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Knowledge Workers and
Knowledge Work


A Knowledge Economy Programme Report



Prepared by Ian Brinkley, Rebecca Fauth, Michelle Mahdon and Sotiria Theodoropoulou
Contents




     Acknowledgements                                                                              2
     List of Figures and Tables                                                                    3
     Executive summary                                                                             4
     1. The knowledge economy and knowledge work: A review of the existing
        definitions and measures                                                                   9
     2. Redefining knowledge work and knowledge workers                                           19
     3. Knowledge work across industries and regions                                              41
     4. The changing nature of work roles and the returns to knowledge                            49
     5. The job characteristics of knowledge workers                                              54
     6. Organisational culture in the knowledge economy: preferences
        and reality                                                                               61
     7. Conclusion and recommendations                                                            68
     Appendix A. Work-related tasks and activities by factor                                      76
     Appendix B: Sample demographic and background characteristics                                82
     Appendix C: Description of organisational variables                                          83
     Appendix D: Composition of workforce in the distribution and repairs and
                      in the hotels and restaurants sectors                                       84
     References                                                                                   85




Acknowledgements

     This report has drawn on some of the initial research work and discussions from The Work
     Foundation’s three year Knowledge Economy Programme, to be completed in April 2009.
     However the views set out here are entirely those of The Work Foundation and do not represent
     those of the sponsoring organisations.


     We would like to thank Alana McVerry and Sezis Okut for their contributions to this paper.




2                                                              Knowledge Workers and Knowledge Work
List of Figures and Tables




Figure 1: The 30-30-40 knowledge economy workforce                                                  5
Figure 1.1: Growth of knowledge based service industries in Europe and UK 1970-2005                10
Figure 1.2: Shares of graduates and workers with only basic schooling in UK workforce, 1970-2006   14
Figure 2.1: What work tasks are most common across the workforce?                                  23
Figure 2.2: Number of different computer uses and how often computers are used each week           28
Figure 2.3: Share of workers that frequently perform at least one specialist computer task         29
Figure 2.4: Importance of ‘teach others’ task for different clusters                               31
Figure 2.5: Perceived complexity of tasks performed by surveyed workers                            32
Figure 2.6: The 30-30-40 knowledge workforce                                                       34
Figure 2.7: Share of women in jobs by knowledge content                                            36
Figure 2.8: Share of jobs in the top three occupational groups by knowledge content                38
Figure 2.9: Share of graduates by knowledge intensity of the job                                   39
Figure 3.1: Share of jobs in knowledge industries by knowledge intensity                           42
Figure 3.2: Composition of the knowledge-intensive services sector                                 43
Figure 3.3: Workforce composition in the health and welfare industry by worker cluster             44
Figure 3.4: Employment in knowledge intensive and more traditional services compared               45
Figure 3.5: Composition of the manufacturing sector                                                46
Figure 3.6: Regional composition of the workforce                                                  47
Figure 4.1: Percentage earning more than median wages by worker cluster                            53
Figure 5.1: Percentage of workers in the same job for more than 10 years by worker cluster         56
Figure 5.2: Percentage of workers working day shifts by worker cluster                             57
Figure 5.3: Percentage of workers doing weekend work at least once/month by worker cluster         58
Figure 5.4: Percentage of workers with flexibility in choosing work schedule by worker cluster     59
Figure 6.1: Percentage prefer innovative firms by worker cluster                                   67


Table 2.1: Task factors with sample items                                                          22
Table 2.2: Number of methods used to acquire new information and learn new tasks                   30
Table 2.3: Prevalence of methods used for sharing and capturing knowledge                          32
Table 3.1: Regional concentration of knowledge workers in the UK                                   47
Table 4.1: Job-skills/experience match by worker cluster                                           52
Table 4.2: Shares of women and men earning above the median wage                                   53
Table 6.1: Perceived organisational characteristics by worker cluster                              63
Table 6.2: Preferred organisational characteristics                                                64




Knowledge Workers and Knowledge Work                                                                3
Executive summary




     The purpose of this report is to provide a portrait of work and the workforce in the knowledge
     economy. We wanted to find out who the knowledge workers are, what they do in their
     jobs, where they are employed and what employment structures, job characteristics and
     organisational structures look like in the knowledge economy.


     Knowledge work and knowledge workers are terms often used but seldom defined. When
     knowledge work is defined it is usually by broad measures such by job title or by education
     level. At best this gives us a partial and simplistic view of knowledge work in the UK.


     This report takes a new approach. In a large and unique survey, we have asked people what
     they actually do at work and how often they perform particular tasks. We have used that
     information to assess the knowledge content of their jobs. The key test was the cognitive
     complexity required for each task – the use of high level ‘tacit’ knowledge that resides in
     people’s minds rather than being written down (or codified) in manuals, guides, lists and
     procedures.


     We then grouped the workforce into seven distinct clusters of jobs ranging from ‘expert thinkers,
     innovators and leaders’ (the most knowledge intensive groups) to ‘assistants and clerks’ (the
     least knowledge intensive)1. We describe the two highest knowledge groups as our ‘core’
     knowledge worker.


     With this measure we estimated that we have a 30-30-40 workforce – 30 per cent in jobs with
     high knowledge content, 30 per cent in jobs with some knowledge content, and 40 per cent in
     jobs with less knowledge content.


     Within our 30 per cent ‘core’ knowledge worker group, the highest group of all (‘leaders and
     innovators’) constituted just 11 per cent of the workforce. These high intensity knowledge jobs
     combined high level cognitive activity with high level management tasks.


     These high knowledge intensive jobs are, we suspect, what some of the more excitable
     accounts of knowledge work we have in mind. The reality is that even after 40 years
     uninterrupted growth in knowledge based industries and occupations, such jobs account for only
     one in ten of those in work today.




     1
         These groupings are described in more detail on page 24




4                                                                  Knowledge Workers and Knowledge Work
Executive summary




         The 30-30-40 knowledge economy workforce




                                                  Many knowledge
                                                    tasks, 33%
              Few knowledge
                tasks, 40%




                                    Some knowledge
                                      tasks, 27%




         We confirmed that knowledge work cannot be adequately described simply by looking at job
         titles or education levels. About 20 per cent of people engaged in jobs with high knowledge
         content – our core group of knowledge workers – were not graduates.


         We also show that current job titles understate the knowledge content of jobs within some
         sectors such as manufacturing. When jobs are classified by knowledge content, high tech
         manufacturing has as many knowledge intensive jobs, proportionately, as high tech services.


         Although our survey did not look in great detail into the geographical distribution of knowledge
         workers, there were nevertheless indications that core knowledge workers tend to cluster in
         urban areas, particularly in London, the South East and North of England and Scotland. This
         is not a surprising finding given that face-to-face contact and the development of relationships
         are important for exchanging information and especially tacit knowledge. Cities across the UK
         – including Manchester, Leeds, Bristol and Edinburgh outside the South East – also provide




Knowledge Workers and Knowledge Work                                                                        5
Executive summary




      businesses with access to wider markets and to specialist skills. This result resonates with the
      insights of our Ideopolis programme on the growing importance of cities in world economies.


      Our results confirm high economic returns to knowledge – the vast majority of those in the most
      knowledge intensive jobs enjoyed pay well above the median. But this was not true for those in
      jobs with some knowledge content – such as care and welfare work.


      The most knowledge intensive jobs were almost equally likely to be held by men and women,
      but those jobs with some knowledge content – such as care and welfare workers, information
      handlers, and sellers and servers – were overwhelmingly female. Woman have benefitted from
      the growth of knowledge work, but the growth of more knowledge intensive work has not, of
      itself, overcome the gender pay gap.


      Some people have speculated that the growth of knowledge work is weakening the attachment
      to permanent and long term employment relations. We find no evidence for this. Those in the
      most knowledge intensive jobs are no more likely to be in temporary jobs than those in the least
      knowledge intensive jobs and job tenures are also very similar.


      Knowledge workers are not spear-heading radical changes in the way we work. As expected,
      they do have more flexibility at work than those in less knowledge intensive jobs, but the
      differences were not overwhelming. The reality is that less than 50 per cent of all workers
      and less than 60 per cent of knowledge workers said they have some flexibility in their work
      schedule, and only a very small minority said they can freely determine their own hours.


      Perhaps not surprising, attachment to the standard nine to five day is still a central feature of
      the labour market for both knowledge workers and non-knowledge workers alike. Knowledge
      workers were far more likely to do occasional work at home, although over 60 per cent said they
      did no home-working. Weekend working is relatively common across the workforce, but was
      much less prevalent among knowledge workers.


      We found two big labour market mismatches. The first was between the skills that people
      said they had and the demands their current job made of them. The second was between the
      organisational culture people perceived they actually worked in and the organisational culture
      they would like to work in.




6                                                                  Knowledge Workers and Knowledge Work
Executive summary




         Significant minorities of workers reported their current jobs under-used their skills. The gap
         was less marked for knowledge workers, but nonetheless significant. About 36 per cent of
         knowledge workers said they were in jobs that under-used their skills compared with over 44 per
         cent of those in jobs with some or little knowledge content.


         Taken at face value, employers are not making the most of knowledge worker skills despite
         such workers representing a substantial investment in human capital within the organisation.
         However, these mismatches are even worse for jobs with low knowledge content – suggesting
         a more general problem with labour utilisation rather than a particular difficulty with knowledge
         work.


         Some have expressed concern that the economy is producing too many graduates for the
         available jobs that require graduate skills, forcing more graduates to accept lower pay jobs and
         worsening the prospects for non-graduates.


         We found mixed evidence. About 20 per cent of graduates were in low knowledge content
         jobs. This is potentially worrying. However, the average job tenure for graduates in such jobs
         was much lower than for non-graduates – suggesting graduates spend less time in these jobs.
         Moreover, about 44 per cent of graduates in low knowledge content jobs reported that their job
         duties corresponded well with their current skills.


         Taken with the evidence on returns from knowledge and our previous work on labour market
         polarisation2, the overall picture does not strongly support the idea that the UK is producing too
         many graduates. The situation may be worse for those who entered the labour market more
         recently, but we found little variation in these responses by age.


         The vast majority of people in work think their organisation is characterised by formal rules
         and policies, but very few say this is the sort of organisation they really want to work for. The
         mismatch is even greater for knowledge workers: 65 per cent said their organisations were rule
         and policy bound, but only 5 per cent expressed a preference for such organisations.


         There is a much better match when it comes to characteristics such as loyalty and mutual trust
         for both knowledge and non-knowledge workers. About 50 per cent of all workers said this
         was a predominant characteristic of their organisation, and over 60 per cent said it was their
         preferred organisational characteristic.



         2
             Fauth and Brinkley (2006) Polarisation and labour market efficiency, The Work Foundation




Knowledge Workers and Knowledge Work                                                                                7
Executive summary




      Knowledge workers are more likely to work for organisations that they think are innovative
      or achievement orientated – not in itself a surprising result. What is surprising is that neither
      feature seems to appeal to them very much. For example, 50 per cent of knowledge workers
      said their organisation’s predominant feature was innovation, development and being at the
      cutting edge, but only 24 per cent preferred this type of organisation.


      Some of the differences in how people characterised their organisation can be partly explained
      by whether the organisation was in a public based industry (education, health, public
      administration) or in a private market based industry. But such differences between a public
      and private based organisational culture did not explain preferences. It seems people reject
      rule bound cultures and value loyalty and trust regardless of whether they work in the public or
      private based sectors.


      The gap between reality and organisational preference was wider in the public sector than in
      the private sector. Public service workers were more likely to say they worked in a rules bound
      organisation, which is predictable; but they also said they were less likely to be characterised by
      mutual rust and loyalty than in the private sector.


      These are the first set of findings from our knowledge working survey. We will be publishing
      a second set of findings later in 2009 that look more closely at how knowledge work can be
      regarded as ‘good work’ and how it relates to health and well-being at work.




8                                                                  Knowledge Workers and Knowledge Work
1. The knowledge economy and knowledge work:
        A review of the existing definitions and measures



Introduction   The purpose of this report is to provide a portrait of the work and the workforce in the knowledge
               economy. We want to find out who the knowledge workers are, what they do in their jobs, where
               they are employed and what employment structures, job characteristics and organisational
               structures look like in the knowledge economy.


               The term ‘knowledge economy’ is often used but seldom defined. Essentially, it refers to a
               transformed economy where investment in ‘knowledge based’ assets such as R&D, design,
               software, and human and organisational capital has become the dominant form of investment
               compared with investment in physical assets – machines, equipment, buildings and vehicles.
               Thus, the term ‘knowledge economy’ captures the subsequently changed industrial structure,
               ways of working, and the basis on which organisations compete and excel.


               The presence and use of knowledge-based assets in the economy is of course not new –
               knowledge based institutions such as universities go back centuries. However, in the late 1970s
               and early 1980s three major economic and social forces combined to trigger the radical change
               in economic structures that expanded the use of knowledge based assets and brought them to
               the centre of economic activity across the OECD:


                   •   The introduction of increasingly powerful and relatively cheap general purpose
                       information and communication technologies has not only been eliminating the physical
                       and geographical barriers of sharing information and ideas, but also expanding the
                       possibilities of generating new knowledge.
                   •   Globalisation has been acting as an accelerator by opening up both markets of global
                       scale and an endless variety of niche markets as well as speeding up the spread and
                       adaption of new technologies and ideas.
                   •   The rising standards of living in the advanced industrialised economies have, over the
                       years, created well-educated and demanding consumers with a voracious appetite
                       for the high value added services that the knowledge economy can characteristically
                       supply.


               These changes are universal – they affect all industrial sectors, all sizes of firms, the public
               sector as much as the private sector. And they are global – we have yet to find an advanced
               industrial economy where these changes are not taking place.


               The graphs below illustrate the growth of the knowledge economy in Europe by showing the
               evolution of the share in value added, in the EU and the UK, of the sectors that the OECD and




     Knowledge Workers and Knowledge Work                                                                         9
The knowledge economy and knowledge work:
A review of the existing definitions and measures




       Eurostate commonly define as knowledge-based industries. These industries include high- to
       medium-technology manufacturing and knowledge intensive services such as financial and
       business services, telecommunications and health and education.3 The decline in manufacturing
       is somewhat misleading, as we show in the report Manufacturing and the Knowledge Economy
       (The Work Foundation, January 2009).


        Figure 1.1: Growth of knowledge based service industries in the UK 1970-2005

       50%
       45%
       40%
       35%

       30%
       25%

       20%

       15%

       10%
                            TOTAL MANUFACTURING
           5%               KE
                            Other services
           0%
            _1970   _1973    _1976   _1979   _1982   _1985   _1988   _1991   _1994   _1997   _2000   _2003


                        Source: The Work Foundation estimates from EU KLEMS database


           Note: OECD definition – knowledge based services includes financial and business services,
           communications, health and education services. Other services includes distribution, hospitality, public
           administration, other services.



       This change in industrial structure has also changed the structure of the workforce. The
       interaction of technology with workers’ intellectual and human capital has, some argue, created
       a new class of worker in today’s economy – the knowledge worker.


       Peter Drucker, the management guru, is credited with popularising the term ‘knowledge worker’
       as long ago as 1968 (Drucker 1968). Back then he argued, ‘Today the center is the knowledge
       worker, the man or woman who applies to productive work ideas, concepts, and information
       rather than manual skill or brawn…Where the farmer was the backbone of any economy a
       century or two ago…knowledge is now the main cost, the main investment, and the main



       3
        It is interesting to note that knowledge-based industries in manufacturing are delineated by their high shares of sales
       devoted to R&D, whereas knowledge-based industries in services are distinguished by their high levels of ICT usage
       and graduate employment of graduates




10                                                                                           Knowledge Workers and Knowledge Work
The knowledge economy and knowledge work:
                                                       A review of the existing definitions and measures




                product of the advanced economy and the livelihood of the largest group in the population’ (p.
                264). Even in its nascent form, the very term ‘knowledge worker’ hints at a shift in nature of
                some jobs where knowledge – not physical capital – is increasingly becoming the core currency
                on the job market.


                Forty years on, and we seem little closer to pinning down the terms ‘knowledge worker’ or
                ‘knowledge work.’ There are no official agreed definitions and no standardised measures.
                As with the term ‘knowledge economy’, the term ‘knowledge worker’ is used frequently and
                indiscriminately. It encompasses anybody from a relatively small number of professional and
                technical specialists to a sizeable chunk of the workforce.


                The following section reviews the diverse, but surprisingly sparse, literature on the definitions
                and measurement of knowledge work and knowledge workers, including the definition used by
                The Work Foundation thus far. In reviewing this literature, we highlight the important features
                that a data-driven account of knowledge work and knowledge workers should reflect and the
                shortcomings of previous attempts at providing such an account. Moreover, this review frames
                our own method of deriving a better definition of knowledge work within the existing literature.
                In later sections of this report we will use our newly developed definition of knowledge work
                to explore the consequences of the knowledge economy in the structure of employment, job
                characteristics organisational culture and good work.


     Defining   Definitions of knowledge
knowledge and   One of the central problems in defining knowledge work has been the difficulty of defining
   knowledge    knowledge itself and distinguishing knowledge from information. Indeed, the terms ‘information
      workers   worker’ and ‘knowledge worker’ can be used interchangeably. There is a vast literature in
                which the concept of management of knowledge is hard to distinguish from the management
                of information. For example, the general conclusion from one meta-analysis is that much of
                what is described as knowledge management is really either management of information or a
                description of organisational changes that improved information sharing (Wilson 2002).


                We argued in The Work Foundation’s Knowledge Economy Programme interim report (Brinkley
                2008) that what distinguishes knowledge from information is the way in which knowledge
                empowers actors with the capacity for intellectual or physical activity. Knowledge is a matter of
                cognitive capability and enables actors to do and reflect. Information, by contrast, is passive
                and meaningless to those without suitable knowledge. Knowledge provides the means by which
                information is interpreted and brought to life.




       Knowledge Workers and Knowledge Work                                                                         11
The knowledge economy and knowledge work:
A review of the existing definitions and measures




       An alternative distinction is between ‘tacit’ and ‘codified’ knowledge (see Lundavall and Johnson
       1994 and OECD 1996: 12). The latter can be written down, for example, in manuals, guides,
       instructions and statements and is easily reproduced. Tacit knowledge, however, resides
       with the individual in the form of expertise and experience that often cannot be written down
       and is expensive to transfer to others. In many respects, codified knowledge and information
       are indistinguishable. The significant difference is, therefore, between tacit knowledge and
       information.


       Conceptual definitions of knowledge work
       Even with these distinctions in mind, knowledge work remains an elusive concept. Definitions
       and descriptions of knowledge work have ranged from the theoretical to the anecdotal and are
       very infrequently based on a robust assessment of data on workers and what they actually do.
       When data are used, usually proxy measures for highly skilled labour are employed. Depending
       what resource we look to for evidence, we might come away thinking that nearly everyone in the
       workforce today is a knowledge worker or that almost no one is, with the exception of a select
       few.


       Several experts have outlined conceptual definitions of knowledge work. For example, Drucker
       (1999) focused on the differences between ‘manual worker productivity’ and ‘knowledge worker
       productivity.’ The key enablers of the latter include abstractly defined tasks (vs. clearly defined,
       delineated tasks), flexible application of knowledge, workers’ autonomy, continuous innovation
       and learning into job roles, assessment based on quality (not just quantity) of output and
       perceiving workers as organisational assets. While this general outline is useful, Drucker did not
       take the additional useful step of specifying the occupations that fit into the knowledge worker
       category. One could argue that he simply outlined a more modern conception of a good job
       where workers are viewed as more than what they produce.


       Robert Reich (1992) was a bit more explicit in outlining what he terms as the ‘symbolic analysts’,
       the workers who engage in non-standardised problem solving using a range of analytic tools
       often abstract in nature. The keys to these workers’ success include creativity and innovation
       and incorporate occupations ranging from lawyers to bankers to researchers to consultants.


       Another US-based researcher took a fairly divisive stance on knowledge work by declaring
       that, ‘all knowledge work is intellectual work. Thus, a job that is not intellectual enough will not
       contribute to knowledge work. Such jobs should not be allowed in a knowledge organisation’
       (Amar 2002). The paper argued further that knowledge organisations should only have jobs




12                                                                   Knowledge Workers and Knowledge Work
The knowledge economy and knowledge work:
                                                 A review of the existing definitions and measures




         that involve at least 50 per cent intellectual content (eg, analysis, decision making, creativity). In
         turn, the author suggested that knowledge organisations should do away entirely with traditional
         manual jobs that require only physical skills.


         It is hard to know whether this should be taken literally or if the argument is that knowledge-
         intensive tasks should be shared by all workers. After all, even in knowledge organisations,
         knowledge workers need to be supported, offices need to be cleaned and machinery serviced
         and so on. This definition would also appear to rule out high-tech manufacturing, including some
         of the most R&D intensive companies in the world.


         Data-driven definitions of knowledge work
         Moving on to more data-driven definitions of knowledge work, some analysts have tried to
         describe knowledge workers as all those who work in particular organisations or in particular
         sectors or institutions – sometimes under the dubious impression that knowledge workers make
         up the overwhelming majority of workers in such industries. However, in practice, organisations
         in these industries need to deploy a wide range of complementary jobs with varying degrees of
         intellectual content.


         Another class of proxies that economists often use for distinguishing knowledge workers
         is based on the investment expenditures in activities such as education and research and
         development. In line with this approach, one of the definitions of knowledge workers that The
         Work Foundation (TWF) has been using so far for their research is university graduates as a
         proxy for highly-skilled workers and investment in human capital.


         There has been a strong association between the rise of employment in knowledge intensive
         industries and the employment of graduates in the workforce. There has also been a major shift
         in the share of the workforce with some form of qualification across all sectors of the economy.
         As Figure 1.2 below shows, in 1970, for example, less than 10 per cent of the workforce had a
         degree and 60 per cent of people in work had had only basic schooling. By 2005 the share of
         graduates had increased to around 19 per cent, while the share of people with no qualifications
         had fallen to 12 per cent. The latest figures show that graduate employment accounted for just
         under 23 per cent of workers in the UK.




Knowledge Workers and Knowledge Work                                                                        13
The knowledge economy and knowledge work:
A review of the existing definitions and measures




       Figure 1.2: Shares of graduates and workers with only basic schooling in UK workforce,
       1970-2006

       70
                                                                                     Degree holder
       60                                                                            No qualification

       50

       40

       30

       20

       10

           0
       70

               72

                    74

                         76

                              78

                                   80

                                        82

                                             84

                                                  86

                                                       88

                                                            90

                                                                 92

                                                                      94

                                                                           96

                                                                                 98

                                                                                       00

                                                                                            02

                                                                                                 04
      19

               19

                    19

                         19

                              19

                                   19

                                        19

                                             19

                                                  19

                                                       19

                                                            19

                                                                 19

                                                                      19

                                                                           19

                                                                                19

                                                                                     20

                                                                                          20

                                                                                               20
                                                                           Source: EU KLEMS Database

       Economists often suggest that knowledge economies need to invest in skills at all levels – from
       improving basic numeracy and literacy to expanding the share of young people entering the
       university system, strengthening vocational skills, and promoting life-long learning. However, it
       has typically only been investment in higher education that has defined knowledge work.


       The premise underlying these measures of knowledge work is that in advanced industrialised
       economies investment in higher education earns economic returns in the form of higher wages,
       and hence knowledge workers are those with at least a graduate-level education.


       The World Bank’s Knowledge Economy Index (KEI) uses the distinction between information
       and knowledge to separate investment in basic education and higher education (Chen
       and Dahlman 2005). Basic education is required to use and process information. Higher
       level education is required for what the Bank calls, ‘the production of new knowledge and
       its adaptation to a particular economic setting’ (p. 5). The OECD’s composite indicator of
       knowledge investment similarly includes includes spending on higher education as a share of
       GDP.4


       However, it is less clear whether such distinctions can be easily made for vocational skills. The
       evidence suggests that while lower level vocational skills may have relatively little impact on

       4
           OECD Science and Technology indicators. The other components are investment in ICT and R&D




14                                                                              Knowledge Workers and Knowledge Work
The knowledge economy and knowledge work:
                                                        A review of the existing definitions and measures




         wages, higher level vocational skills undoubtedly offer an economic return even if it is not as
         significant as from higher education. And it would be hard to argue that the more sophisticated
         vocational skills – for example, in diagnostic work – are not also engaged in the production and
         adaptation of new knowledge.


         Other proxies for knowledge work and workers have focused more narrowly on the link between
         investment in scientific and technical skills and technological innovation. The narrowest
         measure is the share of workers in R&D: typically, these more specialist types of knowledge
         workers account for between 1 and 1.5 per cent of the workforce across the major OECD
         economies even using the wider OECD definition that includes support technicians. A wider
         measure is the share of workers with a science, technology, engineering or mathematics degree
         (STEM graduates). Both can be used as a proxy for the ability of an economy to generate and
         absorb technological innovations.5


         Job-content definitions of knowledge work
         A final approach to defining knowledge work has been to look at the sort of jobs that people do.
         Here we see a very wide variety of examples. Suff and Reilly (2005) provide a useful summary
         of some of the approaches adopted. Most studies give examples of managerial professional and
         associate professional workers and often concentrate on particular groups. For example, a 2007
         report on ‘enterprise knowledge workers’ was based on a sample survey of senior business
         executives and managers (Economist Intelligence Unit 2007).


         Broader measures of knowledge workers have been based on occupational classifications
         within the official statistics. One of the more widely used measures adopted by The Work
         Foundation has been to group together the three top occupational groups of managers,
         professionals and associate professionals. These are jobs that, at least traditionally, require a
         certain level of educational and/or vocational training and are the least likely to be affected by
         technological advances and competition from low-wage manufacturing imports. Using this broad
         stroke definition, 42.5 per cent of the workforce would be classified as a knowledge worker in
         2007.


         This broad classification has the virtue of providing readily available statistics on the extent and
         growth of knowledge work. But it is also clear that some of the classifications do not work well.
         The job title ‘manager’ is applied to a much wider range of jobs in the UK than elsewhere in
         Europe, likely including many relatively low paid, basic supervisory roles (European Foundation
         for the Improvement of Living and Working Conditions 2007). The category ‘managers,

         5
             Also referred to as HRST (human resources in science or technology)




Knowledge Workers and Knowledge Work                                                                          15
The knowledge economy and knowledge work:
A review of the existing definitions and measures




       legislators and senior officials’ accounts for about 15 per cent of the UK and the US work forces,
       but less than 10 per cent in Germany, France, Italy and Spain, according to estimates by the
       ILO (all figures 2007 or latest available). Moreover, other job categories are also likely to include
       people undertaking similar tasks to those within the top three occupational groups.


       More sophisticated approaches by researchers in Australia, the US and the UK have regrouped
       the existing statistical occupational codes (Webster 1999; Autor, Levy, and Murnane 2003; Elias
       and Purcell 2004).


       The Australian research was primarily interested in trying to measure the production of
       intangible ‘intellectual’ assets, and so regrouped occupations according to whether they were
       associated with the production of such assets (Webster 1999). A further distinction was made
       between workers that directly produce intangible assets for others including teachers, sales and
       marketing workers, consultants, researchers and financial advisors. These workers also include
       those who acquire and use skills, knowledge and talent to make a contribution to the goodwill or
       efficiency of their firms including medical staff, scientists, managers and engineers.


       The US researchers were interested in the impact of computerisation on the workforce (Autor,
       Levy, and Murnane 2003). Notably, they wished to assess whether computers were more
       substitutable for routine than non-routine forms of work. To do so, the researchers took the
       existing statistical occupational codes and recategorised jobs into five groups based on the
       degree of computer substitution and adherence to strict rules – both proxies for more routine
       forms of work. The groups included:


           1. Expert thinking: includes solving problems outside of rules based solutions, with
               computers assisting but not substituting. As well as high level research and creative
               work, this might also include the mechanic who is able to identify a solution to a
               problem that computer based diagnostics could not.


           2. Complex communication: includes interacting with other people to acquire or convey
               information and persuading others of their implications, with computers assisting
               but unlikely to replace – examples might include some managers, teachers and
               salespeople.


           3. Routine cognitive: includes mental tasks closely described by rules such as routine form
               processing and filling, often vulnerable to computerisation.




16                                                                  Knowledge Workers and Knowledge Work
The knowledge economy and knowledge work:
                                               A review of the existing definitions and measures




             4. Routine manual: includes physical tasks closely described by rules, such as assembly
                 line work and packaging, that may be replaced by machines.


             5. Non-routine manual: includes physical tasks hard to define by rules because they
                 require fine optical or muscle control such as truck-driving and cleaning, and unlikely to
                 be either assisted or replaced by computers.


         This delineation recognises the importance of workers’ inputs and serves as a useful guide
         for understanding the types of job roles that are unaffected or even enhanced by mass
         computerisation relative to the jobs that have become less relevant to the economy. From this,
         we can argue that knowledge work goes beyond basic processing of information and cannot
         be based on strict adherence to rules; in other words, it can be assisted and enhanced, but
         not replaced, by computers. Thus, expert thinking, complex communication and analytical
         reasoning – defined by the authors as making effective oral and written arguments – help define
         knowledge work, as opposed to the routine cognitive along with routine and non-routine manual
         categories.


         Finally, UK research focuses on the links between occupations and graduate qualifications
         (Elias and Purcell 2004). Over time, the researchers have assessed the average educational
         attainment of workers in each of the minor occupational groups (ie, 371 occupations in total),
         accounting for workers’ age given the increase in degree holders over time. Based on this
         analysis, five umbrella groups of occupations based on educational qualifications were created:


             1. Traditional graduate occupations: includes professions that historically have required an
                 undergraduate degree (eg, solicitors, scientists, doctors, teachers).


             2. Modern graduate occupations: includes newer professions that graduates have been
                 entering since the 1960s (eg, chief executives, software professionals, writers).


             3. New graduate occupations: includes occupations where entry-level has recently shifted
                 to incorporate degree holders (eg, marketing and sales managers, physiotherapists,
                 welfare officers, park rangers).


             4. Niche graduate occupations: includes jobs where majority of entry-level workers are not
                 graduates, but there is a growing number of specialists who do come in with degrees
                 (eg, sports managers, hotel managers, nurses, retail managers).




Knowledge Workers and Knowledge Work                                                                      17
The knowledge economy and knowledge work:
A review of the existing definitions and measures




           5. Non-graduate jobs: includes professions where a graduate degree is not required and
               most employees do not have degrees.


       Similar to the US approach, this methodology directly incorporates the changing nature of the
       labour market to analyse how occupations shift over time.


       These three categorisations get us closer to what knowledge work might be, but they are still
       constrained by the existing occupational codes. In all three studies, there was a strong overlap
       between the sort of jobs that were classified as producing intellectual assets or associated with
       expert thinking and complex communication skills or affiliated with graduate workers and the top
       three occupational codes.


       At one level this is reassuring: it suggests the top three occupational codes are capturing many
       ‘knowledge work’ jobs and so serve as a reasonable proxy. At the same time, it is important to
       keep in mind that they are proxy measures nonetheless and hence only give us a partial picture
       of knowledge work in today’s economy.


       To sum up, what is missing from all of these attempts at defining knowledge work is a thorough
       analysis of workers themselves and what they do at work. Moreover, different definitions provide
       fairly divergent estimations of the size of the knowledge workforce in the UK. For example,
       graduate employment in the UK in 2008 was just over 20 per cent of the workforce, while the
       top three occupations (managers, professionals, associate professional and technical) account
       for over 40 per cent. As we describe in more detail later in this report, the aim of the present
       study is to focus directly on a large sample of UK workers to better understand the key tasks
       and activities that make up their daily working life and develop a more robust measure of
       knowledge work within the economy.




18                                                                 Knowledge Workers and Knowledge Work
2. Redefining knowledge work and knowledge workers




           This section develops our definition of knowledge work and knowledge workers. We do that in
           three stages:


                •    First, we discuss the technical aspects of our survey and its analysis, and how we
                     reclassify the workforce into task-based ‘clusters’ on the basis of the distinguishing
                     features in the jobs they do.


                •    Secondly, we identify the different sorts of knowledge content within each of our
                     clusters, allowing us to identify these task-based characteristics that distinguish
                     knowledge work.


                •    Thirdly, we use our new definition of knowledge work to provide a cross-sectional
                     picture of the UK’s workforce today and how the new definition measures up against
                     previous definitions.
           6
Research   We performed our analysis in several steps. We started off by conducting a survey of, among
 design6
           others, the tasks that people employed in the knowledge economy frequently do at work. We
           presented our survey respondents with a list of 186 tasks and asked them to rate how frequently
           they perform each of them. We then analysed this survey information along two lines. On the
           one hand, and to make our data more easily manageable, we identified groups of tasks, (eg
           data analysis, administrative tasks, people management, maintenance moving and repairing)
           that were frequently performed together by the same survey participants. On the other hand, we
           identified groups of workers depending on how frequently they performed particular groups of
           tasks.


           In addition, our survey provided information on the use of technology, the methods of sharing
           and acquiring knowledge and the complexity of the tasks that the participants perform at work.
           The survey information allowed us to come up with a fresh taxonomy of both the types of tasks
           that characterise work in the knowledge economy and the different groups of workers within the
           labour force. In what follows, we present some important details on the methods we used and
           then discuss our results regarding the definition of work in the knowledge economy.




           6
            Readers who are not interested in the specific technical details of our methodology can largely omit reading this sub-
           section in full without losing track of our analysis




  Knowledge Workers and Knowledge Work                                                                                           19
Redefining knowledge work and knowledge workers




       Our survey
       Our knowledge workers’ survey was designed in four phases.


       First, we conducted an extensive literature review of existing sources on job and task analysis,
       job content and job design. From this review, we compiled an initial list of approximately
       125 work-related tasks or activities featuring manual tasks, cognitive tasks, social tasks and
       technical tasks, to name a few.


       Second, we conducted qualitative case studies of workers in two knowledge-based
       organisations. For these case studies, we conducted focus groups and interviews with more
       than 40 workers employed in a range of jobs within the organisations.


       Third, we collated the evidence to finalise our list of tasks and activities for a pilot version of the
       survey. The initial survey included 138 work-related tasks and activities as well as additional
       items on workers’ background and job characteristics, features of job quality and working
       conditions and work-related outcomes. The pilot survey was distributed to 200 workers who
       participated in an online panel. Participants were required to work at least 20 hours per week in
       one job, although they could have more than one job.


       Finally, based on the evidence from the pilot study, we revised our survey further, incorporating
       more work-related tasks and activities and deleting the tasks that did not appear to distinguish
       workers. Our final survey comprised 186 work-related tasks and activities. The full list of the 186
       work-related tasks and activities is provided in Appendix A.


