The modern workplace has undergone significant transformation compared to just a few years ago. Shifting expectations, technological advancements, and disruptive forces have fundamentally reshaped work dynamics and the significance of work in our lives.
It is crucial to examine the trends that have redefined success, engagement, and productivity in the workplace to thrive in today’s dynamic work environment.
This article delves into the analysis of evolving employee expectations and explores strategies for organisations and HR leaders to adapt effectively, fostering more fulfilling work experiences.
Decoding evolving employee preferences and trends
Here’s an overview of the overarching employee expectations and trends that have dictated workplace policies and job markets in the recent past:
Demand for flexibility
The changes introduced during the pandemic, such as remote work and flexible hours, remain highly favoured by the majority of employees, and the reasons are clear. Enhanced control over one’s schedule and daily routine enables better work-life balance, boosts productivity, and enhances overall well-being.
The time saved from commuting can be allocated more effectively to personal, household, or professional pursuits, while also facilitating access to a more diverse talent pool. Employers embracing workplace flexibility are benefiting from expanded access to talent, with many candidates now exclusively seeking remote or hybrid roles.
Adapting Financial Wellbeing
Life expectancy is increasing worldwide, extending well into the 80s and beyond. This shift transforms the traditional retirement age of 65 into a challenge for pension systems and retirement savings.
Employers must adopt a forward-looking approach to financial wellbeing, addressing not just retirement savings but the entire financial health of their employees. Historically, there has been a disconnect between employer-provided financial programs and employee needs. While employers often focus on retirement, many employees are more concerned with debt management or living paycheck to paycheck.
To support their workforce effectively, employers must realign financial wellbeing programs to meet these immediate needs, ensuring a stable and productive employment environment.
Embracing the gig economy
Much like the demand for flexibility, this preference bolstered during the upheavals caused in the job market due to the pandemic, relates to higher autonomy. Today’s gig workers are not just entry-level employees but are increasingly taking on fractional leadership roles and supporting organisations from the front.
People who used to moonlight are now willing to barter a life of fixed compensation and schedules with the experience of working on a variety of projects that excite them. The lowering of entry barriers to such roles also signals a shift that will undoubtedly dictate how organisations employ people in the future.
Shorter work tenures
Increasing access to job opportunities without location barriers and changing career norms prioritising growth over long-term loyalty makes people more willing to seek new professional challenges and experiences.
This churn is also aided by the rapid technological advances of the past decade, which means that regular skilling has become part and parcel of the quintessential professional life, leading to more opportunities, networking, and growth.
Young employees prefer doing meaningful work and having a balanced work-life equilibrium and reject the misplaced stigmas associated with shorter job tenure or sabbaticals. For employers, this means providing a continually engaging and supportive workplace or risking a higher attrition.
Workplace equity and transparency
A diverse, aware and expressive workforce demands transparent workplaces that promote equity. Besides building trust, this ingredient is essential for people to feel recognised, reduce uncertainty and feel psychologically secure in their work. Workplace transparency enables higher accountability, supports better decision-making, promotes competition, and enhances morale.
At the end of the day, employees are looking to feel valued and respected, and a fair system that acknowledges their unique strengths and achievements is increasingly essential to create a workplace to build cohesive and harmonious workplaces.
Meeting Modern Employee Expectations: Best Practices for Employers and HR
Employers and HR leaders must be proactive in responding to these new employee expectations and preferences to continue attracting, engaging, and retaining top talent.
Here are some best practices to follow:
Find out what your workforce wants
The first step to adapting is understanding the changing landscape by being willing to listen to your employees. Conduct data-gathering exercises through employee surveys, roundtable discussions, town hall meetings, and exit interviews.
While surveys can help you understand the overall sentiment in your workforce, roundtables can give you insights into the expectations of specific cohorts, whereas exit interviews can tell you why people are leaving.
Break down expectations to core people needs
Rather than assuming employee expectations and preferences as face value, dig a little deeper to understand the source of these demands. For example, workplace flexibility is more about controlling one’s time, schedule, and resources.
Similarly, workplace equity and transparency stem from a need to feel secure and comfortable in one’s work. Social impact and programmes help employees build a sense of community and belonging based on shared ideals. Once you identify the core psychological need driving employee expectations, it can be easier to fulfil them effectively.
Audit and revise obsolete processes and policies
Conduct cultural, compensation, communication, and process audits to identify existing gaps in your workplace. Get external partners and expertise to get fresh perspectives on how things can be redesigned to meet employee needs.
Increase your risk appetite by building truly innovative, diverse and inclusive policies and be willing to abandon processes that no longer serve their purpose. In essence, find ways to seamlessly align evolving employee needs with workplace values and cultures to minimise resistance and maximise engagement.
Avoid designing or implementing policies in isolation
While it can be tempting to address the most critical priority first, such as figuring out an acceptable work-from-home policy or building a CSR programme, don’t rush into major policy decisions in isolation. It’s important to understand that any change in workplace policies will impact the entire employee experience, and every change needs to be contextualised for better adoption and engagement.
Abrupt, hasty or imposed policy changes can do more harm than good, even if the intention is right. Similarly, consult all stakeholders and conduct smaller pilot programmes before launching organisation-wide policies for better reception.
The modern workforce is changing, and organisations need to not only catch up but anticipate these changes proactively. By building positive and healthy workplace experiences that fulfil employee expectations, employers can build responsive work cultures that support people to be their best selves.
To thrive in this new era of work, organisations need not just to manage people but to become their supporters and allies, responding to their unique needs.
Learn how to effectively maximise your organisation’s human capital potential with Aon’s comprehensive strategies and solutions.