What are Knowledge Workers?

The term “knowledge worker” was first coined by Peter Drucker in his
book, The Landmarks of Tomorrow (1959). Drucker defined knowledge workers
as high-level workers who apply theoretical and analytical knowledge,
acquired through formal training, to develop products and services. He noted
that knowledge workers would be the most valuable assets of a 21st-century
organization because of their high level of productivity and creativity. They
include professionals in information technology fields, such as programmers,
web designers, system analysts, technical writers, and researchers. Knowledge
workers are also comprised of pharmacists, public accountants, engineers,
architects, lawyers, physicians, scientists, financial analysts, and design
thinkers.

Knowledge workers are said to think for a living, unlike manual laborers who
are paid for performing physical tasks. Knowledge workers are differentiated
from other workers by their ability to solve complex problems or to develop
new products or services in their fields of expertise. Since the term was coined,
the number of knowledge workers continues to grow as organizations move
toward a collaborative workplace that gives more autonomy to their
employees. Knowledge workers receive high salaries that reflect the complex
nature of their work and their relative independence in relation to the work
process. They focus more on quality than quantity, and their supervisors
should assign them tasks based on their interests and goals, as this will
influence the quality of the completed project.

History of Knowledge Workers

Before the adoption of the term “knowledge worker,” Upton Sinclair coined
the phrase “white-collar worker” to refer to workers who performed
administrative and clerical roles. These workers wore white-collared shirts that
distinguished them from the blue-collar workers who performed manual tasks
in the workplace.

Management writers such as Fritz Machlup and Peter Drucker first came up
with the term “knowledge workers” in the late 1950s and early 1960s. During
that time, the number of information workers began to outnumber the
number of workers engaged in manual jobs. Most people worked in
traditional types of knowledge work professions such as those of teachers,
ministers, and writers. The growth of industrialization introduced new types of
workers who used information to make a living. These workers included
investors, managers, and consultants.

In the late 1950s, Fritz Machlup used statistical information to examine work
trends. In his research, he found that the share of manual workers in the labor
force was decreasing while the share of white-collar jobs was on the rise. He
revealed that the number of knowledge workers was growing at a faster pace
than that of manual jobs. He revised the meaning of the term “work” as a way
of managing and using knowledge. According to the Organization for
Economic Co-operation and Development, the number of information workers
in the United States and Canada comprised around 40% of the working
population in the early 1970s.

Peter Drucker wrote extensively about knowledge workers, and his work is
considered an accurate prediction of the future position of knowledge workers
in society. He described the way automation changed how knowledge-based
positions evolved from manufacturing and agricultural jobs to more
specialized occupations. Drucker showed how the increased focus on science
and technology led to the creation of new knowledge professions amidst a
growing economy. He also predicted the demise of many blue-collar jobs.

Characteristics of Knowledge Workers

Knowledge workers possess the following characteristics:

Factual and Theoretical Knowledge

Knowledge workers undergo several years of formal training to master the
information needed to perform certain specialized roles. At a minimum, most
knowledge-based positions require a college degree and their learning
process is continuous even after being hired. For example, a pharmacist
requires factual and theoretical knowledge of various medications before they
can dispense medications and advise patients on the use of prescriptions and
over-the-counter drugs. Likewise, a sales manager must possess knowledge of
his/her customer’s preferences and factual information about the products
sold by the company.

Accessing and Applying Information

Knowledge workers must know how to identify important information from a
large database of information that they need to be familiar with. They should
be in a position to weed out less important information and focus on essential
information that will help them solve problems, answer questions, and
generate ideas. Knowledge workers use analytical reasoning and relevant
judgment to address customer service issues and new situations.

A common example in finance is using Excel as an application for financial

modeling.