The big reset: 10 workforce trends that will shape 2021

The global pandemic has left an indelible mark on people and businesses. Over the past year, we’ve witnessed millions of people in the hardest hit industries lose their jobs, businesses large and small struggle to survive, and existing societal inequalities widen. As the World Bank warns of a “lost decade” economically due to the pandemic’s impact on global trade, investment and productivity, now is the time to consider how we reprogramme businesses for growth to enable a more prosperous future.   

As 2021 gets off to a good start with the vaccine rollout and optimism for further scientific advancement, a new age of work is also in the making. Necessity has driven workplace innovation, and social injustices have spurred businesses to play a leading role in instigating real change. Capitalising on this momentum, with progressive workplace policies, action on diversity and inclusion, and investing in the professional development of employees, is crucial to building enduring brands and businesses, and attracting and retaining the best talent today and in the future.

Here are 10 workforce trends that we can expect to shape 2021 as companies look to rebuild stronger and more sustainable businesses, and drive competitiveness through the power and potential of their employees. 

1. Flexible and remote working is here to stay - With employees proving that they can work productively and efficiently from home, there is now demand for greater flexibility in the future. Employers acknowledge that they must adapt company policies and benefits if they are to retain their people, maintain an attractive employer brand and cultivate a modern working culture. Research from LinkedIn finds that three-quarters of C-level executives across Europe trust their employees to work productively from home, and many are already considering the long-term changes they want to introduce to better support their people post COVID-19, including giving employees the choice about where they work (40%). With an increasingly distributed workforce inevitable, some of the biggest challenges businesses will need to address include how they nurture company culture, create a sense of community and help employees build meaningful relationships.
2. Companies will benefit from expanded talent pools - Offering employees greater flexibility gives businesses the opportunity to dramatically expand their talent pools as the traditional interdependencies between location and role are no longer as relevant. This means companies can offer opportunities to those who may not be able to afford to live in or near a big city, or have an established professional network. Businesses will therefore be able to benefit from a richer array of skills, experience and diversity of thought which is crucial to driving innovation. New talent hotspots will emerge, competition for roles will increase and local economies will thrive. Companies will grapple with decisions around employee pay and benefits for those that live in locations where the cost of living is typically lower. 
3. New hiring and onboarding experiences will become essential - Remote working has meant that companies have had to start changing their entire hiring process. Screening, interviewing, hiring and onboarding now all needs to be done virtually, and we’re hearing from businesses that it is reducing the time to hire significantly. With a more flexible future likely, companies are thinking about how they recreate excellent candidate experiences virtually in the long-term, and how they go about differentiating themselves from competitors in these pivotal candidate moments. To help businesses adapt, LinkedIn has introduced an array of new features, including Video Intro which helps recruiters evaluate a candidate’s communication and soft skills prior to the first interview. This gives hiring managers greater insight into the candidate early on, helping them to better assess capabilities and fit, and ultimately speed up the recruitment process. 
4. Offices will evolve into centres of culture, collaboration and creativity - Many businesses are considering how essential their physical office footprint is to the future of their organisation. It’s likely that many businesses, where flexible working is possible, will opt for a more ‘blended’ work experience, bringing in the biggest shake up of the office in its history. As opposed to disappearing altogether, offices will become centres of culture, collaboration and creativity. They will be spaces where people meet to focus on in-person interaction, ideation and personal connection. Serendipitous moments will fuel new ideas and cross functional teams will be encouraged to work seamlessly together on shared priorities. Work that requires deep focus, structure and privacy will be done remotely, and employees will be trusted to decide for themselves where that is done.
5. More connected workforces - HR and Internal Communications leaders have been integral to navigating their organisations through significant change during the COVID-19 crisis. They’ve demonstrated huge amounts of agility and resilience, while also taking on a breadth of new responsibilities to ensure business continuity during this turbulent time. Companies that have regularly taken pulse checks of their employees and looked after their physical and emotional wellbeing will have seen a positive impact on employee engagement and commitment. While employee experience has always been a priority for businesses, it is now more vital than ever in earning trust and loyalty. With technology making leaders more present and accessible, and regular communications enabling greater transparency, companies will look for ways to continue developing deeper levels of connectedness with their people. They will also continue to pay close attention to employee sentiment, particularly as they plan for important moments such as reopening offices and designing future work spaces.
