New work: How companies can use opportunities offered by modern work concepts and successfully meet challenges

Today, the term “new work” is omnipresent in the modern working world. Many people initially associate new work with superficial concepts such as remote working and free fruit boxes at the office. However, the philosophy of “new work” goes much deeper and is more complex than these simplistic ideas.

Find out what lies behind the concept of “new work” and what opportunities and challenges arise for managers and HR departments when they rethink conventional work structures and implement the modern work philosophy of the new work concept.

New work represents a contemporary understanding of work that is not just about earning a living. Modern employees are looking for meaning in their work and want to play an active role in shaping and developing their individual potential. Many of them desire greater involvement in decision-making processes and more responsibility at work.

The new work concept promotes a work culture that

• takes into account the individual needs of employees
• prioritizes personal interests and values
• enables a good work-life balance
• offers flexible working hours and remote working options
• better reconciles work and private life

Challenges of new work for HR and managers

The new work approach contrasts with traditional working models, which are characterized by clear hierarchies, control and authority as well as fixed working hours and locations. Companies that offer their employees autonomy, co-determination and flexibility must relinquish some of the control they are used to – a change that can be challenging at first. However, this is just one of several challenges that companies and HR departments have to face in the context of new work.

1. New perception of the HR role

For HR managers, the transition to new work represents both a major challenge and a valuable opportunity.  Human Resources is evolving from its traditional, administrative role into a strategic business partner in the company that implements new working models and thus actively shapes the corporate culture.

This transformation requires:

• A rethink in HR departments and management
• The development of HR teams into people and culture teams
• Continuous training and new skills
• The ability to operate in an increasingly digital and flexible working environment
• Business partner models and agile HR approaches to meet the needs of new work

2. Technological requirements and digital infrastructure for the successful implementation of new work

For companies to successfully implement new work, they need a robust technical infrastructure. Companies are faced with the task of creating adequate tools for hybrid working models, with employee self-services playing a central role.

The basic equipment of email and video conferencing is no longer sufficient for modern digital collaboration. The ongoing digitalization of the working world calls for more comprehensive solutions. Instead, companies need to enable a smooth exchange of information and global collaboration:

• comprehensive collaboration platforms
• modern HR software solutions
• Tools for the smooth exchange of information
• technologies for global collaboration around the clock
• location-independent working options

Without the right technological foundation and a well-thought-out digitalization strategy, the desired flexibility can quickly become an obstacle to productivity.

3. Loss of innovation due to decentralized working

Although decentralized working offers many advantages, it carries the risk of reducing innovative strength in the long term. The spontaneous exchanges with colleagues, the lunchtime chats with employees from other departments and the creativity that often arises naturally in open office environments are easily lost when working from home. Companies need to invest in collaboration tools, digital platforms and meeting spaces that promote creative exchange and hybrid collaboration within the workforce and also ensure that employees have the appropriate skills to use these tools and suitable methods. Digitalization alone will not solve this problem – well thought-out concepts in line with the new work concept are needed.

4. Motivation to maintain office presence

Working from home and flexible working models make a physical presence in the office less necessary. However, regular face-to-face interaction is still important. The challenge of motivating employees to come to the office regularly is becoming a central task for HR managers and supervisors and requires a new approach, such as the design of internal events, workshops and team-building measures. This can involve a greater investment of time and money for those responsible.

5. Diverse requirements within the staff

Another challenge in the implementation of new work is the diversity of individual needs within the workforce. While some employees appreciate the flexibility of working from home, others prefer direct contact and the structure of a fixed workplace in the employer’s office. These different preferences can lead to tensions that need to be addressed by HR through clear and fair regulations in order to prevent misunderstandings and frustrations that have a negative impact on the working atmosphere and collaboration.

6. Costs and expenses for offices

In addition to remote workstations and home office offerings, most companies provide their employees with additional office space or shared office solutions that can be used as meeting rooms at any time and individually for team meetings, retreats and personal collaboration on site. This leads to additional work and costs for companies, such as rent, facility management, equipment and technology, but meets the employees’ need to be able to work in different ways and decide freely at any time which activities require which premises.