       The survey was sent out to 2,011 online panel respondents. All participants had to be working in
       at least one job for a minimum of 20 hours per week for at least 3 months. Descriptive statistics
       for the sample are found in Appendix B. With a few exceptions, our sample demographics were
       comparable to those found in the 2007 Labour Force Survey (LFS) data. Our sample included
       slightly more workers in the managers and senior officials along with administrative and
       secretarial occupational categories than LFS estimates, and slightly fewer skilled tradespeople
       and workers in elementary occupations. We captured a range of demographic and background
       information about respondents as well as both general and specific characteristics of their jobs.
       Appendix C provides a summary of these variables. The respondents indicated the frequency
       with which they engaged in each of the tasks on a 4-point scale ranging from 1=never to
       4=often.




20                                                                    Knowledge Workers and Knowledge Work
Redefining knowledge work and knowledge workers




         Exploring work tasks in the knowledge economy: Factor analysis
         To help make our data analysis more manageable, we ran an exploratory factor analysis (EFA).7
         Our ultimate goal is to classify the respondents of our survey into groups depending on the
         tasks they perform most frequently. Given that the list of tasks on whose frequency we asked
         them to report was a long one, exploratory factor analysis helped us to shorten it by grouping
         the tasks into 10 groups. For that purpose, this technique used the responses of our survey
         participants on how frequently they perform each of the tasks to group these tasks into a few
         distinct groups (‘factors’). The factors with sample tasks are detailed below with the figures in
         brackets detailing the number of tasks from the original list that were included in the relevant
         group (see Table 2.1 on the next page).


         Each of the 10 factors was created by computing the mean of the relevant items. Figure 2.1
         below displays the average factor scores across the full sample, that is, the average frequency
         with which the tasks classified under each of the factors (groups) were performed in our
         sample of workers. A score of one means the task is not very common across the sample –
         either because it is rarely performed or because it tends to be confined to a specialist group of
         workers. A score of four means it is very widely performed across the sample of workers. So for
         example, people management tasks, data and analytical tasks, and administrative tasks are the
         most frequently performed. In contrast, personal and domestic tasks, creative tasks and caring
         tasks are the least frequently performed across the sample as a whole.


         The high frequency of people management tasks and of data manipulation and analysis
         underlines the emphasis of the knowledge economy in tacit knowledge that resides with
         individuals and in information. The high prevalence of these tasks is consistent with the
         importance of investment in both human capital and in software and computerised databases
         in the UK economy.8 Data processing and analysis tasks are quite wide-ranging, spanning from
         specialist analysis to mere data entering.


         On the other hand, the relatively low incidence of care and creative tasks might seem surprising
         given the large numbers employed in care-based industries and occupations and in the creative


         7
           In general, factor analysis is a statistical technique used to explain variability among a set of ‘observed’ variables (ie,
         the 186 tasks in this case) through the creation of fewer ‘unobserved’ variables called factors or latent variables. By
         finding the commonalities between different sets of items, we can effectively collapse our 186 individual items into a
         more analysable set of factors. EFA was used in the first instance to get a sense of the number of factors comprised in
         the 186 items as well as to identify the items that were poor factor indicators (ie, items that do not load on any factor or
         load onto more than one factor). Confirmatory factor analysis (CFA) was subsequently used to validate the hypothesised
         factor structure and our model exhibited adequate fit. The analysis suggested that 126 of the 186 tasks in our survey
         could be collapsed into 10 distinct factors. The 60 excluded items tended to be very general types of tasks and activities
         that most workers engaged in
         8
           HMT October 2007.Intangibles and Britain’s productivity performance




Knowledge Workers and Knowledge Work                                                                                              21
Redefining knowledge work and knowledge workers




       Table 2.1: Task factors with sample items

           Factor                 Sample items
           Data processing        Compile data; Statistically analyse data; Identify patterns in data/information;
           and analysis (9)       Interpret charts/graphs; Enter data

           Leadership &           Make strategic decisions; Develop organisational vision; Identify issues that will
           development (28)       affect the long-term future of organisation; Foresee future business/financial
                                  opportunities; Manage strategic relationships
           Administrative         Manage diaries; Order merchandise; Organise/send out mass mailings; Make and
           tasks (10)             confirm reservations; Sort post
           Perceptual &           Judge speed of moving objects; Visually identify objects; Judge which of several
           precision tasks        objects is closer or farther away; Judge distances; Know you location in relation to
           (11)                   the environment or know where objects are in relation to you
           Work with food,        Clean/wash; Prepare/cook/bake food; Stock shelves with products/merchandise;
           products or            Gather and remove refuse; Serve food and beverage
           merchandise (5)
           People                 Assign people to tasks; Manage people; Teach others; Motivate others; Mentor
           management (16)        people in your organisation
           Creative tasks         Create artistic objects/works; Use devices that you draw with; Take ideas and turn
           (10)                   them into new products; Take photographs; Engage in graphic design
           Caring for others      Provide care for others; Dispense medication; Diagnose and treat diseases,
           (5)                    illnesses, injuries or mental dysfunctions; Expose self to disease and infections;
                                  Administer first aid
           Maintenance,           Install objects/equipment; Use tools that perform precise operations; Use hand-
           moving &               powered saws and drills; Test, monitor or calibrate equipment; Take equipment
           repairing (18)         apart or assemble it
           Personal, animal       Excavate; Dig; Plant/maintain trees, shrubs, flowers, etc.; Feed/water/groom/
           and home               bathe/exercise animals; Sew/knit/weave
           maintenance (14)


       and cultural industries9. The former reflects the fact that care-related tasks are relatively
       specialised, so are not frequently used at work outside the health and social care area. The
       low incidence of creative tasks also reflects the fact that these tasks are relatively specialised.
       Moreover, a common feature of sectors such as creative and cultural industries is that they
       generate large numbers of jobs for people in non-creative roles, so even within these industries
       the number of people working in specialised creative tasks may be relatively small.


       About 17 per cent of the tasks originally included in the survey were excluded from the final
       identification of group (factor) tasks. These excluded tasks are reported at the end of Appendix
       A. In most cases, tasks were excluded from factor analysis, because they were too common



       9
           The Work Foundation, 2007 Staying Ahead: the economic performance of the UK’s creative industries




22                                                                            Knowledge Workers and Knowledge Work
Redefining knowledge work and knowledge workers




             across these groups to be classified under a specific group or another. Notable examples fall
             under various forms of communication, collaboration, advice giving and problem solving. In
             other words, these tasks are so common they do not help us differentiate between workers who
             can be described as knowledge workers and other groups in the workforce. However, there
             were also tasks, most notably falling under ‘creative tasks’, that the survey participants hardly
             reported to perform with any frequency.


             Figure 2.1: What work tasks are most common across the workforce?
                                2.5

                                       2.1
                                2.0               1.9
                                                             1.7
        Mean frequency 1 to 4




                                1.5                                     1.4        1.4        1.4
                                                                                                        1.3        1.3
                                                                                                                              1.2
                                                                                                                                         1.1
                                1.0


                                0.5


                                0.0
                                           t




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                                                                        n
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        D




                                                                   Source: Knowledge Workers Survey, The Work Foundation, 2008


                  Note: 1 = least common, 4 = most common



             Exploring the different types of workers in the knowledge economy: Cluster analysis
             Having identified the broad types of tasks that workers in the knowledge economy perform, we
             then proceeded to creating a new taxonomy of workers based on what they actually do in their
             jobs on a day-to-day basis. Using the 10 task factors, we ran a cluster analysis, a technique
             used to identify homogenous subgroups within our sample of UK workers. What the analysis
             does is create groups or clusters of workers based on commonalties of task content and




Knowledge Workers and Knowledge Work                                                                                                           23
Redefining knowledge work and knowledge workers




       frequency. Thus, our worker clusters are entirely based on workers’ reported tasks and activities
       on the job.10


       The novelty of our results is that our taxonomy cuts across classifications of workers according
       to their educational attainment and occupation, that is, the proxies used in previous research for
       identifying knowledge workers.


       Based on the task factors, 1,744 of the 2,011 (87 per cent) workers in our sample best fit into
       seven worker clusters. The analysis revealed that 267 workers reported very high frequencies
       on each of the tasks (ie, 1-2 standard deviations above the mean) and were identified as
       outliers. These workers were subsequently omitted from the analytic sample.11 The composition
       of the seven clusters is detailed below. Appendix D presents the average factor scores within
       each of the seven clusters.


       The list below offers a snapshot of each of the seven cluster groups. We provide in parentheses
       the share of workers in the sample that is classified under each cluster. We detail the most
       common groups of tasks (as identified in our factor analysis) in each of the seven clusters as
       well as the five specific tasks that workers engage in most frequently in their jobs. We list five
       minor occupations that workers are classified in to give a sense of the occupational variability in
       the worker clusters.


       •    Leaders and innovators (11 per cent)
            ◦    Frequently performed tasks: Data and analysis, leadership and development, people
                 management.
            ◦    Occasionally performed tasks: Administrative tasks, creative tasks.
            ◦    Specific tasks: Collaborate with people inside organisation on project/programme,
                 analyse information to address work-related problems, manage people, write reports,
                 provide consultation/advice to others.
            ◦    Example occupations: Production and functional managers, financial institution and
                 office managers, business and finance associate professionals.




       10
          We first ran a two-step cluster analysis to identify any outliers in the sample as well as to get an estimate of the
       optimal number of clusters in the sample. Based on this initial analysis, we subsequently ran a k-means cluster analysis
       specifying seven clusters. We also ran a latent class analysis and found that the seven cluster solution best fit the data.
       The clusters used in the remainder of the report are based on the k-means analysis
       11
          We examined the individual background characteristics of this omitted group and found that the omitted group was
       more likely to be male and more likely to have been at their current organisations for 20 years or more relative to the
       average. No other significant differences were observed




24                                                                               Knowledge Workers and Knowledge Work
Redefining knowledge work and knowledge workers




         •   Experts and Analysts (22.1 per cent)
             ◦   Frequently performed tasks: Data and analysis, people management.
             ◦   Occasionally performed tasks: Leadership and development, administrative tasks.
             ◦   Specific tasks: Collaborate with people inside organisation on project/programme,
                 enter data, compile data, analyse information to address work-related problems, write
                 reports.
             ◦   Example occupations: ICT professionals, teaching professionals, managers and
                 proprietors in service industries, research professionals, customer service occupations.


         •   Information handlers (12.8 per cent)
             ◦   Frequently performed tasks: Administrative tasks.
             ◦   Occasionally performed tasks: People management, data and analysis.
             ◦   Specific tasks: File (physically/electronically), sort post, manage diaries, enter data,
                 handle complaints, settle disputes and resolve grievances.
             ◦   Example occupations: General administrative occupations, secretarial occupations,
                 financial institution and office managers, managers and proprietors in service industries,
                 financial administrative occupations.


         •   Care and welfare workers (7.5 per cent)
             ◦   Frequently performed tasks: Caring for others, people management, work with food,
                 products or merchandise.
             ◦   Occasionally performed tasks: Data and analysis, administrative tasks, perceptual
                 and precision tasks.
             ◦   Specific tasks: Provide care for others, administer first aid, clean/wash, dispense
                 medications, expose self to disease/infections, write reports.
             ◦   Example occupations: Care associate professionals, care services, childcare
                 services, social welfare associate professionals.


         •   Servers and sellers (7.0 per cent)
             ◦   Frequently performed tasks: Work with food, products or merchandise, people
                 management, administrative tasks.
             ◦   Occasionally performed tasks: Data and analysis, perceptual and precision tasks,
                 leadership and development.
             ◦   Specific tasks: Clean/wash, handle complaints, settle disputes and resolve
                 grievances, manage people, stock shelves with products or merchandise, order
                 merchandise.




Knowledge Workers and Knowledge Work                                                                        25
Redefining knowledge work and knowledge workers




           ◦   Example occupations: Managers in distribution, storage and retailing, managers
               and proprietors in hospitality and leisure services, food preparation trades, elementary
               personal services.


       •   Maintenance and logistics operators (11.3 per cent)
           ◦   Frequently performed tasks: Perceptual and precision tasks, maintenance, moving
               and repairing.
           ◦   Occasionally performed tasks: People management, work with food, products or
               merchandise, data and analysis, administrative tasks.
           ◦   Specific tasks: Visually identify objects, know location in relation to the environment
               or know where objects are in relation to you, judge distances, lift heavy objects, load/
               unload equipment/materials/luggage.
           ◦   Example occupations: Protective services, security occupations, transport drivers,
               metal machining, fitting and instrument making trades, science and engineering
               technicians, construction trades.


       •   Assistants and clerks (28.3 per cent)
           ◦   Occasionally performed tasks: People management, data and analysis, work with
               food, products or merchandise, administrative tasks.
           ◦   Specific tasks: Handle complaints, settle disputes and resolve grievances, collaborate
               with people inside organisation on project/programme, teach others, clean/wash, coach
               or develop others, provide consultation/advice to others, motivate others.
           ◦   Example occupations: Customer service occupations, sales assistants and retail
               cashiers.


       The assistants and clerks cluster was the least well-defined group of workers as its members
       tended to report engaging in all but the most general tasks relatively infrequently in their jobs.
       We explored the specific occupations of this group to see if we had systematically omitted
       relevant tasks and found this not to be the case.


       To sum up, the results of our cluster analysis have allowed us to make a first attempt at
       classifying workers in the knowledge economy on the basis of what they do. In what follows we
       try to refine this classification in order to gain a better understanding of the cognitive complexity
       of the tasks that workers belonging to different clusters perform most frequently and the sectors
       in which they are employed.




26                                                                  Knowledge Workers and Knowledge Work
Redefining knowledge work and knowledge workers




   Bright minds    The next stage was to gauge the cognitive complexity of the tasks that workers in different
  and powerful     clusters mostly perform. This helped us distinguish, for example, between basic processing
  machines for     tasks such as data processing from higher level analytical tasks. We used three of their work
tasks of varying   characteristics for which we got information through our survey:
     complexity
                       •   First, the extent to and ways in which workers in various clusters use (IT) technology.
                       •   Secondly, the type of and variability in methods of sharing and capturing knowledge and
                           ideas when performing new tasks.
                       •   Thirdly, the perception of workers about the complexity of the tasks that they have to
                           perform at work.


                   The assumptions that underlie the selection of these three criteria are that frequent and
                   specialist use of computing technology and frequent use of methods of sharing and garnering
                   new knowledge involving direct human interaction will characterise clusters of workers that
                   perform more tacit knowledge-intensive tasks. Similarly, the perceived complexity of tasks will
                   be higher for those clusters of workers that perform more tacit-knowledge-intensive work.


                   One of the hallmarks of the knowledge economy, and indeed one of its key enablers, is
                   the ubiquity of computing technology. In addition to facilitating work processing and email
                   communications, computers have sped up processing times for many work-related tasks,
                   thereby increasing workers’ efficiency or to engage in more difficult tasks that were not possible
                   previously.


                   We captured the importance of computing technology for the tasks that our survey respondents
                   perform by asking them two questions as part of our survey. First, we enquired how often
                   they use a computer at work. Across the full sample, workers reported using the computer 3-4
                   times per week on average. Secondly, we asked respondents to choose from a list of 12 tasks/
                   activities those that they do on their computer at work.


                   As seen in Figure 2.2 below, there was significant variation in the reported frequency of usage
                   and variability of activities performed on computers, suggesting varying degrees of importance
                   of information technology in workers’ jobs.


                   Those who used computers most frequently and for the greatest number of tasks were leaders
                   and innovators, experts and analysts and information handlers. They used computers daily in
                   their jobs, while performing an above average number of tasks on them. At the other extreme,




         Knowledge Workers and Knowledge Work                                                                        27
Redefining knowledge work and knowledge workers




                    Figure 2.2: Number of different computer uses and how often computers are used each
                    week

                                                       8
      Index frequency 1 to 5; number of uses 0 to 12




                                                             7.2                       Number of computer uses              Frequency of use each week
                                                       7
                                                                         6.3
                                                       6                              5.5
                                                                                                   5.2
                                                                   5.0         4.9          4.8
                                                       5
                                                                                                         4.2    4.2
                                                       4                                                              3.7   3.7 3.6     3.6 3.5
                                                                                                                                                    3.4
                                                                                                                                                          2.9
                                                       3

                                                       2

                                                       1

                                                       0
                                                           Innovators    Experts       Info       All groups   Assistants   Servers    Care and   Operatives
                                                                                     handlers                  and clerks               welfare
                                                                                                                                       workers
                                                                                                   Worker clusters



                    maintenance and logistics operators reported using computers once or twice per week to
                    perform around three tasks on average.


                    Tasks such as email, word processing, internet research, spreadsheet calculation, presentations
                    and managing diaries emerged as the most common work-related uses of computers across
                    worker clusters. Most of these tasks are relatively basic and likely follow an explicit set of rules.
                    Possible exceptions are internet research, spreadsheet calculation and presentations, which
                    can vary substantially on difficulty (eg, depending on whether a worker designs his/her own
                    presentation or types up someone else’s).


                    On the other hand, more specialist tasks such as statistics, system maintenance, graphic design
                    and software design are less common and likely to require expertise that is independent of the
                    technology itself. A recent study examining computer usage in the UK reported that only about
                    a quarter of workers used computers for complex or advanced tasks (Green et al. 2007). Our
                    estimates (shown in Figure 2.3 below) suggested the use of computers for specialist tasks
                    ranged from just 10 per cent in the case of care and welfare workers to 60 per cent for leaders
                    and innovators.




28                                                                                                                          Knowledge Workers and Knowledge Work
Redefining knowledge work and knowledge workers




          Figure 2.3: Share of workers that frequently perform at least one specialist computer task

          70.0%
                       60.4%
          60.0%
                                   51.8%
          50.0%

          40.0%                                35.0%
                                                            30.4%
          30.0%
                                                                         23.7%        22.5%        22.2%
          20.0%
                                                                                                                 9.9%
          10.0%

              0.0%
                     Innovators   Experts       Total     Operatives      Info        Servers    Assistants    Care and
                                                                        handlers        and      and clerks     welfare
                                                                                      sellers                  workers

                                                            Worker clusters


         The extent of use of information technology in combination with the extent to which it is used
         for performing specialist tasks suggest a distinction between, on the one hand, leaders and
         innovators and experts and analysts and, on the other hand, the rest of the worker clusters.
         According to this criterion, the workers in the former three clusters seem to perform the more
         tacit-knowledge-intensive tasks12 compared to the workers in the rest of the clusters. However,
         this criterion is not sufficient for refining the clusters of workers in terms of the required level of
         knowledge, as, by nature, the tasks of clusters such as carers focus more on work with humans
         rather than information alone (as eg, in the case of information handlers).


         Workers were also asked to identify the range of methods they use to share and capture
         knowledge in two contexts:
                1. When performing a new task at work;13
                2. When sharing information with others.


         These results, illustrated in Table 2.2 below, suggest that the leaders and innovators cluster
         displayed the most versatility and variety in the methods used for that purpose. Experts and
         analysts and, to a lesser extent, care and welfare workers also used a wide array of methods.
         These findings confirm that the clusters of leaders and innovators and experts and analysts
         include the workers that are most likely to frequently perform (tacit) knowledge intensive tasks,
         while assistants and clerks and maintenance and logistics operators are the least likely.


         12
            In Section 1, we distinguished tacit knowledge from codified knowledge or information. The latter is easily reproduced
         through eg manuals and guides. The former resides with the individual in the form of expertise and/or experience and
         for that, it is more expensive to transfer across workers
         13
            Only 6 per cent of the sample reported not ever having to do new tasks on the job




Knowledge Workers and Knowledge Work                                                                                           29
Redefining knowledge work and knowledge workers




       Table 2.2: Number of methods used to acquire new information and learn new tasks

            Task based groups                        Acquiring new information                   Learning new tasks
                                                              (0 to 9)                                (0 to 16)
            Leaders and innovators                                    7.4                                4.6
            Experts and analysts                                      6.0                                3.4
            Information handlers                                      5.2                                2.8
            Assistants and clerks                                     4.9                                2.7
            Servers and sellers                                       4.6                                2.7
            Care and welfare                                          4.6                                2.3
            Maintenance and logistics                                 4.1                                2.1
            Average all groups                                        3.3                                1.8

                                                            Source: Knowledge Worker Survey, The Work Foundation, 2008


       Evidence that further supports this picture is provided by the average frequency with which
       the task of ‘teach others’ has been reported across clusters (see Figure 2.4 below). The more
       abstract and tacit the knowledge that workers use is, the more it has to be developed through
       experience and human interaction, for which teaching is an important means. This task is part
       of the ‘people management’ group of tasks that workers across all clusters (but assistants and
       clerks) report relatively frequently. However, there is some variety in the average frequency with
       which workers report ‘teach others’ as part of what they do. The reported frequency of this task
       is relatively higher in clusters such as ‘leaders and innovators’, ‘experts and analysts’, ‘care and
       welfare workers’.


       Moreover, there are differences in the consistency with which this task is reported as a
       frequently performed one14 across clusters with similar average frequency, suggesting for
       example teaching others is more common within the experts and analysts cluster than it is
       within servers and sellers.


       More generally, the responses of our survey participants point to a high level of ‘tacit’ knowledge
       within workplaces, ie of knowledge that resides with individuals. This finding underlines how
       important social relations still are within the workplace for sharing and capturing knowledge, with
       informal discussions with colleagues, supervisors and managers and less specific socialising
       and conversing with others amongst the most frequent. Rather less frequent but still cited by



       14
            That is, there is variation in the standard deviation of the reported values




30                                                                                    Knowledge Workers and Knowledge Work
Redefining knowledge work and knowledge workers




                 Figure 2.4: Importance of ‘teach others’ task for different clusters

                                                                            Variability in frequency of ‘teaching others’    Mean reported frequency of ‘teaching others’
                                                         3.5
                                                                      3.3
        Index frequency 1 to 5; number of uses 0 to 12




                                                         3.0
                                                                                     2.8              2.8
                                                                                                                       2.6
                                                         2.5
                                                                                                                                       2.3

                                                                                                                                                       2.0
                                                         2.0                                                                                                          1.8

                                                         1.5
                                                                                               1.08             1.04
                                                         1.0                  0.91                                              0.91            0.88           0.89
                                                               0.85


                                                         0.5

                                                         0.0
                                                               Innovators      Experts       Servers and        Care and       Operatives         Info         Assistants
                                                                                               sellers           welfare                        handlers       and clerks
                                                                                                                workers

                                                                                                            Worker clusters


                 nearly 30 per cent of the sample were more informal debates and discussion through
                 ‘brainstorm’ or ‘white board’ meetings.


                 That said, large numbers of workers also relied on more codified forms of knowledge such as
                 the internet/intranet and printed material such as procedural and technical manuals, and trade
                 magazines and journals.


                 Finally, we also asked the survey participants to identify how complex they perceive their
                 work tasks to be. Leaders and innovators and experts and analysts all reported higher than
                 sample average complexity in their tasks. The complexity of tasks performed by information
                 handlers and care and welfare workers was of average complexity, closely followed by the tasks
                 performed by sellers and servers and maintenance and logistics operators. At the other end,
                 assistants and clerks reported the lowest task complexity scores in the sample.




Knowledge Workers and Knowledge Work                                                                                                                                        31
Redefining knowledge work and knowledge workers




          Table 2.3: Prevalence of methods used for sharing and capturing knowledge

                   Publish written material                                      15%
                   Attend induction meetings                                     18%
                   Attend events/trade shows                                     21%
                   Contact a chat/information exchange group                     23%
                   Read professional journals/trade magazines                    26%
                   Attend an external training session                           26%
                   Hold ‘brainstorming’ or ‘whiteboard’ meetings                 29%
                   Read technical material                                       34%
                   Talk to outside experts                                       34%
                   Use the intranet                                              36%
                   Attend an internal training session                           42%
                   Read procedure manual                                         43%
                   Socialise/converse with others                                44%
                   Ask supervisor/manager                                        60%
                   Use the internet                                              60%
                   Talk informally to colleagues                                 90%




         Figure 2.5: Perceived complexity of tasks performed by surveyed workers

                              3.0
                                       2.6
                                                   2.4
                              2.5
      Job complexity 1 to 3




                                                             2.1
                                                                        1.9
                              2.0                                                   1.8        1.7
                                                                                                         1.6
                              1.5                                                                                   1.3

                              1.0

                              0.5

                              0.0
                                    Innovators   Experts     Info     Care and    Servers   Operatives   Total   Assistants
                                                           handlers    welfare      and                          and clerks
                                                                      workers     sellers

                                                                       Worker clusters




32                                                                                          Knowledge Workers and Knowledge Work
Redefining knowledge work and knowledge workers




                 To sum up, looking into the uses of IT, the methods of sharing and acquiring knowledge and the
                 perceived complexity of tasks performed by workers in the knowledge economy, we sketched
                 a more nuanced picture of how the worker clusters that we identified can be roughly ranked in
                 terms of the tacit-knowledge-intensity of the tasks that workers perform. We bring together our
                 insights in the following sub-section.


   Towards a     Our findings so far suggest that we can portray the composition of the knowledge economy
new definition   workforce and the work that workers actually do in a 30-30-40 shape. Our classification
of knowledge     suggests that around a third of the UK workforce can be regarded as the ‘core knowledge
         work    workers’, having to perform many knowledge tasks as part of their job. Another 30 per cent
                 performs only some knowledge tasks, less frequently and at lower levels than for our core
                 knowledge workers. So up to 60 per cent of people in work are doing jobs that require the use
                 of at least some tacit knowledge. However, there are also very large numbers of people – 40 per
                 cent of the workforce – whose jobs involve only a few tasks requiring tacit knowledge and who
                 rely largely on codified knowledge through manuals, rules and procedures.


                 More specifically,


                     •   About a third of workers are in jobs requiring high knowledge content. This core group
                         of knowledge workers includes leaders and innovators who most frequently engage
                         in tasks requiring specialist, ie tacit in addition to codified knowledge. The workers in
                         this cluster accounted for 11 per cent of the sample. The remainder are experts and
                         analysts, who perform high-level knowledge, analytical tasks, but who do not regularly
                         engage in some of the other specialist knowledge tasks. Experts and analysts account
                         for another 22 per cent. These two groups of knowledge workers were 1.5 times more
                         likely to report regular use of specialist knowledge tasks in their jobs relative to the
                         other worker clusters.


                     •   A further almost 30 per cent of workers engage in jobs with moderate knowledge
                         content – primarily codified knowledge – relating to the cluster specific tasks that define
                         these jobs (eg administrative tasks, caring for others and work with food, products or
                         merchandise) as well as the people management and communication tasks that are
                         shared by most workers. This group comprises the information handlers (13 per cent)
                         care and welfare workers (7 per cent) and servers and sellers (7 per cent).




       Knowledge Workers and Knowledge Work                                                                          33
Redefining knowledge work and knowledge workers




           •    Finally, 40 per cent of workers engage in jobs with only few tacit knowledge tasks (eg
                perceptual and precision tasks, maintenance, moving and repairing). As we noted
                above, just over 10 per cent of these workers fall under the maintenance and logistics
                operators cluster, which will include many skilled manual jobs. About 30 per cent
                however falls under the assistants and clerks cluster and it is here where we are likely
                to find many of the low quality, low pay jobs that characterise the bottom third of the
                labour market.


       Figure 2.6: The 30-30-40 knowledge workforce




                                                  Many knowledge
                                                    tasks, 33%
               Few knowledge
                 tasks, 40%




                                   Some knowledge
                                     tasks, 27%




       It should be emphasised at this point that the 40 per cent does not represent the ‘bargain
       basement’ of the UK labour market, even though the assistants and clerks category is more
       likely to include a high share of poor quality and low paid work. Our primary aim is to distinguish
       knowledge work and knowledge workers on the basis of the extent of and frequency with
       which they use tacit knowledge to perform their job tasks. Virtually all jobs involve some tacit
       knowledge, but those workers that we have classified as ‘core’ knowledge workers performed
       the most tacit knowledge tasks for their job and those in the 40 per cent performed the fewest




34                                                                 Knowledge Workers and Knowledge Work
Redefining knowledge work and knowledge workers




                 tacit knowledge tasks. We use the term ‘knowledge’ to mean explicitly ‘tacit’ knowledge rather
                 than codified knowledge.


                 What is more, some of the jobs in the 40 per cent category include skilled manual jobs which
                 might be low in tacit knowledge compared with others, but are undoubtedly rich in codified
                 knowledge. As we report later, this acquisition of skills and codified knowledge is reflected in
                 wages, which on average are higher than for some job groups with a higher tacit knowledge
                 content.


                 Moreover, it is likely that some jobs described as skilled manual by the occupation based codes
                 will be in the ‘core’ knowledge worker category because the individuals are undertaking a high
                 proportion of tacit knowledge tasks in their daily work. This was recognised in the research
                 by Autor et al. (2003) that we reported in Section 1, whereby mechanics who could diagnose
                 complex faults and find solutions outside the standard manuals fell into the ‘expert thinking’
                 category. It is also strongly implied in the analysis of the modern manufacturing workforce
                 included within the recent BERR Strategy Review and in the The Work Foundation report
                 Knowledge Economy and Manufacturing (Brinkley 2009).


          The    To sketch the knowledge economy workforce more accurately, we examine the general
 demographics    demographic and background characteristics of workers in our sample. These statistics and
        of the   figures allow us to put a face to the knowledge workforce.
    knowledge
    workforce:   Earlier evidence from The Work Foundation suggests that the vast increases in female labour
gender and age   force participation over the past decade have been one of the key drivers of the knowledge
                 economy15. Our results indicate that women indeed play a key role in the knowledge workforce.
                 Just over 40 per cent of all workers in the core knowledge intensive jobs were women. This is
                 however slightly less than the share of women in all jobs. Women were much more strongly
                 concentrated within the clusters of care and welfare workers, information handlers, and servers
                 and sellers. So while women are disproportionately concentrated in jobs involving some
                 knowledge tasks, they are under-represented within the ‘core’ knowledge workers category.


                 The picture in the work clusters with few knowledge tasks is more mixed. Women accounted
                 for just under 50 per cent of less knowledge intensive jobs, such as assistants and clerks, while
                 in contrast, the maintenance and logistics category comprised almost exclusively of men. The
                 latter jobs are most likely to require manual skills traditionally associated with male workers and
                 physical strength.

                 15
                      Brinkley (2008) How Knowledge is Reshaping the Economic Life of Nations ( (Knowledge Economy Interim Report)




        Knowledge Workers and Knowledge Work                                                                                     35
Redefining knowledge work and knowledge workers




       Figure 2.7: Share of women in jobs by knowledge content

                      Many knowledge tasks         Some knowledge tasks         Few knowledge tasks
       90%
                                             79%
       80%                                                 75%

       70%
                                                                          58%
       60%

       50%                                                                              47%
                44%          44%
       40%

       30%

       20%
                                                                                                        10%
       10%

        0%
             Innovators    Experts     Care and            Info       Servers        Assistants       Operators
                                        welfare          handlers       and          and clerks
                                       workers                        sellers

                                                    Worker clusters




       Turning to the age characteristics of knowledge workers, we see that the core knowledge
       workers are particularly concentrated in the 35-44 and 55+ (leaders and innovators) and the
       25-34 (experts and analysts) age brackets. Information handlers are particularly common within
       the youngest segment of our sample (18-24) as are servers and sellers. The latter cluster,
       however, includes relatively many people aged 55 and above as well. Maintenance and logistics
       operators tend to be mostly aged between 45 and 54 years.


       Although our data only captures the current pattern of work across age groups rather than
       over time, this picture does not necessarily imply that the younger the generations, the more
       knowledge tasks their jobs involve. Assistants and clerks represent around a quarter of workers
       within any given age-bracket whereas they also appear to be in relatively high concentration in
       the 35-44 group, ie a group that also has relatively high numbers of leaders and innovators.




36                                                                         Knowledge Workers and Knowledge Work
Redefining knowledge work and knowledge workers




Comparison of    A final test for the usefulness of our new definition of knowledge work and knowledge workers
  new and old    is its comparison with existing proxies. As mentioned previously, two of the key proxies used to
   proxies for   estimate the number of knowledge workers in the UK economy include:
   knowledge
         work         1. Workers employed in the top three Standard Occupational Classification (SOC)
                           categories including managers and senior officials, professional occupations and
                           associate professional and technical occupations.16
                      2. Workers with degrees.


                 While both of these operational definitions have some utility – and are likely to overlap with the
                 ‘true’ estimate of knowledge workers in the economy – they are limited, primarily because they
                 attempt to force workers into predetermined categories.


                 In this section we detail how our seven worker clusters align with the major SOC codes as
                 well as educational attainment. We find that although there is a substantial overlap between
                 our definition of core knowledge workers and these proxies, our worker clusters suggest that
                 people outside the top three occupational classifications and people who are not graduates may
                 be holding jobs with many knowledge tasks and vice versa. If anything, this suggests that our
                 definition helps us understand work in the knowledge economy better.


                 A high share of our two core knowledge worker groups (leaders and innovators and experts
                 and analysts) – between 70 and 85 per cent, are in the top three occupational classifications.
                 However, significant numbers of these workers with many knowledge tasks are also found
                 outside the top three occupational groups, especially the more numerous experts and analysts
                 group.


                 Just under half of our middle knowledge task group was covered by the top three occupational
                 group categories. This group includes significant numbers of associate professional jobs that
                 fall within the standard occupational classification, but it is also clear that even more have been
                 classified to other occupational groups outside the top three.


                 Even more interestingly, however, between 20 to 25 per cent of people in clusters characterised
                 by few knowledge tasks are included within the top three occupational groups. Even though
                 these shares are low compared to the other worker clusters, it is important to note that the top
                 three occupational groups include workers whose jobs involve few tacit knowledge tasks.


                 16
                   The remaining six occupational categories include administrative and secretarial, skilled trades, personal services,
                 sales and customer service, process, plant and machine operatives and elementary




       Knowledge Workers and Knowledge Work                                                                                               37
Redefining knowledge work and knowledge workers




       All in all, there is some correspondence between the occupational definition of knowledge
       workers and our worker clusters, but the occupational definition likely inserts a false dichotomy
       into the workforce that is not based on a detailed account of workers’ everyday tasks and
       activities.


       Figure 2.8: Share of jobs in the top three occupational groups by knowledge content


                           Many knowledge tasks   Some knowledge tasks   Few knowledge tasks   Total
       90%       84%
       80%
                           72%
       70%
       60%
                                                                                                       48%
       50%                             46%          45%        44%
       40%
       30%                                                                  26%
                                                                                         20%
       20%
       10%
        0%
             Innovators   Experts    Servers      Care and     Info      Assistants   Operatives       Total
                                       and         welfare   handlers    and clerks
                                     sellers      workers

                                                     Worker clusters

       Looking at the educational definition of knowledge workers, ie whether they are graduates, we
       see that there was quite a bit of variability in educational attainment across the clusters. The
       majority of both leaders and innovators and experts and analysts held degrees, compared
       to only 13 per cent of maintenance and logistics operators. As seen in Figure 2.9, there are
       significant numbers of degree holders in each of our clusters.


