Workers’ Expectations Have Changed – Will Employers Keep Up?
Lynnaire Johnston
LinkedIn??trainer, profile writer, strategist & content creator. ?? Link?Ability members' community – learn how to use the power of LinkedIn??to achieve your professional goals. ?? Gardening fan
Over the course of the Covid-19 pandemic there have been big changes in the way most people work as lockdowns and social distancing have forced many of us to separate from our colleagues.
That’s meant a tectonic shift in how we work – be it remotely, from home, or a hybrid arrangement with time split between remote working and being in the workplace.
Not everyone has been affected – essential workers for instance have stayed put at work, as have others whose jobs have meant they can’t work offsite – but society in general across many parts of the globe has got a taste of a new, flexible way of working.
This has led to a sea change in expectations and how we define the role of work in our lives.
And now that altered mindset has been measured – by the Microsoft 2022 Work Trend Index – a survey that spells out just how profound the shift in thinking has been.
It’s an eye-opener.
‘We’re not the same people that went home to work in early 2020. The collective experience of the past two years has left a lasting imprint, fundamentally changing how we define the role of work in our lives.’???????????????
2022 Work Trend Index Annual Report
What many might have thought was a temporary change when the pandemic began has instead prompted a whole new way of looking at life’s priorities, work-life balance, how and when we work and what we expect from our employers in terms of flexibility. ?And that shift appears to be anything but temporary.
The survey paints a global picture – but also breaks down responses by each participant region and country. In doing so, it reveals what New Zealanders are experiencing and wanting from their working lives versus the expectations of their employers – and there are some very marked disparities. It also demonstrates where we sit in comparison to the rest of the world. As we summarise the survey’s main insights, we will also discuss how those are playing out in New Zealand.
About the survey
The 2022 Work Trend Index Annual Report outlines findings from a study of 31,000 people in 31 countries across 5 regions (North America, Latin America, Europe, Asia Pacific and Australia/New Zealand). It also analyses trillions of productivity signals from Microsoft 365 online tools as well as labour trends on LinkedIn.
Survey results quoted in this article are global aggregated totals unless otherwise stated.
The survey’s 5 main findings
1. ?Employees have a new ‘worth it’ equation
Following the past two years, what people want from work and what they’re willing to give to it have changed. Priorities have shifted and with it how we view family, health, wellbeing and lifestyle and where work fits into those.
?? 53% say they’re more likely to prioritise their health and wellbeing over work than before the pandemic. (In New Zealand: 44%)
People are acting on those altered priorities by either changing jobs, considering doing so or considering changing where they work (e.g. a remote or hybrid arrangement).
?? 18% of workers say they left their jobs in the past year, up from 17% in 2020. (In New Zealand: 21%).
Notably, their main reasons for quitting were not about money or promotions.
The top five reasons were: personal wellbeing or mental health (24%), work-life balance (24%), risk of getting Covid-19 (21%), lack of confidence in senior management/ leadership (21%), and lack of flexible work hours or location (21%).
This reflects a distinct change in priorities when it comes to weighing up whether a job is worth it or not.
?? 43% of workers are somewhat or extremely likely to consider changing employers this year, up from 41% in 2021 – and when it comes to Gen Z and Millenials the latest figure is 52%. (In New Zealand: 47% across all age groups and 52% for Gen Z and Millenials)
?? 52% of workers are considering a switch to remote or hybrid working in the year ahead (In New Zealand: 50%).
What employees want from a job is definitely changing.
The survey found the top 5 aspects of work they view as “very important” for an employer to provide are:
And although Gen Z workers expressed the same top 3 priorities, they listed positive feedback and recognition as their fourth priority, and a manager who will help advance their career in fifth place.
Takeaway: ?More than ever before, work is being seen as only a part of life, not the be-all and end-all, and workers want jobs and working arrangements that suit them and enhance their wellbeing. They are prepared to vote with their feet to achieve that, none more so than the younger generation.
‘A few months of remote work could have been a blip, but 24 months in, people have proved you can be a great employee and have a life. Now, flexibility and wellbeing are non-negotiables that companies can’t afford to ignore.’?
