Workforce Trends for 2022
With recovery on the rise, companies are mapping out what their new normal looks like. The experimentation across ways of working that happened during the pandemic have opened the eyes of both employers and employees. With new possibilities and priorities abound, below are our predictions for the trends that will shape the workforce in 2022.
Hybrid workforces - and their new politics
The positive results from remote work have been overwhelming. But while 83% of business leaders said remote work has been successful, only 13% said they’re ready to let go of the office for good. Most executives (68%) believe employees should be in-office at least three days a week to maintain company culture. They also believe the office serves as an important space for collaboration and meetings with clients.
In 2022 companies will be carrying out more permanent plans for how their teams will work, and hybrid models are popular amongst those plans. The hybrid model offers many benefits, however old habits and perceptions can create drawbacks. New research has shown that a strong bias against remote workers still exists. In a recent study, over 6 out of 10 HR leaders said that employees who work in-office are more likely to get promoted and receive regular raises - and that they are perceived as more valuable workers. HR leaders noted that, compared to remote workers, employees in-office were more likely to get included in important discussions and receive training opportunities.
These lingering biases are not only detrimental to employee morale, they can also jeopardize the success of the hybrid work model. Staff will notice the unfair treatment and will either feel pressured to go into the office or feel detached from the organization. Companies will have to do careful strategic planning to ensure that these traditional perceptions do not create a polarizing system that favors in-office employees. The reality is that remote work unlocked new levels of productivity and employee satisfaction. Strong leaders will work on identifying and addressing biases to ensure they keep valuable talent and create the environment needed for long term success.
Emphasis On Worklife Balance
Despite conflicting perceptions of remote workers, employees have shown a strong preference for remote/hybrid models post-pandemic with 77% saying they would prefer to work remotely at least part of the time. And this isn’t the only type of work flexibility employees are looking for in the future.
During the pandemic, employees re-evaluated their priorities in both their life and work. COVID-19 put stress on mental health and families. Due to cost cuts and job losses, employees have been working extra hours and burnout has become widespread. Now that a recovery is on the horizon, employees need to breathe and pursue a better worklife balance. Now many forms of work flexibility that were adopted by companies to survive the pandemic have become new wants and expectations of employees. This includes full or partial remote work, flexible hours, and more paid time off.
As companies ready themselves to get back on track and start hiring, it will be important that they keep in mind these new expectations in order to attract top talent. Worklife balance and the flexible options that empower it are also key to retention. In fact, 89% of companies reported better retention rates because of their flexible work options. When the cost of losing a employee can rack up to 150% to 400% of their salary, the value of increasing retention rates is hard to understate.
The Gig Economy Continues To Rise
The gig economy was already growing in 2019 and 2020. The pandemic just put it on a blazing acceleration track. When COVID-19 first hit, many companies turned to gig workers to save costs. And many workers turned to gig work to replace job losses or create income security.
When people think of the gig economy, they often think of freelance creatives, copyeditors, and uber drivers. However more and more roles - and workers - have made their way into this type of work. 56% of the workforce is in a job that can be done remotely, and most jobs that can be done remotely can also be turned into gig work. Today more than 35% of the workforce is considered contingent. As the permanent adoption of remote work increases, so too will the gig opportunities for both companies and workers.
Companies are continuing to realize that they are able to hire people from anywhere, and for varying commitments of time and price. Today you can hire highly skilled talent - including executive leadership talent - on a fractional or interim basis. Embracing gig work allows companies to scale resources as the work is needed by hiring part-time work before a full time employee is required and tapping into rich expertise for the initiatives that matter most.
As companies break ground on their new norm plans, there’s no reason for them to bid goodbye to these benefits of gig work. Simultaneously, more workers will continue to pursue gig work because of the control over flexibility and worklife balance it provides.
DEIB Becomes A Non-negotiable
While we often talk about the effects of the pandemic, the ongoing social issues brought into the spotlight during 2020 and 2021 have also changed the workforce. Now more than ever, employees want to see companies focused on creating Diversity, Equity, Inclusion and Belonging. Consumers are also looking to spend their dollars with the companies who are committed to DEIB. However, while many companies made public and internal commitments to improve their DEIB, 70% of employees say progress has been insufficient.
In 2022, employees who held off job switching during the pandemic are now reflecting on their current employer and widening opportunities. 76% of jobseekers reported that a diverse workforce is an important factor when evaluating companies and job offers and 32% said they wouldn’t even apply for a job where a company lacked diversity.
It’s also getting increasingly easier to access this type of information. Social platforms give voice to employees with negative experiences. LinkedIn makes it easy to see who is on a company’s team and in leadership positions. Over the past year, Glassdoor rolled out it’s Diversity & Inclusion Workplace Factor rating which allows employees to rate how satisfied they are with a company’s D&I on a 5-point scale.
So employers - it’s time to turn those commitments into realities. Employees and consumers want to see that DEIB is a must-have (not a nice-to-have) for your teams and leadership.
Key Takeaways
Hybrid workforces will enable companies to carry over the benefits founded during the pandemic over into the new normal. However, leadership will need to ensure old biases stay in the past.
Worklife balance and the flexible work options that support it will be a key priority for existing and prospective employees.
The gig economy will continue to thrive and grow in the new normal.
DEIB has become a permanent part of how employees and consumers are choosing companies.
At Ari Agency, our goal is to help you find the greatest hires of all time and prepare your workforce for the future. Contact us today to learn more about the trends shaping job markets and how we can help you with your next hire.