Beyond the Great Resignation, 7 trends that will shape work in 2022

Beyond the Great Resignation, 7 trends that will shape work in 2022

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1. Fairness and equity will be the defining issues for organizations

According to our analysis of S&P 500 earnings calls, the frequency with which CEOs talk about issues of equity, fairness and inclusion on these calls has increased by 658% since 2018.  Debates that have fairness at the core—around gender and race, climate change or other socio-economic, social and workplace issues—have 

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1. Fairness and equity will be the defining issues for organizations

become flashpoints in society. Questions of fairness and equity are emerging in new ways: Access to flexible work. We’ve seen organizations where some managers allow their employees flexibility while other managers don’t. Geographical salary considerations. Should employers lower the 

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1. Fairness and equity will be the defining issues for organizations

compensation for employees who move to locations with a lower cost of living even though the impact of their work hasn’t changed? Compensation for new versus established employees. In today’s labor market, companies are paying 20% compensation premiums to hire new employees. Is it fair to pay new employees so much more than established employees?

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2. To compete in the war for knowledge worker talent, some companies will shorten the workweek rather than increase pay

Employers are offering significant compensation increases to attract and retain talent in today’s market; our research found that, in the U.S., year-to-date salary increases have been more than 4%, compared to a historical norm of 2%. However, when inflation is considered, real wages have declined. If inflation continues 

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2. To compete in the war for knowledge worker talent, some companies will shorten the workweek rather than increase pay

to rise, employers will find the compensation they offer is worth less and less in terms of purchasing power for employees.  While some employers can compete for talent via compensation, others don’t have the financial resources to do so. Rather than trying to win the war for talent by increasing compensation, some 

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2. To compete in the war for knowledge worker talent, some companies will shorten the workweek rather than increase pay

employers are reducing the number of hours worked by employees and keeping compensation flat.  Reducing the hours employees need to work gives less liquid employers a better chance to compete with organizations that offer higher compensation but not reduced hours.

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3. Employee turnover will continue to increase as hybrid and remote work become the norm for knowledge workers

Flexibility around how, where and when people work has become table stakes. In the U.S., employees expect flexibility within their job as much as they expect a 401(k).  Employers that don’t offer flexibility will see increased turnover as employees move to organizations that offer a value proposition that better aligns with their desires.

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3. Employee turnover will continue to increase as hybrid and remote work become the norm for knowledge workers

Unfortunately for many organizations, increasing flexibility will not slow turnover in today’s tight labor market. In fact, turnover may increase as there will be weaker forces keeping employees in seats.  Employees who work hybrid or remotely have fewer friends at work and thus weaker social and emotional connections with their co-workers. These 

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3. Employee turnover will continue to increase as hybrid and remote work become the norm for knowledge workers

weaker connections make it easier for employees to quit their job by reducing the social pressure that can encourage employees to stay longer.  In addition, with hybrid and remote work as the norm, the geographic radius of the organizations that someone can work for also expands. As the pool of potential employers increases, so does the attrition risk.

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4. The tools that we use to work remotely will become the tools that help measure and improve performance

Managers have less insight into what work their employees are doing when work becomes more geographically dispersed. This leads to inaccurate and potentially biased performance ratings based upon where employees work rather than the impact they are having. Moving forward, organizations will utilize the same tools they 

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4. The tools that we use to work remotely will become the tools that help measure and improve performance

are currently leveraging to work in a virtual environment to assess the contributions that employees are making.  For example, collaboration technology can nudge individuals to behave in different ways that improve the overall set of interactions across employees. For example, it can nudge managers to call on people who 

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4. The tools that we use to work remotely will become the tools that help measure and improve performance

have not been as active in the meeting compared to other people.  These nudges will cause participants to adjust the types of interactions they have to improve the quality of the meeting.

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5. Wellness will become the newest metric that companies use to understand their employees

This year, employers will add in new measures that assess employees’ mental, physical and financial health.  The good news: These programs work for those who take advantage of them. Gartner analysis shows that employees who utilize these benefits report 23% higher levels of mental health, 17% higher levels of physical health and retention.

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5. Wellness will become the newest metric that companies use to understand their employees

and are 23% more likely to say they sleep well at night. These improvements in personal outcomes translate to higher levels of performance and retention.   The bad news is that there has been limited uptake of these programs by employees. Across the last 12 months, our data show that less than 40% of employees have taken 

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5. Wellness will become the newest metric that companies use to understand their employees

advantage of any wellbeing offering provided by their employer.   In 2022, organizations will adopt new employee wellbeing measures that capture the financial health, mental health and physical health of their employees to more accurately predict employee performance

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6. Sitting is the new smoking

The shift to working remotely has impacted employees in various ways.  Some responded by increasing physical activity and losing weight (35%); however, more became increasingly sedentary (40%) and gained weight, likely due to the lost physical movement associated with commuting and walking around the workplace. As a result, 

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6. Sitting is the new smoking

some segments of the workforce will face increased health risks. In response, organizations will adopt new communication plans, benefits and technologies to support the physical movement of their remote employees. Much like with traditional wellness programs, engagement with these physical wellness 

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6. Sitting is the new smoking

programs will often be lackluster. Some companies will go too far and elicit a backlash from employees who don’t think their employer has a role in their physical health.  These physical wellness programs also carry DE&I risks, as they could harm the engagement of employees with disabilities.

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7. DE&I outcomes will worsen in a hybrid world without intervention

Gartner analysis has identified that employees who work remotely or on a hybrid schedule perform at levels equal to employees who work in the office.  However, managers believe that people who work from the office are higher-performing; thus, managers are more likely to promote and give bigger raises to their employees who 

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7. DE&I outcomes will worsen in a hybrid world without intervention

come into the office compared to those who don’t. Data also show that, in a hybrid world, women and people of color prefer to work from home compared to white men.  Given that, without intervention, gender wage gaps will widen and the degree of diversity within leadership benches will weaken. Without greater intentionality, underrepresented 

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7. DE&I outcomes will worsen in a hybrid world without intervention

talent could be excluded from critical conversations, career opportunities and other networks that drive career growth.

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