June 16, 2022
June 16, 2022
Contributor: Jordan Turner and Mary Baker
The employee value proposition (EVP) must change for hybrid work and respond to shifts in employee expectations.
The last two years have had a lasting impact on thefuture of work. It’s imperative that HR leaders evaluate the immediate and longer-term impact of these trends and the degree to which they will change strategic goals and plans.
“Chief human resource officers (CHROs) are facing historic challenges from an exhausted workforce and a highly competitive labor market,” says Brian Kropp, Distinguished Vice President at Gartner. “At the same time, this environment creates an exciting opportunity for CHROs to lead talent into the future and differentiate their organizations as employers of choice.”
Download Report:The Top HR Trends and Priorities for 2023
These nine trends have a great impact on theemployee experience, which underscores how the EVP must change and respond to shifts in employee expectations.
Hybrid work is here to stay. With 75% of hybrid or remote knowledge workers agreeing their expectations for working flexibly have increased, there is no doubt that the future is hybrid. In fact, if an organization were to go back to a fully on-site arrangement, it would risk losing up to 39% of its workforce. You must create a new, human-centric model for the hybrid environment by designing work around employee-driven flexibility, culture connectedness and human leadership.
Download now:Your Future of Work Roadmap
HR leaders are under more pressure than ever to fill roles with those with critical skills to meet market needs and drive organizational change. While there’s an urgency to obtain scarce, critical capabilities, there’s also an effort tooptimize costs in the current economic climate. To fill skills needs both effectively and efficiently, broaden the range of talent strategies under consideration, either as part of your strategic planning or as needs arise. For example, develop processes, norms and infrastructure that facilitate the mobility of employees from their current roles to other existing or newly created roles within the organization. This creates aninternal labor marketand makes it easier and more attractive for employees to move jobs without exiting the company.
Listen now:Organizational Culture and Connectedness Is in Crisis
Traditional employee experience indicators, such as engagement surveys and turnover metrics, aren’t showing the whole picture — for example, measuring current experience or overall well-being — which impacts employee performance and intent to stay. Although 70% of organizations made additionalinvestments in well-beingthroughout the last two years, most employees are still not taking advantage of these offerings. You must deliver on well-being as part of your EVP toattract and retain talent.
Learn more:What Is HR Strategy? And How Can You Best Execute It?
混合和远程工作并不能保证所有employees will experience the benefits of this change equitably. This has the potential to worsen2022世界杯南美区预选赛 (DEI) outcomes. For example, 76% of managers say on-site employees are more likely than remote workers to be promoted. Considering that women and employees from underrepresented groups are more likely to want to leverage flexible work, proximity bias becomes a recipe for inequity. Tosupport all employeesin a hybrid future, you must mitigate bias in performance and recruiting and support underrepresented talent.
Hybrid work has become a baseline expectation for most employees, and organizations are already seeing the effects. Turnover has significantly increased when employees are required to come back into the office full time, and 52% of employees say flexible work policies will affect the decision to stay at their organization.Turnoverwill continue to increase because the emotional costs of leaving the organization are lower when hybrid and because there’s more choice in employers when location is no longer a factor. To combat this sustained turnover,connect hybrid employees to the organization’s cultureand invest in talent processes to expand employee networks.
With fewer opportunities for spontaneous in-person interactions in the workplace, managers need to be more intentional inestablishing and developing relationships with their team members. Themanager-employee relationshipis critical in shaping the employee experience and connection to the organization. CHROs need to provide managers with the proper tools to become human leaders and manage employees’ career perceptions, well-being and connection to organizational culture.
Although the younger generation is comfortable with hybrid work (having finished their education and entered the workforce during the pandemic), the experience has left something to be desired. To Gen Z, remote work is about continuing connections built in person while maintaining a flexible schedule. Pay attention to Gen Z’s expectations of the postpandemic world of work. The needs of these entry-level hires will impact decisions surrounding redesigned office spaces, in-office onboarding support and development opportunities.
Labor market competition and high inflation areputting pressure on compensation, but many organizations can’t afford to increase pay as quickly as employees want or expect. If inflation continues to rise, not all employers canattract and retain talenton compensation alone. This is challenging organizations to rethink their EVP with reduced hours. To consider this new EVP approach, C-suite leaders and hiring managers must work together to review roles and processes in which a shorter work week is possible.
Listen now:How to Attract and Retain Talent When You Don’t Have All the Money in the World
Gartner analysis shows that 16% of employers are more frequently using technologies tomonitor their employeesthrough methods such as virtual clocking in and out, tracking work computer usage, and monitoring employee emails or internal communications/chat. While some companies track productivity, others monitor employee engagement and well-being to better understand employee experience.
Even before the pandemic, organizations were increasingly using nontraditional employee monitoring tools, but this trend will only accelerate thanks to monitoring of remote workers and the collection of employee health and safety data. Make sure to follow best practices to ensure responsible use of employee information and analytics.
In short:
Brian Kroppoversees the research, tools, services and support that we provide to CHROs and their leadership teams.
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Recommended resources for Gartner clients*:
6 Future of Work Trends Reshaping the Employee Experience
What Are the Future of Work Trends With the Greatest Impact on Organizations?
Redesigning Work for the Hybrid World
*Note that some documents may not be available to all Gartner clients.