       On average, 35 per cent of the sample had a degree, which is comparable to the UK average of
       33 per cent (including both degree holders and degree equivalent qualifications).


       What is notable is that significant numbers of people without a degree were engaged in jobs
       with many knowledge tasks. For example, over a third of leaders and innovators and nearly half
       of our experts and analysts group did not have a degree. The idea that such jobs can only be
       done by graduates does not seem to hold water.




38                                                                        Knowledge Workers and Knowledge Work
Redefining knowledge work and knowledge workers




         Figure 2.9: Share of graduates by knowledge intensity of the job

         70%                Many knowledge tasks   Some knowledge tasks   Few knowledge tasks    Total
                 63%
         60%
                                53%
         50%
                                            41%
         40%
                                                                                                         35%

         30%                                             26%
                                                                                 21%
         20%
                                                                    13%                         13%
         10%

          0%
               Innovators     Experts     Care and      Info       Servers    Assistants   Operators     All
                                           welfare    handlers       and      and clerks
                                          workers                  sellers

                                                       Worker clusters

         In the jobs with some knowledge tasks, the above average share of graduates or equivalent in
         care and welfare occupations is not surprising, given the requirement and desirability for higher
         level qualifications for many practitioners in this area. The same applies for the below average
         share in the servers and sellers category, as these are not the sort of jobs we would typically
         associate with graduate level qualifications.


         Graduates were, however, also present in significant numbers in jobs involved few knowledge
         tasks such as assistants and clerks, and operatives. Indeed, over a fifth in the low knowledge
         content assistants and clerks category had a degree or the equivalent. This is shown in the
         figure above. This is potentially worrying if a large share of graduates were going into such jobs
         which are very unlikely to make much use of their qualifications. It would also question some
         of our earlier findings that there was little evidence to support the view that there was an over-
         supply of graduates in the economy.


         There are a number of possible explanations for this phenomenon. It may be that graduates are
         using these jobs as the first step to entering into the labour market before moving onto positions
         more suitable for their skills, or combining jobs with further study for higher qualifications. There
         is some indirect support for this suggestion from the job tenure data. On average, graduates in
         these sorts of jobs have much shorter tenures than non–graduates. For example, 23 per cent of
         graduates in the assistants and clerks category had been in the job with the same employer for
         less than one year compared with 10 per cent of non-graduates.




Knowledge Workers and Knowledge Work                                                                           39
Redefining knowledge work and knowledge workers




       Additionally, only around 44 per cent of graduates in jobs with only few tacit knowledge tasks
       reported that there was a good match between their skills and the demands of their job. This
       finding may further suggest that these graduates are only temporarily employed in positions with
       few knowledge tasks.


       Moreover, as our survey does not address the possibility that university degrees may not always
       equip their holders with the skills that are useful in the labour market, there may be a mismatch
       between the skills supplied and those demanded. Last but not least, It is also possible that
       some well-educated migrants have taken less skilled work when they first arrive in the UK.


       We had argued that although some graduates were going into occupations that traditionally had
       not employed them in the past, the nature of some of these jobs had changed so that graduate
       skills had become more relevant. As we show in the next section of this report, there is some
       further evidence to support this suggestion.




40                                                                Knowledge Workers and Knowledge Work
3. Knowledge work across industries and regions




         In the introduction to this report we showed that knowledge based industries17 had significantly
         expanded their share of employment over the past 40 years, emerging as the biggest source of
         employment creation in most of the advanced industrialised economies.


         We used our classification of knowledge work to explore three related questions:


              •    Are the core knowledge workers concentrated in the knowledge based sectors the
                   way that more conventional measures suggest? Are they the only workers with high
                   concentration in these industries?
              •    What proportion of workers in the knowledge intensive sectors are core knowledge
                   workers?
              •    How many core knowledge workers are there in sectors such as less knowledge
                   intensive services and manufacturing?


         First of all, just over half of our sample (all clusters) was employed in one of the knowledge-
         based industries, a figure that is a little higher than national statistics showing the share of
         the workforce employed in knowledge based industries indicate. Just under half of our survey
         respondents were employed in knowledge intensive services, with around 4 per cent employed
         in medium to high tech manufacturing industries.


         Looking into where the core knowledge workers are concentrated, we see that about 60 per
         cent of them were located within the OECD defined knowledge industries – confirming that
         significant numbers of knowledge intensive jobs are spread across the rest of the economy. The
         picture was more mixed for workers with only some knowledge tasks. Over 90 per cent of care
         and welfare workers were located within the knowledge industries, which is hardly surprising.
         However, those classified as information handlers and servers and sellers were more likely to
         be found in the less knowledge intensive industries.


         The operatives group (ie the maintenance and logistics operators) was under-represented
         in the knowledge based industries, with just under a third of them employed there. However,
         more surprising was that 40 per cent of the assistants and clerks group – those with the least
         knowledge intensive jobs – were employed in knowledge based industries. It is highly likely that
         the expansion of the knowledge based industries has also sustained demand for some fairly
         basic jobs as well as for knowledge workers.



         17
           The OECD defines knowledge based industries as high to medium technology manufacturing, business and financial
         services, telecommunications and health and education services. Manufacturing is classified by R&D to sales ratio,
         while services are defined by the share of graduate labour and their use of ICT related technologies




Knowledge Workers and Knowledge Work                                                                                     41
Knowledge work across industries and regions




       Figure 3.1: Share of jobs in knowledge industries by knowledge intensity

                         Many knowledge tasks        Some knowledge tasks       Few knowledge tasks

       100%
                                            91%
        90%
        80%
        70%     64%            63%
        60%
        50%                                                                           45%
                                                          42%
        40%                                                            34%                            34%
        30%
        20%
        10%
         0%
               Experts     Innovators     Care and        Info        Sellers      Assistants    Operatives
                                           welfare      handlers        and
                                                                      servers

                                                  Worker clusters


       Turning next to the composition of the workforce in knowledge-based industries, we see that
       employment there is tilted in favour of core ‘knowledge workers’. However, these industries also
       employ large numbers of people classified under the less ‘tacit knowledge-intensive’ clusters.
       Thus, it seems that the expansion of the knowledge based industries benefits workers doing
       less knowledge intensive jobs.


       In knowledge intensive services about 40 per cent of workers were classified as core knowledge
       workers and just under 40 per cent were classified as people performing some knowledge
       tasks. Just over 20 per cent of these services’ workforce was employed in jobs with only a few
       knowledge tasks.


       Taken as a whole, high-tech, market and financial knowledge service firms primarily employed
       knowledge workers – both leaders and innovators and experts and analysts – as well as
       assistants and clerks and information handlers.


       Figure 3.2 presents the composition of the workforce in different knowledge-intensive services
       with the educational, care and cultural (ie public-based) services workforce depicted in the lower
       bar and the high-tech, market and financial service workers in the upper one.




42                                                                          Knowledge Workers and Knowledge Work
Knowledge work across industries and regions




         Figure 3.2: Composition of the knowledge-intensive services sector



                          Public-based
                         services sector                  36%                         48%                      16%


         Composition of
           workforce

                             Private
                         services sector                   45%                      23%                  32%




                                            0%            20%           40%            60%            80%            100%
              Workers with many knowledge
              tasks
              Workers with some knowledge                    Knowledge-intensive services sector
              tasks
              Workers with few knowledge
              tasks




         More specifically, as Figure 3.3. below suggests, within the health and welfare sector, 26 per
         cent of the workforce belonged to the experts and analysts and leaders and innovators clusters,
         whereas around 44 per cent were care and welfare workers. Given that highly specialised
         medical professionals are classified under the former two clusters, this distribution suggests
         that our cluster analysis classified workers with different knowledge-intensity in their work fairly
         well.18


         Moreover, we also found significant numbers of workers with many or some knowledge tasks in
         the less knowledge based and technology intensive service and manufacturing industries (on
         which more below). This confirms our view that the transformation towards a knowledge based
         economy has been affecting a very wide range of industries and not just those classified as
         knowledge intensive.


         In more traditional services, about 24 per cent of workers were classified as performing many
         knowledge tasks. However, these industries employed large numbers of people in jobs that
         involved some knowledge tasks, accounting for just over 40 per cent of all jobs in traditional



         18
           The analysis of workforce composition of less knowledge-intensive sectors such as distribution and repairs and hotels
         and restaurants suggested the same. In both cases assistants and clerks and servers and sellers, ie worker clusters
         whose work involves the use of more codified than tacit-knowledge dominated the workforce. The respective graphs are
         provided in Appendix E




Knowledge Workers and Knowledge Work                                                                                         43
Knowledge work across industries and regions




       Figure 3.3: Workforce composition in the health and welfare industry by worker cluster




                                             11.2%
                     14.3%



            2.7%

                                                        15.2%




                                                                   Leaders & innovators
                                                                   Experts & analysts
                                                            6.7%   Information managers
                                                                   Maintenance & logistics operators
                                                                   Care & welfare workers
                                                                   Servers & sellers
                                                     5.8%          Assistants & clerks
             43.9%




       services. Workers with few knowledge tasks accounted for about a third of all employment,
       mainly in the assistants and clerks category.


       Figure 3.4 below compares the workforce composition of the two groups of industries by
       knowledge intensity.


       To sum up, first, growth in knowledge-intensive industries is likely to have significant effects on
       aggregate employment performance as it creates jobs for both the core knowledge workers and
       for workers with only some or a few knowledge tasks.


       Secondly, the concentration of different types of knowledge workers across sectors suggests
       that what is driving the knowledge economy is a diverse workforce making use of different
       types and levels of knowledge, engaged in a variety of distinct tasks and employed in various
       occupations. These complementarities between different types of workers acknowledge that a
       well functioning economy is dependent upon all of its workers and not just the few who engage
       in the highest level of specialist tasks.




44                                                                      Knowledge Workers and Knowledge Work
Knowledge work across industries and regions




                Figure 3.4: Employment in knowledge intensive and more traditional services compared




                                 Knowledge-
                              intensive services              36%                 48%                 16%



                  Service
                industries

                                  Other services        45%                 23%                 32%




                                                   0%     20%            40%       60%         80%          100%
                   Workers with many
                   knowledge tasks
                   Workers with some
                                                                    Composition of workforce
                   knowledge tasks
                   Workers with few
                   knowledge tasks




Manufacturing   The manufacturing workforce represents about 9 per cent of the total sample of our
       in the   respondents. Hence, it is no surprise that fewer workers across clusters, whether core
   knowledge    knowledge workers or not, are employed in that sector compared to services. Across the
    economy     manufacturing industries, about 31 per cent of workers were knowledge workers (ie, leaders
                and innovators or problems solvers and analysts), a further 19 per cent were maintenance and
                logistics operators and 10 per cent were information handlers.


                However, this compositional pattern shifts when examining the formation of the medium- and
                high-tech manufacturing workforce relative to employees in low-tech manufacturing firms.
                Figure 3.5 on the next page portrays the composition of the workforce separately for the
                knowledge-based (lower bar) and non-knowledge-based (upper bar) manufacturing sectors.


                The workforce of medium-to-high tech manufacturing firms consisted to a larger extent
                of knowledge workers, particularly experts and analysts, compared to more traditional
                manufacturing firms. On the other hand, the more traditional firms were comprised of larger
                proportions of assistants and clerks and information handlers relative to the medium- and high-
                tech companies.




       Knowledge Workers and Knowledge Work                                                                        45
Knowledge work across industries and regions




                  Figure 3.5: Composition of the manufacturing sector




                                           Other
                                        manufacturing        26%           34%               40%



                  Manufacturing
                   industries

                                  Meduim-to high-             38%                29%            33%
                                tech manufacturing



                                                        0%     20%        40%          60%   80%      100%
                    Workers with many
                    knowledge tasks                                  Composition of workforce
                    Workers with some
                    knowledge tasks
                    Workers with few
                    knowledge tasks




                  These figures suggest that employment creation in the medium- to high-tech manufacturing is
                  likely to be intensive in jobs for core knowledge workers in a way comparable to knowledge-
                  intensive services.


The location of   The growth in knowledge-based industries reported over the past decade is reflected in all
the knowledge     of our clusters, suggesting that these industries are a key part of the UK economy. However,
     economy      this trend is particularly true in Northern England and Scotland as well as the South West and
                  Wales. Indeed, in London, the South and East of England, there were more private than public
                  knowledge-intensive firms.


                  Although the composition of regional work forces has been quite similar, there have actually
                  been differences in the regional concentration of knowledge workers.


                  Although our survey did not look in great detail into the geographical distribution of knowledge
                  workers, there were nevertheless indications that core knowledge workers tend to cluster in
                  urban areas, particularly in London, the South East and North of England and Scotland. This
                  is not a surprising finding given that face-to-face contact and the development of relationships
                  are important for exchanging information and especially tacit knowledge. Cities across the UK
                  – including Manchester, Leeds, Bristol and Edinburgh outside the South East – also provide




        46                                                                       Knowledge Workers and Knowledge Work
Knowledge work across industries and regions




         businesses with access to wider markets and to specialist skills. This result resonates with the
         insights of our Ideopolis programme on the growing importance of cities in world economies.


         On the other hand, the South West and Wales region have a relatively high concentration of
         workers with some knowledge tasks, while the North and Scotland have relatively more workers
         with few knowledge tasks.


         Table 3.1: Regional concentration of knowledge workers in the UK

                          Workers          Workers         Workers          Share of
                          with many        with some       with few         the national
                          knowledge        knowledge       knowledge        workforce in
                          tasks            tasks           tasks            the region
          London SE             35.8%          33.7%           33.5%           34.1%
          East
          SW and                9.4%           12.6%           10.5%           10.6%
          Wales
          Midlands              16.6%          16.2%           16.1%           16.3%

          North and             38.3%          39.4%           40.0%           39.0%
          Scotland
          Total                 100%           100%             100%            100%


                        Source: Knowledge Workers Survey, The Work Foundation, 2008


         In terms of regional workforce composition, the proportion of knowledge workers was fairly
         comparable across regions (33-35 per cent of regional work forces) with the exception of
         the South West, Wales and the West, in which only 29 per cent of workers were leaders and
         innovators or experts and analysts. This suggests that the potential of employment expansion in
         different regions to create core knowledge jobs is relatively even. These findings are displayed
         in Figure 3.6 below.


         Looking specifically within the knowledge-based industries, regional differences in knowledge
         work are starker. London, the South and East of England boast the highest relative percentage
         of knowledge workers – including both leaders and innovators and experts and analysts – with
         45 per cent of the workforce in specialist knowledge jobs. The percentages in other regions
         range from 36 per cent in the South West, Wales and the West to 38 per cent in the North and
         Scotland to 40 per cent in the Midlands.




Knowledge Workers and Knowledge Work                                                                     47
Knowledge work across industries and regions




       Figure 3.6: Regional composition of the workforce


                       Northern England
                                                33%            27%                41%
                         and Scotland


                               Midlands         34%            27%                 39%


                              SW, Wales
                              and West         29%            32%                 39%



                               London,
                                                 35%              26%              39%
                              SE & East

                                          0%     20%        40%         60%       80%    100%
          Workers with many
          knowledge tasks
          Workers with some                            Composition of workforce
          knowledge tasks
          Workers with few
          knowledge tasks




       All in all, knowledge workers seem to be relatively evenly distributed across regions with
       perhaps the exception of the South West, Wales and the West.




48                                                                   Knowledge Workers and Knowledge Work
4. The changing nature of work roles and the returns to knowledge




                 This section uses the our newly defined definition of knowledge workers and their responses to
                 our survey to understand whether there has been any change in the nature of work roles and
                 whether knowledge leads to higher returns to work.


The changing     One of the questions pertaining to the consequences of the knowledge economy is whether
nature of work   changes in technology and work organisation have altered the nature of some jobs within broad
         roles   occupational groups such as administrative and clerical. Our worker survey provides some
                 indirect evidence that the nature of work roles has been indeed changing.


                 About 13 per cent of our sample was classified as ‘information handlers’ and about 25 per cent
                 had a degree. This group of workers was uniquely defined by high frequencies of administrative
                 tasks such as organising travel, managing diaries, ordering merchandise and filing. These
                 administrative tasks filled the days of secretarial workers in the past, and arguably did not
                 require graduate level skills.


                 However, the information handlers of today also engage in tasks related to people management,
                 data and analysis and, to a lesser extent, leadership and development. The information
                 handlers – similar to other clusters – exhibit task overlaps with the core group of knowledge
                 workers, hence, the need for more highly qualified people to fill these positions. These roles
                 have been reinvented to incorporate available technology (which makes administrative tasks
                 less time consuming) and to provide high-level support for workers in knowledge-intensive firms.


                   What is a manager?
                   According to 2007 Labour Force Survey estimates, 15 per cent of the working population
                   is employed in managerial posts – the highest percentage for any of the nine occupational
                   groups. Among our sample, closer to 20 per cent were in management posts (using
                   formal occupational codes). Further, tasks related to people management tasks were the
                   most common activities workers engaged in across our sample. It seems everyone has
                   management responsibilities, which begs the question of whether the term manager is even
                   useful in mapping the workforce.


                   The term ‘manager,’ perhaps more so than any other occupational title, tells us very little
                   about the position that someone holds within an organisation, the tasks and activities that
                   make up their working life and the specialist knowledge required for the job. For example,
                   people who run a small store all the way up to those who oversee a multi-million pound
                   corporation would be classified as managers. These managers could be responsible for two
                   workers or 10,000.




       Knowledge Workers and Knowledge Work                                                                       49
The changing nature of work roles and the returns to knowledge




         In the middle of the last century, Mills (1951) described a typology of managers that still
         seems accurate today:


         …managers are usually split into two types: those who have to do with business decisions
         and those who have to do with the industrial run of the work. Both are further subdivided into
         various grades of importance, often according to the number of people under them; both
         have assigned duties and fixed requirements; both as groups have been rationalized (p. 82).


         Our findings would support a further distinction between management and leadership. The
         leaders and innovators were able to balance their heavy load of management tasks with
         strategy, development, creativity, future planning and analytic tasks. Only 11 per cent of the
         sample regularly engaged in leadership tasks in their jobs – clearly requiring a higher level
         of specialisation than general managers.


         Although we can distinguish managers from leaders, a few questions remain unresolved.
         If almost all workers have people management responsibilities, do we simply have too
         many managers in the UK? With so many people managing others, do staff have enough
         autonomy at work? Should we loosen up management hierarchies so staff have more time
         to specialise in tasks? Are career paths still based on the acquisition of management skills
         rather than specialist knowledge skills?


       This evidence speaks directly to one of the key debates, namely whether the transition to a
       knowledge based economy has been leading to greater polarisation, with more good jobs at
       the top of the labour market, more bad jobs at the bottom, and fewer jobs in the middle. One
       argument in this debate is that the demand for jobs that require graduate level skills has been
       lagging supply, so that some graduates are forced into less skilled and less well paid work. This
       in turn reduces job opportunities for non-graduates, who would be forced into even less well
       paid jobs or even out of the labour market altogether.


       The facts that emerge from our survey do not support this view and dovetail with the insights of
       our earlier research (Fauth and Brinkley 2007). We showed that over the past decade the share
       of well paid and low paid jobs had stabilised. This was also true for jobs taken by graduates.
       Moreover, aggregate wage data continued to show no significant narrowing of the wage gap
       between graduates and non-graduates. Nor could we find any increase in the gap in labour
       market outcomes between graduates and non-graduates, as measured by unemployment or
       employment rates.




50                                                                 Knowledge Workers and Knowledge Work
The changing nature of work roles and the returns to knowledge




                  All in all, these findings lend some credence to the hypothesis that the nature of work roles
                  has been changing across the economy with perhaps the exception of the assistants and
                  clerks. The workforce as a whole is becoming more skilled, partially as a result of technological
                  advances, in terms of formal qualifications and acquired experience within jobs. The evidence
                  from our survey suggests that it is increased demand for rather than excess supply of graduates
                  that underlies the polarised employment growth across occupations.


The quality of    Turning to the extent to which jobs in the knowledge economy adequately tap into workers’
skills match in   skills set and experience, just under half of the respondents (48 per cent) indicated that their
the knowledge     job duties correspond well with their extant skills. Table 4.1. shows the responses of the
     economy      survey participants by worker cluster. At first glance, there does not seem to be a relatively
                  straightforward manner in which the high knowledge content of jobs can be associated with
                  the good fit between workers skills and their job requirements. Experts and analysts were most
                  likely to report a good match while leaders and innovators were very close to the average in that
                  respect, below care and welfare workers and information managers.


                  Still one can notice that the worker clusters with the fewest knowledge tasks along with the
                  servers and sellers reported the weakest (below average) match between worker skills and job
                  requirements. In the case of assistants and clerks and maintenance and logistics operators,
                  this evidence probably suggests that jobs with few knowledge tasks do not require very job
                  specific skills. On the other hand, the low ranking of the servers and sellers in that respect could
                  probably be linked to the relatively high concentration of temporary, fixed-term employees in
                  that cluster. The fact that this is also the cluster with the higher share of workers perceiving
                  themselves as ‘overskilled’ for their job (55 per cent) further supports this suggestion.


                  More generally, the fact that more than 40 per cent of workers in our sample felt that their
                  skills were underutilised at work along with the fact that many employers claim that the supply
                  of workers does not have adequate or the right mix of skills and previous experience for the
                  existing vacancies suggests a substantial mismatch between labour demand and labour supply
                  in the knowledge economy.




        Knowledge Workers and Knowledge Work                                                                         51
The changing nature of work roles and the returns to knowledge




             Table 4.1: Job-skills/experience match by worker cluster


              Work cluster                    Good match             Underskilled            Overskilled
              Experts and analysts                54.4%                  10.6%                  35.0%
              Care and welfare workers            51.9%                  10.7%                  37.4%
              Information managers                50.2%                   7.2%                  42.6%
              Leaders and innovators              49.0%                  13.0%                  38.0%
              Total                               48.0%                  10.3%                  41.6%
              Assistants and clerks               47.5%                  11.4%                  41.2%
              Servers and sellers                 40.2%                   4.9%                  54.9%
              Operatives                          38.6%                   8.6%                  52.8%


Returns to   Most surveys and the aggregate evidence confirm significant returns to education, ie well-
knowledge    educated people earn more over their lifetime than less well educated people (Leitch 2006).
             Can the same be said about knowledge? The answer is a partial yes. Figure 4.1 below suggests
             that the returns to knowledge do not increase with the number of tacit knowledge tasks in one’s
             job.


             Those in the most knowledge intensive jobs earn significantly more than the median – 80 per
             cent of workers were above the median 2007 wage measured by the Labour Force Survey.
             These differentials suggest that there are strong returns to knowledge work.


             For workers with some knowledge tasks, however, the reverse was the case. Here, only 34 per
             cent earned more than the median. This was lower than for those with only few knowledge tasks
             such as assistance and clerks and maintenance and logistics operators.


             One possible reason for this pattern is that the operatives group includes some relatively well-
             paid skilled manual jobs. But it may also be evidence of gender wage gaps. Indeed, our data
             in Table 4.2 below suggest that in female-dominated clusters (see Figure 2.7 above) such as
             information handlers, only about 25 per cent of women earn above the median wage, compared
             to almost 50 per cent of men, while among the care and welfare workers, only about one-third of
             women command high earnings compared to almost two-thirds of men in that cluster.




   52                                                                   Knowledge Workers and Knowledge Work
The changing nature of work roles and the returns to knowledge




         Figure 4.1: Percentage earning more than median wages by worker cluster

         90.0%
                      77.4%
         80.0%

         70.0%

         60.0%

         50.0%
                                                                                          39.9%
         40.0%
                                                            33.3%
         30.0%

         20.0%

         10.0%

          0.0%
                 Workers with many                   Workers with some                Workers with few
                  knowledge tasks                     knowledge tasks                 knowledge tasks



         Table 4.2: Shares of women and men earning above the median wage within female
         dominated worker clusters

                        Information handlers              Care & welfare workers
          Women                   25.6                                 34.7
          Men                     49.0                                 63.0
          The share of women in these clusters is 75 and 80 per cent respectively.
          The figures above show the shares of women earning above the median wage.

                         Source: Knowledge Workers Survey, The Work Foundation, 2008


         To sum up, the frequent use of tacit knowledge in one’s job tasks seems to increase the returns
         to labour, although this effect still seems to be weaker for women than for men.




Knowledge Workers and Knowledge Work                                                                     53
5. The job characteristics of knowledge workers




                   This section uses the results of our survey to sketch some of the general features of work in the
                   knowledge economy. Knowledge-based work has been heralded as facilitating new forms of
                   employment driven by enhanced bargaining power, new technologies, and generational attitude
                   changes to work. Knowledge work is perceived as moving away from traditional 9-5 office jobs
                   and towards less permanent, more flexible and less structured forms of employment. Other
                   commentators have suggested that knowledge workers would open up new forms of flexibility
                   – for example, through various forms of teleworking – so that knowledge workers would no
                   longer be bound by the traditional 9-5 office routine. Instead they can work wherever an internet
                   connection exists, either individually or in remote clusters. Such workers have been labelled
                   ‘nomads’ (Kluth 2008).


                   These are all fascinating and beguiling possibilities, and for some individuals they are clearly a
                   reality. However, these assertions are often made without substantial empirical evidence to back
                   it up.


                   According to estimates from the Labour Force Survey (for a review see Brinkley 2008) portfolio
                   working – rare to start with – has fallen for knowledge workers over the past decade. So has
                   self-employment (a common trend over much of the OECD). Temporary employment remains
                   small and has not increased as a share of employment. Nor is there much to suggest that
                   knowledge workers are turning to any significant degree to the more unusual formal working
                   arrangements such as job shares or nine-day fortnights.


                   More traditional flexible working arrangements, such as part-time and flexitime, do seem to
                   attract knowledge workers more. However, we should be careful about assuming this means
                   knowledge workers either do not get or do not want new flexibility at work. Knowledge workers
                   may enjoy flexibility through informal work practices – for example, they typically have high
                   levels of autonomy in how they get their tasks done.


                   Given that our definition of knowledge workers cuts across occupational groups and only partly
                   overlaps with the top three of them, we use it here to examine whether these changes in job
                   characteristics have been occurring.


             Job   One of the most important questions is whether traditional employment relationships in
characteristics    organisations are still relevant in the knowledge economy (for a review see Brinkley 2008).
   and flexible    One camp has argued that knowledge workers reject traditional employment relationships, in
          work     turn preferring ‘portfolio work’ (ie, holding several part-time jobs simultaneously) and favouring




        54                                                                     Knowledge Workers and Knowledge Work
The job characteristics of knowledge workers




         more freestanding relationships as temporary employee, freelancers or self-employed workers.
         Yet, others have suggested that new forms of working have developed within the modern
         corporation. In this case, the more specialist and entrepreneurial knowledge workers are given
         the freedom to experiment and develop new ideas. These ‘intrapreneurs’ combine the freedom
         of self-employment with the security and resources of big companies.


         To assess whether these changes have been taking place, we inquired about workers’ job
         tenure and the length of contracts in our survey. We found that neither long-term (ie beyond 10
         years) nor extremely short-term tenures dominate in our sample.19 Nearly a third of workers had
         been in their jobs between 1-2 years, with another 40 per cent in their jobs between 2-10 years.
         We found that in our sample about 20 per cent of workers had been in their jobs for 10 years or
         more, which we have taken as one indicator of long tenure jobs.


         The most striking result is that there only seems to be little association between the knowledge
         content of a job and the average tenure in that job. For the most knowledge intensive jobs,
         average tenures were in line with the overall average, average tenures for jobs with some
         knowledge content were somewhat below the average, and jobs with little or no knowledge
         content had above average tenures.20


         More specifically, people in jobs with some knowledge content such as information handling
         and serving and selling jobs had job tenures significantly below the average, with about 12 per
         cent in jobs with more than 10 years tenure. A potential explanation for low tenure is age: about
         25 per cent of job handlers were under 25 years old. In contrast, people in maintenance and
         logistics jobs with little tacit knowledge content had job tenures above average, with nearly 30
         per cent in jobs lasting 10 years or more.


         Permanent job contracts were the most prevalent in our sample with an average of 86 per
         cent of workers in our sample being on permanent contract. This estimate is lower than the UK
         average of 94 per cent (LFS). There was variation across our clusters in that respect, ranging
         from 77 per cent of information handlers to 90 per cent of leaders and innovators. However, we
         did not observe any straightforward association between the knowledge intensity of tasks in
         different clusters and share of workers holding permanent contracts.


         19
            Our sample excludes some part time workers, so we would expect tenures to be somewhat longer in our sample than
         for the workforce as a whole
         20
            As our survey is cross-sectional, we have to allow for the fact that tenures tend to be counter-cyclical – they fall when
         employment is growing and rise when employment is contracting. This is partly because new jobs, by definition, are of
         shorter tenure than old jobs; and partly because people are more inclined and able to move between jobs when they
         are plentiful. When our survey was conducted, the employment of knowledge workers defined by occupation had been
         increasing strongly so we might expect tenures for knowledge workers on average to be falling slightly




Knowledge Workers and Knowledge Work                                                                                              55
The job characteristics of knowledge workers




               Figure 5.1: Percentage of workers in the same job for more than 10 years by worker cluster

                            Many knowledge tasks         Some knowledge tasks     Few knowledge tasks         Total

               35%
                                                     91%
                                                                                         29%
               30%

               25%
                        64%           63%          21%
                         19%                                                                                          19%
               20%                                                                                  18%
                                     17%
               15%                                              13% 42%
                                                                                                45%
                                                                            12%
                                                                                  34%                           34%
               10%

                5%

                0%
                      Experts     Innovators   Care and       Servers   Information Operators    Assistants           Total
                                                welfare         and                              and clerks
                                                              sellers

                                                              Worker clusters



Working time   To assess whether knowledge work has been moving away from traditional working-time
               patterns, we examined three aspects: first, the working-hours patterns of workers in our sample;
               secondly, whether they work typical ‘nine to five’ shifts; and thirdly, whether they work during
               weekends.


               Nearly three-quarters of the workers in our sample work a standard full-time workweek, with
               an average of 40 hours per week21. Knowledge workers were on average more likely to work
               long hours (in excess of 45) than the average sample worker and more likely to work long hours
               than those in jobs with some knowledge content such as care workers, sellers and services and
               information handlers. Among those doing the most knowledge intensive jobs, those classified
               as leaders and innovators were significantly more likely to work long hours than experts and
               analysts.


               The only other group where long hour working was equally prevalent was maintenance and
               logistics workers – that is, jobs often associated with extensive paid overtime.


               However, the picture is different if we look just at very long hour working, in excess of 60 hours
               a week. This is not a common feature for most workers, and people in knowledge intensive jobs


               21
                 It should be noted here that due to the way we compiled our sample by excluding those working for less than 20 hours
               per week, it is most likely that the share of part-timers in our sample is under-estimated




      56                                                                                Knowledge Workers and Knowledge Work
The job characteristics of knowledge workers




         were less likely to work very long hours than the average. In contrast, very long working hours
         was more likely for the maintenance and logistics group and also for servers and sellers.


         Knowledge work has sometimes been associated with a move away from the typical ‘nine to
         five’ day as new technologies and more flexible work organisation open up more options. We
         found no linear association between knowledge work and less traditional ways of working.
         Overall, about three quarters of respondents reported a regular nine to five working pattern, and
         for those in the more knowledge intensive jobs this was, if anything, more common.


         More irregular working is common in just two groups – carers and welfare workers and servers
         and sellers – where only between 40 and 45 per cent report working other than a nine to
         five day. This is not surprising given the nature of the industries such jobs are likely to be
         concentrated in, with high levels of part time working and some 24 hour provision.


         Figure 5.2: Percentage of workers working day shifts by worker cluster

                     Many knowledge tasks         Some knowledge tasks        Few knowledge tasks      Total


        100%
                                            88%
         90%      86%        84%
         80%                                                                       74%                         75%
                                                                                               69%
         70%
                                                         61%
         60%
         50%                                                         45%
         40%
         30%
         20%
         10%
          0%
                Experts   Innovators Information        Servers    Care and     Assistants Operators           Total
                                                          and       welfare     and clerks
                                                        sellers

                                                        Worker clusters


         Weekend working was common in the past in more traditional industries such as manufacturing
         and mining, but has become more associated today with the growth of service industries such
         as retailing and hospitality, the care industries, and some recreational and cultural services. But
         in addition, advances in technology mean that workers in knowledge intensive jobs can often
         work as easily at home as in the office and may be tempted (or required) to do some work at




Knowledge Workers and Knowledge Work                                                                                   57
The job characteristics of knowledge workers




             weekends in order to cope with workloads or spread the burden more evenly across the whole
             week.


             Working during the weekend is fairly common across the workforce, with 48 per cent reporting
             they did some weekend work at least once a month. We found that the most knowledge
             intensive jobs were the least likely to report weekend working, especially among the experts
             and analysts group, where just over 30 per cent reported weekend working. Even so, between
             30 and 40 per cent said they did some weekend working at least once a month, so it is not that
             unusual. However, these proportions are dwarfed by the shares of workers in less knowledge
             intensive jobs such as servers and sellers and care and welfare workers and the maintenance
             and logistics group, where between 70 and 80 per cent reported some weekend working.


             Figure 5.3: Percentage of workers doing weekend work at least once/month by worker
             cluster

                         Many knowledge tasks         Some knowledge tasks     Few knowledge tasks         Total

             80%
                                                70%
             70%                                             66%                     65%

             60%
                                                                                                                   48%
             50%                                                                                 46%
                       40%                                               41%
             40%
                                 31%
             30%

             20%

             10%

              0%
                   Innovators   Experts    Servers         Care and   Information Operators   Assistants           Total
                                             and            welfare                           and clerks
                                           sellers

                                                           Worker clusters

Autonomy     One might expect that thanks to developments in information and communication technology,
and choice   knowledge workers have high levels of autonomy and choice over how they manage their
             workloads. Taken to the extreme, this is the concept of the ‘intrapreneur’, who is said to have
             virtually all the freedoms of someone working for themselves within a corporation, although as
             we pointed out in the introduction there is little hard evidence for their existence.




    58                                                                             Knowledge Workers and Knowledge Work
The job characteristics of knowledge workers




         To test this we asked our survey participants who sets their working time arrangements,
         namely whether they could entirely set them themselves; whether they could adapt them within
         certain limits (eg flexitime); whether they could choose among several fixed working schedules
         which were determined by the company/organisation; or whether the company/organisation
         determined these arrangements without providing any options to its workers. We also asked
         them how often they work from home as an indication of flexibility over the location of work.


