Knowledge workers make a living by dealing purely with ideas and information.

The term has only been around for 50 years. Writer and management expert Peter Drucker first used knowledge worker in his 1959 book "Landmarks of Tomorrow".

Drucker modestly said he was only the second person to use knowledge worker. He said it came from Fritz Machlup a Princeton economist.

Either way, Drucker popularised knowledge worker spending years expanding on the original idea and its wider implications.

Today's knowledge worker

Knowledge worker is widely used today. While people generally understand the term's meaning, there is still misunderstanding about its exact definition — even among knowledge workers.

Some think knowledge worker only applies to people working in information technology or elsewhere in industry using tools created by IT workers.

IT workers are only a subset. Anyone who makes a living out of creating, handling or spreading knowledge is a knowledge worker.

This covers a wide range. Teachers, trainers, university professors and other academics are clearly included. Writers, journalists, authors, editors and public relations or communications people are all knowledge workers. Lawyers, scientists and management consultants can also all be described as knowledge workers.

Educated workers

One key difference between knowledge workers and other white-collar workers is the level of education and training. Some knowledge workers don't have a formal tertiary education or high-level training – but they are a minority.

As a rule, knowledge workers have at least a university undergraduate degree, but that's not always the case.

Older knowledge workers may have fewer formal qualifications. That's partly because higher education was less available when they started out — and, anyway, university isn't the only path to knowledge.

Another reason is practical experience counts for a lot. But the key here is knowledge workers
each have a personal knowledge store they apply in their work.

Knowledge workers are well paid compared to other groups of workers – some are extremely well paid. Some knowledge workers join unions, but they are not usually organised in that sense.

This can lead to forms of genteel exploitation: few knowledge workers get paid overtime yet most are expected to voluntarily work for considerably more than the basic 40 hours a week.

Knowledge skills are mobile

Knowledge workers are more mobile than industrial workers. They can take their expertise elsewhere at the drop of a hat. This happens all the time.

An employer who abuses knowledge workers' professionalism is likely to see their most important assets walk out of the door one evening and never return. This applies as much today as it did when there were more jobs around.

Few governments have come to terms with the implications of having a highly mobile, highly educated, knowledge workforce. Just as knowledge workers can quickly find a new employer if necessary, most can move freely between countries. Any nation that doesn't look after knowledge workers can expect – over the long-term – to lose them.

This applies in New Zealand, which operates a progressive income tax system that, at times, appears deliberately designed to alienate knowledge workers. To understand this, compared the marginal and absolute rates of income tax paid by most New Zealand knowledge workers, they are noticeably higher than in most competing nations.

When I wrote the first draft of this post (it originally appeared in a different format in 2001) the same could be said of Australia. Since then Australia has moved to correct its tax system and is attracting 40,000 New Zealanders each year, most of those emigrants could be classed as knowledge workers.

In the 1960s there was a lot of talk about a 'brain drain'. If anything the flow of knowledge workers migrating to more benign economies is accelerating.

Drucker distinguishes between various classes of knowledge worker.

High-knowledge workers include professional groups such as doctors and teachers deal mainly in the realm of the mind while the knowledge technologists work with their hands and brains in the IT industry, medicine and other areas. Although both categories of knowledge worker are growing, the bulk of growth comes from this second group.

Many of us work in the part of the economy where there are no jobs, just clients and projects. We market our services, try to find interesting opportunities and finance our larger interests with the revenue. We’ve been out of the hierarchy for so long that it’s become unappealing.

John Sumser writing on the joys of being unemployable explains life as a modern knowledge worker.

Sumser say knowledge work rarely aligns with jobs and companies haven't yet got their heads around the idea of employing people for projects.

We're moving to a world where people work on a series of short, independent gigs.

When a nation elects a Prime Minister or President, there’s usually a honeymoon period of around 100 days.

During this time, the incoming leader sets the tone for his or her administration. Typically, the leader gets the benefit of the doubt while opinion makers scrutinise every move and opposition forces regroup.

It’s not unusual for new leaders to stumble. So long as the mistakes are not too bad, small errors are forgiven.

If the incoming leader gets an early reputation for being accident prone, the sound of knives sharpening is deafening.

Your new job

It's the same when you move to an executive position with a new employer. There’s often a honeymoon period where colleagues give you breathing space.

There’s no guaranteed way of ensuring knives stay blunt, but there are some smart strategies for ensuring the first days in a role set the right tone for the rest of your stay.

Making a successful move starts before you finish your old job. It’s not always possible to make a graceful exit: some employers react badly when workers quit to join a rival.

