The future of work and the economy in Scotland - comment

The last few months have created an overwhelming challenge for Scotland’s business community.

KPMG has forecast that Scotland’s economy could shrink by 6.8 per cent this year. Picture: Jon Savage.

Now, as restrictions are gradually eased, there’s a glimmer of light of the end of the tunnel, but also a stark acceptance that our lives and our economy may have changed forever.

In just three months we’ve started to see the economic impact of coronavirus. KPMG’s chief economist has forecast that Scotland’s economy could shrink by 6.8 per cent this year, and may struggle to regain that lost ground for at least two years, depending on the timing of a potential vaccine. That figure is moderately better than many other parts of the UK,outside London, but it remains a deeply worrying indicator of the challenges ahead.

Our lives and our economy may have changed forever, says Kergon. Picture: contributed.

The term “new normal” isn’t actually particularly new. We’ve spoken for some time about the transformation of consumer behaviour and shift away from traditional working practices. In many ways, the Covid-19 pandemic has merely accelerated the disruption and change we anticipated. The proliferation of technology and automation was already prompting many to re-evaluate priorities and try to find a better work-life balance.

Last year, KPMG working in partnership with the CBI in Scotland looked at the chronic productivity challenge facing Scotland. We set out options and suggested actions, and the Scottish Government pledged to address an issue that’s stymied potential for decades. We acknowledged the belief that outdated work practices and longer hours can harm output.

Lockdown has created a chance for us all to examine new approaches to get the country moving again, and tackle some of the deeply ingrained issues holding us back. The virus has given employers a new perspective and, possibly, opportunity to reshape their operations.

Already, leaders are examining how jobs are realigned to skills and task, rather than traditional job roles, and recognise how skills will be fluid and change to meet new roles that emerge or respond quickly to crisis. Other key considerations will include how organisations shape, plan and monitor their workforce, drive performance using data, and attract and retain the best resource.

As business leaders and advisors, we often suggest how to transform the economy, despite being part of the problem. From excessive travel to outdated office settings, we are all guilty of staying in our comfort zones and not challenging ourselves to evolve. The next few years will be very tough.

We will all witness the pain and challenge of emerging from unprecedented disruption. But, it’s now time for the decision-makers, the economic movers and the many people who’ve helped to keep the country moving, to step forward and set out the path for our future, as a more sustainable, productive, equal, healthy and happy country with growth at its heart.

James Kergon is senior partner at KPMG UK in Glasgow

SCOTSMAN.COM

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