         About half the sample reported some form of flexibility over how they did their work, that is,
         either through a formal arrangement such as flexitime or self-determined hours. Those with
         many knowledge tasks reported significant higher levels of flexibility, with between 55 and 60
         per cent saying they had some choice over hours. Among workers reporting some degree of
         flexibility, only 10 per cent of workers had complete flexibility over their schedules. Nearly 20 per
         cent of workers in the information handlers cluster reported this high level of flexibility, which fits
         with the findings from our qualitative work conducted at the start of this project.


         In contrast, less than 40 per cent of those in few knowledge tasks reported having any flexibility
         over setting their working arrangements. While these differences are significant they are not
         overwhelming.


         Moreover, over 40 per cent of those with many knowledge tasks reported little or no flexibility
         over how they managed their work.


         Figure 5.4: Percentage of workers with flexibility in choosing work schedule by worker
         cluster

                     Many knowledge tasks     Some knowledge tasks        Few knowledge tasks        Total

         70%
                   61%
         60%                 56%            54%

         50%                                          47%                                                    47%
                                                                 43%
         40%                                                                   36%         37%

         30%

         20%

         10%

          0%
               Innovators   Experts   Information   Care and    Servers     Operators   Assistants           Total
                                                     welfare      and                   and clerks
                                                                sellers

                                                    Worker clusters



Knowledge Workers and Knowledge Work                                                                                 59
The job characteristics of knowledge workers




       On the whole, extensive home working does not seem to be a key part of work in the knowledge
       economy. That is, the flexibility of knowledge employees in choosing their location of work is not
       as high as their flexibility in choosing their work schedules: less than a quarter of respondents
       reported working at home at least once a month. Again, this flexibility increased with the amount
       of knowledge tasks that workers in the various clusters perform frequently: approximately 40 per
       cent of leaders and innovators enjoyed this type of flexibility, relative to only about 15 per cent of
       maintenance and logistics operators and assistants and clerks, respectively.


       Our findings show that those with more knowledge based jobs have greater flexibility than
       those in less knowledge based jobs, at least as far as choice over hours is concerned and the
       ability (whether willing or not) to work at home. However, it is also striking how far the standard
       working day with relatively fixed working arrangements still predominates in today’s labour
       market. Even amongst those involved in knowledge intensive jobs, a sizeable minority had little
       choice over working arrangements and those who could really determine their own hours are a
       small minority.




60                                                                  Knowledge Workers and Knowledge Work
6. Organisational culture in the knowledge economy: preferences and reality




         The large research gaps in understanding the key characteristics of knowledge workers
         and knowledge work also exist at the firm level. While there is a vast literature looking at
         management of knowledge workers, there is little in the way of hard evidence. Further, we need
         a better sense not only of the predominant organisational cultures in the knowledge economy,
         but also the degree to which these realities mirror workers’ preferences. In this section we
         examine workers’ perceptions of their predominant organisation culture to assess the balance
         between rule bound cultures and innovative cultures, organisations defined by trust and loyalty
         versus those defined by achievement and competition.


         For that purpose, we asked all respondents to rate their agreement to four statements
         describing organisational culture (Cameron and Quinn 2006):


              1. This organisation is characterised by loyalty and mutual trust. Commitment to this
                   organisation runs high.
              2. This organisation is characterised by commitment to innovation and development.
                   There is an emphasis on being on the cutting edge.
              3. This organisation is characterised by an emphasis on achievement and goal
                   accomplishment. Aggressiveness and winning are common themes.
              4. This organisation is characterised by formal rules and policies. Maintaining a smooth-
                   running organisation is important.


         Table 6.1 below illustrates the share of each worker cluster within the group of workers who
         reported that each of the four qualities characterises their organisation and the respective
         shares for private and public sectors.22


         The responses of our survey participants suggest several notable points.


         First, the most prevalent of the four characteristics of organisations, according to their
         workers, is their adherence to formal rules and policies (almost 60 per cent of our respondents
         reported it) while the least prevalent characteristics are the emphasis on achievement and
         accomplishment and the commitment to innovation and development (around 37 per cent
         reported both).




         22
            The industries that we defined as private sector include agriculture, hunting and forestry, fishing, mining and
         quarrying, manufacturing, electricity and water supply, construction, distribution and repairs, hotels and restaurants,
         transport, storage and communication, financial intermediation, real estate and business activities. The public sector
         includes public administration, education, health and social work




Knowledge Workers and Knowledge Work                                                                                               61
Organisational culture in the knowledge economy: preferences and reality




       Interestingly, these perceptions seem to vary substantially depending on whether the
       respondent works in the private or the public sector. Public sector organisations are perceived to
        be more bound by rules and formal procedures and less committed to achievement, innovation
       and development than private sector organisations. Half of our respondents thought that their
       organisation is characterised by loyalty and mutual trust and quite notably, this feature was
       slightly more prevalent in the private sector than it is in the public.


       Secondly, workers with many knowledge tasks in general are clearly more likely than any
       other group of workers to perceive their organisations as being committed to innovation and
       development and as emphasising achievement and accomplishment. However, there is again a
       sizeable difference in this perception depending on whether these core knowledge workers are
       employed in the private or the public sector, with the private sectors scoring higher.


       To the extent that commitment to innovation and development and emphasis on achievement
       and accomplishment provide incentives for the use and expansion of tacit knowledge, which
       resides with the individual, these data suggest that public sector organisations in the UK are
       probably less well positioned to exploit the benefits of the knowledge economy.


       On the other hand, the extent to which these ‘core’ knowledge workers perceive their
       organisation as being bound by formal rules and policies and characterised by loyalty and
       mutual trust is quite similar to that of workers with only some knowledge tasks (eg information
       handlers, care and welfare workers and servers and sellers).




62                                                                    Knowledge Workers and Knowledge Work
Table 6.1: Perceived organisational characteristics by worker cluster


                                                       Loyalty                    Innovation                  Achievement                Rules
                                                       Private   Public   Total   Private   Public   Total    Private   Public   Total   Private   Public   Total
                                        Leaders &      69.9%     54.1%    63.3%   58.3%     44.6%    52.5%    49.5%     47.3%    48.6%   59.2%     77.0%    66.7%
                                        innovators
                                        Experts &      55.7%     46.7%    51.9%   52.2%     39.3%    46.7%    49.8%     35.3%    43.6%   61.2%     67.3%    63.8%
                                        analysts




Knowledge Workers and Knowledge Work
                                        All core       60.5%     49.1%    55.7%   54.3%     41.1%    48.7%    49.7%     39.3%    45.3%   60.5%     70.5%    64.8%
                                        knowledge
                                        workers
                                        Information    68.8%     47.5%    62.3%   40.6%     34.4%    38.7%    37.7%     31.1%    35.7%   52.2%     55.7%    53.3%
                                        handlers
                                        Care &         40.0%     46.4%    46.2%   27.6%     31.4%    28.3%    36.6%     34.3%    36.1%   52.4%     57.1%    53.3%
                                        welfare
                                        workers
                                        Servers &      55.6%     57.9%    56.0%   40.0%     22.4%    23.1%    40.0%     26.4%    26.9%   60.0%     68.8%    68.5%
                                        sellers
                                        All workers    63.4%     47.8%    55.9%   42.4%     27.8%    35.4%    38.8%     28.8%    34.0%   54.0%     66.3%    59.9%
                                        with some
                                        knowledge
                                        tasks
                                        Maintenance    41.4%     31.4%    39.4%   45.7%     42.1%    45.0%    40.7%     36.8%    40.0%   56.8%     84.2%    62.0%
                                        & logistics
                                        operators
                                        Assistants &   41.8%     37.0%    40.5%   33.0%     21.0%    29.7%    34.3%     21.0%    30.7%   50.9%     57.1%    52.6%
                                        clerks
                                        All workers    41.7%     35.7%    40.2%   31.3%     23.4%    29.3%    35.0%     24.0%    32.3%   51.4%     57.1%    52.8%
                                        with few
                                        knowledge
                                        tasks
                                        All workers    52.4%     45.1%    49.7%   40.9%     31.7%    37.5%    40.4%     31.6%    37.1%   54.8%     65.5%    58.8%
                                                                                                                                                                       Organisational culture in the knowledge economy: preferences and reality




63
                                                                                                         Source: Knowledge Workers Survey, The Work Foundation, 2008
64
                                       Table 6.2: Preferred organisational characteristics

                                                       Loyalty                    Innovation                 Achievement                 Rules
                                                       Private   Public   Total   Private   Public   Total   Private   Public   Total    Private   Public   Total
                                        Leaders &      62.1%     51.4%    57.6%   23.3%     29.7%    26.0%   11.7%     13.5%    12.4%    2.9%      5.4%     4.0%
                                        innovators
                                        Experts &      53.2%     57.3%    55.0%   23.4%     21.3%    22.5%   19.9%     13.3%    17.1%    3.5%      8.0%     5.4%
                                        analysts
                                        All core       56.2%     55.4%    55.9%   23.4%     24.1%    23.7%   17.1%     13.4%    15.5%    3.3%      7.1%     4.9%
                                        knowledge
                                        workers
                                        Information    74.6%     78.7%    75.9%   9.4%      8.2%     9.0%    15.2%     6.6%     12.6%    0.7%      6.6%     2.5%
                                        handlers
                                        Care &         40.0%     63.2%    62.3%   40.0%     18.4%    19.2%   20.0%     8.8%     9.2%     0.0%      9.6%     9.2%
                                        welfare
                                        workers
                                        Servers &      64.2%     63.2%    64.0%   13.6%     10.5%    13.0%   16.0%     26.3%    18.0%    6.2%      0.0%     5.0%
                                        sellers
                                        All workers    70.1%     67.8%    69.0%   11.6%     14.6%    13.1%   15.6%     9.8%     12.8%    2.7%      7.8%     5.1%
                                        with some
                                        knowledge
                                        tasks
                                        Maintenance    65.5%     57.1%    63.9%   13.1%     11.4%    12.8%   15.2%     20.0%    16.1%    6.2%      11.4%    7.2%
                                        & logistics
                                        operators
                                        Assistants &   63.2%     66.4%    64.1%   63.2%     66.4%    64.1%   14.2%     16.0%    14.6%    5.3%      9.2%     6.4%
                                                                                                                                                                     Organisational culture in the knowledge economy: preferences and reality




                                        clerks
                                        All workers    63.9%     64.3%    64.0%   16.0%     9.1%     14.3%   14.5%     16.9%    15.1%    5.6%      9.7%     6.6%
                                        with few
                                        knowledge
                                        tasks
                                        All workers    63.0%     62.1%    62.6%   17.3%     16.8%    17.1%   15.5%     13.0%    14.6%    4.2%      8.1%     5.7%




Knowledge Workers and Knowledge Work
                                                                                                       Source: Knowledge Workers Survey, The Work Foundation, 2008
Organisational culture in the knowledge economy: preferences and reality




         Another interesting result is that private sector care and welfare workers perceive their
         organisations being based on mutual trust and loyalty (46 per cent) and committed to innovation
         and development (24 per cent) to a much smaller extent than their counterparts in the public
         sector and when compared with other groups of workers with jobs of similar knowledge intensity,
         such as information handlers and servers and sellers.


         We also asked workers to indicate which of the four organisational characterisations they would
         prefer their organisations they work at to demonstrate (see Table 6.2 above). For all workers,
         regardless of the knowledge intensity of their work, the strong preference was for organisations
         built on mutual trust and loyalty, while very few respondents stated that they preferred to work
         for an organisation bound by rules and procedures. Unfortunately, this latter characteristic
         is also the one that most workers perceive as prevalent in their organisations. Over 60 per
         cent of knowledge workers said their organisation was characterised by rules and regulations
         but less than 5 per cent said they preferred such organisations. In contrast to the perceived
         organisational culture characteristics, our respondents do not seem to be as divided in their
         preferences depending on whether they work in the private or public sector
         .
         On the other hand, only few workers overall seem to prefer innovation and development and
         the emphasis on achievement and accomplishment. This is still significantly less than the 50 per
         cent of knowledge workers who characterised their firm and organisation as innovative. Even for
         the knowledge worker group we labelled as ‘leaders and innovators’ only 27 per cent expressed
         a strong preference for innovative organisations.


         Table 6.2 suggests that there are two sharp contrasts between the preferences of core
         knowledge workers and those of the rest. Core knowledge workers prefer relatively more to
         work for organisations that promote innovation and development (regardless of whether they
         are located in the public or private sector) and relatively less to work for organisations that
         emphasise loyalty and mutual trust.


         Moreover, the core knowledge workers are the ones that prefer the most organisations that
         promote achievement and accomplishment and the least organisations that are bound by formal
         rules and policies. However, they more or less share these preferences with workers with only
         few knowledge tasks and workers with only some knowledge tasks respectively.


         While our results suggest some interesting insights, there are also some caveats that should be
         taken into account when interpreting them. This is especially true for the findings that show that




Knowledge Workers and Knowledge Work                                                                        65
Organisational culture in the knowledge economy: preferences and reality




       on the one hand, UK organisations are not widely perceived to be committed to innovation and
       development and on the other hand, that relatively few of our respondents would prefer to work
       in organisations with this commitment. These caveats are associated with the way the questions
       in survey were asked.


       Our questions on the perceived and preferred organisational characteristics did not
       uncover or specify the definition of innovation that each respondent may have had in mind.
       Innovation, sometimes categorised as ‘soft innovation’ in areas such as management and
       work organisation, marketing and design, is very often only incremental, ie consisting of small
       changes in the way things are done and without involving new technologies. However, if the
       predominant perception of innovation is one of exclusively radical and technologically based
       advances, people may underestimate the innovative character of their own organisation.
       It is possible, therefore, that our questions have led to responses that underestimate the
       commitment to innovation and development of firms.


       Similarly, if organisations are considered as innovative only when they are ‘at the cutting edge’,
       then they can also be perceived as riskier and more likely to fold, a perception that could explain
       the low preference that our survey respondents expressed, even the core knowledge workers,
       for working in such organisations. Again, the way our question was posed may have prompted
       responses that understate the preferences of workers for innovative organisations.


       The continued importance of rules and procedures in UK organisations combined with the
       adherence to traditional styles of working suggest that in many ways the knowledge economy
       is more about the growth of knowledge-intensive industries as a result of technology and an
       increasingly skilled workforce rather than a complete overhaul of the world of work.




66                                                                 Knowledge Workers and Knowledge Work
Organisational culture in the knowledge economy: preferences and reality




         Figure 6.1: Percentage prefer innovative firms by worker cluster

                    Many knowledge tasks     Some knowledge tasks     Few knowledge tasks     Total


         30%
                  27%

         25%                 23%


         20%                               19%
                                                                                                      18%
                                                    15%
         15%                                                               14%          14%
                                                                11%
         10%

          5%

          0%
               Innovators   Experts   Care and     Servers   Information Operators   Assistants       Total
                                       welfare       and                             and clerks
                                                   sellers

                                                   Worker clusters




Knowledge Workers and Knowledge Work                                                                          67
7. Conclusion and recommendations




      The purpose of this report is to provide a portrait of work and the workforce in the knowledge
      economy. We wanted to find out who the knowledge workers are, what they do in their
      jobs, where they are employed and what employment structures, job characteristics and
      organisational structures look like in the knowledge economy.


      Knowledge work and knowledge workers are terms often used but seldom defined. When
      knowledge work is defined it is usually by broad measures such by job title or by education
      level. At best this gives us a partial and simplistic view of knowledge work in the UK.


      This report takes a new approach. In a large and unique survey we have asked people what
      they actually do at work and how often they perform particular tasks. We have used that
      information to assess the knowledge content of their jobs. The key test was the cognitive
      complexity required for each task – the use of high level ‘tacit’ knowledge that resides in
      people’s minds rather than being written down (or codified) in manuals, guides, lists and
      procedures.


      We then grouped the workforce into seven distinct clusters of jobs ranging from ‘expert thinkers,
      innovators and leaders’ (the most knowledge intensive groups) to ‘assistants and clerks’ (the
      least knowledge intensive)23. We describe the two highest knowledge groups as our ‘core’
      knowledge worker.


      With this measure we estimated that we have a 30-30-40 workforce – 30 per cent in jobs with
      high knowledge content, 40 per cent in jobs with some knowledge content, and 40 per cent in
      jobs with less knowledge content.


      Within our 30 per cent ‘core’ knowledge worker group, the highest group of all (‘leaders and
      innovators’) constituted just 11 per cent of the workforce. These high intensity knowledge jobs
      combined high level cognitive activity with high level management tasks.


      These high knowledge intensive jobs are, we suspect, what some of the more excitable
      accounts of knowledge work have in mind. The reality is that even after 40 years uninterrupted
      growth in knowledge based industries and occupations such jobs account for only one in ten of
      those in work today.




      23
           These groupings are described in more detail on page 24




68                                                                   Knowledge Workers and Knowledge Work
Conclusion and recommendations




         The 30-30-40 knowledge economy workforce




                                                  Many knowledge
                                                    tasks, 33%
               Few knowledge
                 tasks, 40%




                                   Some knowledge
                                     tasks, 27%




         We confirmed that knowledge work cannot be adequately described simply by looking at job
         titles or education levels. About 20 per cent of people engaged in jobs with high knowledge
         content – our core group of knowledge workers – were not graduates.


         However, about 20 per cent of graduates were in low knowledge content jobs. This is potentially
         worrying. But the average job tenure for graduates in such jobs was much lower than for non-
         graduates – suggesting graduates spend less time in these jobs. Moreover, about over 40 per
         cent of graduates in low knowledge content jobs reported their job duties corresponded well with
         their current skills.


         We also show that current job titles understate the knowledge content of jobs within some
         sectors such as manufacturing. When jobs are classified by knowledge content high tech
         manufacturing has as many knowledge intensive jobs, proportionately, as high tech services.




Knowledge Workers and Knowledge Work                                                                    69
Conclusion and recommendations




                 The most knowledge intensive jobs were almost equally likely to be held by men and women,
                 but those jobs with some knowledge content – such as care and welfare workers, information
                 handlers, and sellers and servers – were overwhelmingly female. Woman have benefitted from
                 the growth of knowledge work, but the growth of more knowledge intensive work has not, of
                 itself, overcome the gender pay gap.


Organisational   Knowledge work and knowledge workers are often seen as at the forefront of radical workplace
  implications   change. Under these types of scenarios, well-educated knowledge workers have been enabled
                 by the new information and communication technologies to participate in the global economy
                 and throw off the shackles of permanent long term relationships with the corporate world. This
                 we are told will become the labour market norm in the future and companies and organisations
                 must adjust their work practices and forge new employment relationships to cope.


                 We find no evidence for this. Those in the most knowledge intensive jobs are no more likely to
                 be in temporary jobs than those in the least knowledge intensive jobs and job tenures are also
                 very similar.


                 Knowledge workers are not spear-heading radical changes in the way we work. As expected,
                 they do have more flexibility at work than those in less knowledge intensive jobs, but the
                 differences were not overwhelming. The reality is that less than 50 per cent of all workers
                 and less than 60 per cent of knowledge workers say they have some flexibility in their work
                 schedule, and only a very small minority said they can freely determine their own hours.


                 Perhaps not surprising, attachment to the standard nine to five day is still a central feature of
                 the labour market for both knowledge workers and non-knowledge workers alike. Knowledge
                 workers were far more likely to do occasional work at home, although over 60 per cent said they
                 did no home-working. Weekend working is relatively common across the workforce, but was
                 much less prevalent among knowledge workers.


                 Knowledge workers enjoy more flexibility than others and have more opportunities to work at
                 home, but the overall sense is one of conservatism rather than radicalism when it comes to the
                 employment relationship. Knowledge workers appear to value long term relationships with their
                 employer and remain fairly attached to the standard working day.




       70                                                                     Knowledge Workers and Knowledge Work
Conclusion and recommendations




         One question that flows from this analysis is why knowledge work and the growth of the
         knowledge based industries has not led to a greater revolution in workplace organisation. It
         could be that offered the chance to become ‘intrapreneurs’ or ‘nomads’ most people prefer
         to opt for more secure and traditional relationships with a bit more flexibility than had been
         previously possible. But it could also be that many organisations and workplaces have not yet
         caught up with the possibilities that better educated workers and new technologies offer for
         increased flexible working.


         Our survey did not directly test out which of these propositions are closer to the truth or whether
         it is an amalgamation of the two. However, it is striking that in one key area – determination of
         hours – how few knowledge workers had full control over the hours they worked and that a very
         large minority said they had no control at all.


         This impression of rigidity is supported by the huge discrepancy in our organisation culture
         question between knowledge worker preferences and reality when it came to organisations
         characterised by rules and procedures. The vast majority of people in work think their
         organisation is characterised by formal rules and policies, but very few say this is the sort of
         organisation they really want to work for. The mismatch is even greater for knowledge workers:
         65 per cent said their organisations were rule and policy bound but only 5 per cent expressed a
         preference for such organisations.


         There is a much better match when it comes to characteristics such as loyalty and mutual trust
         for both knowledge and non-knowledge workers. About 50 per cent of all workers said this
         was a predominant characteristic of their organisation, and over 60 per cent said it was their
         preferred organisational characteristic.


         Knowledge workers are more likely to work for organisations that they think are innovative
         or achievement orientated – not in itself a surprising result. What is surprising is that neither
         feature seems to appeal to them very much. For example, 50 per cent of knowledge workers
         said their organisation’s predominant feature was innovation, development and being at the
         cutting edge, but only 24 per cent preferred this type of organisation.


         However, this was less true for knowledge workers than others – suggesting either they were
         less constrained than other workers or had found a way round the rules.




Knowledge Workers and Knowledge Work                                                                         71
Conclusion and recommendations




                 What is surprising is that even knowledge workers did not show strong preferences for such
                 organisational characteristics – along with other workers their strongest preference was for
                 organisations built on mutual trust and loyalty. Our survey did not allow us to probe in more
                 detail why innovation and achievement did not rank more highly in people’s preferences. One
                 possibility is the balance between risk and reward for most people in the organisation – for
                 example, the financial rewards from an ‘achievement and success’ orientated organisation
                 might not be evenly shared. Another is that rules and regulations and trust and loyalty are seen
                 as affecting all people in an organisation whereas characteristics such as innovation are seen
                 as relevant only to some jobs.


                 There are some warning signs here for public sector organisations – they scored worse than
                 the private sector for being rule and regulation bound (for which there can be good reasons as
                 well as bad) but also were less likely to be perceived as organisations high in mutual trust and
                 loyalty. Regardless of where they worked (public based or private based industries) knowledge
                 and other workers expressed similar preferences.


                 We have to be careful about over-interpreting some of these results. For example, organisations
                 must have some rules and procedures – however irksome for the individual – in order to
                 function. In some areas they are essential for safety and probity and consistency in dealing
                 with clients, customers, and citizens. Similarly, simple questions over skill utilisation and job
                 demands do not tell us whether the mismatch is a serious one or could be addressed by minor
                 changes to the job. People may also be reluctant to admit that the demands of their jobs are too
                 much for them. Even so, the results here are consistent with some other survey findings.


Skills and the   Taken at face value, employers are not making the most of knowledge worker skills despite
  knowledge      such workers representing a substantial investment in human capital within the organisation.
    economy      Our survey found a significant minority of knowledge workers said they had more skills
                 than their jobs demanded of them. However, the position was even worse for those in less
                 knowledge jobs – so organisations who employed knowledge workers appear to be doing
                 rather better at matching their talents to job demands than for other posts. This suggests a
                 more general problem around issues such as job design, career development, and progression
                 across the workforce as a whole.


                 All groups of workers reported their current jobs under used their skills. The gap was less
                 marked for knowledge workers, but nonetheless significant. About 36 per cent of knowledge




       72                                                                     Knowledge Workers and Knowledge Work
Conclusion and recommendations




               workers said they were in jobs that under used their skills compared with over 44 per cent of
               those in jobs with some or little knowledge content.


               Our results confirmed high economic returns to knowledge – the vast majority of those in the
               most knowledge intensive jobs enjoyed pay well above the median. But this was not true for
               those in jobs with some knowledge content – such as care and welfare work.


               Some have expressed concern that the economy is producing too many graduates for the
               available jobs that require graduate skills, forcing more graduates to accept lower pay jobs than
               their education warrants and worsening the prospects for non-graduates.


               Taken with the evidence on returns from knowledge and our previous work on labour market
               polarisation24, the overall picture from our survey does not strongly support the idea that the UK
               is producing too many graduates.


               There is however undoubtedly problems for a minority of graduates in finding jobs that match
               their skills. The situation may also be worse for those who entered the labour market more
               recently, but we found little variation in the responses by age. Those under 25 with less
               knowledge intensive jobs were no more likely to report their skills exceeded the demands of the
               job than those over 25.


Implications   This survey was conducted in 2007, so pre-dates the recession. The perceptions of workers in
      of the   some parts of the private sector may well be shifting, noticeably in parts of the financial services
  recession    industries.


               One of the biggest tests of any organisation is how to retain the trust, loyalty and commitment
               of the workforce at a time when some redundancies, cut-backs, and loss of earnings and
               promotion prospects is unavoidable. The relatively close match between perceptions and reality
               of organisational preferences in terms of mutual trust and loyalty that we saw pre- recession will
               come under strain.


               So far employers have proved reluctant to lay off large numbers of people, with reported use of
               pay and hours flexibility and recruitment freezes as alternatives to redundancy. In the first six
               months of this recession, employment has fallen by less than the first six months of the previous
               recession. In addition, where cuts have been made they have fallen disproportionately on
               agency labour – partly to protect the ‘core’ permanent workforce.


               24      Fauth and Brinkley (2006) Polarisation and labour market efficiency, The Work Foundation




     Knowledge Workers and Knowledge Work                                                                          73
Conclusion and recommendations




      Our wider work on the knowledge economy in previous recessions for the UK, US, and the
      EU shows that employment among knowledge based service industries and amongst workers
      in knowledge intensive jobs has been much more stable than employment in the rest of the
      economy. Moreover, employment expands in public based industries such as education and
      health. We may therefore see an opening up of more a gap between those in knowledge
      intensive jobs and those in less knowledge intensive jobs.


      Across the economy as a whole, business investment in knowledge based intangible assets is
      cut back less severely than investment in physical capital. The most resilient form of investment
      is in human and organisational capital. We interpret this as organisations trying to make the
      most of the surviving workforce, restructuring and rethinking business models.


      This makes it more imperative for organisations to address the widespread problem of skills
      underutilisation, but at the same-time the means to do so may become more constrained by the
      tendency to cut spending on all but the most essential. Moreover, to the extent that mismatch in
      skills and job demands is addressed it is more likely to be directed at those in more knowledge
      based occupations. These jobs are more likely to survive employment cut-backs and we expect
      a higher proportion of newly qualified graduates to compete for less knowledge intensive
      positions.


      This in turn will increase pressure on the government to cut back the rate of expansion in
      higher and further education on the grounds that the UK has an oversupply of graduates. The
      recession will indeed change the balance between demand and supply for knowledge intensive
      labour – primarily by restricting new jobs for graduate-level entrants. As graduate unemployment
      rises and more graduates take any job going, the further expansion of further and higher
      education will look more questionable.


      However, it is important that the cyclical effects are separated out from the longer run needs
      of the knowledge based economy. The post recession economy will see continued growth in
      knowledge intensive service industries25 and to reduce the supply of graduate labour now would
      have significant repercussions for the ability of such industries to expand in the longer run.
      Indeed, there is a strong case to bring forward expansion in higher and further education so that
      young people who would otherwise be consigned to a very difficult and possibly fruitless search
      for work have the opportunity to study instead.




      25
           UKCES, 2009, Working Futures 2007-2017




74                                                                 Knowledge Workers and Knowledge Work
Conclusion and recommendations




Next steps   These are the first set of findings from our knowledge working survey. We will be publishing
             a second set of findings later in 2009 that look more closely at how knowledge work can be
             regarded as ‘good work’ and how it relates to health and well-being at work.




   Knowledge Workers and Knowledge Work                                                                     75
Appendix A. Work-related tasks and activities by factor




       Data and analysis
       Compile data
       Analyse information to address work-related problems
       Write reports
       Translate/interpret the meaning of written material (ie, reports, chapters, articles, books) for others
       Statistically analyse data
       Identify patterns in data/information
       Interpret charts or graphs
       Enter data
       Use a technical package on your computer


       Leadership and development
       Build the external profile of the organisation
       Debate topical economic, political, social, business issues
       Evaluate ideas
       Serve on expert committees
       Assess the quality of work of people outside of your organisation
       Implement new programmes, systems or products
       Manage projects
       Predict/forecast future trends
       Use logic to identify strengths and weaknesses of alternate solutions, conclusions or approaches
       Review management procedures
       Present new business ideas/opportunities
       Create new processes or procedures
       Manage financial risks
       Coordinate personnel and financial resources for new projects
       Develop proposals/grants
       Approve invoices
       Formulate policies
       Make strategic decisions
       Develop organisational vision
       Appraise the value of property or objects
       Contribute to the organisation’s strategic plan
       Initiate large-scale organisational change
       Identify issues that will affect the long-term future of the organisation
       Make decisions on the basis of environmental conditions
       Plan for the fiscal year
       Foresee future business/financial opportunities
       Manage strategic relationships
       Research new business opportunities




76                                                                        Knowledge Workers and Knowledge Work
Appendix A. Work-related tasks and activities by factor




          Administrative tasks
          Sell products
          File (physically or electronically)
          Sort post
          Organise travel
          Manage diaries/calendars
          Inventory stock
          Order merchandise
          Organise/send out mass mailings
          Make and confirm reservations
          Collect payment


          Perceptual and precision tasks
          Judge speed of moving objects
          Visually identify objects
          Use depth perception (ie, as a necessary part of your job)
          Organise/arrange objects according to a pattern, colour or other detail
          Judge which of several objects is closer or farther away
          Estimate the size of objects
          Judge distances
          Know your location in relation to the environment or know where objects are in relation to you
          Detect differences among colours
          Notice different sound patterns
          Use navigation skills


          Work with food, products or merchandise
          Clean/wash
          Prepare, cook or bake food
          Stock shelves with products or merchandise
          Gather and remove refuse
          Serve food and beverage


          People management
          Handle complaints, settle disputes or resolve grievances
          Assign people to tasks
          Resolve personal conflicts
          Collaborate with people inside of your organisation on a project/programme
          Counsel others
          Manage people




Knowledge Workers and Knowledge Work                                                                       77
Appendix A. Work-related tasks and activities by factor




         Interview people
         Recruit personnel
         Give formal briefings to others
         Teach others
         Coach or develop others
         Provide consultation/advice to others
         Conduct classes, workshops or demonstrations
         Motivate others
         Mentor people in your organisation
         Assess the quality of work of people in of your organisation


         Creative tasks
         Create artistic objects/works
         Take ideas and turn them into new products
         Take photographs
         Create technical plans or blueprints
         Engage in graphic design
         Perform artistically
         Use devices that you draw with (eg, design software, paintbrushes)
         Develop new technology
         Film people and events
         Write chapters, articles, books, etc. for publication


         Caring for others
         Provide care for others (eg, children)
         Dispense medication
         Diagnose and treat diseases, illnesses, injuries or mental dysfunctions
         Expose self to disease and infections
         Administer first aid


         Maintenance, moving and repairing
         Lift heavy objects (as necessary part of job, not including occasional moving, etc.)
         Climb ladders, scaffolds or poles
         Load/unload equipment, materials, luggage
         Move equipment/supplies
         Use heavy machinery
         Use tools that perform precise operations (excluding computers and basic office equipment)
         Use hand-powered saws and drills
         Use scientific/laboratory equipment




78                                                                       Knowledge Workers and Knowledge Work
Appendix A. Work-related tasks and activities by factor




          Test, monitor or calibrate equipment
          Take equipment apart or assemble it
          Manoeuvre, navigate or drive vehicles or mechanised equipment (ie, forklifts, passenger vehicles,
          aircrafts or watercrafts)
          Install, maintain or repair electrical wiring
          Repair or maintain equipment/vehicles
          Control machines
          Install objects/equipment
          Generate/adapt equipment to serve user needs
          Expose self to hazardous conditions (eg, extreme weather, contaminants)
          Expose self to extremely loud noises


          Personal, animal and home maintenance
          Excavate
          Weld
          Dig
          Decorate
          Sew, knit or weave
          Manage building/site
          Issue licences/permits
          Tattoo, brand, tag people/animals
          Help customers try on or fit merchandise
          Plant or maintain trees, shrubs, flowers, etc.
          Feed, water, groom, bathe, exercise animals
          Apply beauty treatments and therapies
          Collect fares, tickets
          Set type


          Survey items that were cut
          Communicate orally or in writing to people outside of your organisation
          Circulate information to others
          Draw upon personal contacts/networks for work-related matters
          Speak a language other than English (ie, as a necessary part of your job not including casual
          conversations)
          Talk to media
          Liaise with suppliers
          Interact directly with customers/clients
          Greet clients/customers
          Answer telephones for others
          Collaborate with people outside of your organisation on a project/programme




Knowledge Workers and Knowledge Work                                                                          79
Appendix A. Work-related tasks and activities by factor




         Mentor people outside of your organisation
         Compile, administer or grade examinations/ tests
         Walk/run as a critical part of job (excluding commuting, getting lunch, etc.)
         Use physical strength
         Arrange/pack objects or materials
         Construct or repair houses, buildings or other structures (eg, highways)
         Plant, grow or harvest food
         Cut or trim objects, materials (including hair, nails)
         Paint
         Drill
         Wrap food
         Design, make, alter, fit or repair garments or textiles
         Generate/develop new ideas for the organisation
         Compose music
         Pose for photographs
         Play musical instruments
         Review research/evidence to be used in an economic, political, academic or business-related debate
         or argument
         Follow blueprints or designs to specifications
         Engage in taxonomic classification
         Read and evaluate technical/academic papers and articles
         Present research findings
         Determine whether events or processes comply with laws, regulations or standards
         Discriminate different tastes and/or smells
         Enforce directives/rules/policies
         Distribute/set-up equipment
         Supervise operation of equipment
         Order equipment
         Use physical speed
         Inspect the condition/quality of objects
         Proofread
         Resolve conflicting findings (from data, reports, etc.)
         Use geometry
         Use algebra
         Write computer programmes
         Make/collate photocopies
         Physically train or exercise
         Transport materials, goods
         Transport people
         Scan items




80                                                                        Knowledge Workers and Knowledge Work
Appendix A. Work-related tasks and activities by factor




          Make deliveries
          Mix ingredients, solutions, chemicals or dyes
          Develop laws and statutes
          Market a product/idea
          Monitor investments/markets
          Plan/coordinate events
          Control finances/budgets
          Assemble, install or repair pipe systems
          Engage in tasks that require extreme precision
          Identify, pursue, and arrest suspects and perpetrators of criminal acts
          Fundraise




