No matter your industry, modern work will change significantly for you over the next couple of years. Hybrid work and flexible workspaces may be the topic of the day for general business execs, but for human resource (HR) managers, it's going to be all about employee retention.
IBM's Institute for Business Value (IBV) conducted a study in late 2020 that collected polling data on over 14,000 people in nine countries to understand how the priorities of corporate leaders and their workforces have shifted during the pandemic. The survey found that while CIOs and CTOs were excited, because the new normal opened some tech doors for them—especially those relating to cloud services—employee priorities weren't as rosy from an employer's perspective.
The study showed that even though the pandemic has most of us feeling dubious about the economy, one in five employees voluntarily switched jobs in 2020. Of those, Gen Z (33%) and millennial (25%) employees comprised more than half the moves. IBV thinks this trend will continue in 2021 and rise to one in four employees looking to change jobs, again with younger workers leading the charge.
Employees cited a variety of explanations for these moves, with an increase in job flexibility (32%), work culture and values (25%), and burnout (19%) among the top reasons. Roughly 25% said they were looking for better benefits and more support from management for employee well-being. About the same number said they wanted a better salary or a job promotion. Bottom line: Employers need to take a close look at how they're engaging with their employees, especially younger workers.
Another IBV survey of 3,000 CEOs in 26 industries and more than 50 countries seemed to bear that out. According to that study, more than 50% of CEOs from "outperforming" companies, meaning those in the top 20% of revenue growth in their markets, said they were prioritizing remote work. And 77% of those same CEOs indicated they were putting employee well-being front and center, even if it impacted near-term profitability. A not-so-encouraging finding of the survey was that only 17% of CEOs said they ranked diversity and inclusion as an important part of this work culture shift.
Both studies clearly show that companies need to pay close attention to how they engage with employees for the next year and a half and beyond. For CIOs, remote-work technologies will be important, but so will new HR tools, particularly those focusing on applicant attraction and tracking, onboarding, and employee benefits and wellness management.