7. Tax and regulatory challenges of workation

With the increasing possibility of working remotely, the question arises of how flexibly companies can deal with employees who want to combine vacation and work or work abroad for a defined period of time. The digitalization of the working world makes this mobile working technically possible. However, workation, i.e. working from abroad, can raise complex tax and regulatory issues that must not be overlooked. For HR managers, this means having to deal with new aspects:

• International tax requirements
• Labor law aspects of cross-border work
• Insurance and social security issues
• Compliance requirements in different countries

Faced with this multitude of challenges, it is easy to understand why many companies are reluctant to rush into implementing the new work concept. However, new work is not just a fad, but a development driven by globalization and digitalization and the associated paradigm shift. Worldwide networking and new technologies give us the freedom to work independently of time and place and to organize our work more efficiently, i.e. a world of work 4.0. This leads to changed perspectives and demands, but also brings with it numerous advantages and opportunities from which both employees and companies can benefit.

1. New work as a driver for improved employee satisfaction and motivation

Flexibility in terms of time and location makes it much easier for employees to reconcile work and private life. New work offers employees more scope and freedom, which significantly increases the quality of life and satisfaction of the individual. This positive work-life balance ensures greater motivation and performance at work and, on the other hand, reduces the risk of stress-related illnesses and absences.

2. New work boosts employee loyalty

Satisfaction is also a decisive factor when it comes to employee retention. An employee who feels that their individual expectations and wishes are recognized and valued will certainly stay with the company longer than someone who has to put their interests on the back burner in favour of work. In times of a shortage of skilled workers, this means:

• Lower staff turnover
• Reduced recruiting and induction costs
• Retention of specialist knowledge and experience within the company
• Continuity in teams and projects

3. Greater appeal of new work companies

In a working world where the importance of corporate culture and working conditions is increasingly coming to the fore, jobs in companies with new work models are often more attractive to talent, as these companies are perceived as progressive, forward-thinking and employee-oriented. Younger generations in particular, who value flexibility and autonomy, are attracted to this type of corporate culture. The vision initiated by Frithjof Bergmann is realized here in concrete competitive advantages for employers.

4. New work provides access to a global talent market

Another advantage of new work is the global talent market that it opens up for companies. By working in a decentralized manner, recruiters can fill vacant positions regardless of their geographical location and thus draw from a much larger pool of specialists.

This makes it possible to:

• Overcome regional skills shortages
• More diverse teams with an international perspective
• Access to specialists, regardless of company location
• 24-hour working time models through global distribution

5. Increased productivity through new work

In a study[1] by auditing firm PWC, 94% of employers surveyed stated that employee productivity in the home office is at least as high or even higher than in the office. An open new work culture can also promote employee creativity and innovation.

Productivity increases result from:

• More focused work without office distractions
• Individual organization of the most productive working hours
• Reduction in commuting and travel times
• Higher intrinsic motivation through autonomy

6. New work enables more efficient processes

The implementation of new work goes hand in hand with increasing digitalization of companies. Digital HR solutions are needed to enable collaboration across time and space boundaries. This has the effect of making company processes more automated and therefore more efficient with the right technical support.

7. New work contributes to reducing costs

By implementing remote work and flexible working models, companies can save costs if they do without their own office space with fixed workstations and therefore have less need for physical infrastructure.

Actively engaging with the new work approach initiated by Frithjof Bergmann enables companies and HR managers to take advantage of valuable opportunities and play a positive role in shaping the future of the world of work. This development cannot be stopped and those who embrace it at an early stage can position themselves as a future-oriented and attractive employer.

Instead of worrying about whether small adjustments such as a fruit basket or flexitime are enough, it makes sense to see new work as a long-term process. The advantage is that companies can shape the change step by step – so it is not necessary to change everything at once, but the transition to new work can take place at their own pace.

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[1] PwC-Studie (2023): „Home sweet Homeoffice“

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