Knowledge Workers and Knowledge Work                                                            81
Appendix B: Sample demographic and background characteristics




       Background characteristics                                      %/Mean
       Gender (male)                                                     51.3%
       M(SD) Age                                                         37.93 (10.29)
       Ethnicity (White)                                                 93.6%
       Social grade (ABC1)                                               55.6%
       Region
         North                                                           39.0%
         Midlands                                                        31.4%
         South                                                           29.6%
       Educational attainment (degree)                                   34.2%
       Age complete FT ed. (>16)                                         60.4%
       Marital status (married/cohabitating)                             64.3%
       Income (% greater than median)                                    47.1%
       Occupation
         Manager and senior officials                                    19.3%
         Professional occupations                                        13.1%
         Associate professional and technical occupations                14.6%
         Administrative and secretarial occupations                      16.8%
         Skilled trades occupations                                       5.8%
         Personal service occupations                                     7.1%
         Sales and customer service occupations                           8.1%
         Process, plant and machine operatives                            7.5%
         Elementary occupations                                           7.6%
       Work in knowledge-intensive industry                              52.5%




82                                                          Knowledge Workers and Knowledge Work
Appendix C: Description of organisational variables




          Variable(s)                     Description/Categories
          Firm Culture                    Agreement (1=strongly disagree, 5=strongly agree) with four
                                          organisational descriptions: (1) loyalty and trust, (2) innovation
                                          and development, (3) aggressiveness and (4) formal rules in their
                                          organisation
          Job skills match                Whether their current job demands are matched to their skill sets or
                                          (1) if they could cope with more demanding tasks or (2) need further
                                          training to complete their tasks
          Repetition/job complexity       Whether (yes/no) jobs entail: (1) unforeseen problem solving, (2)
                                          repetitive tasks, (3) complex tasks and (4)learning new things
          Autonomy                        Agreement (1=strongly disagree, 5=strongly agree) that respondents
                                          have the: (1) ability to make decisions on own at work, (2) freedom to
                                          choose the methods of work and (3) freedom to choose pace of work
          Job intensity                   Frequency (1=never, 5=everyday) with which respondents feel (1)
                                          overworked, (2) overwhelmed by workload and (3) subject to conflicting
                                          demands
          Social capital                  Agreement (1=strongly disagree, 5=strongly agree) that respondents
                                          are: (1) treated fairly, (2) had attentive co-workers and (3) had
                                          supportive supervisors
          Absenteeism/                    Number of days unable to carry out work tasks or go to work due to
          presenteeism                    care reasons in past four weeks
          General care                    General perceptions of care (1=poor care, 5=excellent care)
          Job satisfaction                Satisfaction (1=very dissatisfied, 5=very satisfied) with five aspects of
                                          work: (1) pay, (2) security, (3) the work itself, (4) sense of achievement
                                          and (5) hours
          Life satisfaction               Agreement (1=strongly disagree, 5=strongly agree) that respondents
                                          feel: (1) their life was close to their ideal, (2) happiness with lifestyle, (3)
                                          general life satisfaction, (4) life achievement and (5) degree to which
                                          they would change their lives if they could
          Perceptions of job              Whether respondents: (1) like their jobs and see themselves doing their
                                          jobs in the future, (2) dislike their jobs but see themselves doing their
                                          jobs in the future or (3) see their job as a way to pay the bills only
          Work-personal life spill-over   Agreement (1=strongly disagree, 5=strongly agree) that: (1) the
                                          demands of work interfere with personal life, (2) there is a conflict
                                          between work and personal responsibilities and (3) work duties cause
                                          personal activities to be changed




Knowledge Workers and Knowledge Work                                                                                     83
Appendix D: Composition of workforce in the distribution and repairs and in
the hotels and restaurants sectors



      Figure 1: Distribution of workforce within the distribution and repair sector




                                        6.7%
                                                                      Leaders & innovators
                                                   10.3%
              34.4%                                                   Experts & analysers


                                                                      Information managers


                                                                      Maintenance &
                                                                      logistics operators
                                                                      Care & welfare workers
                                                       23.1%
                                                                      Servers & sellers


                                                                      Assistants & clerks
                      14.9%
                                           10.3%
                                 0.5%




      Figure 2: Distribution of workers clusters within the hotels and restaurants sector




                                    6.0%                            Leaders & innovators
                      18.0%                6.0%
                                                    4.0%
                                                                    Experts & analysers
                                                     2.0%

                                                      2.0%          Information managers


                                                                    Maintenance &
                                                                    logistics operators

                                                                    Care & welfare workers


                                                                    Servers & sellers


                                                                    Assistants & clerks
                                62.0%




84                                                             Knowledge Workers and Knowledge Work
References




         Amar, A. D. 2002. Managing knowledge workers: Unleashing innovation and technology.
               Westport, CT: Quarum Books.
         Autor, David H., Frank Levy, and Richard J. Murnane. 2003. The skill content of recent
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         Brinkley, Ian. 2008. The knowledge economy: How knowledge is reshaping the economic life
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         83E01B783633D5E44FB883E57CA7E09C.
         Elias, Peter, and Kate Purcell. 2004. SOC (HE): A classification of occupations for studying the
               graduate labour market. In Researching Graduate Careers Seven Years On, Research
               Report No 6: Employment Studies Research Unit and Warwick Institute for Employment
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               European Working Conditions Survey. Luxembourg: Office for Official Publications of the
               European Communities.
         Fauth, Rebecca, and Ian Brinkley. 2006. Efficiency and labour market polarisation. London:
               The Work Foundation. Available at: http://www.theworkfoundation.com/research/
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         Green, Francis, Alan Felstead, Duncan Gallie, and Ying Zhou. 2007. Computers and pay. In
               SKOPE Research Paper, No 74. Oxford: SKOPE, Department of Economics, Oxford
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         Kluth, Andreas. 2008. Nomads at last. Economist, 10 April.
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               Treasury. London.




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References




      Lundvall, B. and B.Johnson. 1994. The Learning Economy. Journal of Industry Studies 1: 2
      Mills, C. Wright. 1951. White collar: The American middle classes. New York: Oxford University
              Press.
      OECD. 1996. The Knowledge-Based Economy. Paris
      Reich, Robert B. 1992. The work of nations. New York: Vintage Books.
      Suff, P., and P. Reilly. 2005. In the know: Reward and performance management of knowledge
              workers. In HR Network Paper, MP47. Brighton: Institute for Employment Studies.
      Webster, Elizabeth. 1999. The growth of enterprise intangible investment. Melbourne:
              Melbourne Institute of Applied Economic and Social Research, University of Melbourne.
              Available at: http://www.melbourneinstitute.com/wp/wp1999n09.pdf.
      Wilson, T. D. 2002. The nonsense of knowledge management. Information Research 8 (1):
              paper no. 144. Available at: http://InformationR.net/ir/8-1/paper144.html.




86                                                               Knowledge Workers and Knowledge Work
All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system or transmitted, in any form or by any means, electronic, mechanical,
photocopying, recording and/or otherwise without the prior written permission of the
publishers. This publication may not be lent, resold, hired out or otherwise disposed of
by way of trade in any form, binding or cover other than that in which it is published,
without the prior consent of the publishers.
We provide:
Research
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Leadership
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© The Work Foundation


Registered as a charity no: 290003


Ian Brinkley, Rebecca Fauth, Michelle Mahdon and Sotiria Theodoropoulou


First published: March 2009


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SW1H 0AD


Telephone: 020 7976 3605
Email: ibrinkley@theworkfoundation.com
Website: www.theworkfoundation.com