6. Diversity tops the action agenda - Events over the last year have highlighted the unacceptable and deep-rooted racial inequality in our society. The current unemployment crisis is also further exacerbating existing economic inequality. The renewed and sustained focus will stimulate greater workforce diversity, which is also crucial to powering innovation, which will encourage organisations to make long-term changes to how they find, recruit, retain and support talent. Data from LinkedIn finds that Diversity & Inclusion (D&I) roles have increased by 58% in the UK over the past 5 years, with one fifth (20%) of these roles being in leadership positions. Such roles are essential to keeping companies focused on their goals. We know that even the simplest measures can help create big changes. One place to start is reconsidering the language and requirements on job descriptions. This can have a major impact on diversity sourcing and candidate attraction. For instance, Thames Water recently saw a surge in women applying for manual frontline roles after the company altered the language of job adverts and removed “masculine coded” phrasing. This saw the proportion of female applicants rise from 8% to 46%. 
7. The war for digital talent will intensify - While many companies were already on their digital transformation journeys long before the pandemic, the pace of delivery has been greatly accelerated. As companies reimagine existing business models, we’re likely to see many have a greater need for digital talent. For instance, with some high street retailers reducing their physical store footprint and pivoting investment into e-commerce, this will create demand for digital marketers and merchandisers, logistics, operations and supply chain personnel. The same talent is also in-demand by companies in the Consumer Goods and Technology industries also, among others. Organisations that offer an attractive employee experience, remuneration package, learning and development opportunities, and career progression will be the most enticing to job seekers. Microsoft estimates that the UK workforce will absorb nearly 3 million new technology jobs over the next five years as a result. To help people gain these critical digital skills, Microsoft and LinkedIn recently partnered to offer nearly 1,000 hours of free learning courses which are open to everyone. 
8. Upskilling and reskilling becomes a business imperative - Workforce reskilling, upskilling and redeployment is going to become crucial as companies look to improve productivity and get back to growth. A recent study from LinkedIn found that 70% of Learning and Development professionals globally say that their CEO is now actively championing workforce professional development as a result of COVID-19. A priority for leaders will be to understand what skills they have within their business today, the skills needed for future growth, where the gaps are and how to fill them. These data-driven insights will be crucial to manoeuvring people into growth roles and setting them up for success around the right priorities. Creating a strong culture of learning will also be key to staying agile as business models evolve and external factors place new demands on organisations.
9. Internal mobility on the rise - With many companies unable to hire new talent from outside their business at the same pace as before COVID-19 due to continued uncertainty, many are looking inwards to find talent for new roles. According to LinkedIn data, internal hiring of people moving into dissimilar roles within the same organisation was up 20% in UK companies between April and August 2020, compared to the same period last year. This trend was echoed in countries around the world with Germany (25%), Singapore (21%) and Mexico (20%) all hiring internally at a higher rate than the global average (19.6%). To support employees as they transition into different roles, 58% of UK HR leaders are focused on helping employees develop new skills, and 60% will be developing internal mobility programs. This will create excellent opportunities for professional development for individuals who want to learn new skills, gain a different experience and progress within their company. Encouraging internal mobility not only boosts retention and improves employee engagement, but it can also help companies evolve their businesses from within and bridge any existing skills gaps. 
10. Building fairer and more inclusive workplaces - Ultimately, businesses have the opportunity to rebuild fairer and more inclusive workplaces by redesigning how work is done. For instance, working parents and those with dependents can benefit from flexible working hours, job-share programs and greater support. This is just one of the many areas that companies can tackle and make an immediate impact. It’s time for businesses to look at the type of employers they want to be, the experiences they want to create for their people, and the environment and culture they want to build to help employees deliver their best work.

Big changes are already underway, and how companies navigate the months ahead will define their trajectory in the years to come. 2021 will be a pivotal turning point in introducing a new era of work that fuels productivity, competition and growth. Companies that fully harness the power of their workforce will come back stronger.