical thinking, stress resistance, use of technologies, the ability to work in a multicultural environment, unique thinking and understanding the interconnectedness between various fields of study. If we compare answers of the students to the output of the study Future Work Skills 2020, we can find considerable congruency. On the one hand the students have named the necessary knowledge and skills differently, but they have not mentioned any other particular fields except languages. On the contrary, they mentioned the necessity of proficiency in multiple fields. They also understand the importance of ICT and multiculturalism. They are aware of the need to be innovative and flexible. Other questions were on on-line labor market places, coworking and coworking centers. The students did not know about on-line labor market places. They mistook them for job portals. With one exception, not even after being shown a card listing the most important labor market places including a Czech one did they recall them. Only one student knew what coworking was. Three students had a relatively good idea what a coworking center was. Once shown another card describing what a coworking center is, nine students recalled that coworking centers were located in large Czech cities including Olomouc. It is a little bit paradoxical that the students did not know coworking, but were able to recall the centers. Another question was “What way of working will you prefer in the future?” Eight students answered that they would prefer a traditional job with an employment contract, three would like to combine traditional work with freelancing, and one wanted to become an entrepreneur. Finally, we asked them which factors related to their professional career are or will be the most important to them in order to feel happy in life. We received a lot of answers including both flexible and fixed work hours, adequate income, being useful to their environment, stable job, creative work, etc. We cannot say that one of the factors would repeat more frequently than the others. Rather, we could say that the students have quite good ideas of what they expect of their work, even though these ideas differ from person to person. The findings arising from this little questionnaire motivate us to implement more information on the current trends in work environment into the teaching program at KAE FF UP. An opportunity to do so is not only during the above-mentioned courses, but also for example during the Human Resource Management course, which is mandatory.

5. CONCLUSION In this article we have mentioned the fact that despite persisting unemployment, employers in many economies have a problem staffing free work positions. We asked questions regarding the cause of this situation and a possible role of universities in dealing with this situation. We have discovered three important trends which influence the current work environment. 1.

The positions in which current college students will work in the future cannot be predicted, however, the skills that they need to have can.

2.

Flexible work arrangements are increasingly popular among both companies and workers. Companies are more frequently hiring freelancers than they did in the past.

3.

A lot of people are choosing the career of freelancers, especially among the group of Millennials. Recently, coworking centers have gained a lot of popularity among them as places where they can carry out their work comfortably and also acquire work contracts.

The paradox of the current unemployment rate and free work positions is caused mainly by the nature of the free positions. These positions are often to be staffed by talented knowledge workers, the lack of whom is a long-standing problem on the labor market. However, the situation of employers can worsen even more since there is a growing tendency especially among younger people to work independently and be hired only temporarily for a specific type of work. This possibility is further encouraged by the development of on-line labor market places.

Published in: INTED2014 Proceedings, International Association of Technology, Education and Development (IATED), Madrid, 2014, pp. 5351-5358. ISSN 2340-1079, ISBN 978-84-616-8412-0 If companies want to hire and retain talented employees, they must continually consider their attitude to them and create attractive conditions including the possibility of flexible work arrangements. They must also learn how to use on-line labor market places and solve work projects by hiring freelancers. Universities which are interested in having successful (which means employed) graduates must prepare their students for the current trends. The knowledge of a particular field of study is frequently not the most important condition for a successful career. This knowledge must be complemented by a whole range of skills which the students might acquire especially via experience learning and flipped learning. Therefore we are starting courses at KAE FF UP which are taught in a virtual environment in order to enable the students to prepare for the current ways of working.

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