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Knowledge worker survey

  • 1. Knowledge Workers and Knowledge Work A Knowledge Economy Programme Report Prepared by Ian Brinkley, Rebecca Fauth, Michelle Mahdon and Sotiria Theodoropoulou
  • 2. Contents Acknowledgements 2 List of Figures and Tables 3 Executive summary 4 1. The knowledge economy and knowledge work: A review of the existing definitions and measures 9 2. Redefining knowledge work and knowledge workers 19 3. Knowledge work across industries and regions 41 4. The changing nature of work roles and the returns to knowledge 49 5. The job characteristics of knowledge workers 54 6. Organisational culture in the knowledge economy: preferences and reality 61 7. Conclusion and recommendations 68 Appendix A. Work-related tasks and activities by factor 76 Appendix B: Sample demographic and background characteristics 82 Appendix C: Description of organisational variables 83 Appendix D: Composition of workforce in the distribution and repairs and in the hotels and restaurants sectors 84 References 85 Acknowledgements This report has drawn on some of the initial research work and discussions from The Work Foundation’s three year Knowledge Economy Programme, to be completed in April 2009. However the views set out here are entirely those of The Work Foundation and do not represent those of the sponsoring organisations. We would like to thank Alana McVerry and Sezis Okut for their contributions to this paper. 2 Knowledge Workers and Knowledge Work
  • 3. List of Figures and Tables Figure 1: The 30-30-40 knowledge economy workforce 5 Figure 1.1: Growth of knowledge based service industries in Europe and UK 1970-2005 10 Figure 1.2: Shares of graduates and workers with only basic schooling in UK workforce, 1970-2006 14 Figure 2.1: What work tasks are most common across the workforce? 23 Figure 2.2: Number of different computer uses and how often computers are used each week 28 Figure 2.3: Share of workers that frequently perform at least one specialist computer task 29 Figure 2.4: Importance of ‘teach others’ task for different clusters 31 Figure 2.5: Perceived complexity of tasks performed by surveyed workers 32 Figure 2.6: The 30-30-40 knowledge workforce 34 Figure 2.7: Share of women in jobs by knowledge content 36 Figure 2.8: Share of jobs in the top three occupational groups by knowledge content 38 Figure 2.9: Share of graduates by knowledge intensity of the job 39 Figure 3.1: Share of jobs in knowledge industries by knowledge intensity 42 Figure 3.2: Composition of the knowledge-intensive services sector 43 Figure 3.3: Workforce composition in the health and welfare industry by worker cluster 44 Figure 3.4: Employment in knowledge intensive and more traditional services compared 45 Figure 3.5: Composition of the manufacturing sector 46 Figure 3.6: Regional composition of the workforce 47 Figure 4.1: Percentage earning more than median wages by worker cluster 53 Figure 5.1: Percentage of workers in the same job for more than 10 years by worker cluster 56 Figure 5.2: Percentage of workers working day shifts by worker cluster 57 Figure 5.3: Percentage of workers doing weekend work at least once/month by worker cluster 58 Figure 5.4: Percentage of workers with flexibility in choosing work schedule by worker cluster 59 Figure 6.1: Percentage prefer innovative firms by worker cluster 67 Table 2.1: Task factors with sample items 22 Table 2.2: Number of methods used to acquire new information and learn new tasks 30 Table 2.3: Prevalence of methods used for sharing and capturing knowledge 32 Table 3.1: Regional concentration of knowledge workers in the UK 47 Table 4.1: Job-skills/experience match by worker cluster 52 Table 4.2: Shares of women and men earning above the median wage 53 Table 6.1: Perceived organisational characteristics by worker cluster 63 Table 6.2: Preferred organisational characteristics 64 Knowledge Workers and Knowledge Work 3
  • 4. Executive summary The purpose of this report is to provide a portrait of work and the workforce in the knowledge economy. We wanted to find out who the knowledge workers are, what they do in their jobs, where they are employed and what employment structures, job characteristics and organisational structures look like in the knowledge economy. Knowledge work and knowledge workers are terms often used but seldom defined. When knowledge work is defined it is usually by broad measures such by job title or by education level. At best this gives us a partial and simplistic view of knowledge work in the UK. This report takes a new approach. In a large and unique survey, we have asked people what they actually do at work and how often they perform particular tasks. We have used that information to assess the knowledge content of their jobs. The key test was the cognitive complexity required for each task – the use of high level ‘tacit’ knowledge that resides in people’s minds rather than being written down (or codified) in manuals, guides, lists and procedures. We then grouped the workforce into seven distinct clusters of jobs ranging from ‘expert thinkers, innovators and leaders’ (the most knowledge intensive groups) to ‘assistants and clerks’ (the least knowledge intensive)1. We describe the two highest knowledge groups as our ‘core’ knowledge worker. With this measure we estimated that we have a 30-30-40 workforce – 30 per cent in jobs with high knowledge content, 30 per cent in jobs with some knowledge content, and 40 per cent in jobs with less knowledge content. Within our 30 per cent ‘core’ knowledge worker group, the highest group of all (‘leaders and innovators’) constituted just 11 per cent of the workforce. These high intensity knowledge jobs combined high level cognitive activity with high level management tasks. These high knowledge intensive jobs are, we suspect, what some of the more excitable accounts of knowledge work we have in mind. The reality is that even after 40 years uninterrupted growth in knowledge based industries and occupations, such jobs account for only one in ten of those in work today. 1 These groupings are described in more detail on page 24 4 Knowledge Workers and Knowledge Work
  • 5. Executive summary The 30-30-40 knowledge economy workforce Many knowledge tasks, 33% Few knowledge tasks, 40% Some knowledge tasks, 27% We confirmed that knowledge work cannot be adequately described simply by looking at job titles or education levels. About 20 per cent of people engaged in jobs with high knowledge content – our core group of knowledge workers – were not graduates. We also show that current job titles understate the knowledge content of jobs within some sectors such as manufacturing. When jobs are classified by knowledge content, high tech manufacturing has as many knowledge intensive jobs, proportionately, as high tech services. Although our survey did not look in great detail into the geographical distribution of knowledge workers, there were nevertheless indications that core knowledge workers tend to cluster in urban areas, particularly in London, the South East and North of England and Scotland. This is not a surprising finding given that face-to-face contact and the development of relationships are important for exchanging information and especially tacit knowledge. Cities across the UK – including Manchester, Leeds, Bristol and Edinburgh outside the South East – also provide Knowledge Workers and Knowledge Work 5
  • 6. Executive summary businesses with access to wider markets and to specialist skills. This result resonates with the insights of our Ideopolis programme on the growing importance of cities in world economies. Our results confirm high economic returns to knowledge – the vast majority of those in the most knowledge intensive jobs enjoyed pay well above the median. But this was not true for those in jobs with some knowledge content – such as care and welfare work. The most knowledge intensive jobs were almost equally likely to be held by men and women, but those jobs with some knowledge content – such as care and welfare workers, information handlers, and sellers and servers – were overwhelmingly female. Woman have benefitted from the growth of knowledge work, but the growth of more knowledge intensive work has not, of itself, overcome the gender pay gap. Some people have speculated that the growth of knowledge work is weakening the attachment to permanent and long term employment relations. We find no evidence for this. Those in the most knowledge intensive jobs are no more likely to be in temporary jobs than those in the least knowledge intensive jobs and job tenures are also very similar. Knowledge workers are not spear-heading radical changes in the way we work. As expected, they do have more flexibility at work than those in less knowledge intensive jobs, but the differences were not overwhelming. The reality is that less than 50 per cent of all workers and less than 60 per cent of knowledge workers said they have some flexibility in their work schedule, and only a very small minority said they can freely determine their own hours. Perhaps not surprising, attachment to the standard nine to five day is still a central feature of the labour market for both knowledge workers and non-knowledge workers alike. Knowledge workers were far more likely to do occasional work at home, although over 60 per cent said they did no home-working. Weekend working is relatively common across the workforce, but was much less prevalent among knowledge workers. We found two big labour market mismatches. The first was between the skills that people said they had and the demands their current job made of them. The second was between the organisational culture people perceived they actually worked in and the organisational culture they would like to work in. 6 Knowledge Workers and Knowledge Work
  • 7. Executive summary Significant minorities of workers reported their current jobs under-used their skills. The gap was less marked for knowledge workers, but nonetheless significant. About 36 per cent of knowledge workers said they were in jobs that under-used their skills compared with over 44 per cent of those in jobs with some or little knowledge content. Taken at face value, employers are not making the most of knowledge worker skills despite such workers representing a substantial investment in human capital within the organisation. However, these mismatches are even worse for jobs with low knowledge content – suggesting a more general problem with labour utilisation rather than a particular difficulty with knowledge work. Some have expressed concern that the economy is producing too many graduates for the available jobs that require graduate skills, forcing more graduates to accept lower pay jobs and worsening the prospects for non-graduates. We found mixed evidence. About 20 per cent of graduates were in low knowledge content jobs. This is potentially worrying. However, the average job tenure for graduates in such jobs was much lower than for non-graduates – suggesting graduates spend less time in these jobs. Moreover, about 44 per cent of graduates in low knowledge content jobs reported that their job duties corresponded well with their current skills. Taken with the evidence on returns from knowledge and our previous work on labour market polarisation2, the overall picture does not strongly support the idea that the UK is producing too many graduates. The situation may be worse for those who entered the labour market more recently, but we found little variation in these responses by age. The vast majority of people in work think their organisation is characterised by formal rules and policies, but very few say this is the sort of organisation they really want to work for. The mismatch is even greater for knowledge workers: 65 per cent said their organisations were rule and policy bound, but only 5 per cent expressed a preference for such organisations. There is a much better match when it comes to characteristics such as loyalty and mutual trust for both knowledge and non-knowledge workers. About 50 per cent of all workers said this was a predominant characteristic of their organisation, and over 60 per cent said it was their preferred organisational characteristic. 2 Fauth and Brinkley (2006) Polarisation and labour market efficiency, The Work Foundation Knowledge Workers and Knowledge Work 7
  • 8. Executive summary Knowledge workers are more likely to work for organisations that they think are innovative or achievement orientated – not in itself a surprising result. What is surprising is that neither feature seems to appeal to them very much. For example, 50 per cent of knowledge workers said their organisation’s predominant feature was innovation, development and being at the cutting edge, but only 24 per cent preferred this type of organisation. Some of the differences in how people characterised their organisation can be partly explained by whether the organisation was in a public based industry (education, health, public administration) or in a private market based industry. But such differences between a public and private based organisational culture did not explain preferences. It seems people reject rule bound cultures and value loyalty and trust regardless of whether they work in the public or private based sectors. The gap between reality and organisational preference was wider in the public sector than in the private sector. Public service workers were more likely to say they worked in a rules bound organisation, which is predictable; but they also said they were less likely to be characterised by mutual rust and loyalty than in the private sector. These are the first set of findings from our knowledge working survey. We will be publishing a second set of findings later in 2009 that look more closely at how knowledge work can be regarded as ‘good work’ and how it relates to health and well-being at work. 8 Knowledge Workers and Knowledge Work
  • 9. 1. The knowledge economy and knowledge work: A review of the existing definitions and measures Introduction The purpose of this report is to provide a portrait of the work and the workforce in the knowledge economy. We want to find out who the knowledge workers are, what they do in their jobs, where they are employed and what employment structures, job characteristics and organisational structures look like in the knowledge economy. The term ‘knowledge economy’ is often used but seldom defined. Essentially, it refers to a transformed economy where investment in ‘knowledge based’ assets such as R&D, design, software, and human and organisational capital has become the dominant form of investment compared with investment in physical assets – machines, equipment, buildings and vehicles. Thus, the term ‘knowledge economy’ captures the subsequently changed industrial structure, ways of working, and the basis on which organisations compete and excel. The presence and use of knowledge-based assets in the economy is of course not new – knowledge based institutions such as universities go back centuries. However, in the late 1970s and early 1980s three major economic and social forces combined to trigger the radical change in economic structures that expanded the use of knowledge based assets and brought them to the centre of economic activity across the OECD: • The introduction of increasingly powerful and relatively cheap general purpose information and communication technologies has not only been eliminating the physical and geographical barriers of sharing information and ideas, but also expanding the possibilities of generating new knowledge. • Globalisation has been acting as an accelerator by opening up both markets of global scale and an endless variety of niche markets as well as speeding up the spread and adaption of new technologies and ideas. • The rising standards of living in the advanced industrialised economies have, over the years, created well-educated and demanding consumers with a voracious appetite for the high value added services that the knowledge economy can characteristically supply. These changes are universal – they affect all industrial sectors, all sizes of firms, the public sector as much as the private sector. And they are global – we have yet to find an advanced industrial economy where these changes are not taking place. The graphs below illustrate the growth of the knowledge economy in Europe by showing the evolution of the share in value added, in the EU and the UK, of the sectors that the OECD and Knowledge Workers and Knowledge Work 9
  • 10. The knowledge economy and knowledge work: A review of the existing definitions and measures Eurostate commonly define as knowledge-based industries. These industries include high- to medium-technology manufacturing and knowledge intensive services such as financial and business services, telecommunications and health and education.3 The decline in manufacturing is somewhat misleading, as we show in the report Manufacturing and the Knowledge Economy (The Work Foundation, January 2009). Figure 1.1: Growth of knowledge based service industries in the UK 1970-2005 50% 45% 40% 35% 30% 25% 20% 15% 10% TOTAL MANUFACTURING 5% KE Other services 0% _1970 _1973 _1976 _1979 _1982 _1985 _1988 _1991 _1994 _1997 _2000 _2003 Source: The Work Foundation estimates from EU KLEMS database Note: OECD definition – knowledge based services includes financial and business services, communications, health and education services. Other services includes distribution, hospitality, public administration, other services. This change in industrial structure has also changed the structure of the workforce. The interaction of technology with workers’ intellectual and human capital has, some argue, created a new class of worker in today’s economy – the knowledge worker. Peter Drucker, the management guru, is credited with popularising the term ‘knowledge worker’ as long ago as 1968 (Drucker 1968). Back then he argued, ‘Today the center is the knowledge worker, the man or woman who applies to productive work ideas, concepts, and information rather than manual skill or brawn…Where the farmer was the backbone of any economy a century or two ago…knowledge is now the main cost, the main investment, and the main 3 It is interesting to note that knowledge-based industries in manufacturing are delineated by their high shares of sales devoted to R&D, whereas knowledge-based industries in services are distinguished by their high levels of ICT usage and graduate employment of graduates 10 Knowledge Workers and Knowledge Work
  • 11. The knowledge economy and knowledge work: A review of the existing definitions and measures product of the advanced economy and the livelihood of the largest group in the population’ (p. 264). Even in its nascent form, the very term ‘knowledge worker’ hints at a shift in nature of some jobs where knowledge – not physical capital – is increasingly becoming the core currency on the job market. Forty years on, and we seem little closer to pinning down the terms ‘knowledge worker’ or ‘knowledge work.’ There are no official agreed definitions and no standardised measures. As with the term ‘knowledge economy’, the term ‘knowledge worker’ is used frequently and indiscriminately. It encompasses anybody from a relatively small number of professional and technical specialists to a sizeable chunk of the workforce. The following section reviews the diverse, but surprisingly sparse, literature on the definitions and measurement of knowledge work and knowledge workers, including the definition used by The Work Foundation thus far. In reviewing this literature, we highlight the important features that a data-driven account of knowledge work and knowledge workers should reflect and the shortcomings of previous attempts at providing such an account. Moreover, this review frames our own method of deriving a better definition of knowledge work within the existing literature. In later sections of this report we will use our newly developed definition of knowledge work to explore the consequences of the knowledge economy in the structure of employment, job characteristics organisational culture and good work. Defining Definitions of knowledge knowledge and One of the central problems in defining knowledge work has been the difficulty of defining knowledge knowledge itself and distinguishing knowledge from information. Indeed, the terms ‘information workers worker’ and ‘knowledge worker’ can be used interchangeably. There is a vast literature in which the concept of management of knowledge is hard to distinguish from the management of information. For example, the general conclusion from one meta-analysis is that much of what is described as knowledge management is really either management of information or a description of organisational changes that improved information sharing (Wilson 2002). We argued in The Work Foundation’s Knowledge Economy Programme interim report (Brinkley 2008) that what distinguishes knowledge from information is the way in which knowledge empowers actors with the capacity for intellectual or physical activity. Knowledge is a matter of cognitive capability and enables actors to do and reflect. Information, by contrast, is passive and meaningless to those without suitable knowledge. Knowledge provides the means by which information is interpreted and brought to life. Knowledge Workers and Knowledge Work 11
  • 12. The knowledge economy and knowledge work: A review of the existing definitions and measures An alternative distinction is between ‘tacit’ and ‘codified’ knowledge (see Lundavall and Johnson 1994 and OECD 1996: 12). The latter can be written down, for example, in manuals, guides, instructions and statements and is easily reproduced. Tacit knowledge, however, resides with the individual in the form of expertise and experience that often cannot be written down and is expensive to transfer to others. In many respects, codified knowledge and information are indistinguishable. The significant difference is, therefore, between tacit knowledge and information. Conceptual definitions of knowledge work Even with these distinctions in mind, knowledge work remains an elusive concept. Definitions and descriptions of knowledge work have ranged from the theoretical to the anecdotal and are very infrequently based on a robust assessment of data on workers and what they actually do. When data are used, usually proxy measures for highly skilled labour are employed. Depending what resource we look to for evidence, we might come away thinking that nearly everyone in the workforce today is a knowledge worker or that almost no one is, with the exception of a select few. Several experts have outlined conceptual definitions of knowledge work. For example, Drucker (1999) focused on the differences between ‘manual worker productivity’ and ‘knowledge worker productivity.’ The key enablers of the latter include abstractly defined tasks (vs. clearly defined, delineated tasks), flexible application of knowledge, workers’ autonomy, continuous innovation and learning into job roles, assessment based on quality (not just quantity) of output and perceiving workers as organisational assets. While this general outline is useful, Drucker did not take the additional useful step of specifying the occupations that fit into the knowledge worker category. One could argue that he simply outlined a more modern conception of a good job where workers are viewed as more than what they produce. Robert Reich (1992) was a bit more explicit in outlining what he terms as the ‘symbolic analysts’, the workers who engage in non-standardised problem solving using a range of analytic tools often abstract in nature. The keys to these workers’ success include creativity and innovation and incorporate occupations ranging from lawyers to bankers to researchers to consultants. Another US-based researcher took a fairly divisive stance on knowledge work by declaring that, ‘all knowledge work is intellectual work. Thus, a job that is not intellectual enough will not contribute to knowledge work. Such jobs should not be allowed in a knowledge organisation’ (Amar 2002). The paper argued further that knowledge organisations should only have jobs 12 Knowledge Workers and Knowledge Work
  • 13. The knowledge economy and knowledge work: A review of the existing definitions and measures that involve at least 50 per cent intellectual content (eg, analysis, decision making, creativity). In turn, the author suggested that knowledge organisations should do away entirely with traditional manual jobs that require only physical skills. It is hard to know whether this should be taken literally or if the argument is that knowledge- intensive tasks should be shared by all workers. After all, even in knowledge organisations, knowledge workers need to be supported, offices need to be cleaned and machinery serviced and so on. This definition would also appear to rule out high-tech manufacturing, including some of the most R&D intensive companies in the world. Data-driven definitions of knowledge work Moving on to more data-driven definitions of knowledge work, some analysts have tried to describe knowledge workers as all those who work in particular organisations or in particular sectors or institutions – sometimes under the dubious impression that knowledge workers make up the overwhelming majority of workers in such industries. However, in practice, organisations in these industries need to deploy a wide range of complementary jobs with varying degrees of intellectual content. Another class of proxies that economists often use for distinguishing knowledge workers is based on the investment expenditures in activities such as education and research and development. In line with this approach, one of the definitions of knowledge workers that The Work Foundation (TWF) has been using so far for their research is university graduates as a proxy for highly-skilled workers and investment in human capital. There has been a strong association between the rise of employment in knowledge intensive industries and the employment of graduates in the workforce. There has also been a major shift in the share of the workforce with some form of qualification across all sectors of the economy. As Figure 1.2 below shows, in 1970, for example, less than 10 per cent of the workforce had a degree and 60 per cent of people in work had had only basic schooling. By 2005 the share of graduates had increased to around 19 per cent, while the share of people with no qualifications had fallen to 12 per cent. The latest figures show that graduate employment accounted for just under 23 per cent of workers in the UK. Knowledge Workers and Knowledge Work 13
  • 14. The knowledge economy and knowledge work: A review of the existing definitions and measures Figure 1.2: Shares of graduates and workers with only basic schooling in UK workforce, 1970-2006 70 Degree holder 60 No qualification 50 40 30 20 10 0 70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 20 20 20 Source: EU KLEMS Database Economists often suggest that knowledge economies need to invest in skills at all levels – from improving basic numeracy and literacy to expanding the share of young people entering the university system, strengthening vocational skills, and promoting life-long learning. However, it has typically only been investment in higher education that has defined knowledge work. The premise underlying these measures of knowledge work is that in advanced industrialised economies investment in higher education earns economic returns in the form of higher wages, and hence knowledge workers are those with at least a graduate-level education. The World Bank’s Knowledge Economy Index (KEI) uses the distinction between information and knowledge to separate investment in basic education and higher education (Chen and Dahlman 2005). Basic education is required to use and process information. Higher level education is required for what the Bank calls, ‘the production of new knowledge and its adaptation to a particular economic setting’ (p. 5). The OECD’s composite indicator of knowledge investment similarly includes includes spending on higher education as a share of GDP.4 However, it is less clear whether such distinctions can be easily made for vocational skills. The evidence suggests that while lower level vocational skills may have relatively little impact on 4 OECD Science and Technology indicators. The other components are investment in ICT and R&D 14 Knowledge Workers and Knowledge Work
  • 15. The knowledge economy and knowledge work: A review of the existing definitions and measures wages, higher level vocational skills undoubtedly offer an economic return even if it is not as significant as from higher education. And it would be hard to argue that the more sophisticated vocational skills – for example, in diagnostic work – are not also engaged in the production and adaptation of new knowledge. Other proxies for knowledge work and workers have focused more narrowly on the link between investment in scientific and technical skills and technological innovation. The narrowest measure is the share of workers in R&D: typically, these more specialist types of knowledge workers account for between 1 and 1.5 per cent of the workforce across the major OECD economies even using the wider OECD definition that includes support technicians. A wider measure is the share of workers with a science, technology, engineering or mathematics degree (STEM graduates). Both can be used as a proxy for the ability of an economy to generate and absorb technological innovations.5 Job-content definitions of knowledge work A final approach to defining knowledge work has been to look at the sort of jobs that people do. Here we see a very wide variety of examples. Suff and Reilly (2005) provide a useful summary of some of the approaches adopted. Most studies give examples of managerial professional and associate professional workers and often concentrate on particular groups. For example, a 2007 report on ‘enterprise knowledge workers’ was based on a sample survey of senior business executives and managers (Economist Intelligence Unit 2007). Broader measures of knowledge workers have been based on occupational classifications within the official statistics. One of the more widely used measures adopted by The Work Foundation has been to group together the three top occupational groups of managers, professionals and associate professionals. These are jobs that, at least traditionally, require a certain level of educational and/or vocational training and are the least likely to be affected by technological advances and competition from low-wage manufacturing imports. Using this broad stroke definition, 42.5 per cent of the workforce would be classified as a knowledge worker in 2007. This broad classification has the virtue of providing readily available statistics on the extent and growth of knowledge work. But it is also clear that some of the classifications do not work well. The job title ‘manager’ is applied to a much wider range of jobs in the UK than elsewhere in Europe, likely including many relatively low paid, basic supervisory roles (European Foundation for the Improvement of Living and Working Conditions 2007). The category ‘managers, 5 Also referred to as HRST (human resources in science or technology) Knowledge Workers and Knowledge Work 15
  • 16. The knowledge economy and knowledge work: A review of the existing definitions and measures legislators and senior officials’ accounts for about 15 per cent of the UK and the US work forces, but less than 10 per cent in Germany, France, Italy and Spain, according to estimates by the ILO (all figures 2007 or latest available). Moreover, other job categories are also likely to include people undertaking similar tasks to those within the top three occupational groups. More sophisticated approaches by researchers in Australia, the US and the UK have regrouped the existing statistical occupational codes (Webster 1999; Autor, Levy, and Murnane 2003; Elias and Purcell 2004). The Australian research was primarily interested in trying to measure the production of intangible ‘intellectual’ assets, and so regrouped occupations according to whether they were associated with the production of such assets (Webster 1999). A further distinction was made between workers that directly produce intangible assets for others including teachers, sales and marketing workers, consultants, researchers and financial advisors. These workers also include those who acquire and use skills, knowledge and talent to make a contribution to the goodwill or efficiency of their firms including medical staff, scientists, managers and engineers. The US researchers were interested in the impact of computerisation on the workforce (Autor, Levy, and Murnane 2003). Notably, they wished to assess whether computers were more substitutable for routine than non-routine forms of work. To do so, the researchers took the existing statistical occupational codes and recategorised jobs into five groups based on the degree of computer substitution and adherence to strict rules – both proxies for more routine forms of work. The groups included: 1. Expert thinking: includes solving problems outside of rules based solutions, with computers assisting but not substituting. As well as high level research and creative work, this might also include the mechanic who is able to identify a solution to a problem that computer based diagnostics could not. 2. Complex communication: includes interacting with other people to acquire or convey information and persuading others of their implications, with computers assisting but unlikely to replace – examples might include some managers, teachers and salespeople. 3. Routine cognitive: includes mental tasks closely described by rules such as routine form processing and filling, often vulnerable to computerisation. 16 Knowledge Workers and Knowledge Work
  • 17. The knowledge economy and knowledge work: A review of the existing definitions and measures 4. Routine manual: includes physical tasks closely described by rules, such as assembly line work and packaging, that may be replaced by machines. 5. Non-routine manual: includes physical tasks hard to define by rules because they require fine optical or muscle control such as truck-driving and cleaning, and unlikely to be either assisted or replaced by computers. This delineation recognises the importance of workers’ inputs and serves as a useful guide for understanding the types of job roles that are unaffected or even enhanced by mass computerisation relative to the jobs that have become less relevant to the economy. From this, we can argue that knowledge work goes beyond basic processing of information and cannot be based on strict adherence to rules; in other words, it can be assisted and enhanced, but not replaced, by computers. Thus, expert thinking, complex communication and analytical reasoning – defined by the authors as making effective oral and written arguments – help define knowledge work, as opposed to the routine cognitive along with routine and non-routine manual categories. Finally, UK research focuses on the links between occupations and graduate qualifications (Elias and Purcell 2004). Over time, the researchers have assessed the average educational attainment of workers in each of the minor occupational groups (ie, 371 occupations in total), accounting for workers’ age given the increase in degree holders over time. Based on this analysis, five umbrella groups of occupations based on educational qualifications were created: 1. Traditional graduate occupations: includes professions that historically have required an undergraduate degree (eg, solicitors, scientists, doctors, teachers). 2. Modern graduate occupations: includes newer professions that graduates have been entering since the 1960s (eg, chief executives, software professionals, writers). 3. New graduate occupations: includes occupations where entry-level has recently shifted to incorporate degree holders (eg, marketing and sales managers, physiotherapists, welfare officers, park rangers). 4. Niche graduate occupations: includes jobs where majority of entry-level workers are not graduates, but there is a growing number of specialists who do come in with degrees (eg, sports managers, hotel managers, nurses, retail managers). Knowledge Workers and Knowledge Work 17
  • 18. The knowledge economy and knowledge work: A review of the existing definitions and measures 5. Non-graduate jobs: includes professions where a graduate degree is not required and most employees do not have degrees. Similar to the US approach, this methodology directly incorporates the changing nature of the labour market to analyse how occupations shift over time. These three categorisations get us closer to what knowledge work might be, but they are still constrained by the existing occupational codes. In all three studies, there was a strong overlap between the sort of jobs that were classified as producing intellectual assets or associated with expert thinking and complex communication skills or affiliated with graduate workers and the top three occupational codes. At one level this is reassuring: it suggests the top three occupational codes are capturing many ‘knowledge work’ jobs and so serve as a reasonable proxy. At the same time, it is important to keep in mind that they are proxy measures nonetheless and hence only give us a partial picture of knowledge work in today’s economy. To sum up, what is missing from all of these attempts at defining knowledge work is a thorough analysis of workers themselves and what they do at work. Moreover, different definitions provide fairly divergent estimations of the size of the knowledge workforce in the UK. For example, graduate employment in the UK in 2008 was just over 20 per cent of the workforce, while the top three occupations (managers, professionals, associate professional and technical) account for over 40 per cent. As we describe in more detail later in this report, the aim of the present study is to focus directly on a large sample of UK workers to better understand the key tasks and activities that make up their daily working life and develop a more robust measure of knowledge work within the economy. 18 Knowledge Workers and Knowledge Work
  • 19. 2. Redefining knowledge work and knowledge workers This section develops our definition of knowledge work and knowledge workers. We do that in three stages: • First, we discuss the technical aspects of our survey and its analysis, and how we reclassify the workforce into task-based ‘clusters’ on the basis of the distinguishing features in the jobs they do. • Secondly, we identify the different sorts of knowledge content within each of our clusters, allowing us to identify these task-based characteristics that distinguish knowledge work. • Thirdly, we use our new definition of knowledge work to provide a cross-sectional picture of the UK’s workforce today and how the new definition measures up against previous definitions. 6 Research We performed our analysis in several steps. We started off by conducting a survey of, among design6 others, the tasks that people employed in the knowledge economy frequently do at work. We presented our survey respondents with a list of 186 tasks and asked them to rate how frequently they perform each of them. We then analysed this survey information along two lines. On the one hand, and to make our data more easily manageable, we identified groups of tasks, (eg data analysis, administrative tasks, people management, maintenance moving and repairing) that were frequently performed together by the same survey participants. On the other hand, we identified groups of workers depending on how frequently they performed particular groups of tasks. In addition, our survey provided information on the use of technology, the methods of sharing and acquiring knowledge and the complexity of the tasks that the participants perform at work. The survey information allowed us to come up with a fresh taxonomy of both the types of tasks that characterise work in the knowledge economy and the different groups of workers within the labour force. In what follows, we present some important details on the methods we used and then discuss our results regarding the definition of work in the knowledge economy. 6 Readers who are not interested in the specific technical details of our methodology can largely omit reading this sub- section in full without losing track of our analysis Knowledge Workers and Knowledge Work 19
  • 20. Redefining knowledge work and knowledge workers Our survey Our knowledge workers’ survey was designed in four phases. First, we conducted an extensive literature review of existing sources on job and task analysis, job content and job design. From this review, we compiled an initial list of approximately 125 work-related tasks or activities featuring manual tasks, cognitive tasks, social tasks and technical tasks, to name a few. Second, we conducted qualitative case studies of workers in two knowledge-based organisations. For these case studies, we conducted focus groups and interviews with more than 40 workers employed in a range of jobs within the organisations. Third, we collated the evidence to finalise our list of tasks and activities for a pilot version of the survey. The initial survey included 138 work-related tasks and activities as well as additional items on workers’ background and job characteristics, features of job quality and working conditions and work-related outcomes. The pilot survey was distributed to 200 workers who participated in an online panel. Participants were required to work at least 20 hours per week in one job, although they could have more than one job. Finally, based on the evidence from the pilot study, we revised our survey further, incorporating more work-related tasks and activities and deleting the tasks that did not appear to distinguish workers. Our final survey comprised 186 work-related tasks and activities. The full list of the 186 work-related tasks and activities is provided in Appendix A. The survey was sent out to 2,011 online panel respondents. All participants had to be working in at least one job for a minimum of 20 hours per week for at least 3 months. Descriptive statistics for the sample are found in Appendix B. With a few exceptions, our sample demographics were comparable to those found in the 2007 Labour Force Survey (LFS) data. Our sample included slightly more workers in the managers and senior officials along with administrative and secretarial occupational categories than LFS estimates, and slightly fewer skilled tradespeople and workers in elementary occupations. We captured a range of demographic and background information about respondents as well as both general and specific characteristics of their jobs. Appendix C provides a summary of these variables. The respondents indicated the frequency with which they engaged in each of the tasks on a 4-point scale ranging from 1=never to 4=often. 20 Knowledge Workers and Knowledge Work
  • 21. Redefining knowledge work and knowledge workers Exploring work tasks in the knowledge economy: Factor analysis To help make our data analysis more manageable, we ran an exploratory factor analysis (EFA).7 Our ultimate goal is to classify the respondents of our survey into groups depending on the tasks they perform most frequently. Given that the list of tasks on whose frequency we asked them to report was a long one, exploratory factor analysis helped us to shorten it by grouping the tasks into 10 groups. For that purpose, this technique used the responses of our survey participants on how frequently they perform each of the tasks to group these tasks into a few distinct groups (‘factors’). The factors with sample tasks are detailed below with the figures in brackets detailing the number of tasks from the original list that were included in the relevant group (see Table 2.1 on the next page). Each of the 10 factors was created by computing the mean of the relevant items. Figure 2.1 below displays the average factor scores across the full sample, that is, the average frequency with which the tasks classified under each of the factors (groups) were performed in our sample of workers. A score of one means the task is not very common across the sample – either because it is rarely performed or because it tends to be confined to a specialist group of workers. A score of four means it is very widely performed across the sample of workers. So for example, people management tasks, data and analytical tasks, and administrative tasks are the most frequently performed. In contrast, personal and domestic tasks, creative tasks and caring tasks are the least frequently performed across the sample as a whole. The high frequency of people management tasks and of data manipulation and analysis underlines the emphasis of the knowledge economy in tacit knowledge that resides with individuals and in information. The high prevalence of these tasks is consistent with the importance of investment in both human capital and in software and computerised databases in the UK economy.8 Data processing and analysis tasks are quite wide-ranging, spanning from specialist analysis to mere data entering. On the other hand, the relatively low incidence of care and creative tasks might seem surprising given the large numbers employed in care-based industries and occupations and in the creative 7 In general, factor analysis is a statistical technique used to explain variability among a set of ‘observed’ variables (ie, the 186 tasks in this case) through the creation of fewer ‘unobserved’ variables called factors or latent variables. By finding the commonalities between different sets of items, we can effectively collapse our 186 individual items into a more analysable set of factors. EFA was used in the first instance to get a sense of the number of factors comprised in the 186 items as well as to identify the items that were poor factor indicators (ie, items that do not load on any factor or load onto more than one factor). Confirmatory factor analysis (CFA) was subsequently used to validate the hypothesised factor structure and our model exhibited adequate fit. The analysis suggested that 126 of the 186 tasks in our survey could be collapsed into 10 distinct factors. The 60 excluded items tended to be very general types of tasks and activities that most workers engaged in 8 HMT October 2007.Intangibles and Britain’s productivity performance Knowledge Workers and Knowledge Work 21
  • 22. Redefining knowledge work and knowledge workers Table 2.1: Task factors with sample items Factor Sample items Data processing Compile data; Statistically analyse data; Identify patterns in data/information; and analysis (9) Interpret charts/graphs; Enter data Leadership & Make strategic decisions; Develop organisational vision; Identify issues that will development (28) affect the long-term future of organisation; Foresee future business/financial opportunities; Manage strategic relationships Administrative Manage diaries; Order merchandise; Organise/send out mass mailings; Make and tasks (10) confirm reservations; Sort post Perceptual & Judge speed of moving objects; Visually identify objects; Judge which of several precision tasks objects is closer or farther away; Judge distances; Know you location in relation to (11) the environment or know where objects are in relation to you Work with food, Clean/wash; Prepare/cook/bake food; Stock shelves with products/merchandise; products or Gather and remove refuse; Serve food and beverage merchandise (5) People Assign people to tasks; Manage people; Teach others; Motivate others; Mentor management (16) people in your organisation Creative tasks Create artistic objects/works; Use devices that you draw with; Take ideas and turn (10) them into new products; Take photographs; Engage in graphic design Caring for others Provide care for others; Dispense medication; Diagnose and treat diseases, (5) illnesses, injuries or mental dysfunctions; Expose self to disease and infections; Administer first aid Maintenance, Install objects/equipment; Use tools that perform precise operations; Use hand- moving & powered saws and drills; Test, monitor or calibrate equipment; Take equipment repairing (18) apart or assemble it Personal, animal Excavate; Dig; Plant/maintain trees, shrubs, flowers, etc.; Feed/water/groom/ and home bathe/exercise animals; Sew/knit/weave maintenance (14) and cultural industries9. The former reflects the fact that care-related tasks are relatively specialised, so are not frequently used at work outside the health and social care area. The low incidence of creative tasks also reflects the fact that these tasks are relatively specialised. Moreover, a common feature of sectors such as creative and cultural industries is that they generate large numbers of jobs for people in non-creative roles, so even within these industries the number of people working in specialised creative tasks may be relatively small. About 17 per cent of the tasks originally included in the survey were excluded from the final identification of group (factor) tasks. These excluded tasks are reported at the end of Appendix A. In most cases, tasks were excluded from factor analysis, because they were too common 9 The Work Foundation, 2007 Staying Ahead: the economic performance of the UK’s creative industries 22 Knowledge Workers and Knowledge Work
  • 23. Redefining knowledge work and knowledge workers across these groups to be classified under a specific group or another. Notable examples fall under various forms of communication, collaboration, advice giving and problem solving. In other words, these tasks are so common they do not help us differentiate between workers who can be described as knowledge workers and other groups in the workforce. However, there were also tasks, most notably falling under ‘creative tasks’, that the survey participants hardly reported to perform with any frequency. Figure 2.1: What work tasks are most common across the workforce? 2.5 2.1 2.0 1.9 1.7 Mean frequency 1 to 4 1.5 1.4 1.4 1.4 1.3 1.3 1.2 1.1 1.0 0.5 0.0 t g is s ts n ip g e tic en sk iv io in in ys uc sh es at em is ar ov ta al od er re m ec C m an in ag ad do C pr pr dm r& an Le & ith & & ai ng A m al n w ep tio le si on k R op es or ep rs W oc Pe Pe rc pr Pe a at D Source: Knowledge Workers Survey, The Work Foundation, 2008 Note: 1 = least common, 4 = most common Exploring the different types of workers in the knowledge economy: Cluster analysis Having identified the broad types of tasks that workers in the knowledge economy perform, we then proceeded to creating a new taxonomy of workers based on what they actually do in their jobs on a day-to-day basis. Using the 10 task factors, we ran a cluster analysis, a technique used to identify homogenous subgroups within our sample of UK workers. What the analysis does is create groups or clusters of workers based on commonalties of task content and Knowledge Workers and Knowledge Work 23
  • 24. Redefining knowledge work and knowledge workers frequency. Thus, our worker clusters are entirely based on workers’ reported tasks and activities on the job.10 The novelty of our results is that our taxonomy cuts across classifications of workers according to their educational attainment and occupation, that is, the proxies used in previous research for identifying knowledge workers. Based on the task factors, 1,744 of the 2,011 (87 per cent) workers in our sample best fit into seven worker clusters. The analysis revealed that 267 workers reported very high frequencies on each of the tasks (ie, 1-2 standard deviations above the mean) and were identified as outliers. These workers were subsequently omitted from the analytic sample.11 The composition of the seven clusters is detailed below. Appendix D presents the average factor scores within each of the seven clusters. The list below offers a snapshot of each of the seven cluster groups. We provide in parentheses the share of workers in the sample that is classified under each cluster. We detail the most common groups of tasks (as identified in our factor analysis) in each of the seven clusters as well as the five specific tasks that workers engage in most frequently in their jobs. We list five minor occupations that workers are classified in to give a sense of the occupational variability in the worker clusters. • Leaders and innovators (11 per cent) ◦ Frequently performed tasks: Data and analysis, leadership and development, people management. ◦ Occasionally performed tasks: Administrative tasks, creative tasks. ◦ Specific tasks: Collaborate with people inside organisation on project/programme, analyse information to address work-related problems, manage people, write reports, provide consultation/advice to others. ◦ Example occupations: Production and functional managers, financial institution and office managers, business and finance associate professionals. 10 We first ran a two-step cluster analysis to identify any outliers in the sample as well as to get an estimate of the optimal number of clusters in the sample. Based on this initial analysis, we subsequently ran a k-means cluster analysis specifying seven clusters. We also ran a latent class analysis and found that the seven cluster solution best fit the data. The clusters used in the remainder of the report are based on the k-means analysis 11 We examined the individual background characteristics of this omitted group and found that the omitted group was more likely to be male and more likely to have been at their current organisations for 20 years or more relative to the average. No other significant differences were observed 24 Knowledge Workers and Knowledge Work
  • 25. Redefining knowledge work and knowledge workers • Experts and Analysts (22.1 per cent) ◦ Frequently performed tasks: Data and analysis, people management. ◦ Occasionally performed tasks: Leadership and development, administrative tasks. ◦ Specific tasks: Collaborate with people inside organisation on project/programme, enter data, compile data, analyse information to address work-related problems, write reports. ◦ Example occupations: ICT professionals, teaching professionals, managers and proprietors in service industries, research professionals, customer service occupations. • Information handlers (12.8 per cent) ◦ Frequently performed tasks: Administrative tasks. ◦ Occasionally performed tasks: People management, data and analysis. ◦ Specific tasks: File (physically/electronically), sort post, manage diaries, enter data, handle complaints, settle disputes and resolve grievances. ◦ Example occupations: General administrative occupations, secretarial occupations, financial institution and office managers, managers and proprietors in service industries, financial administrative occupations. • Care and welfare workers (7.5 per cent) ◦ Frequently performed tasks: Caring for others, people management, work with food, products or merchandise. ◦ Occasionally performed tasks: Data and analysis, administrative tasks, perceptual and precision tasks. ◦ Specific tasks: Provide care for others, administer first aid, clean/wash, dispense medications, expose self to disease/infections, write reports. ◦ Example occupations: Care associate professionals, care services, childcare services, social welfare associate professionals. • Servers and sellers (7.0 per cent) ◦ Frequently performed tasks: Work with food, products or merchandise, people management, administrative tasks. ◦ Occasionally performed tasks: Data and analysis, perceptual and precision tasks, leadership and development. ◦ Specific tasks: Clean/wash, handle complaints, settle disputes and resolve grievances, manage people, stock shelves with products or merchandise, order merchandise. Knowledge Workers and Knowledge Work 25
