Many of us anticipated the world to return to normalcy at the start of 2021. Vaccines were beginning to become available, and many executives believed it would only be a matter of months until we all returned to work.
However, 2021 proved to be more turbulent than planned, introducing new Covid variations, a big talent battle, record-high leave rates, and the greatest inflation levels in a generation.
In 2022, the amount of volatility will only rise. New versions will continue to arise, and workplaces may once again become distant. Hybrid employment will increase inconsistency regarding where, when, and how much different workers work. As annual pay increases fall behind inflation, many employees will see real wage losses. Long-term technology transformation sustained DE&I journeys, and persistent political turmoil and unpredictability will be stacked on these realities.
In 2022, the following 11 fundamental trends will shape workplace volatility:
Organizational Fairness and Equity Will Be the Defining Issues
Whether it’s about race, climate change, or the distribution of Covid vaccines, debates over justice have become flashpoints in society. According to our monitoring of 500 earnings calls, the number of times CEOs discuss themes of equity, justice, and inclusion has climbed by 658 % since 2018.
Executives will need to examine how they can manage justice and equity across more diverse employee experiences in 2022. Next year’s top priority for HR executives will be this.
Instead of Making Vaccines Mandatory, Companies Rely on Testing to Keep their Workplaces Safe
Fewer than 2% of businesses planned to implement a Covid vaccination obligation in January 2021. This number progressively climbed throughout the year until plateauing at less than 50% by the end of 2021. Even with the rise of the Omicron type, the number of enterprises implementing a requirement will not increase much by 2022. To comply with the Biden administration’s standards, nearly half of large businesses will maintain a testing option.
Finally, there is ambiguity about what it means to be vaccinated, e.g., do you need a booster dose to be called vaccinated? This adds to the difficulty of controlling the entire process. Despite the added work involved in managing a testing procedure, many businesses will continue to do so rather than impose a full vaccine requirement.
Some Organizations Would Reduce the Workload Rather than Raise Pay
Employers are offering big pay raises to attract and retain talent in today’s market. According to our analysis, year-to-date pay gains in the United States have exceeded 4%, compared to a historical average of 2%.
However, when inflation is factored in, actual salaries fall. If inflation continues to climb, employers’ compensation will become increasingly worthless in purchasing power for employees
As Hybrid and Remote Work Become Normal for Workers, Employee Turnover Will Rise
Flexibility regarding how, where, and when individuals work is no longer a differentiator; it has become standard practice. Employees in the United States desire employment flexibility as much as they do a 401(k) plan (k). Employees will migrate to roles that offer a value proposition that better matches their objectives if their employer does not give flexibility.
Unfortunately, in today’s tight labor market, greater flexibility would not lower turnover; in fact, turnover will rise for two reasons.
Managerial Chores Will be Automated, Allowing Managers to Focus on Developing Relationships with Their Staff
The manager-employee relationship is more vital than ever before; for hybrid and remote employees, their managers are their principal point of contact with their organization. Managers are also the first line of defense when bringing up and amplifying justice issues. They can differentiate between a very visible walkout and a collaborative solution to employee problems.
With the rise of automation, businesses will have to choose between reducing the number of managers and changing the expectations of what it means to be a manager.
Tools Used for Remote Work Will Become Instruments for Improving Performance
Managers have less insight into their employees’ work when work gets more globally scattered. As a result, performance ratings are imprecise and potentially prejudiced, based on where workers work rather than their impact. Nevertheless, according to a Gartner survey of over 3,000 managers conducted in the fall of 2020, 64 % of managers and executives believe that in-office employees perform better than remote employees, and 76 % believe that in-office employees are more likely to be promoted.
Employees can be nudged to perform in diverse ways via collaboration technology, which improves the entire set of interactions between employees. It can, for example, urge managers to call on workers who haven’t been as involved in meetings as others. Participants will modify the types of interactions they have due to these nudges, improving the meeting’s quality.