2022 Work Trend Index Annual Report
As New Zealand’s results in this section of the report are in line with the global averages, the implications of these findings are similar here to those elsewhere in the world. And that is, employers will need a mindset shift to meet changing expectations, especially for their younger workers if they want to keep them.
Flexibility and employee wellbeing must become part of the working culture if organisations wish to attract and keep good staff, achieve a competitive advantage and thrive.
2. Managers feel wedged between leadership and employee expectations
The survey results reveal a sticking point. It seems HR management is caught between increasing demands for change from workers and resistance to change from executives. And they’re getting frustrated because they can see expectations have well and truly moved on.
?? 74% of people managers wish they could do more to implement change for their team but don’t have the influence or resources. (In New Zealand: 75%)
?? 54% of people managers say leadership at their company is out of touch with employees. (In New Zealand: 62%)
Their feeling of powerlessness to effect change in the way employees want to work is underlined by contrasting views from business leaders about the path forward.
?? 50% of business leaders say their company is planning to require employees to work in-person full time within the next year. (In New Zealand: 32%)
?? 54% of business leaders fear productivity has been negatively impacted since a shift to remote or hybrid work. (In New Zealand: 63%) In stark contrast, 81% of workers say they are as productive or even more productive compared to a year ago. (In New Zealand: 79%)
So there is a clear disconnect between how workers view their productivity with flexible working arrangements, what people managers want to do to fulfil workers’ altered expectations about how, when and where they work (especially considering more than half are planning to switch to remote or hybrid in the year ahead), and business leaders’ perspectives.
Not resolving that disconnect could be a real problem for employers if they want to attract and retain good staff.
While a third of business leaders in New Zealand want a return to full-time work on site in the next year, the other results in this section underline a more emphatic resistance to change in this country, a concerning proportion of leaders that are out of touch with their employees, and a lack of trust in what workers are doing off-site.
When it comes to a negative view of productivity for remote or hybrid work, New Zealand’s business leaders are only surpassed by Singapore (67%) and Thailand (69%). That doesn’t bode well for allowing for more flexible working arrangements that more than half of employees are seeking.
Takeaway: It’s understandable why, after two years of business uncertainty, huge economic challenges and trying to make staff logistics work through lockdowns, leaders might think returning to the workplace is the best solution.
However, they now face a new challenge to meet flexible work expectations in a way that their businesses can still flourish. The labour market is not going to accept intransigence about this long-term.
They also need to empower their managers so they can enable the transition.
?3. Leaders need to make the office worth the commute
The massive growth in hybrid (on-site/off-site) work during the pandemic has lit the fuse for workers to want this on a more permanent basis. But making it work long-term is going to need an imaginative approach from employers and business leaders and a willingness to embrace it.
So far, according to the survey, it doesn’t look like enough progress is being made.
?? 38% of hybrid employees say their biggest challenge is knowing when and why to come into the office. (In New Zealand: 32%)
?? Only 28% of leaders have created team agreements for hybrid work to define why and when to go to the office. (In New Zealand: 16% – the lowest global result!)
As the survey report observes, there’s no one-size-fits-all answer. For the office to work for hybrid workers, it will require experimentation, fresh ideas and clear guidance from managers so everyone knows what’s expected.
It looks like New Zealand, in particular, with the lowest global result for creating hybrid working team agreements, has serious work to do in this space. This will require investment in technology, designing amenable work spaces and developing a supportive culture.
Finding ways to ensure people feel included in hybrid meetings is also key, especially as:
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?? 43% of remote employees and 44% of hybrid employees say they do not feel included in meetings. ?
?? Only 27% of organisations have established hybrid work meeting etiquette
Takeaway: Companies willing to embrace the future need to accept hybrid working is here to stay. For it to work well, they need to create team norms to accommodate hybrid working so time spent together is intentional and supported by inclusive practices, well-designed premises and appropriate technology.
They also need to ensure remote workers are not disadvantaged so they have equal opportunities to succeed and contribute.
In essence, the how, when and why of the office needs to be clearly established.
