Businesses

Managers take centre stage in a pact for employment

Labour law expert Cafiero: AI and the demographic winter represent an epoch-making change; leadership is needed to manage it

3' min read

Translated by AI
Versione italiana

Key points

  • • The challenge of a new humanism in business
  • • Technology and demography
  • • Every company is a case in its own right

3' min read

Translated by AI
Versione italiana

(Il Sole 24 Ore Radiocor) – Ageing and demographic decline, on the one hand, and artificial intelligence, on the other, are the two changes set to radically transform the way we understand work. This is the firm belief of Ciro Cafiero, a labour lawyer and Chair of the Consultancy, Professional Activities and Training Section at Unindustria, who emphasises that ‘in the face of these two major changes, employers, businesses and trade unions must be allies. Because the challenge affects everyone equally, and it is that of remaining human, of preserving human sustainability – both within and outside the workplace – in the face of phenomena that put it at risk’.

Governance in the context of demographic change

An alliance which, in practical terms, translates first and foremost into the ability to govern rather than be governed. ‘Artificial intelligence could replace human intelligence, but it could also be governed by it; that is why it is a question of governance,’ explains Cafiero. ‘In companies today, there are already two types of intelligence, whereas until recently our labour law and our businesses were accustomed to having human intelligence alone in charge. AI must be governed according to the ‘human-in-the-loop’ principle, recognising the fragility of human beings, particularly in view of the demographic winter.’ This is where the two disruptive changes converge: ‘focusing on “active ageing”, that is, reconciling the needs of businesses with those of workers over 50. I don’t call them the “silver” generation but the “wises”: the wise ones!’

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Equally crucial when considering the younger generations is attracting and retaining talent, against a backdrop of a declining population and the differing needs of the younger generations, who are calling for a balance between work, career, private life and wellbeing. ‘Retaining talent means creating the best possible conditions within companies so that the few young people who remain – after taking into account those who leave the country, those who are not born here and those who choose not to work – can find a genuine sense of belonging within the company’s ethos. Today, the issue is cultural: we need a new humanism in the world of work,’ he adds.

The paradoxes of artificial intelligence

Technology and demography are also intertwined in this respect. ‘Artificial intelligence faces two paradoxes: Jevons’ paradox and Maverick’s paradox. What is happening? Initially, AI ends up replacing the intellectual jobs that gave rise to it. In the long term, however, demand expands again and, consequently, companies will begin to re-hire people who bring with them the creative work that had initially been replaced,’ argues Ciro Cafiero. For this to happen, ‘those workers – the workers of the future, who are today’s engineers – will have to adapt to new skills. I do not take a pessimistic view of AI, but I do believe, however, that everything depends on dialogue within companies. Between employer and employee, as well as between the different generations working within the company – which, for the first time in history, now number five at the same time.”

This is an even more central issue, given that competitiveness also depends on the ability to forge a new relationship between businesses and people, based on trust, professional development, quality leadership and the recognition of differences.

The role of the manager and the agreement within organisations

This is where the manager’s role becomes crucial. ‘The game is played on small pitches; every single manager has both the duty and the opportunity to revitalise this pact within every single organisation, which, as a community, is unique and thrives on its own particular characteristics. The individual manager has tremendous power to steer this dialogue in the right direction,’ continues the employment law expert. There are already a few proposals on the table: “In the committee on demographic transition, of which I am a member, we have put forward the idea of a ‘skills relay’, whereby older managers pass on their experience to young and very young people, backed by significant incentives for companies that adopt this model. This is not a solidarity contract, but a transfer of skills. This also applies on the legislative front: we need to think in terms of clusters of needs in relation to different experiences. Essentially, shared needs but tailored to the specific requirements and organisational structures of individual companies. The issue of maternity is the prime example of this,’ he concludes.

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