Some Employers Will Necessitate a Return to the Office to Manage a Blended Workforce
In 2022, more than 90% of firms aim to implement a mixed working paradigm for their knowledge workers.
With the evolving landscape of office and remote work, ensuring high-speed and reliable connectivity with solutions like business fibre can make all the difference.
While this will define the start of the year, we expect several high-profile corporations to reverse direction and require staff to return to work full-time.
Organizations that undertake a hard return to work, on the other hand, will quickly discover that other underlying issues caused their problems. Requiring employees to return to work will increase employee turnover.
Some Employers Will Necessitate a Return to the Office to Manage a Blended Workforce
In 2022, more than 90% of firms aim to implement a mixed working paradigm for their knowledge workers. While this will define the start of the year, we expect several high-profile corporations to reverse direction and require staff to return to work full-time.
Organizations that undertake a hard return to work, on the other hand, will quickly discover that other underlying issues caused their problems. Requiring employees to return to work will increase employee turnover.
Wellness Is the Newest Metric Used by Businesses to Assess their Workforce
For years, executives have experimented with various indicators to understand better their people, such as employee satisfaction or engagement. In 2022, businesses will incorporate new methods to assess their mental, physical, and financial well-being.
In the aftermath of the epidemic, many organizations increased the wellness support they provided to their employees.
These programs are effective for those who use them. According to a Gartner study, employees who use these perks have 23 % better mental health, 17 % better physical health, and 23 % more likely to sleep well at night. In addition, higher levels of performance and retention result from these gains in personal outcomes.
The Next Big C-level Position Will Be the Chief Purpose Officer
Politics, culture, and social discourse have all made their way into the workplace. As firms strive to establish a more inclusive and productive work environment, employees have been asked to bring their complete selves to work. This is a far cry from a decade ago when employees were asked to “check their personal biases at the door.”
Employees also expect their employer to become more active in current sociological and political issues; according to a Gartner study, three out of four employees expect their employer to express an opinion on current societal and political debates.
The Next Big C-level Position Will Be the Chief Purpose Officer
Politics, culture, and social discourse have all made their way into the workplace. As firms strive to establish a more inclusive and productive work environment, employees have been asked to bring their complete selves to work. This is a far cry from a decade ago when employees were asked to “check their personal biases at the door.”
Employees also expect their employer to become more active in current sociological and political issues; according to a Gartner study, three out of four employees expect their employer to express an opinion on current societal and political debates.
Sitting Has Replaced Smoking as the Most Common form of Tobacco Use
Employees have been affected in a variety of ways as a result of the shift to remote employment. For example, some people responded by increasing physical activity and reducing weight (35%). In contrast, others were more passive (40%) and gained weight, owing to the lack of physical mobility associated with traveling and strolling from meeting to meeting at work. As a result, some remote employees will experience increased health risks due to the disparity in physical mobility across workforce segments.
As a result, businesses will implement new communication strategies, benefits, and technologies to encourage remote workers to go around and enhance their health. However, like traditional wellness programs, physical wellness initiatives are likely underutilized. As a result, some organizations may overreach and generate a backlash from employees who believe their employer has no responsibility for their physical health. In addition, DE&I concerns exist with these physical wellness initiatives, as they may undermine employees’ engagement with disabilities.
Without Action, DE&I Results Will Deteriorate in a Hybrid Environment
According to a Gartner study, employees who work remotely or on a hybrid schedule perform at the same level as those who work in the office. On the other hand, managers believe that employees who work from the office are more productive and are more likely to be promoted than those who work from home. Moreover, high-profile senior executives have publicly said that hybrid and remote staff underperform, reinforcing this erroneous impression. As a result, even though there is no sustained difference in performance between the two groups, managers are more willing to promote and provide larger raises to their employees who come into the office.
Finally
We’ve all been through the most significant workplace disruption in generations, and it’s just going to get worse. What will change is the degree to which the interruption is variable. By 2022, CEOs will have to learn how to flourish in a moment of turbulence that affects their enterprises in many ways.
