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The workplace as we knew it no longer exists. COVID-19 put remote work on the map, shifted power dynamics in favor of workers and ignited fierce competition for talent during the Great Resignation. Now, as the pandemic wanes and new economic challenges emerge, employers and employees alike are reevaluating their priorities. Leaders are making operational and strategic decisions based on economic, labor and geopolitical pressures, while employees seek new opportunities with better pay, more flexibility and enhanced benefits. To retain top talent, employers must adopt a people-centric focus. Embracing a “we, not me” mindset is crucial for fostering trust and engagement and applying the most creative thinking to the challenges of the moment.
To thrive in this misaligned environment, organizations need to address the gaps and lean into workers’ priorities.
Source: EY 2023 Work Reimagined Survey
The labor market is challenging right now. Employees have a set of expectations that we all need to accommodate while we’re balancing productivity, culture and trust. If we’re not offering greater flexibility, if we’re not being serious about our commitment to ESG, including diversity, equity and inclusion, if we don’t care about wellbeing and we’re not talking about mental health, employees, especially Gen Z, will leave in a heartbeat. And they will go find a company that does that.
There are four key areas that employers can prioritize to keep their workforces engaged.
Everyone wants to be valued and bring their authentic selves to work. Gen Z, in particular, expects inclusivity, transparency and authenticity from their employers. Cultivating a sense of belonging at work leads to happier, more productive and more motivated employees, making them likely to stay with the company longer. It also results in tangible wins: Greater belonging leads to higher performance, growth, and success across the organization.
Source: EY Belonging Barometer 3.0; 2021 EY Empathy in Business Survey; 2023 EY Gen Z Segmentation Study
It’s we, not me. It’s trusting one another. It’s how you do things that matters. It’s not just where you’re going but treating each other with kindness, with respect, with a culture of openness, with assumption of positive intent, just being together. … We create a culture where if somebody knows something was wrong, you encourage them to raise a hand and celebrate them.
Take action to foster belonging:
As inflation and the cost of living rise, it’s no surprise that higher pay is the primary reason why employees change jobs. To retain top talent, employers must adjust compensation to match the market. But employees want more than higher wages from their employers: Workers crave meaningful support through comprehensive rewards programs that go beyond standard benefits, such as medical, life and dental. Today’s top employers offer flexible programs including training for career growth, flexible scheduling options, peer recognition plans and expanded, holistic health plans — mental, financial and physical.
We’re focusing our strategy on whole-person wellness, and we’re doing this from a foundation of access and equity. I work very closely with our inclusion, diversity and equity team to look at how we’re moving forward with our wellbeing pillars. ‘Access and equity’ is our driving force mantra. And then we have physical, emotional, social, intellectual, spiritual and financial health as our pillars that we build everything from. We’re making sure that employees have an equitable experience in terms of their health, wellness and wellbeing.
Create enticing compensation packages
Hybrid work is here to stay. With little appetite to return to the office on a full-time basis, employees expect autonomy in their work arrangements, from where and how they work to how they interact virtually and in person. Choice is a key element of employee satisfaction, and companies that try to implement strict return-to-office policies may face challenges around retention and/or recruiting.
All generations in the workplace want the same three things: learning and development opportunities that are equitable, a focus on flexibility and wellbeing, and a sense of belonging and connection. What we realized is that we needed to stop worrying about presenteeism, and we needed to create an environment where there was meaningful togetherness. We stepped back and said, ‘What is the right amount of time that people need to come together to get the full benefit out of the organization?’
Learning and skill development rank high on the priority list for employers and employees alike. For leaders, upskilling and reskilling their workforces can help secure talent, hone skills to thrive in a tech-driven future of work, and help them stay productive with distributed teams.
Source: EY 2023 Work Reimagined Survey
Workers want improved career development resources to learn skills required for the future workplace and stand out in a competitive job market. With technology and artificial intelligence-related jobs growing and soft skills remaining critical, employers must consider the skills, capabilities and tools they need now and in the future and align learning and development programs to talent-retention strategies so they can remain attractive to prospective employees and future-proof their workforces.
Source: EY 2023 Work Reimagined Survey