Do what you can to leave on good terms. Make a point of wrapping up unfinished projects and smoothing the path for whoever takes over.

Above all else, it is not wise to sabotage or damage your old employer’s business.

Before you start your job, you need to do research. It’s a good idea to drive past your new workplace in the morning or when employees leave the building in the evening. This is a good way of finding out where to park and how long it takes to get to the office in the morning.

Dummy run

If you plan to use public transport to travel to work and the route is unfamiliar, then a dummy run one morning before you start will help find potential travel problems.

You probably already know a little about your employer – particularly if you a moving to a new job in the same industry.

You may have previously worked for a competitor or a business partner. Even so, your previous job will colour your views – it could be wrong. So, it’s worthwhile conducting extra general research about the company before starting.

Get hold of as much information about the organisation as you can. If they sent you an information packet then make sure you read it.

Make sure you get an early night before your first day. In the morning start by eating a good breakfast including protein. It may be a long time before you get another opportunity to eat.

If you go to work on an empty stomach, the chances are your blood sugar will drop during the late morning and you’ll appear dozy or disoriented.

Small things matter

Being alert is important. While you might be hired to look after the big picture, during the first days in a role little things matter. You need to stay alert and pay attention to details.

It’s a good idea to head off extra early: this is one day you can’t be late. If you are using public transport get an earlier train or bus.

Don’t go into the building until the expected time. People may be preparing for your arrival – if possible grab a coffee and relax before entering the building.

If the job is creative, then it makes sense to ask the dress code before starting, otherwise you should dress in your smartest, but most conservative outfit.  If you’re too smart, nobody will say anything and you can dress down the next day. If you’re in a T-shirt and jeans but it isn’t a T-shirt kind of workplace, nobody will say much either, but they will notice.

There’s never a problem with standing out on the up-side. But avoid the cutting edge of fashion.

First morning

What happens when you arrive depends on the company. At a well-organised employer someone will spend the first morning with you to help you find your bearings.

It’s possible there will be a formal orientation session. During orientation, you should get some printed information, perhaps a company handbook with details of policies and other key information. The contents of these documents can vary greatly. You should also get a guided tour.

The guided tour will take you around the immediate area where you will be working so you can find things like bathrooms, kitchens, coat hangers, light switches and air conditioning controls. It should also take you further afield so you can meet co-workers in other departments and find your way around the wider company.

Of course, you might not get any of this. If so, then ask. In particular ask for a guided tour and if it doesn’t happen, arrange your own.

Figure out who is good

During your first walkabouts, make a point of finding all the colleagues you will be working with and learning what they do. Try to figure out who are important and who are good at what they do. This might be harder than it first appears, but the sooner you find where the smart people are, the sooner you will get results.

Try to socialise with your new colleagues. Make time to talk to colleagues over lunch and afternoon tea.

Some of the key workers are the support staff. They are often the ones who other managers don’t even bother to say hello to.

Typically, support staff know where the bodies are buried and how things really work (as opposed to how they should work). Often these are the very people who can help you get real results.

If you have a senior position, it’s even more important to put these people at ease.

When talking to colleagues during your first two or three months it is important to use the language of inclusion. Try to avoid speaking about “I” instead think about “we” and “us”. Likewise, avoid making constant comparisons with your previous employers. In particular do not fall into the trap of constantly belittling or criticising them – smart colleagues will wonder how long it is before you say the same things about them.

Your criticisms might be valid and your distaste justified, but there will be a feeling your negative attitude remains.

Of course, there’s nothing wrong with drawing on your previous experience to illustrate ideas and concepts. But in general, you should speak positively in forward-looking terms and not negatively and backward looking.

Hand-shaking

As you move around the office, be ready to shake hands with a lot of people, but don’t force the issue if it looks like it will make people uncomfortable and certainly avoid bone-crushing handshakes.

Try to make eye contact with everyone, but again, don’t force the issue if others seem shy or nervous.

It’s a good idea to take part in any company induction programs – no matter how senior you are.

You may run into hostility during your first days in a job. When this happens, it’s important to get to the root of the problem as quickly as possible. You need to nip problems in the bud before they get serious.

Finally, while starting a job is stressful, try to relax and keep things in perspective.

Some American business schools promote MBA programmes by talking about a ROI or return on investment. This is a financial calculation that allows you to calculate how quickly you’ll pay back your costs in time and money when you sign up for a course.

The assumption is your earning power will increase dramatically once you’ve graduated. Typically United States MBA graduates are financially ahead after three or so years.

You can't always estimate of the value of work-related courses so directly. And anyway, learning extra skills isn’t just about money; you’ll gain extra understanding of your work, improve your confidence and find it easier to complete various tasks.