  • 26. Redefining knowledge work and knowledge workers ◦ Example occupations: Managers in distribution, storage and retailing, managers and proprietors in hospitality and leisure services, food preparation trades, elementary personal services. • Maintenance and logistics operators (11.3 per cent) ◦ Frequently performed tasks: Perceptual and precision tasks, maintenance, moving and repairing. ◦ Occasionally performed tasks: People management, work with food, products or merchandise, data and analysis, administrative tasks. ◦ Specific tasks: Visually identify objects, know location in relation to the environment or know where objects are in relation to you, judge distances, lift heavy objects, load/ unload equipment/materials/luggage. ◦ Example occupations: Protective services, security occupations, transport drivers, metal machining, fitting and instrument making trades, science and engineering technicians, construction trades. • Assistants and clerks (28.3 per cent) ◦ Occasionally performed tasks: People management, data and analysis, work with food, products or merchandise, administrative tasks. ◦ Specific tasks: Handle complaints, settle disputes and resolve grievances, collaborate with people inside organisation on project/programme, teach others, clean/wash, coach or develop others, provide consultation/advice to others, motivate others. ◦ Example occupations: Customer service occupations, sales assistants and retail cashiers. The assistants and clerks cluster was the least well-defined group of workers as its members tended to report engaging in all but the most general tasks relatively infrequently in their jobs. We explored the specific occupations of this group to see if we had systematically omitted relevant tasks and found this not to be the case. To sum up, the results of our cluster analysis have allowed us to make a first attempt at classifying workers in the knowledge economy on the basis of what they do. In what follows we try to refine this classification in order to gain a better understanding of the cognitive complexity of the tasks that workers belonging to different clusters perform most frequently and the sectors in which they are employed. 26 Knowledge Workers and Knowledge Work
  • 27. Redefining knowledge work and knowledge workers Bright minds The next stage was to gauge the cognitive complexity of the tasks that workers in different and powerful clusters mostly perform. This helped us distinguish, for example, between basic processing machines for tasks such as data processing from higher level analytical tasks. We used three of their work tasks of varying characteristics for which we got information through our survey: complexity • First, the extent to and ways in which workers in various clusters use (IT) technology. • Secondly, the type of and variability in methods of sharing and capturing knowledge and ideas when performing new tasks. • Thirdly, the perception of workers about the complexity of the tasks that they have to perform at work. The assumptions that underlie the selection of these three criteria are that frequent and specialist use of computing technology and frequent use of methods of sharing and garnering new knowledge involving direct human interaction will characterise clusters of workers that perform more tacit knowledge-intensive tasks. Similarly, the perceived complexity of tasks will be higher for those clusters of workers that perform more tacit-knowledge-intensive work. One of the hallmarks of the knowledge economy, and indeed one of its key enablers, is the ubiquity of computing technology. In addition to facilitating work processing and email communications, computers have sped up processing times for many work-related tasks, thereby increasing workers’ efficiency or to engage in more difficult tasks that were not possible previously. We captured the importance of computing technology for the tasks that our survey respondents perform by asking them two questions as part of our survey. First, we enquired how often they use a computer at work. Across the full sample, workers reported using the computer 3-4 times per week on average. Secondly, we asked respondents to choose from a list of 12 tasks/ activities those that they do on their computer at work. As seen in Figure 2.2 below, there was significant variation in the reported frequency of usage and variability of activities performed on computers, suggesting varying degrees of importance of information technology in workers’ jobs. Those who used computers most frequently and for the greatest number of tasks were leaders and innovators, experts and analysts and information handlers. They used computers daily in their jobs, while performing an above average number of tasks on them. At the other extreme, Knowledge Workers and Knowledge Work 27
  • 28. Redefining knowledge work and knowledge workers Figure 2.2: Number of different computer uses and how often computers are used each week 8 Index frequency 1 to 5; number of uses 0 to 12 7.2 Number of computer uses Frequency of use each week 7 6.3 6 5.5 5.2 5.0 4.9 4.8 5 4.2 4.2 4 3.7 3.7 3.6 3.6 3.5 3.4 2.9 3 2 1 0 Innovators Experts Info All groups Assistants Servers Care and Operatives handlers and clerks welfare workers Worker clusters maintenance and logistics operators reported using computers once or twice per week to perform around three tasks on average. Tasks such as email, word processing, internet research, spreadsheet calculation, presentations and managing diaries emerged as the most common work-related uses of computers across worker clusters. Most of these tasks are relatively basic and likely follow an explicit set of rules. Possible exceptions are internet research, spreadsheet calculation and presentations, which can vary substantially on difficulty (eg, depending on whether a worker designs his/her own presentation or types up someone else’s). On the other hand, more specialist tasks such as statistics, system maintenance, graphic design and software design are less common and likely to require expertise that is independent of the technology itself. A recent study examining computer usage in the UK reported that only about a quarter of workers used computers for complex or advanced tasks (Green et al. 2007). Our estimates (shown in Figure 2.3 below) suggested the use of computers for specialist tasks ranged from just 10 per cent in the case of care and welfare workers to 60 per cent for leaders and innovators. 28 Knowledge Workers and Knowledge Work
  • 29. Redefining knowledge work and knowledge workers Figure 2.3: Share of workers that frequently perform at least one specialist computer task 70.0% 60.4% 60.0% 51.8% 50.0% 40.0% 35.0% 30.4% 30.0% 23.7% 22.5% 22.2% 20.0% 9.9% 10.0% 0.0% Innovators Experts Total Operatives Info Servers Assistants Care and handlers and and clerks welfare sellers workers Worker clusters The extent of use of information technology in combination with the extent to which it is used for performing specialist tasks suggest a distinction between, on the one hand, leaders and innovators and experts and analysts and, on the other hand, the rest of the worker clusters. According to this criterion, the workers in the former three clusters seem to perform the more tacit-knowledge-intensive tasks12 compared to the workers in the rest of the clusters. However, this criterion is not sufficient for refining the clusters of workers in terms of the required level of knowledge, as, by nature, the tasks of clusters such as carers focus more on work with humans rather than information alone (as eg, in the case of information handlers). Workers were also asked to identify the range of methods they use to share and capture knowledge in two contexts: 1. When performing a new task at work;13 2. When sharing information with others. These results, illustrated in Table 2.2 below, suggest that the leaders and innovators cluster displayed the most versatility and variety in the methods used for that purpose. Experts and analysts and, to a lesser extent, care and welfare workers also used a wide array of methods. These findings confirm that the clusters of leaders and innovators and experts and analysts include the workers that are most likely to frequently perform (tacit) knowledge intensive tasks, while assistants and clerks and maintenance and logistics operators are the least likely. 12 In Section 1, we distinguished tacit knowledge from codified knowledge or information. The latter is easily reproduced through eg manuals and guides. The former resides with the individual in the form of expertise and/or experience and for that, it is more expensive to transfer across workers 13 Only 6 per cent of the sample reported not ever having to do new tasks on the job Knowledge Workers and Knowledge Work 29
  • 30. Redefining knowledge work and knowledge workers Table 2.2: Number of methods used to acquire new information and learn new tasks Task based groups Acquiring new information Learning new tasks (0 to 9) (0 to 16) Leaders and innovators 7.4 4.6 Experts and analysts 6.0 3.4 Information handlers 5.2 2.8 Assistants and clerks 4.9 2.7 Servers and sellers 4.6 2.7 Care and welfare 4.6 2.3 Maintenance and logistics 4.1 2.1 Average all groups 3.3 1.8 Source: Knowledge Worker Survey, The Work Foundation, 2008 Evidence that further supports this picture is provided by the average frequency with which the task of ‘teach others’ has been reported across clusters (see Figure 2.4 below). The more abstract and tacit the knowledge that workers use is, the more it has to be developed through experience and human interaction, for which teaching is an important means. This task is part of the ‘people management’ group of tasks that workers across all clusters (but assistants and clerks) report relatively frequently. However, there is some variety in the average frequency with which workers report ‘teach others’ as part of what they do. The reported frequency of this task is relatively higher in clusters such as ‘leaders and innovators’, ‘experts and analysts’, ‘care and welfare workers’. Moreover, there are differences in the consistency with which this task is reported as a frequently performed one14 across clusters with similar average frequency, suggesting for example teaching others is more common within the experts and analysts cluster than it is within servers and sellers. More generally, the responses of our survey participants point to a high level of ‘tacit’ knowledge within workplaces, ie of knowledge that resides with individuals. This finding underlines how important social relations still are within the workplace for sharing and capturing knowledge, with informal discussions with colleagues, supervisors and managers and less specific socialising and conversing with others amongst the most frequent. Rather less frequent but still cited by 14 That is, there is variation in the standard deviation of the reported values 30 Knowledge Workers and Knowledge Work
  • 31. Redefining knowledge work and knowledge workers Figure 2.4: Importance of ‘teach others’ task for different clusters Variability in frequency of ‘teaching others’ Mean reported frequency of ‘teaching others’ 3.5 3.3 Index frequency 1 to 5; number of uses 0 to 12 3.0 2.8 2.8 2.6 2.5 2.3 2.0 2.0 1.8 1.5 1.08 1.04 1.0 0.91 0.91 0.88 0.89 0.85 0.5 0.0 Innovators Experts Servers and Care and Operatives Info Assistants sellers welfare handlers and clerks workers Worker clusters nearly 30 per cent of the sample were more informal debates and discussion through ‘brainstorm’ or ‘white board’ meetings. That said, large numbers of workers also relied on more codified forms of knowledge such as the internet/intranet and printed material such as procedural and technical manuals, and trade magazines and journals. Finally, we also asked the survey participants to identify how complex they perceive their work tasks to be. Leaders and innovators and experts and analysts all reported higher than sample average complexity in their tasks. The complexity of tasks performed by information handlers and care and welfare workers was of average complexity, closely followed by the tasks performed by sellers and servers and maintenance and logistics operators. At the other end, assistants and clerks reported the lowest task complexity scores in the sample. Knowledge Workers and Knowledge Work 31
  • 32. Redefining knowledge work and knowledge workers Table 2.3: Prevalence of methods used for sharing and capturing knowledge Publish written material 15% Attend induction meetings 18% Attend events/trade shows 21% Contact a chat/information exchange group 23% Read professional journals/trade magazines 26% Attend an external training session 26% Hold ‘brainstorming’ or ‘whiteboard’ meetings 29% Read technical material 34% Talk to outside experts 34% Use the intranet 36% Attend an internal training session 42% Read procedure manual 43% Socialise/converse with others 44% Ask supervisor/manager 60% Use the internet 60% Talk informally to colleagues 90% Figure 2.5: Perceived complexity of tasks performed by surveyed workers 3.0 2.6 2.4 2.5 Job complexity 1 to 3 2.1 1.9 2.0 1.8 1.7 1.6 1.5 1.3 1.0 0.5 0.0 Innovators Experts Info Care and Servers Operatives Total Assistants handlers welfare and and clerks workers sellers Worker clusters 32 Knowledge Workers and Knowledge Work
  • 33. Redefining knowledge work and knowledge workers To sum up, looking into the uses of IT, the methods of sharing and acquiring knowledge and the perceived complexity of tasks performed by workers in the knowledge economy, we sketched a more nuanced picture of how the worker clusters that we identified can be roughly ranked in terms of the tacit-knowledge-intensity of the tasks that workers perform. We bring together our insights in the following sub-section. Towards a Our findings so far suggest that we can portray the composition of the knowledge economy new definition workforce and the work that workers actually do in a 30-30-40 shape. Our classification of knowledge suggests that around a third of the UK workforce can be regarded as the ‘core knowledge work workers’, having to perform many knowledge tasks as part of their job. Another 30 per cent performs only some knowledge tasks, less frequently and at lower levels than for our core knowledge workers. So up to 60 per cent of people in work are doing jobs that require the use of at least some tacit knowledge. However, there are also very large numbers of people – 40 per cent of the workforce – whose jobs involve only a few tasks requiring tacit knowledge and who rely largely on codified knowledge through manuals, rules and procedures. More specifically, • About a third of workers are in jobs requiring high knowledge content. This core group of knowledge workers includes leaders and innovators who most frequently engage in tasks requiring specialist, ie tacit in addition to codified knowledge. The workers in this cluster accounted for 11 per cent of the sample. The remainder are experts and analysts, who perform high-level knowledge, analytical tasks, but who do not regularly engage in some of the other specialist knowledge tasks. Experts and analysts account for another 22 per cent. These two groups of knowledge workers were 1.5 times more likely to report regular use of specialist knowledge tasks in their jobs relative to the other worker clusters. • A further almost 30 per cent of workers engage in jobs with moderate knowledge content – primarily codified knowledge – relating to the cluster specific tasks that define these jobs (eg administrative tasks, caring for others and work with food, products or merchandise) as well as the people management and communication tasks that are shared by most workers. This group comprises the information handlers (13 per cent) care and welfare workers (7 per cent) and servers and sellers (7 per cent). Knowledge Workers and Knowledge Work 33
  • 34. Redefining knowledge work and knowledge workers • Finally, 40 per cent of workers engage in jobs with only few tacit knowledge tasks (eg perceptual and precision tasks, maintenance, moving and repairing). As we noted above, just over 10 per cent of these workers fall under the maintenance and logistics operators cluster, which will include many skilled manual jobs. About 30 per cent however falls under the assistants and clerks cluster and it is here where we are likely to find many of the low quality, low pay jobs that characterise the bottom third of the labour market. Figure 2.6: The 30-30-40 knowledge workforce Many knowledge tasks, 33% Few knowledge tasks, 40% Some knowledge tasks, 27% It should be emphasised at this point that the 40 per cent does not represent the ‘bargain basement’ of the UK labour market, even though the assistants and clerks category is more likely to include a high share of poor quality and low paid work. Our primary aim is to distinguish knowledge work and knowledge workers on the basis of the extent of and frequency with which they use tacit knowledge to perform their job tasks. Virtually all jobs involve some tacit knowledge, but those workers that we have classified as ‘core’ knowledge workers performed the most tacit knowledge tasks for their job and those in the 40 per cent performed the fewest 34 Knowledge Workers and Knowledge Work
  • 35. Redefining knowledge work and knowledge workers tacit knowledge tasks. We use the term ‘knowledge’ to mean explicitly ‘tacit’ knowledge rather than codified knowledge. What is more, some of the jobs in the 40 per cent category include skilled manual jobs which might be low in tacit knowledge compared with others, but are undoubtedly rich in codified knowledge. As we report later, this acquisition of skills and codified knowledge is reflected in wages, which on average are higher than for some job groups with a higher tacit knowledge content. Moreover, it is likely that some jobs described as skilled manual by the occupation based codes will be in the ‘core’ knowledge worker category because the individuals are undertaking a high proportion of tacit knowledge tasks in their daily work. This was recognised in the research by Autor et al. (2003) that we reported in Section 1, whereby mechanics who could diagnose complex faults and find solutions outside the standard manuals fell into the ‘expert thinking’ category. It is also strongly implied in the analysis of the modern manufacturing workforce included within the recent BERR Strategy Review and in the The Work Foundation report Knowledge Economy and Manufacturing (Brinkley 2009). The To sketch the knowledge economy workforce more accurately, we examine the general demographics demographic and background characteristics of workers in our sample. These statistics and of the figures allow us to put a face to the knowledge workforce. knowledge workforce: Earlier evidence from The Work Foundation suggests that the vast increases in female labour gender and age force participation over the past decade have been one of the key drivers of the knowledge economy15. Our results indicate that women indeed play a key role in the knowledge workforce. Just over 40 per cent of all workers in the core knowledge intensive jobs were women. This is however slightly less than the share of women in all jobs. Women were much more strongly concentrated within the clusters of care and welfare workers, information handlers, and servers and sellers. So while women are disproportionately concentrated in jobs involving some knowledge tasks, they are under-represented within the ‘core’ knowledge workers category. The picture in the work clusters with few knowledge tasks is more mixed. Women accounted for just under 50 per cent of less knowledge intensive jobs, such as assistants and clerks, while in contrast, the maintenance and logistics category comprised almost exclusively of men. The latter jobs are most likely to require manual skills traditionally associated with male workers and physical strength. 15 Brinkley (2008) How Knowledge is Reshaping the Economic Life of Nations ( (Knowledge Economy Interim Report) Knowledge Workers and Knowledge Work 35
  • 36. Redefining knowledge work and knowledge workers Figure 2.7: Share of women in jobs by knowledge content Many knowledge tasks Some knowledge tasks Few knowledge tasks 90% 79% 80% 75% 70% 58% 60% 50% 47% 44% 44% 40% 30% 20% 10% 10% 0% Innovators Experts Care and Info Servers Assistants Operators welfare handlers and and clerks workers sellers Worker clusters Turning to the age characteristics of knowledge workers, we see that the core knowledge workers are particularly concentrated in the 35-44 and 55+ (leaders and innovators) and the 25-34 (experts and analysts) age brackets. Information handlers are particularly common within the youngest segment of our sample (18-24) as are servers and sellers. The latter cluster, however, includes relatively many people aged 55 and above as well. Maintenance and logistics operators tend to be mostly aged between 45 and 54 years. Although our data only captures the current pattern of work across age groups rather than over time, this picture does not necessarily imply that the younger the generations, the more knowledge tasks their jobs involve. Assistants and clerks represent around a quarter of workers within any given age-bracket whereas they also appear to be in relatively high concentration in the 35-44 group, ie a group that also has relatively high numbers of leaders and innovators. 36 Knowledge Workers and Knowledge Work
  • 37. Redefining knowledge work and knowledge workers Comparison of A final test for the usefulness of our new definition of knowledge work and knowledge workers new and old is its comparison with existing proxies. As mentioned previously, two of the key proxies used to proxies for estimate the number of knowledge workers in the UK economy include: knowledge work 1. Workers employed in the top three Standard Occupational Classification (SOC) categories including managers and senior officials, professional occupations and associate professional and technical occupations.16 2. Workers with degrees. While both of these operational definitions have some utility – and are likely to overlap with the ‘true’ estimate of knowledge workers in the economy – they are limited, primarily because they attempt to force workers into predetermined categories. In this section we detail how our seven worker clusters align with the major SOC codes as well as educational attainment. We find that although there is a substantial overlap between our definition of core knowledge workers and these proxies, our worker clusters suggest that people outside the top three occupational classifications and people who are not graduates may be holding jobs with many knowledge tasks and vice versa. If anything, this suggests that our definition helps us understand work in the knowledge economy better. A high share of our two core knowledge worker groups (leaders and innovators and experts and analysts) – between 70 and 85 per cent, are in the top three occupational classifications. However, significant numbers of these workers with many knowledge tasks are also found outside the top three occupational groups, especially the more numerous experts and analysts group. Just under half of our middle knowledge task group was covered by the top three occupational group categories. This group includes significant numbers of associate professional jobs that fall within the standard occupational classification, but it is also clear that even more have been classified to other occupational groups outside the top three. Even more interestingly, however, between 20 to 25 per cent of people in clusters characterised by few knowledge tasks are included within the top three occupational groups. Even though these shares are low compared to the other worker clusters, it is important to note that the top three occupational groups include workers whose jobs involve few tacit knowledge tasks. 16 The remaining six occupational categories include administrative and secretarial, skilled trades, personal services, sales and customer service, process, plant and machine operatives and elementary Knowledge Workers and Knowledge Work 37
  • 38. Redefining knowledge work and knowledge workers All in all, there is some correspondence between the occupational definition of knowledge workers and our worker clusters, but the occupational definition likely inserts a false dichotomy into the workforce that is not based on a detailed account of workers’ everyday tasks and activities. Figure 2.8: Share of jobs in the top three occupational groups by knowledge content Many knowledge tasks Some knowledge tasks Few knowledge tasks Total 90% 84% 80% 72% 70% 60% 48% 50% 46% 45% 44% 40% 30% 26% 20% 20% 10% 0% Innovators Experts Servers Care and Info Assistants Operatives Total and welfare handlers and clerks sellers workers Worker clusters Looking at the educational definition of knowledge workers, ie whether they are graduates, we see that there was quite a bit of variability in educational attainment across the clusters. The majority of both leaders and innovators and experts and analysts held degrees, compared to only 13 per cent of maintenance and logistics operators. As seen in Figure 2.9, there are significant numbers of degree holders in each of our clusters. On average, 35 per cent of the sample had a degree, which is comparable to the UK average of 33 per cent (including both degree holders and degree equivalent qualifications). What is notable is that significant numbers of people without a degree were engaged in jobs with many knowledge tasks. For example, over a third of leaders and innovators and nearly half of our experts and analysts group did not have a degree. The idea that such jobs can only be done by graduates does not seem to hold water. 38 Knowledge Workers and Knowledge Work
  • 39. Redefining knowledge work and knowledge workers Figure 2.9: Share of graduates by knowledge intensity of the job 70% Many knowledge tasks Some knowledge tasks Few knowledge tasks Total 63% 60% 53% 50% 41% 40% 35% 30% 26% 21% 20% 13% 13% 10% 0% Innovators Experts Care and Info Servers Assistants Operators All welfare handlers and and clerks workers sellers Worker clusters In the jobs with some knowledge tasks, the above average share of graduates or equivalent in care and welfare occupations is not surprising, given the requirement and desirability for higher level qualifications for many practitioners in this area. The same applies for the below average share in the servers and sellers category, as these are not the sort of jobs we would typically associate with graduate level qualifications. Graduates were, however, also present in significant numbers in jobs involved few knowledge tasks such as assistants and clerks, and operatives. Indeed, over a fifth in the low knowledge content assistants and clerks category had a degree or the equivalent. This is shown in the figure above. This is potentially worrying if a large share of graduates were going into such jobs which are very unlikely to make much use of their qualifications. It would also question some of our earlier findings that there was little evidence to support the view that there was an over- supply of graduates in the economy. There are a number of possible explanations for this phenomenon. It may be that graduates are using these jobs as the first step to entering into the labour market before moving onto positions more suitable for their skills, or combining jobs with further study for higher qualifications. There is some indirect support for this suggestion from the job tenure data. On average, graduates in these sorts of jobs have much shorter tenures than non–graduates. For example, 23 per cent of graduates in the assistants and clerks category had been in the job with the same employer for less than one year compared with 10 per cent of non-graduates. Knowledge Workers and Knowledge Work 39
  • 40. Redefining knowledge work and knowledge workers Additionally, only around 44 per cent of graduates in jobs with only few tacit knowledge tasks reported that there was a good match between their skills and the demands of their job. This finding may further suggest that these graduates are only temporarily employed in positions with few knowledge tasks. Moreover, as our survey does not address the possibility that university degrees may not always equip their holders with the skills that are useful in the labour market, there may be a mismatch between the skills supplied and those demanded. Last but not least, It is also possible that some well-educated migrants have taken less skilled work when they first arrive in the UK. We had argued that although some graduates were going into occupations that traditionally had not employed them in the past, the nature of some of these jobs had changed so that graduate skills had become more relevant. As we show in the next section of this report, there is some further evidence to support this suggestion. 40 Knowledge Workers and Knowledge Work
  • 41. 3. Knowledge work across industries and regions In the introduction to this report we showed that knowledge based industries17 had significantly expanded their share of employment over the past 40 years, emerging as the biggest source of employment creation in most of the advanced industrialised economies. We used our classification of knowledge work to explore three related questions: • Are the core knowledge workers concentrated in the knowledge based sectors the way that more conventional measures suggest? Are they the only workers with high concentration in these industries? • What proportion of workers in the knowledge intensive sectors are core knowledge workers? • How many core knowledge workers are there in sectors such as less knowledge intensive services and manufacturing? First of all, just over half of our sample (all clusters) was employed in one of the knowledge- based industries, a figure that is a little higher than national statistics showing the share of the workforce employed in knowledge based industries indicate. Just under half of our survey respondents were employed in knowledge intensive services, with around 4 per cent employed in medium to high tech manufacturing industries. Looking into where the core knowledge workers are concentrated, we see that about 60 per cent of them were located within the OECD defined knowledge industries – confirming that significant numbers of knowledge intensive jobs are spread across the rest of the economy. The picture was more mixed for workers with only some knowledge tasks. Over 90 per cent of care and welfare workers were located within the knowledge industries, which is hardly surprising. However, those classified as information handlers and servers and sellers were more likely to be found in the less knowledge intensive industries. The operatives group (ie the maintenance and logistics operators) was under-represented in the knowledge based industries, with just under a third of them employed there. However, more surprising was that 40 per cent of the assistants and clerks group – those with the least knowledge intensive jobs – were employed in knowledge based industries. It is highly likely that the expansion of the knowledge based industries has also sustained demand for some fairly basic jobs as well as for knowledge workers. 17 The OECD defines knowledge based industries as high to medium technology manufacturing, business and financial services, telecommunications and health and education services. Manufacturing is classified by R&D to sales ratio, while services are defined by the share of graduate labour and their use of ICT related technologies Knowledge Workers and Knowledge Work 41
  • 42. Knowledge work across industries and regions Figure 3.1: Share of jobs in knowledge industries by knowledge intensity Many knowledge tasks Some knowledge tasks Few knowledge tasks 100% 91% 90% 80% 70% 64% 63% 60% 50% 45% 42% 40% 34% 34% 30% 20% 10% 0% Experts Innovators Care and Info Sellers Assistants Operatives welfare handlers and servers Worker clusters Turning next to the composition of the workforce in knowledge-based industries, we see that employment there is tilted in favour of core ‘knowledge workers’. However, these industries also employ large numbers of people classified under the less ‘tacit knowledge-intensive’ clusters. Thus, it seems that the expansion of the knowledge based industries benefits workers doing less knowledge intensive jobs. In knowledge intensive services about 40 per cent of workers were classified as core knowledge workers and just under 40 per cent were classified as people performing some knowledge tasks. Just over 20 per cent of these services’ workforce was employed in jobs with only a few knowledge tasks. Taken as a whole, high-tech, market and financial knowledge service firms primarily employed knowledge workers – both leaders and innovators and experts and analysts – as well as assistants and clerks and information handlers. Figure 3.2 presents the composition of the workforce in different knowledge-intensive services with the educational, care and cultural (ie public-based) services workforce depicted in the lower bar and the high-tech, market and financial service workers in the upper one. 42 Knowledge Workers and Knowledge Work
  • 43. Knowledge work across industries and regions Figure 3.2: Composition of the knowledge-intensive services sector Public-based services sector 36% 48% 16% Composition of workforce Private services sector 45% 23% 32% 0% 20% 40% 60% 80% 100% Workers with many knowledge tasks Workers with some knowledge Knowledge-intensive services sector tasks Workers with few knowledge tasks More specifically, as Figure 3.3. below suggests, within the health and welfare sector, 26 per cent of the workforce belonged to the experts and analysts and leaders and innovators clusters, whereas around 44 per cent were care and welfare workers. Given that highly specialised medical professionals are classified under the former two clusters, this distribution suggests that our cluster analysis classified workers with different knowledge-intensity in their work fairly well.18 Moreover, we also found significant numbers of workers with many or some knowledge tasks in the less knowledge based and technology intensive service and manufacturing industries (on which more below). This confirms our view that the transformation towards a knowledge based economy has been affecting a very wide range of industries and not just those classified as knowledge intensive. In more traditional services, about 24 per cent of workers were classified as performing many knowledge tasks. However, these industries employed large numbers of people in jobs that involved some knowledge tasks, accounting for just over 40 per cent of all jobs in traditional 18 The analysis of workforce composition of less knowledge-intensive sectors such as distribution and repairs and hotels and restaurants suggested the same. In both cases assistants and clerks and servers and sellers, ie worker clusters whose work involves the use of more codified than tacit-knowledge dominated the workforce. The respective graphs are provided in Appendix E Knowledge Workers and Knowledge Work 43
  • 44. Knowledge work across industries and regions Figure 3.3: Workforce composition in the health and welfare industry by worker cluster 11.2% 14.3% 2.7% 15.2% Leaders & innovators Experts & analysts 6.7% Information managers Maintenance & logistics operators Care & welfare workers Servers & sellers 5.8% Assistants & clerks 43.9% services. Workers with few knowledge tasks accounted for about a third of all employment, mainly in the assistants and clerks category. Figure 3.4 below compares the workforce composition of the two groups of industries by knowledge intensity. To sum up, first, growth in knowledge-intensive industries is likely to have significant effects on aggregate employment performance as it creates jobs for both the core knowledge workers and for workers with only some or a few knowledge tasks. Secondly, the concentration of different types of knowledge workers across sectors suggests that what is driving the knowledge economy is a diverse workforce making use of different types and levels of knowledge, engaged in a variety of distinct tasks and employed in various occupations. These complementarities between different types of workers acknowledge that a well functioning economy is dependent upon all of its workers and not just the few who engage in the highest level of specialist tasks. 44 Knowledge Workers and Knowledge Work
  • 45. Knowledge work across industries and regions Figure 3.4: Employment in knowledge intensive and more traditional services compared Knowledge- intensive services 36% 48% 16% Service industries Other services 45% 23% 32% 0% 20% 40% 60% 80% 100% Workers with many knowledge tasks Workers with some Composition of workforce knowledge tasks Workers with few knowledge tasks Manufacturing The manufacturing workforce represents about 9 per cent of the total sample of our in the respondents. Hence, it is no surprise that fewer workers across clusters, whether core knowledge knowledge workers or not, are employed in that sector compared to services. Across the economy manufacturing industries, about 31 per cent of workers were knowledge workers (ie, leaders and innovators or problems solvers and analysts), a further 19 per cent were maintenance and logistics operators and 10 per cent were information handlers. However, this compositional pattern shifts when examining the formation of the medium- and high-tech manufacturing workforce relative to employees in low-tech manufacturing firms. Figure 3.5 on the next page portrays the composition of the workforce separately for the knowledge-based (lower bar) and non-knowledge-based (upper bar) manufacturing sectors. The workforce of medium-to-high tech manufacturing firms consisted to a larger extent of knowledge workers, particularly experts and analysts, compared to more traditional manufacturing firms. On the other hand, the more traditional firms were comprised of larger proportions of assistants and clerks and information handlers relative to the medium- and high- tech companies. Knowledge Workers and Knowledge Work 45
  • 46. Knowledge work across industries and regions Figure 3.5: Composition of the manufacturing sector Other manufacturing 26% 34% 40% Manufacturing industries Meduim-to high- 38% 29% 33% tech manufacturing 0% 20% 40% 60% 80% 100% Workers with many knowledge tasks Composition of workforce Workers with some knowledge tasks Workers with few knowledge tasks These figures suggest that employment creation in the medium- to high-tech manufacturing is likely to be intensive in jobs for core knowledge workers in a way comparable to knowledge- intensive services. The location of The growth in knowledge-based industries reported over the past decade is reflected in all the knowledge of our clusters, suggesting that these industries are a key part of the UK economy. However, economy this trend is particularly true in Northern England and Scotland as well as the South West and Wales. Indeed, in London, the South and East of England, there were more private than public knowledge-intensive firms. Although the composition of regional work forces has been quite similar, there have actually been differences in the regional concentration of knowledge workers. Although our survey did not look in great detail into the geographical distribution of knowledge workers, there were nevertheless indications that core knowledge workers tend to cluster in urban areas, particularly in London, the South East and North of England and Scotland. This is not a surprising finding given that face-to-face contact and the development of relationships are important for exchanging information and especially tacit knowledge. Cities across the UK – including Manchester, Leeds, Bristol and Edinburgh outside the South East – also provide 46 Knowledge Workers and Knowledge Work
  • 47. Knowledge work across industries and regions businesses with access to wider markets and to specialist skills. This result resonates with the insights of our Ideopolis programme on the growing importance of cities in world economies. On the other hand, the South West and Wales region have a relatively high concentration of workers with some knowledge tasks, while the North and Scotland have relatively more workers with few knowledge tasks. Table 3.1: Regional concentration of knowledge workers in the UK Workers Workers Workers Share of with many with some with few the national knowledge knowledge knowledge workforce in tasks tasks tasks the region London SE 35.8% 33.7% 33.5% 34.1% East SW and 9.4% 12.6% 10.5% 10.6% Wales Midlands 16.6% 16.2% 16.1% 16.3% North and 38.3% 39.4% 40.0% 39.0% Scotland Total 100% 100% 100% 100% Source: Knowledge Workers Survey, The Work Foundation, 2008 In terms of regional workforce composition, the proportion of knowledge workers was fairly comparable across regions (33-35 per cent of regional work forces) with the exception of the South West, Wales and the West, in which only 29 per cent of workers were leaders and innovators or experts and analysts. This suggests that the potential of employment expansion in different regions to create core knowledge jobs is relatively even. These findings are displayed in Figure 3.6 below. Looking specifically within the knowledge-based industries, regional differences in knowledge work are starker. London, the South and East of England boast the highest relative percentage of knowledge workers – including both leaders and innovators and experts and analysts – with 45 per cent of the workforce in specialist knowledge jobs. The percentages in other regions range from 36 per cent in the South West, Wales and the West to 38 per cent in the North and Scotland to 40 per cent in the Midlands. Knowledge Workers and Knowledge Work 47
  • 48. Knowledge work across industries and regions Figure 3.6: Regional composition of the workforce Northern England 33% 27% 41% and Scotland Midlands 34% 27% 39% SW, Wales and West 29% 32% 39% London, 35% 26% 39% SE & East 0% 20% 40% 60% 80% 100% Workers with many knowledge tasks Workers with some Composition of workforce knowledge tasks Workers with few knowledge tasks All in all, knowledge workers seem to be relatively evenly distributed across regions with perhaps the exception of the South West, Wales and the West. 48 Knowledge Workers and Knowledge Work
  • 49. 4. The changing nature of work roles and the returns to knowledge This section uses the our newly defined definition of knowledge workers and their responses to our survey to understand whether there has been any change in the nature of work roles and whether knowledge leads to higher returns to work. The changing One of the questions pertaining to the consequences of the knowledge economy is whether nature of work changes in technology and work organisation have altered the nature of some jobs within broad roles occupational groups such as administrative and clerical. Our worker survey provides some indirect evidence that the nature of work roles has been indeed changing. About 13 per cent of our sample was classified as ‘information handlers’ and about 25 per cent had a degree. This group of workers was uniquely defined by high frequencies of administrative tasks such as organising travel, managing diaries, ordering merchandise and filing. These administrative tasks filled the days of secretarial workers in the past, and arguably did not require graduate level skills. However, the information handlers of today also engage in tasks related to people management, data and analysis and, to a lesser extent, leadership and development. The information handlers – similar to other clusters – exhibit task overlaps with the core group of knowledge workers, hence, the need for more highly qualified people to fill these positions. These roles have been reinvented to incorporate available technology (which makes administrative tasks less time consuming) and to provide high-level support for workers in knowledge-intensive firms. What is a manager? According to 2007 Labour Force Survey estimates, 15 per cent of the working population is employed in managerial posts – the highest percentage for any of the nine occupational groups. Among our sample, closer to 20 per cent were in management posts (using formal occupational codes). Further, tasks related to people management tasks were the most common activities workers engaged in across our sample. It seems everyone has management responsibilities, which begs the question of whether the term manager is even useful in mapping the workforce. The term ‘manager,’ perhaps more so than any other occupational title, tells us very little about the position that someone holds within an organisation, the tasks and activities that make up their working life and the specialist knowledge required for the job. For example, people who run a small store all the way up to those who oversee a multi-million pound corporation would be classified as managers. These managers could be responsible for two workers or 10,000. Knowledge Workers and Knowledge Work 49
  • 50. The changing nature of work roles and the returns to knowledge In the middle of the last century, Mills (1951) described a typology of managers that still seems accurate today: …managers are usually split into two types: those who have to do with business decisions and those who have to do with the industrial run of the work. Both are further subdivided into various grades of importance, often according to the number of people under them; both have assigned duties and fixed requirements; both as groups have been rationalized (p. 82). Our findings would support a further distinction between management and leadership. The leaders and innovators were able to balance their heavy load of management tasks with strategy, development, creativity, future planning and analytic tasks. Only 11 per cent of the sample regularly engaged in leadership tasks in their jobs – clearly requiring a higher level of specialisation than general managers. Although we can distinguish managers from leaders, a few questions remain unresolved. If almost all workers have people management responsibilities, do we simply have too many managers in the UK? With so many people managing others, do staff have enough autonomy at work? Should we loosen up management hierarchies so staff have more time to specialise in tasks? Are career paths still based on the acquisition of management skills rather than specialist knowledge skills? This evidence speaks directly to one of the key debates, namely whether the transition to a knowledge based economy has been leading to greater polarisation, with more good jobs at the top of the labour market, more bad jobs at the bottom, and fewer jobs in the middle. One argument in this debate is that the demand for jobs that require graduate level skills has been lagging supply, so that some graduates are forced into less skilled and less well paid work. This in turn reduces job opportunities for non-graduates, who would be forced into even less well paid jobs or even out of the labour market altogether. The facts that emerge from our survey do not support this view and dovetail with the insights of our earlier research (Fauth and Brinkley 2007). We showed that over the past decade the share of well paid and low paid jobs had stabilised. This was also true for jobs taken by graduates. Moreover, aggregate wage data continued to show no significant narrowing of the wage gap between graduates and non-graduates. Nor could we find any increase in the gap in labour market outcomes between graduates and non-graduates, as measured by unemployment or employment rates. 50 Knowledge Workers and Knowledge Work
  • 51. The changing nature of work roles and the returns to knowledge All in all, these findings lend some credence to the hypothesis that the nature of work roles has been changing across the economy with perhaps the exception of the assistants and clerks. The workforce as a whole is becoming more skilled, partially as a result of technological advances, in terms of formal qualifications and acquired experience within jobs. The evidence from our survey suggests that it is increased demand for rather than excess supply of graduates that underlies the polarised employment growth across occupations. The quality of Turning to the extent to which jobs in the knowledge economy adequately tap into workers’ skills match in skills set and experience, just under half of the respondents (48 per cent) indicated that their the knowledge job duties correspond well with their extant skills. Table 4.1. shows the responses of the economy survey participants by worker cluster. At first glance, there does not seem to be a relatively straightforward manner in which the high knowledge content of jobs can be associated with the good fit between workers skills and their job requirements. Experts and analysts were most likely to report a good match while leaders and innovators were very close to the average in that respect, below care and welfare workers and information managers. Still one can notice that the worker clusters with the fewest knowledge tasks along with the servers and sellers reported the weakest (below average) match between worker skills and job requirements. In the case of assistants and clerks and maintenance and logistics operators, this evidence probably suggests that jobs with few knowledge tasks do not require very job specific skills. On the other hand, the low ranking of the servers and sellers in that respect could probably be linked to the relatively high concentration of temporary, fixed-term employees in that cluster. The fact that this is also the cluster with the higher share of workers perceiving themselves as ‘overskilled’ for their job (55 per cent) further supports this suggestion. More generally, the fact that more than 40 per cent of workers in our sample felt that their skills were underutilised at work along with the fact that many employers claim that the supply of workers does not have adequate or the right mix of skills and previous experience for the existing vacancies suggests a substantial mismatch between labour demand and labour supply in the knowledge economy. Knowledge Workers and Knowledge Work 51
  • 52. The changing nature of work roles and the returns to knowledge Table 4.1: Job-skills/experience match by worker cluster Work cluster Good match Underskilled Overskilled Experts and analysts 54.4% 10.6% 35.0% Care and welfare workers 51.9% 10.7% 37.4% Information managers 50.2% 7.2% 42.6% Leaders and innovators 49.0% 13.0% 38.0% Total 48.0% 10.3% 41.6% Assistants and clerks 47.5% 11.4% 41.2% Servers and sellers 40.2% 4.9% 54.9% Operatives 38.6% 8.6% 52.8% Returns to Most surveys and the aggregate evidence confirm significant returns to education, ie well- knowledge educated people earn more over their lifetime than less well educated people (Leitch 2006). Can the same be said about knowledge? The answer is a partial yes. Figure 4.1 below suggests that the returns to knowledge do not increase with the number of tacit knowledge tasks in one’s job. Those in the most knowledge intensive jobs earn significantly more than the median – 80 per cent of workers were above the median 2007 wage measured by the Labour Force Survey. These differentials suggest that there are strong returns to knowledge work. For workers with some knowledge tasks, however, the reverse was the case. Here, only 34 per cent earned more than the median. This was lower than for those with only few knowledge tasks such as assistance and clerks and maintenance and logistics operators. One possible reason for this pattern is that the operatives group includes some relatively well- paid skilled manual jobs. But it may also be evidence of gender wage gaps. Indeed, our data in Table 4.2 below suggest that in female-dominated clusters (see Figure 2.7 above) such as information handlers, only about 25 per cent of women earn above the median wage, compared to almost 50 per cent of men, while among the care and welfare workers, only about one-third of women command high earnings compared to almost two-thirds of men in that cluster. 52 Knowledge Workers and Knowledge Work
  • 53. The changing nature of work roles and the returns to knowledge Figure 4.1: Percentage earning more than median wages by worker cluster 90.0% 77.4% 80.0% 70.0% 60.0% 50.0% 39.9% 40.0% 33.3% 30.0% 20.0% 10.0% 0.0% Workers with many Workers with some Workers with few knowledge tasks knowledge tasks knowledge tasks Table 4.2: Shares of women and men earning above the median wage within female dominated worker clusters Information handlers Care & welfare workers Women 25.6 34.7 Men 49.0 63.0 The share of women in these clusters is 75 and 80 per cent respectively. The figures above show the shares of women earning above the median wage. Source: Knowledge Workers Survey, The Work Foundation, 2008 To sum up, the frequent use of tacit knowledge in one’s job tasks seems to increase the returns to labour, although this effect still seems to be weaker for women than for men. Knowledge Workers and Knowledge Work 53
  • 54. 5. The job characteristics of knowledge workers This section uses the results of our survey to sketch some of the general features of work in the knowledge economy. Knowledge-based work has been heralded as facilitating new forms of employment driven by enhanced bargaining power, new technologies, and generational attitude changes to work. Knowledge work is perceived as moving away from traditional 9-5 office jobs and towards less permanent, more flexible and less structured forms of employment. Other commentators have suggested that knowledge workers would open up new forms of flexibility – for example, through various forms of teleworking – so that knowledge workers would no longer be bound by the traditional 9-5 office routine. Instead they can work wherever an internet connection exists, either individually or in remote clusters. Such workers have been labelled ‘nomads’ (Kluth 2008). These are all fascinating and beguiling possibilities, and for some individuals they are clearly a reality. However, these assertions are often made without substantial empirical evidence to back it up. According to estimates from the Labour Force Survey (for a review see Brinkley 2008) portfolio working – rare to start with – has fallen for knowledge workers over the past decade. So has self-employment (a common trend over much of the OECD). Temporary employment remains small and has not increased as a share of employment. Nor is there much to suggest that knowledge workers are turning to any significant degree to the more unusual formal working arrangements such as job shares or nine-day fortnights. More traditional flexible working arrangements, such as part-time and flexitime, do seem to attract knowledge workers more. However, we should be careful about assuming this means knowledge workers either do not get or do not want new flexibility at work. Knowledge workers may enjoy flexibility through informal work practices – for example, they typically have high levels of autonomy in how they get their tasks done. Given that our definition of knowledge workers cuts across occupational groups and only partly overlaps with the top three of them, we use it here to examine whether these changes in job characteristics have been occurring. Job One of the most important questions is whether traditional employment relationships in characteristics organisations are still relevant in the knowledge economy (for a review see Brinkley 2008). and flexible One camp has argued that knowledge workers reject traditional employment relationships, in work turn preferring ‘portfolio work’ (ie, holding several part-time jobs simultaneously) and favouring 54 Knowledge Workers and Knowledge Work
