The new workforce facing CEOs

WASHINGTON, September 29, 2021 / PRNewswire-PRWeb / – The Association for Corporate Growth (ACG) recently published its Middle Market Growth magazine titled “Race to Reinvention”. Can you relate? The articles were thought-provoking and focused on the future of work. The magazine’s articles, as well as the current business environment, have raised questions that many CEOs, perhaps like you, face.

Questions from the CEO:
a. Do my staff feel engaged and enjoy their work? How can I know?
b. Does my staff really have to be in an office for the business to be successful?
vs. Who am I really affected by the loss that impacts our revenue, competitive advantage and / or customer relationships?
D. What key role (s) am I concerned about or struggling to fulfill to achieve our long term goals?

The path to follow :
There are steps CEOs, along with their HR manager, can take to mitigate the impact of the ‘big resignation’, where employees work, and proactively tackle talent management throughout the year. , not just when it becomes a crisis.

It starts with taking a data-driven approach. Understanding which employees are most at risk of leaving and why, and what your value proposition is for your future workforce is critical. The answers are not always straightforward. Using workforce data, analytics, and a structured process can help uncover underlying trends that impact employee engagement, productivity, quit rates, etc. so organizations can implement a more strategic approach to talent retention and management.

State of play – the labor market:
Every business owner / CEO knows we face a tight job market. According to the August report from the Bureau of Labor Statistics, the unemployment rate fell 0.2 percentage point to 5.2%. The number of unemployed edged down to 8.4 million after falling sharply in July. Both measures are significantly down from their highs at the end of February –april 2020 recession. However, they remain above their pre-coronavirus (COVID-19) pandemic levels (3.5% and 5.7 million respectively, in February 2020).

The story continues

Fueling some of the unemployment numbers is what has been commonly referred to as the “big resignation” of our workforce. According to the US Department of Labor, during the months of April, May and June 2021, a total of 11.5 million workers left their jobs.

Employees want more control over where and how they work. Studies from McKinsey and Pew Research indicate that 52% and 54% of employees want flexible arrangements or work from home. A McKinsey survey also found that 30% of employees would likely change jobs if they had to work full-time on-site. What we often forget is how many worked from home before the pandemic. Gartner research has shown that 30% of the workforce worked from home at least part-time before the pandemic.

Business Outlook – After COVID:
A survey by the Association for Corporate Growth of 100 executives of mid-market companies found that 45% expect financial performance to be significantly up from pre-pandemic levels, and 45% to be at or near pre-pandemic levels. To meet their ambitious growth goals, companies will need the right people.

Looking to the future, 78% of ACG survey respondents see a hybrid working model.

The ongoing challenge is to keep and recruit the best talent. Louis Aurélio, Managing Director and Managing Director of Kinderhook, emphasizes that a strong leadership team is essential to helping companies find the right mix of office and remote work.

The dilemma – how to deal with the new expectations of the workforce:
Many believe that wage cuts after years of 2% wage increases are the current reason people are switching jobs. According to Prudential’s Pulse of the American Worker Survey: Post Pandemic Work Life, 24% of those surveyed will look for a new job, the main reasons being pay (50%), work-life balance (38% ) lack of growth opportunities (34%).

Yet the salaries of job changers, or people who started a new job during the year, rose only 5.8% from 12 months ago, according to the management company. human resources and ADP payroll processing. Historically, job changers would see increases in the order of 10% or more. “They should also be concerned that people are not just leaving for money,” says Bradford Frank, a Korn Ferry Senior client partner within the firm’s Global Technology practice. Frank says the data clearly indicates that people are leaving for positions with better working conditions and companies that are more in line with their personal interests. “It reinforces the idea that people want to work for companies that have purpose and offer flexibility,” Frank says.

Many organizations express concern about maintaining their culture if they do not return to the office. Yet the ACG survey found that 44% of those surveyed said remote working had no impact on corporate culture, and 34% saw a positive effect. Gartner found that employees were more productive by working remotely, exceeding expectations. Additionally, employees with flexible work options are more likely to get to work to improve their engagement and performance.

Return to work:
An important consideration should be how the employees will view the return to work. If the organization requires workers to be in the office, what will that look like? For example – bringing workers back to the office but telling them that the new COVID protocols have closed the kitchen; that only two people can meet in the conference room at a time; and there should be minimal talking at his desk, so you ask them to come back to the desk to work on their own. They would be happier at home!

The key is to focus on the working arrangements that work best for your business. Getting workers to the office 1, 2 or 3 times a week should be accompanied by a routine or regular event that is unique to the office. Whether it’s a regular team chat, social hour, continuous learning events, etc., it makes for a greater purpose of being together. (And justifies the trip.)

Rather than letting the individual, or the CEO, decide when to be in the office, let the work team decide. Letting the team decide the pace of work at home and in the office allows for schedules that become more productive rather than deploying a one-size-fits-all approach.

Beyond returning to work:
Thinking back to CEO questions, it can be seen that whether or not returning to the office is only part of the post-COVID workforce challenges that CEOs face. Having market data, knowing the level of engagement of your workforce, and attracting and retaining key talent are also necessary for the success of the organization.

Kevin shane is a partner at Newport, LLC, and chairs the human capital practice for the Mid-Atlantic region. Schedule time with Kevin at [email protected] He can also be contacted at 301-512-3354.

Media contact

Kevin shane, Newport LLC, 301-512-3354, [email protected]

SOURCE Newport LLC