You might even enjoy life more.

Any extra skills you get will have some benefit in the workplace – even when the connection isn’t obvious. If you continue your education, you will be a better employee.

Think of it this way, you go for a job and there are two candidates. One has taken a string of courses in evenings and weekends, the other has done nothing. Who do you think is going to get the job?

You aren't likely to get head-hunted unless you are already near the top of the career tree. In Australia, real head-hunters don't tend to look for people to fill positions paying much less than $150k because there's scant reward for the effort involved.

Some earn a commission, taking a percentage of the recruit’s first year’s salary. Others get a fixed fee.

Either way head-hunters are expensive and can only be justified for senior appointments. Of course, the salary threshold will differ in other countries.

There are exceptions to the salary rule. Head-hunters are occasionally asked to deal with hard to-fill-vacancies in specialised niches. Occasionally an organisation hires a professional head-hunter to woo a specific person – possibly from a rival.

How head-hunters work

A head-hunter's operating style makes a huge difference to the way you should deal with them. Fixed fee head-hunters receive a payment whether the candidates they find are hired or not. Typically these head-hunters are only interested in recruiting for the very top jobs.

Once they have a curriculum vitae they are unlikely to punt it around the industry if they fail to fill the original vacancy. While they may keep it on file and use it later if a similar position comes up later, they probably won’t do this without first getting permission.

It isn't always true, but the head-hunters operating on a commission basis tend to work for a number of clients at the same time. Typically they’ll operate at a slightly lower level. They build databases of potential candidates: be warned once you are 'in play' they might hound you until they find you a new job.

Don't assume that because head-hunters earn commission they have an interest in negotiating a high salary. In practice they can maximise their income by turning over more business than by squeezing an employer for a few thousand dollars here or there.

So, while they are happy to see you get more dollars, don’t push your luck in negotiations. If anything they are keener to close the deal than win more money.

Interview coaching

Some commission head-hunters will coach you before an interview. They’ll do whatever they can to help you secure the job. At times you may feel they are pushing you– that's because they are pushing you.

It isn't unusual for rival commission head-hunters – even from within the same recruitment organisation – to have candidates in line for a single job. While you’ll get a lot of push, you probably won’t get much of attention, that’s because they have so many irons in the fire.

Although it might look like you have a job in the bag, you might be only one of many candidates.

Fixed fee head-hunters will spend a lot of time with you. They probably won’t coach you, but they will help with negotiations and finding information.

You can expect to get lots of feedback about how the process is progressing. By the time you are in front of a company, you’ll be one of only two or three short-listed candidates – the job isn’t yours yet, but you will almost certainly be a good fit for the job, much of the remaining work is determining if you are the best fit for that employer.

Negotiating position

Another dangerous assumption is that a call from a head-hunter puts you in a strong negotiating position. After all, in theory it's easier to extract better salary, terms and conditions when someone else is doing the asking.

To some extent this is true, but don’t get carried away, head hunters spend their working lives recruiting people, you only change jobs once in a blue moon. You certainly have some negotiating leverage, but remember you’re up against professionals and they will have seen all this before. What’s more, their clients are the employers, not the candidates.

If they have done their homework properly the prospective employer will already have a very definite idea of your worth to their business. They are prepared to negotiate and may even go past their expected limits, however, you should remind yourself that they probably have other candidates in the pipeline too.

Despite this, a call from a head-hunter is an excellent way to boost your salary or job. After all, if they want to tempt you away from your current position, they are going to need to offer something attractive.

There’s always a demand for key skills. When the corner finally turns on the global economic recession there will be a huge pent-up demand for technical expertise. That’s because few companies are investing in employee skills.

When they decide they need those skills, it’ll be too late to start training; so they’ll need to pay a premium.

Your mission is to capture that premium.

What are the skills that will be earn you better rates over the coming years and how do you get them?

The skills employers most want break down into four main categories:

• basic technical know-how;
• formal education;
• relevant business skills and vertical market experience; and
• knowledge of specific hardware and applications.

Basic know-how

Basic technical know-how is about finding your way around equipment and systems.

In the past, employers would expect a narrow band of system or even application specific skills. Today’s employers prefer people to have a more catholic approach to technology. You’ll be expected to be familiar with a range of products. If  you have a weak spot, you should brush up your knowledge in that area.

While employers used to accept that new employees needed initial training and a settling in period. When modern employers hire workers, they expect productivity from day one. If you can’t make a start on the first morning in a new role, you may not get asked back for day two.

There are exceptions. Some employers recognise their systems are unusual and may give some initial training. However, recruitment specialists say this is becoming unusual and that one reasons for the persistent skills shortage is  employers will not hire people whose skills profile is a ‘near miss’.