  • 55. The job characteristics of knowledge workers more freestanding relationships as temporary employee, freelancers or self-employed workers. Yet, others have suggested that new forms of working have developed within the modern corporation. In this case, the more specialist and entrepreneurial knowledge workers are given the freedom to experiment and develop new ideas. These ‘intrapreneurs’ combine the freedom of self-employment with the security and resources of big companies. To assess whether these changes have been taking place, we inquired about workers’ job tenure and the length of contracts in our survey. We found that neither long-term (ie beyond 10 years) nor extremely short-term tenures dominate in our sample.19 Nearly a third of workers had been in their jobs between 1-2 years, with another 40 per cent in their jobs between 2-10 years. We found that in our sample about 20 per cent of workers had been in their jobs for 10 years or more, which we have taken as one indicator of long tenure jobs. The most striking result is that there only seems to be little association between the knowledge content of a job and the average tenure in that job. For the most knowledge intensive jobs, average tenures were in line with the overall average, average tenures for jobs with some knowledge content were somewhat below the average, and jobs with little or no knowledge content had above average tenures.20 More specifically, people in jobs with some knowledge content such as information handling and serving and selling jobs had job tenures significantly below the average, with about 12 per cent in jobs with more than 10 years tenure. A potential explanation for low tenure is age: about 25 per cent of job handlers were under 25 years old. In contrast, people in maintenance and logistics jobs with little tacit knowledge content had job tenures above average, with nearly 30 per cent in jobs lasting 10 years or more. Permanent job contracts were the most prevalent in our sample with an average of 86 per cent of workers in our sample being on permanent contract. This estimate is lower than the UK average of 94 per cent (LFS). There was variation across our clusters in that respect, ranging from 77 per cent of information handlers to 90 per cent of leaders and innovators. However, we did not observe any straightforward association between the knowledge intensity of tasks in different clusters and share of workers holding permanent contracts. 19 Our sample excludes some part time workers, so we would expect tenures to be somewhat longer in our sample than for the workforce as a whole 20 As our survey is cross-sectional, we have to allow for the fact that tenures tend to be counter-cyclical – they fall when employment is growing and rise when employment is contracting. This is partly because new jobs, by definition, are of shorter tenure than old jobs; and partly because people are more inclined and able to move between jobs when they are plentiful. When our survey was conducted, the employment of knowledge workers defined by occupation had been increasing strongly so we might expect tenures for knowledge workers on average to be falling slightly Knowledge Workers and Knowledge Work 55
  • 56. The job characteristics of knowledge workers Figure 5.1: Percentage of workers in the same job for more than 10 years by worker cluster Many knowledge tasks Some knowledge tasks Few knowledge tasks Total 35% 91% 29% 30% 25% 64% 63% 21% 19% 19% 20% 18% 17% 15% 13% 42% 45% 12% 34% 34% 10% 5% 0% Experts Innovators Care and Servers Information Operators Assistants Total welfare and and clerks sellers Worker clusters Working time To assess whether knowledge work has been moving away from traditional working-time patterns, we examined three aspects: first, the working-hours patterns of workers in our sample; secondly, whether they work typical ‘nine to five’ shifts; and thirdly, whether they work during weekends. Nearly three-quarters of the workers in our sample work a standard full-time workweek, with an average of 40 hours per week21. Knowledge workers were on average more likely to work long hours (in excess of 45) than the average sample worker and more likely to work long hours than those in jobs with some knowledge content such as care workers, sellers and services and information handlers. Among those doing the most knowledge intensive jobs, those classified as leaders and innovators were significantly more likely to work long hours than experts and analysts. The only other group where long hour working was equally prevalent was maintenance and logistics workers – that is, jobs often associated with extensive paid overtime. However, the picture is different if we look just at very long hour working, in excess of 60 hours a week. This is not a common feature for most workers, and people in knowledge intensive jobs 21 It should be noted here that due to the way we compiled our sample by excluding those working for less than 20 hours per week, it is most likely that the share of part-timers in our sample is under-estimated 56 Knowledge Workers and Knowledge Work
  • 57. The job characteristics of knowledge workers were less likely to work very long hours than the average. In contrast, very long working hours was more likely for the maintenance and logistics group and also for servers and sellers. Knowledge work has sometimes been associated with a move away from the typical ‘nine to five’ day as new technologies and more flexible work organisation open up more options. We found no linear association between knowledge work and less traditional ways of working. Overall, about three quarters of respondents reported a regular nine to five working pattern, and for those in the more knowledge intensive jobs this was, if anything, more common. More irregular working is common in just two groups – carers and welfare workers and servers and sellers – where only between 40 and 45 per cent report working other than a nine to five day. This is not surprising given the nature of the industries such jobs are likely to be concentrated in, with high levels of part time working and some 24 hour provision. Figure 5.2: Percentage of workers working day shifts by worker cluster Many knowledge tasks Some knowledge tasks Few knowledge tasks Total 100% 88% 90% 86% 84% 80% 74% 75% 69% 70% 61% 60% 50% 45% 40% 30% 20% 10% 0% Experts Innovators Information Servers Care and Assistants Operators Total and welfare and clerks sellers Worker clusters Weekend working was common in the past in more traditional industries such as manufacturing and mining, but has become more associated today with the growth of service industries such as retailing and hospitality, the care industries, and some recreational and cultural services. But in addition, advances in technology mean that workers in knowledge intensive jobs can often work as easily at home as in the office and may be tempted (or required) to do some work at Knowledge Workers and Knowledge Work 57
  • 58. The job characteristics of knowledge workers weekends in order to cope with workloads or spread the burden more evenly across the whole week. Working during the weekend is fairly common across the workforce, with 48 per cent reporting they did some weekend work at least once a month. We found that the most knowledge intensive jobs were the least likely to report weekend working, especially among the experts and analysts group, where just over 30 per cent reported weekend working. Even so, between 30 and 40 per cent said they did some weekend working at least once a month, so it is not that unusual. However, these proportions are dwarfed by the shares of workers in less knowledge intensive jobs such as servers and sellers and care and welfare workers and the maintenance and logistics group, where between 70 and 80 per cent reported some weekend working. Figure 5.3: Percentage of workers doing weekend work at least once/month by worker cluster Many knowledge tasks Some knowledge tasks Few knowledge tasks Total 80% 70% 70% 66% 65% 60% 48% 50% 46% 40% 41% 40% 31% 30% 20% 10% 0% Innovators Experts Servers Care and Information Operators Assistants Total and welfare and clerks sellers Worker clusters Autonomy One might expect that thanks to developments in information and communication technology, and choice knowledge workers have high levels of autonomy and choice over how they manage their workloads. Taken to the extreme, this is the concept of the ‘intrapreneur’, who is said to have virtually all the freedoms of someone working for themselves within a corporation, although as we pointed out in the introduction there is little hard evidence for their existence. 58 Knowledge Workers and Knowledge Work
  • 59. The job characteristics of knowledge workers To test this we asked our survey participants who sets their working time arrangements, namely whether they could entirely set them themselves; whether they could adapt them within certain limits (eg flexitime); whether they could choose among several fixed working schedules which were determined by the company/organisation; or whether the company/organisation determined these arrangements without providing any options to its workers. We also asked them how often they work from home as an indication of flexibility over the location of work. About half the sample reported some form of flexibility over how they did their work, that is, either through a formal arrangement such as flexitime or self-determined hours. Those with many knowledge tasks reported significant higher levels of flexibility, with between 55 and 60 per cent saying they had some choice over hours. Among workers reporting some degree of flexibility, only 10 per cent of workers had complete flexibility over their schedules. Nearly 20 per cent of workers in the information handlers cluster reported this high level of flexibility, which fits with the findings from our qualitative work conducted at the start of this project. In contrast, less than 40 per cent of those in few knowledge tasks reported having any flexibility over setting their working arrangements. While these differences are significant they are not overwhelming. Moreover, over 40 per cent of those with many knowledge tasks reported little or no flexibility over how they managed their work. Figure 5.4: Percentage of workers with flexibility in choosing work schedule by worker cluster Many knowledge tasks Some knowledge tasks Few knowledge tasks Total 70% 61% 60% 56% 54% 50% 47% 47% 43% 40% 36% 37% 30% 20% 10% 0% Innovators Experts Information Care and Servers Operators Assistants Total welfare and and clerks sellers Worker clusters Knowledge Workers and Knowledge Work 59
  • 60. The job characteristics of knowledge workers On the whole, extensive home working does not seem to be a key part of work in the knowledge economy. That is, the flexibility of knowledge employees in choosing their location of work is not as high as their flexibility in choosing their work schedules: less than a quarter of respondents reported working at home at least once a month. Again, this flexibility increased with the amount of knowledge tasks that workers in the various clusters perform frequently: approximately 40 per cent of leaders and innovators enjoyed this type of flexibility, relative to only about 15 per cent of maintenance and logistics operators and assistants and clerks, respectively. Our findings show that those with more knowledge based jobs have greater flexibility than those in less knowledge based jobs, at least as far as choice over hours is concerned and the ability (whether willing or not) to work at home. However, it is also striking how far the standard working day with relatively fixed working arrangements still predominates in today’s labour market. Even amongst those involved in knowledge intensive jobs, a sizeable minority had little choice over working arrangements and those who could really determine their own hours are a small minority. 60 Knowledge Workers and Knowledge Work
  • 61. 6. Organisational culture in the knowledge economy: preferences and reality The large research gaps in understanding the key characteristics of knowledge workers and knowledge work also exist at the firm level. While there is a vast literature looking at management of knowledge workers, there is little in the way of hard evidence. Further, we need a better sense not only of the predominant organisational cultures in the knowledge economy, but also the degree to which these realities mirror workers’ preferences. In this section we examine workers’ perceptions of their predominant organisation culture to assess the balance between rule bound cultures and innovative cultures, organisations defined by trust and loyalty versus those defined by achievement and competition. For that purpose, we asked all respondents to rate their agreement to four statements describing organisational culture (Cameron and Quinn 2006): 1. This organisation is characterised by loyalty and mutual trust. Commitment to this organisation runs high. 2. This organisation is characterised by commitment to innovation and development. There is an emphasis on being on the cutting edge. 3. This organisation is characterised by an emphasis on achievement and goal accomplishment. Aggressiveness and winning are common themes. 4. This organisation is characterised by formal rules and policies. Maintaining a smooth- running organisation is important. Table 6.1 below illustrates the share of each worker cluster within the group of workers who reported that each of the four qualities characterises their organisation and the respective shares for private and public sectors.22 The responses of our survey participants suggest several notable points. First, the most prevalent of the four characteristics of organisations, according to their workers, is their adherence to formal rules and policies (almost 60 per cent of our respondents reported it) while the least prevalent characteristics are the emphasis on achievement and accomplishment and the commitment to innovation and development (around 37 per cent reported both). 22 The industries that we defined as private sector include agriculture, hunting and forestry, fishing, mining and quarrying, manufacturing, electricity and water supply, construction, distribution and repairs, hotels and restaurants, transport, storage and communication, financial intermediation, real estate and business activities. The public sector includes public administration, education, health and social work Knowledge Workers and Knowledge Work 61
  • 62. Organisational culture in the knowledge economy: preferences and reality Interestingly, these perceptions seem to vary substantially depending on whether the respondent works in the private or the public sector. Public sector organisations are perceived to be more bound by rules and formal procedures and less committed to achievement, innovation and development than private sector organisations. Half of our respondents thought that their organisation is characterised by loyalty and mutual trust and quite notably, this feature was slightly more prevalent in the private sector than it is in the public. Secondly, workers with many knowledge tasks in general are clearly more likely than any other group of workers to perceive their organisations as being committed to innovation and development and as emphasising achievement and accomplishment. However, there is again a sizeable difference in this perception depending on whether these core knowledge workers are employed in the private or the public sector, with the private sectors scoring higher. To the extent that commitment to innovation and development and emphasis on achievement and accomplishment provide incentives for the use and expansion of tacit knowledge, which resides with the individual, these data suggest that public sector organisations in the UK are probably less well positioned to exploit the benefits of the knowledge economy. On the other hand, the extent to which these ‘core’ knowledge workers perceive their organisation as being bound by formal rules and policies and characterised by loyalty and mutual trust is quite similar to that of workers with only some knowledge tasks (eg information handlers, care and welfare workers and servers and sellers). 62 Knowledge Workers and Knowledge Work
  • 63. Table 6.1: Perceived organisational characteristics by worker cluster Loyalty Innovation Achievement Rules Private Public Total Private Public Total Private Public Total Private Public Total Leaders & 69.9% 54.1% 63.3% 58.3% 44.6% 52.5% 49.5% 47.3% 48.6% 59.2% 77.0% 66.7% innovators Experts & 55.7% 46.7% 51.9% 52.2% 39.3% 46.7% 49.8% 35.3% 43.6% 61.2% 67.3% 63.8% analysts Knowledge Workers and Knowledge Work All core 60.5% 49.1% 55.7% 54.3% 41.1% 48.7% 49.7% 39.3% 45.3% 60.5% 70.5% 64.8% knowledge workers Information 68.8% 47.5% 62.3% 40.6% 34.4% 38.7% 37.7% 31.1% 35.7% 52.2% 55.7% 53.3% handlers Care & 40.0% 46.4% 46.2% 27.6% 31.4% 28.3% 36.6% 34.3% 36.1% 52.4% 57.1% 53.3% welfare workers Servers & 55.6% 57.9% 56.0% 40.0% 22.4% 23.1% 40.0% 26.4% 26.9% 60.0% 68.8% 68.5% sellers All workers 63.4% 47.8% 55.9% 42.4% 27.8% 35.4% 38.8% 28.8% 34.0% 54.0% 66.3% 59.9% with some knowledge tasks Maintenance 41.4% 31.4% 39.4% 45.7% 42.1% 45.0% 40.7% 36.8% 40.0% 56.8% 84.2% 62.0% & logistics operators Assistants & 41.8% 37.0% 40.5% 33.0% 21.0% 29.7% 34.3% 21.0% 30.7% 50.9% 57.1% 52.6% clerks All workers 41.7% 35.7% 40.2% 31.3% 23.4% 29.3% 35.0% 24.0% 32.3% 51.4% 57.1% 52.8% with few knowledge tasks All workers 52.4% 45.1% 49.7% 40.9% 31.7% 37.5% 40.4% 31.6% 37.1% 54.8% 65.5% 58.8% Organisational culture in the knowledge economy: preferences and reality 63 Source: Knowledge Workers Survey, The Work Foundation, 2008
  • 64. 64 Table 6.2: Preferred organisational characteristics Loyalty Innovation Achievement Rules Private Public Total Private Public Total Private Public Total Private Public Total Leaders & 62.1% 51.4% 57.6% 23.3% 29.7% 26.0% 11.7% 13.5% 12.4% 2.9% 5.4% 4.0% innovators Experts & 53.2% 57.3% 55.0% 23.4% 21.3% 22.5% 19.9% 13.3% 17.1% 3.5% 8.0% 5.4% analysts All core 56.2% 55.4% 55.9% 23.4% 24.1% 23.7% 17.1% 13.4% 15.5% 3.3% 7.1% 4.9% knowledge workers Information 74.6% 78.7% 75.9% 9.4% 8.2% 9.0% 15.2% 6.6% 12.6% 0.7% 6.6% 2.5% handlers Care & 40.0% 63.2% 62.3% 40.0% 18.4% 19.2% 20.0% 8.8% 9.2% 0.0% 9.6% 9.2% welfare workers Servers & 64.2% 63.2% 64.0% 13.6% 10.5% 13.0% 16.0% 26.3% 18.0% 6.2% 0.0% 5.0% sellers All workers 70.1% 67.8% 69.0% 11.6% 14.6% 13.1% 15.6% 9.8% 12.8% 2.7% 7.8% 5.1% with some knowledge tasks Maintenance 65.5% 57.1% 63.9% 13.1% 11.4% 12.8% 15.2% 20.0% 16.1% 6.2% 11.4% 7.2% & logistics operators Assistants & 63.2% 66.4% 64.1% 63.2% 66.4% 64.1% 14.2% 16.0% 14.6% 5.3% 9.2% 6.4% Organisational culture in the knowledge economy: preferences and reality clerks All workers 63.9% 64.3% 64.0% 16.0% 9.1% 14.3% 14.5% 16.9% 15.1% 5.6% 9.7% 6.6% with few knowledge tasks All workers 63.0% 62.1% 62.6% 17.3% 16.8% 17.1% 15.5% 13.0% 14.6% 4.2% 8.1% 5.7% Knowledge Workers and Knowledge Work Source: Knowledge Workers Survey, The Work Foundation, 2008
  • 65. Organisational culture in the knowledge economy: preferences and reality Another interesting result is that private sector care and welfare workers perceive their organisations being based on mutual trust and loyalty (46 per cent) and committed to innovation and development (24 per cent) to a much smaller extent than their counterparts in the public sector and when compared with other groups of workers with jobs of similar knowledge intensity, such as information handlers and servers and sellers. We also asked workers to indicate which of the four organisational characterisations they would prefer their organisations they work at to demonstrate (see Table 6.2 above). For all workers, regardless of the knowledge intensity of their work, the strong preference was for organisations built on mutual trust and loyalty, while very few respondents stated that they preferred to work for an organisation bound by rules and procedures. Unfortunately, this latter characteristic is also the one that most workers perceive as prevalent in their organisations. Over 60 per cent of knowledge workers said their organisation was characterised by rules and regulations but less than 5 per cent said they preferred such organisations. In contrast to the perceived organisational culture characteristics, our respondents do not seem to be as divided in their preferences depending on whether they work in the private or public sector . On the other hand, only few workers overall seem to prefer innovation and development and the emphasis on achievement and accomplishment. This is still significantly less than the 50 per cent of knowledge workers who characterised their firm and organisation as innovative. Even for the knowledge worker group we labelled as ‘leaders and innovators’ only 27 per cent expressed a strong preference for innovative organisations. Table 6.2 suggests that there are two sharp contrasts between the preferences of core knowledge workers and those of the rest. Core knowledge workers prefer relatively more to work for organisations that promote innovation and development (regardless of whether they are located in the public or private sector) and relatively less to work for organisations that emphasise loyalty and mutual trust. Moreover, the core knowledge workers are the ones that prefer the most organisations that promote achievement and accomplishment and the least organisations that are bound by formal rules and policies. However, they more or less share these preferences with workers with only few knowledge tasks and workers with only some knowledge tasks respectively. While our results suggest some interesting insights, there are also some caveats that should be taken into account when interpreting them. This is especially true for the findings that show that Knowledge Workers and Knowledge Work 65
  • 66. Organisational culture in the knowledge economy: preferences and reality on the one hand, UK organisations are not widely perceived to be committed to innovation and development and on the other hand, that relatively few of our respondents would prefer to work in organisations with this commitment. These caveats are associated with the way the questions in survey were asked. Our questions on the perceived and preferred organisational characteristics did not uncover or specify the definition of innovation that each respondent may have had in mind. Innovation, sometimes categorised as ‘soft innovation’ in areas such as management and work organisation, marketing and design, is very often only incremental, ie consisting of small changes in the way things are done and without involving new technologies. However, if the predominant perception of innovation is one of exclusively radical and technologically based advances, people may underestimate the innovative character of their own organisation. It is possible, therefore, that our questions have led to responses that underestimate the commitment to innovation and development of firms. Similarly, if organisations are considered as innovative only when they are ‘at the cutting edge’, then they can also be perceived as riskier and more likely to fold, a perception that could explain the low preference that our survey respondents expressed, even the core knowledge workers, for working in such organisations. Again, the way our question was posed may have prompted responses that understate the preferences of workers for innovative organisations. The continued importance of rules and procedures in UK organisations combined with the adherence to traditional styles of working suggest that in many ways the knowledge economy is more about the growth of knowledge-intensive industries as a result of technology and an increasingly skilled workforce rather than a complete overhaul of the world of work. 66 Knowledge Workers and Knowledge Work
  • 67. Organisational culture in the knowledge economy: preferences and reality Figure 6.1: Percentage prefer innovative firms by worker cluster Many knowledge tasks Some knowledge tasks Few knowledge tasks Total 30% 27% 25% 23% 20% 19% 18% 15% 15% 14% 14% 11% 10% 5% 0% Innovators Experts Care and Servers Information Operators Assistants Total welfare and and clerks sellers Worker clusters Knowledge Workers and Knowledge Work 67
  • 68. 7. Conclusion and recommendations The purpose of this report is to provide a portrait of work and the workforce in the knowledge economy. We wanted to find out who the knowledge workers are, what they do in their jobs, where they are employed and what employment structures, job characteristics and organisational structures look like in the knowledge economy. Knowledge work and knowledge workers are terms often used but seldom defined. When knowledge work is defined it is usually by broad measures such by job title or by education level. At best this gives us a partial and simplistic view of knowledge work in the UK. This report takes a new approach. In a large and unique survey we have asked people what they actually do at work and how often they perform particular tasks. We have used that information to assess the knowledge content of their jobs. The key test was the cognitive complexity required for each task – the use of high level ‘tacit’ knowledge that resides in people’s minds rather than being written down (or codified) in manuals, guides, lists and procedures. We then grouped the workforce into seven distinct clusters of jobs ranging from ‘expert thinkers, innovators and leaders’ (the most knowledge intensive groups) to ‘assistants and clerks’ (the least knowledge intensive)23. We describe the two highest knowledge groups as our ‘core’ knowledge worker. With this measure we estimated that we have a 30-30-40 workforce – 30 per cent in jobs with high knowledge content, 40 per cent in jobs with some knowledge content, and 40 per cent in jobs with less knowledge content. Within our 30 per cent ‘core’ knowledge worker group, the highest group of all (‘leaders and innovators’) constituted just 11 per cent of the workforce. These high intensity knowledge jobs combined high level cognitive activity with high level management tasks. These high knowledge intensive jobs are, we suspect, what some of the more excitable accounts of knowledge work have in mind. The reality is that even after 40 years uninterrupted growth in knowledge based industries and occupations such jobs account for only one in ten of those in work today. 23 These groupings are described in more detail on page 24 68 Knowledge Workers and Knowledge Work
  • 69. Conclusion and recommendations The 30-30-40 knowledge economy workforce Many knowledge tasks, 33% Few knowledge tasks, 40% Some knowledge tasks, 27% We confirmed that knowledge work cannot be adequately described simply by looking at job titles or education levels. About 20 per cent of people engaged in jobs with high knowledge content – our core group of knowledge workers – were not graduates. However, about 20 per cent of graduates were in low knowledge content jobs. This is potentially worrying. But the average job tenure for graduates in such jobs was much lower than for non- graduates – suggesting graduates spend less time in these jobs. Moreover, about over 40 per cent of graduates in low knowledge content jobs reported their job duties corresponded well with their current skills. We also show that current job titles understate the knowledge content of jobs within some sectors such as manufacturing. When jobs are classified by knowledge content high tech manufacturing has as many knowledge intensive jobs, proportionately, as high tech services. Knowledge Workers and Knowledge Work 69
  • 70. Conclusion and recommendations The most knowledge intensive jobs were almost equally likely to be held by men and women, but those jobs with some knowledge content – such as care and welfare workers, information handlers, and sellers and servers – were overwhelmingly female. Woman have benefitted from the growth of knowledge work, but the growth of more knowledge intensive work has not, of itself, overcome the gender pay gap. Organisational Knowledge work and knowledge workers are often seen as at the forefront of radical workplace implications change. Under these types of scenarios, well-educated knowledge workers have been enabled by the new information and communication technologies to participate in the global economy and throw off the shackles of permanent long term relationships with the corporate world. This we are told will become the labour market norm in the future and companies and organisations must adjust their work practices and forge new employment relationships to cope. We find no evidence for this. Those in the most knowledge intensive jobs are no more likely to be in temporary jobs than those in the least knowledge intensive jobs and job tenures are also very similar. Knowledge workers are not spear-heading radical changes in the way we work. As expected, they do have more flexibility at work than those in less knowledge intensive jobs, but the differences were not overwhelming. The reality is that less than 50 per cent of all workers and less than 60 per cent of knowledge workers say they have some flexibility in their work schedule, and only a very small minority said they can freely determine their own hours. Perhaps not surprising, attachment to the standard nine to five day is still a central feature of the labour market for both knowledge workers and non-knowledge workers alike. Knowledge workers were far more likely to do occasional work at home, although over 60 per cent said they did no home-working. Weekend working is relatively common across the workforce, but was much less prevalent among knowledge workers. Knowledge workers enjoy more flexibility than others and have more opportunities to work at home, but the overall sense is one of conservatism rather than radicalism when it comes to the employment relationship. Knowledge workers appear to value long term relationships with their employer and remain fairly attached to the standard working day. 70 Knowledge Workers and Knowledge Work
  • 71. Conclusion and recommendations One question that flows from this analysis is why knowledge work and the growth of the knowledge based industries has not led to a greater revolution in workplace organisation. It could be that offered the chance to become ‘intrapreneurs’ or ‘nomads’ most people prefer to opt for more secure and traditional relationships with a bit more flexibility than had been previously possible. But it could also be that many organisations and workplaces have not yet caught up with the possibilities that better educated workers and new technologies offer for increased flexible working. Our survey did not directly test out which of these propositions are closer to the truth or whether it is an amalgamation of the two. However, it is striking that in one key area – determination of hours – how few knowledge workers had full control over the hours they worked and that a very large minority said they had no control at all. This impression of rigidity is supported by the huge discrepancy in our organisation culture question between knowledge worker preferences and reality when it came to organisations characterised by rules and procedures. The vast majority of people in work think their organisation is characterised by formal rules and policies, but very few say this is the sort of organisation they really want to work for. The mismatch is even greater for knowledge workers: 65 per cent said their organisations were rule and policy bound but only 5 per cent expressed a preference for such organisations. There is a much better match when it comes to characteristics such as loyalty and mutual trust for both knowledge and non-knowledge workers. About 50 per cent of all workers said this was a predominant characteristic of their organisation, and over 60 per cent said it was their preferred organisational characteristic. Knowledge workers are more likely to work for organisations that they think are innovative or achievement orientated – not in itself a surprising result. What is surprising is that neither feature seems to appeal to them very much. For example, 50 per cent of knowledge workers said their organisation’s predominant feature was innovation, development and being at the cutting edge, but only 24 per cent preferred this type of organisation. However, this was less true for knowledge workers than others – suggesting either they were less constrained than other workers or had found a way round the rules. Knowledge Workers and Knowledge Work 71
  • 72. Conclusion and recommendations What is surprising is that even knowledge workers did not show strong preferences for such organisational characteristics – along with other workers their strongest preference was for organisations built on mutual trust and loyalty. Our survey did not allow us to probe in more detail why innovation and achievement did not rank more highly in people’s preferences. One possibility is the balance between risk and reward for most people in the organisation – for example, the financial rewards from an ‘achievement and success’ orientated organisation might not be evenly shared. Another is that rules and regulations and trust and loyalty are seen as affecting all people in an organisation whereas characteristics such as innovation are seen as relevant only to some jobs. There are some warning signs here for public sector organisations – they scored worse than the private sector for being rule and regulation bound (for which there can be good reasons as well as bad) but also were less likely to be perceived as organisations high in mutual trust and loyalty. Regardless of where they worked (public based or private based industries) knowledge and other workers expressed similar preferences. We have to be careful about over-interpreting some of these results. For example, organisations must have some rules and procedures – however irksome for the individual – in order to function. In some areas they are essential for safety and probity and consistency in dealing with clients, customers, and citizens. Similarly, simple questions over skill utilisation and job demands do not tell us whether the mismatch is a serious one or could be addressed by minor changes to the job. People may also be reluctant to admit that the demands of their jobs are too much for them. Even so, the results here are consistent with some other survey findings. Skills and the Taken at face value, employers are not making the most of knowledge worker skills despite knowledge such workers representing a substantial investment in human capital within the organisation. economy Our survey found a significant minority of knowledge workers said they had more skills than their jobs demanded of them. However, the position was even worse for those in less knowledge jobs – so organisations who employed knowledge workers appear to be doing rather better at matching their talents to job demands than for other posts. This suggests a more general problem around issues such as job design, career development, and progression across the workforce as a whole. All groups of workers reported their current jobs under used their skills. The gap was less marked for knowledge workers, but nonetheless significant. About 36 per cent of knowledge 72 Knowledge Workers and Knowledge Work
  • 73. Conclusion and recommendations workers said they were in jobs that under used their skills compared with over 44 per cent of those in jobs with some or little knowledge content. Our results confirmed high economic returns to knowledge – the vast majority of those in the most knowledge intensive jobs enjoyed pay well above the median. But this was not true for those in jobs with some knowledge content – such as care and welfare work. Some have expressed concern that the economy is producing too many graduates for the available jobs that require graduate skills, forcing more graduates to accept lower pay jobs than their education warrants and worsening the prospects for non-graduates. Taken with the evidence on returns from knowledge and our previous work on labour market polarisation24, the overall picture from our survey does not strongly support the idea that the UK is producing too many graduates. There is however undoubtedly problems for a minority of graduates in finding jobs that match their skills. The situation may also be worse for those who entered the labour market more recently, but we found little variation in the responses by age. Those under 25 with less knowledge intensive jobs were no more likely to report their skills exceeded the demands of the job than those over 25. Implications This survey was conducted in 2007, so pre-dates the recession. The perceptions of workers in of the some parts of the private sector may well be shifting, noticeably in parts of the financial services recession industries. One of the biggest tests of any organisation is how to retain the trust, loyalty and commitment of the workforce at a time when some redundancies, cut-backs, and loss of earnings and promotion prospects is unavoidable. The relatively close match between perceptions and reality of organisational preferences in terms of mutual trust and loyalty that we saw pre- recession will come under strain. So far employers have proved reluctant to lay off large numbers of people, with reported use of pay and hours flexibility and recruitment freezes as alternatives to redundancy. In the first six months of this recession, employment has fallen by less than the first six months of the previous recession. In addition, where cuts have been made they have fallen disproportionately on agency labour – partly to protect the ‘core’ permanent workforce. 24 Fauth and Brinkley (2006) Polarisation and labour market efficiency, The Work Foundation Knowledge Workers and Knowledge Work 73
  • 74. Conclusion and recommendations Our wider work on the knowledge economy in previous recessions for the UK, US, and the EU shows that employment among knowledge based service industries and amongst workers in knowledge intensive jobs has been much more stable than employment in the rest of the economy. Moreover, employment expands in public based industries such as education and health. We may therefore see an opening up of more a gap between those in knowledge intensive jobs and those in less knowledge intensive jobs. Across the economy as a whole, business investment in knowledge based intangible assets is cut back less severely than investment in physical capital. The most resilient form of investment is in human and organisational capital. We interpret this as organisations trying to make the most of the surviving workforce, restructuring and rethinking business models. This makes it more imperative for organisations to address the widespread problem of skills underutilisation, but at the same-time the means to do so may become more constrained by the tendency to cut spending on all but the most essential. Moreover, to the extent that mismatch in skills and job demands is addressed it is more likely to be directed at those in more knowledge based occupations. These jobs are more likely to survive employment cut-backs and we expect a higher proportion of newly qualified graduates to compete for less knowledge intensive positions. This in turn will increase pressure on the government to cut back the rate of expansion in higher and further education on the grounds that the UK has an oversupply of graduates. The recession will indeed change the balance between demand and supply for knowledge intensive labour – primarily by restricting new jobs for graduate-level entrants. As graduate unemployment rises and more graduates take any job going, the further expansion of further and higher education will look more questionable. However, it is important that the cyclical effects are separated out from the longer run needs of the knowledge based economy. The post recession economy will see continued growth in knowledge intensive service industries25 and to reduce the supply of graduate labour now would have significant repercussions for the ability of such industries to expand in the longer run. Indeed, there is a strong case to bring forward expansion in higher and further education so that young people who would otherwise be consigned to a very difficult and possibly fruitless search for work have the opportunity to study instead. 25 UKCES, 2009, Working Futures 2007-2017 74 Knowledge Workers and Knowledge Work
  • 75. Conclusion and recommendations Next steps These are the first set of findings from our knowledge working survey. We will be publishing a second set of findings later in 2009 that look more closely at how knowledge work can be regarded as ‘good work’ and how it relates to health and well-being at work. Knowledge Workers and Knowledge Work 75
  • 76. Appendix A. Work-related tasks and activities by factor Data and analysis Compile data Analyse information to address work-related problems Write reports Translate/interpret the meaning of written material (ie, reports, chapters, articles, books) for others Statistically analyse data Identify patterns in data/information Interpret charts or graphs Enter data Use a technical package on your computer Leadership and development Build the external profile of the organisation Debate topical economic, political, social, business issues Evaluate ideas Serve on expert committees Assess the quality of work of people outside of your organisation Implement new programmes, systems or products Manage projects Predict/forecast future trends Use logic to identify strengths and weaknesses of alternate solutions, conclusions or approaches Review management procedures Present new business ideas/opportunities Create new processes or procedures Manage financial risks Coordinate personnel and financial resources for new projects Develop proposals/grants Approve invoices Formulate policies Make strategic decisions Develop organisational vision Appraise the value of property or objects Contribute to the organisation’s strategic plan Initiate large-scale organisational change Identify issues that will affect the long-term future of the organisation Make decisions on the basis of environmental conditions Plan for the fiscal year Foresee future business/financial opportunities Manage strategic relationships Research new business opportunities 76 Knowledge Workers and Knowledge Work
  • 77. Appendix A. Work-related tasks and activities by factor Administrative tasks Sell products File (physically or electronically) Sort post Organise travel Manage diaries/calendars Inventory stock Order merchandise Organise/send out mass mailings Make and confirm reservations Collect payment Perceptual and precision tasks Judge speed of moving objects Visually identify objects Use depth perception (ie, as a necessary part of your job) Organise/arrange objects according to a pattern, colour or other detail Judge which of several objects is closer or farther away Estimate the size of objects Judge distances Know your location in relation to the environment or know where objects are in relation to you Detect differences among colours Notice different sound patterns Use navigation skills Work with food, products or merchandise Clean/wash Prepare, cook or bake food Stock shelves with products or merchandise Gather and remove refuse Serve food and beverage People management Handle complaints, settle disputes or resolve grievances Assign people to tasks Resolve personal conflicts Collaborate with people inside of your organisation on a project/programme Counsel others Manage people Knowledge Workers and Knowledge Work 77
  • 78. Appendix A. Work-related tasks and activities by factor Interview people Recruit personnel Give formal briefings to others Teach others Coach or develop others Provide consultation/advice to others Conduct classes, workshops or demonstrations Motivate others Mentor people in your organisation Assess the quality of work of people in of your organisation Creative tasks Create artistic objects/works Take ideas and turn them into new products Take photographs Create technical plans or blueprints Engage in graphic design Perform artistically Use devices that you draw with (eg, design software, paintbrushes) Develop new technology Film people and events Write chapters, articles, books, etc. for publication Caring for others Provide care for others (eg, children) Dispense medication Diagnose and treat diseases, illnesses, injuries or mental dysfunctions Expose self to disease and infections Administer first aid Maintenance, moving and repairing Lift heavy objects (as necessary part of job, not including occasional moving, etc.) Climb ladders, scaffolds or poles Load/unload equipment, materials, luggage Move equipment/supplies Use heavy machinery Use tools that perform precise operations (excluding computers and basic office equipment) Use hand-powered saws and drills Use scientific/laboratory equipment 78 Knowledge Workers and Knowledge Work
  • 79. Appendix A. Work-related tasks and activities by factor Test, monitor or calibrate equipment Take equipment apart or assemble it Manoeuvre, navigate or drive vehicles or mechanised equipment (ie, forklifts, passenger vehicles, aircrafts or watercrafts) Install, maintain or repair electrical wiring Repair or maintain equipment/vehicles Control machines Install objects/equipment Generate/adapt equipment to serve user needs Expose self to hazardous conditions (eg, extreme weather, contaminants) Expose self to extremely loud noises Personal, animal and home maintenance Excavate Weld Dig Decorate Sew, knit or weave Manage building/site Issue licences/permits Tattoo, brand, tag people/animals Help customers try on or fit merchandise Plant or maintain trees, shrubs, flowers, etc. Feed, water, groom, bathe, exercise animals Apply beauty treatments and therapies Collect fares, tickets Set type Survey items that were cut Communicate orally or in writing to people outside of your organisation Circulate information to others Draw upon personal contacts/networks for work-related matters Speak a language other than English (ie, as a necessary part of your job not including casual conversations) Talk to media Liaise with suppliers Interact directly with customers/clients Greet clients/customers Answer telephones for others Collaborate with people outside of your organisation on a project/programme Knowledge Workers and Knowledge Work 79
  • 80. Appendix A. Work-related tasks and activities by factor Mentor people outside of your organisation Compile, administer or grade examinations/ tests Walk/run as a critical part of job (excluding commuting, getting lunch, etc.) Use physical strength Arrange/pack objects or materials Construct or repair houses, buildings or other structures (eg, highways) Plant, grow or harvest food Cut or trim objects, materials (including hair, nails) Paint Drill Wrap food Design, make, alter, fit or repair garments or textiles Generate/develop new ideas for the organisation Compose music Pose for photographs Play musical instruments Review research/evidence to be used in an economic, political, academic or business-related debate or argument Follow blueprints or designs to specifications Engage in taxonomic classification Read and evaluate technical/academic papers and articles Present research findings Determine whether events or processes comply with laws, regulations or standards Discriminate different tastes and/or smells Enforce directives/rules/policies Distribute/set-up equipment Supervise operation of equipment Order equipment Use physical speed Inspect the condition/quality of objects Proofread Resolve conflicting findings (from data, reports, etc.) Use geometry Use algebra Write computer programmes Make/collate photocopies Physically train or exercise Transport materials, goods Transport people Scan items 80 Knowledge Workers and Knowledge Work
  • 81. Appendix A. Work-related tasks and activities by factor Make deliveries Mix ingredients, solutions, chemicals or dyes Develop laws and statutes Market a product/idea Monitor investments/markets Plan/coordinate events Control finances/budgets Assemble, install or repair pipe systems Engage in tasks that require extreme precision Identify, pursue, and arrest suspects and perpetrators of criminal acts Fundraise Knowledge Workers and Knowledge Work 81
  • 82. Appendix B: Sample demographic and background characteristics Background characteristics %/Mean Gender (male) 51.3% M(SD) Age 37.93 (10.29) Ethnicity (White) 93.6% Social grade (ABC1) 55.6% Region North 39.0% Midlands 31.4% South 29.6% Educational attainment (degree) 34.2% Age complete FT ed. (>16) 60.4% Marital status (married/cohabitating) 64.3% Income (% greater than median) 47.1% Occupation Manager and senior officials 19.3% Professional occupations 13.1% Associate professional and technical occupations 14.6% Administrative and secretarial occupations 16.8% Skilled trades occupations 5.8% Personal service occupations 7.1% Sales and customer service occupations 8.1% Process, plant and machine operatives 7.5% Elementary occupations 7.6% Work in knowledge-intensive industry 52.5% 82 Knowledge Workers and Knowledge Work
  • 83. Appendix C: Description of organisational variables Variable(s) Description/Categories Firm Culture Agreement (1=strongly disagree, 5=strongly agree) with four organisational descriptions: (1) loyalty and trust, (2) innovation and development, (3) aggressiveness and (4) formal rules in their organisation Job skills match Whether their current job demands are matched to their skill sets or (1) if they could cope with more demanding tasks or (2) need further training to complete their tasks Repetition/job complexity Whether (yes/no) jobs entail: (1) unforeseen problem solving, (2) repetitive tasks, (3) complex tasks and (4)learning new things Autonomy Agreement (1=strongly disagree, 5=strongly agree) that respondents have the: (1) ability to make decisions on own at work, (2) freedom to choose the methods of work and (3) freedom to choose pace of work Job intensity Frequency (1=never, 5=everyday) with which respondents feel (1) overworked, (2) overwhelmed by workload and (3) subject to conflicting demands Social capital Agreement (1=strongly disagree, 5=strongly agree) that respondents are: (1) treated fairly, (2) had attentive co-workers and (3) had supportive supervisors Absenteeism/ Number of days unable to carry out work tasks or go to work due to presenteeism care reasons in past four weeks General care General perceptions of care (1=poor care, 5=excellent care) Job satisfaction Satisfaction (1=very dissatisfied, 5=very satisfied) with five aspects of work: (1) pay, (2) security, (3) the work itself, (4) sense of achievement and (5) hours Life satisfaction Agreement (1=strongly disagree, 5=strongly agree) that respondents feel: (1) their life was close to their ideal, (2) happiness with lifestyle, (3) general life satisfaction, (4) life achievement and (5) degree to which they would change their lives if they could Perceptions of job Whether respondents: (1) like their jobs and see themselves doing their jobs in the future, (2) dislike their jobs but see themselves doing their jobs in the future or (3) see their job as a way to pay the bills only Work-personal life spill-over Agreement (1=strongly disagree, 5=strongly agree) that: (1) the demands of work interfere with personal life, (2) there is a conflict between work and personal responsibilities and (3) work duties cause personal activities to be changed Knowledge Workers and Knowledge Work 83
  • 84. Appendix D: Composition of workforce in the distribution and repairs and in the hotels and restaurants sectors Figure 1: Distribution of workforce within the distribution and repair sector 6.7% Leaders & innovators 10.3% 34.4% Experts & analysers Information managers Maintenance & logistics operators Care & welfare workers 23.1% Servers & sellers Assistants & clerks 14.9% 10.3% 0.5% Figure 2: Distribution of workers clusters within the hotels and restaurants sector 6.0% Leaders & innovators 18.0% 6.0% 4.0% Experts & analysers 2.0% 2.0% Information managers Maintenance & logistics operators Care & welfare workers Servers & sellers Assistants & clerks 62.0% 84 Knowledge Workers and Knowledge Work
  • 85. References Amar, A. D. 2002. Managing knowledge workers: Unleashing innovation and technology. Westport, CT: Quarum Books. Autor, David H., Frank Levy, and Richard J. Murnane. 2003. The skill content of recent technological change: An empirical exploration. Quarterly Journal of Economics 118 (4):1279-1333. Brinkley, Ian. 2008. The knowledge economy: How knowledge is reshaping the economic life of nations. London: The Work Foundation. Available at: http://www.theworkfoundation. com/research/publications/publicationdetail.aspx?oItemId=41&parentPageID=102&PubType=. Cameron, Kim S., and Robert E. Quinn. 2006. Diagnosing and changing organizational culture: Based on the competing values framework. San Francisco: Jossey-Bass. Chen, Derek H. C., and Carl J. Dahlman. 2005. The knowledge economy, the KAM methodology and Work Bank operations. Washington, DC: The Work Bank. Drucker, Peter F. 1968. The age of discontinuity: Guidelines to our changing society. London: Transaction Publishers. ———. 1999. Knowledge-worker productivity: The biggest challenge. California Management Review 41 (2):79-92. Economist Intelligence Unit. 2007. Enterprise knowledge workers: Understanding risks and opportunities: Available at: http://download.sap.com/download.epd?context=5918DCA60 9947C45338F3F679FC1420582695BEA3821B11C5B3D5D9F42626346CCDADCBF5995D338 83E01B783633D5E44FB883E57CA7E09C. Elias, Peter, and Kate Purcell. 2004. SOC (HE): A classification of occupations for studying the graduate labour market. In Researching Graduate Careers Seven Years On, Research Report No 6: Employment Studies Research Unit and Warwick Institute for Employment Research. European Foundation for the Improvement of Living and Working Conditions. 2007. Fourth European Working Conditions Survey. Luxembourg: Office for Official Publications of the European Communities. Fauth, Rebecca, and Ian Brinkley. 2006. Efficiency and labour market polarisation. London: The Work Foundation. Available at: http://www.theworkfoundation.com/research/ publications/publicationdetail.aspx?oItemId=72&parentPageID=102&PubType=. Green, Francis, Alan Felstead, Duncan Gallie, and Ying Zhou. 2007. Computers and pay. In SKOPE Research Paper, No 74. Oxford: SKOPE, Department of Economics, Oxford University. Kluth, Andreas. 2008. Nomads at last. Economist, 10 April. Leitch, Sandy. 2006. Prosperity for All in the Global Economy-World Class Skills. Report. HM- Treasury. London. Knowledge Workers and Knowledge Work 85
  • 86. References Lundvall, B. and B.Johnson. 1994. The Learning Economy. Journal of Industry Studies 1: 2 Mills, C. Wright. 1951. White collar: The American middle classes. New York: Oxford University Press. OECD. 1996. The Knowledge-Based Economy. Paris Reich, Robert B. 1992. The work of nations. New York: Vintage Books. Suff, P., and P. Reilly. 2005. In the know: Reward and performance management of knowledge workers. In HR Network Paper, MP47. Brighton: Institute for Employment Studies. Webster, Elizabeth. 1999. The growth of enterprise intangible investment. Melbourne: Melbourne Institute of Applied Economic and Social Research, University of Melbourne. Available at: http://www.melbourneinstitute.com/wp/wp1999n09.pdf. Wilson, T. D. 2002. The nonsense of knowledge management. Information Research 8 (1): paper no. 144. Available at: http://InformationR.net/ir/8-1/paper144.html. 86 Knowledge Workers and Knowledge Work
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  • 88. We provide: Research Consultancy Leadership Advocacy Partnership © The Work Foundation Registered as a charity no: 290003 Ian Brinkley, Rebecca Fauth, Michelle Mahdon and Sotiria Theodoropoulou First published: March 2009 The Work Foundation 21 Palmer Street London SW1H 0AD Telephone: 020 7976 3605 Email: ibrinkley@theworkfoundation.com Website: www.theworkfoundation.com