Formal education

Of course, your track record and references are the best sign you have the right basic know-how. However, a good, relevant tertiary qualification is a better indicator.

Figures from Australia’s Graduate Career Council show a person with an undergraduate degree can expect to earn between $10,000 and $20,000 a year more than non-graduates.

In IT the gap between graduates and non-graduates is higher, for hourly paid contractors a good undergraduate degree is worth an extra $25 an hour.

People with higher degrees can expect to earn the same amount again. On that basis you can expect to cover the cost of a postgraduate IT qualification in about two years – though you might never recover the opportunity cost of the income you’ll lose while studying.

Business Skills

In the past, technical skills and some formal education would have been enough to keep the average knowledge worker in employment from now until retirement. This is no longer the case. These days employers demand IT workers also have business savvy. In some cases this is as simple as just having good communications skills – though generally they want more.

Part of the reason for this is the changing nature of IT. Historically IT projects were strictly backroom affairs, taking place in an environment, which developed, let’s say, something of a counter-culture. Most of the work was cutting code or tweaking applications and required little contact with users and only rudimentary understanding of the business processes being automated.

In recent years, IT has moved centre stage. Today’s IT professionals spend a lot of time with other workers, understanding how the business works is now crucial. Consequently, communications skills – we’re talking about the ability to share ideas and concepts with colleagues, not making two computers talk to each other – are at a premium.

If you’re thinking of getting a formal qualification, it makes sense to take a course that combines technical components with business modules. Many universities now offer postgraduate IT courses that embrace accounting, law, management sciences and other business disciplines.

Specific Skills

Of course the main reason an employer may want to hire you is to plug in-house knowledge gaps. Your specific skills are most important. Right now there is a still a huge demand for key skills.

According to Network skills in demand, pay well in down economy in Network World:

76 percent of CIOs are looking for desktop support skills

65 percent are looking for network administration skills

64 percent are looking for Windows administration sills

Database management, telecommunications support and network management are all still highly sought after.

Web development, virtualisation and business intelligence are in demand.

ERP implementation, .Net development and Linux administration are also hot.

As you’d expect any formal qualification featuring one of the keywords mentioned above is worth upwards of $10 an hour over other IT positions. If you can combine these with recognised business know-how, you could be looking at earning considerably more.

While vendor specific certification from the likes Microsoft and Cisco are unlikely to translate into large rate premiums, they will help make sure you get picked in front of rivals.

Finally, your practical experience is so important that it is worth making sacrifices to do some jobs purely for their CV value. Even a short-term contract in a position of responsibility on a successful or high-profile project could be worth a premium with future employers.

If you found yourself out of a job, you probably feel angry, bitter or self-pitying. Karen Burns at US News and World Report says it is OK to feel that way, but you shouldn't let potential employers know about it.

She has more useful advice about what to say to potential employers if you've been laid off because of the recession. As she points out, the good news is that many industries are still hiring.

What to Say When You’re Laid Off – On Careers (usnews.com).

After hearing old friends and colleagues whinging about workplace nastiness, which seems to have intensified since the credit crunch, Scot Herrick of Cube Rules asked them how they coped. The answer was they now just treat their job like a pay check. Or, as we say in New Zealand, a pay cheque.

They turn up, go through the motions, go home and once a week or once a month the money turns up in their bank account. I’m guessing here that Herrick is writing about knowledge workers and not hamburger flippers sleep walking through shifts at the local fast food joint.

Herrick's response is to point out these conditions “are killing you”. He discusses how civilisation is only so many meals away from breaking down. Something Americans would be aware of after Hurricane Katrina.

Herrick’s key point was:

When people are working “because it is a paycheck” and not because they remotely like the job, the company — and the country — is in far more trouble then financials will tell you. Disengaged people won’t (and can’t) help you solve the problems of the day. They can’t rise to the occasion to save a customer or resolve a process. Disengaged people can’t lead their work and support their teams.

What Herrick is describing here is a process that is happening all over the world.

Workers are sliding down Maslow’s Hierarchy of Needs. This is what happens when times are tough. As Maslow puts it, starving people will attend to gathering food before worrying about social niceties. Herrick’s ex-colleagues are starting to act and think like rats in a crowded cage, because survival is more important than being a decent colleague.

It would be easy of me to suggest people who find themselves in this position should get out and find another job. We all know it isn’t that easy. On the other hand, figuring out how to climb back up that Hierarchy of Needs or, at least, to not slide further down, may help.

See: It is a paycheck — and it is killing us | Cube Rules.