‘Organizations that fail to grasp the new intentionality required to define the role of the office risk missing out on the true benefits of hybrid work.’
2022 Work Trend Index Annual Report
4. Flexible work doesn’t have to mean ‘always on’
Data analysed from Microsoft 365 productivity signals show flexible work in action, but also point to a sizeable increase in digital engagement, suggesting a change that may lead to digital overload and exhaustion.
?? 252% increase in weekly time spent in meetings for the average Microsoft Teams user since February 2020
?? 153% increase in the number of weekly meetings since February 2020
?? 32% increase in chats sent per person since March 2020
?? Workday span for the average Teams user has increased more than 13% (46 minutes) since March 2020, and after-hours and weekend work has grown even more quickly, at 28% and 14%, respectively.
On the plus side, analysis of Outlook productivity patterns and other Microsoft 365 tools show people are taking more control of their time and reshaping the workday, such as:
Because the observations and statistics in this section of the report were pulled from internal Microsoft data, there were no regional or country comparisons available. It is probably safe to assume that New Zealand workers, many of whom use Microsoft online tools, are following similar trends.
Takeaway: Although the data suggest employees are making changes to work more flexibly in ways that suit them, for this to be sustainable long-term employers will need to develop team norms and boundaries so hybrid and remote workers aren’t ‘always on’.
They need to be able to hit the digital off switch so they don’t get burnt out.
5. Rebuilding social capital looks different in a hybrid world
One of the biggest impacts of remote and hybrid working over the past two years has been how it has affected relationships.
Being apart from colleagues has had an impact on team morale and dynamics, cohesion and communication – and for new staff who have joined organisations during this time, the effect has been even more pronounced because they don’t have established connections with other staff to rely on.
In short, there has been a significant loss of social capital in work environments.
It is also harder for managers to support staff from a distance, and especially so when it comes to training and encouraging new hires.
Loneliness has also been a problem for many people working remotely. They miss the social interaction of the workplace and the friendships and support from colleagues that confers.
The survey’s findings bear out the social losses that have accrued from remote and hybrid working:
?? 55% of hybrid workers feel lonelier at work than before shifting to hybrid while 50% of remote workers feel this way since shifting to remote work. (In New Zealand: 56% and 42%)
?? 59% of hybrid workers have fewer work friendships since shifting to hybrid work, while 56% of remote workers say this since shifting to remote work. (In New Zealand: 60% and 50%)
?? 43% of business leaders say relationship-building activities are the greatest challenge of having employees work hybrid or remote. (In New Zealand: 42%)
?? 62% of business leaders are concerned new employees aren’t getting enough support to be successful during hybrid or remote work. (In New Zealand: 64%)
?? 56% of pandemic hires are considering changing employers in the next year. (In New Zealand: 56%)
It is clear that the problems highlighted by the survey results above are definitely mirrored in New Zealand. Loss of work friendships, an increase in loneliness and widespread concern among business leaders about supporting new hires who are remote or hybrid workers are evident causes for concern – and it is no wonder that 56% of new hires over the past two years in New Zealand now want to change jobs.
Considering that 51% of workers who are currently hybrid seek being fully remote in the next year (in New Zealand: 50%), that presents a big challenge for employers and business leaders when it comes to repairing and boosting social capital in the workplace.
Takeaway: ?Reconnecting hybrid and remote workers back into the fabric of an organisation needs to be a priority for leaders because there are significant personal and organisational benefits that accrue from rebuilding social capital.
Thriving relationships and a connected workforce make for happier and more productive teams, and help maintain a supportive culture and build organisational success.
‘When people trust one another and have that kind of [social] capital, you get a willingness to take risks, you get more innovation and creativity and
less groupthink.’??????
Nancy Baym, Principal Researcher, Microsoft Research
However, business leaders and managers need to look beyond a return to the office as the only way to address these issues. Instead, making time for relationship-building and offering extra support for remote and new employees is an important place to start.
Their role in fostering close team bonds and helping employees broaden their networks cannot be underestimated.
Looking ahead
The implications of the 2022 Work Trend Index are clear.
‘Employees everywhere are rethinking their ‘worth it’ equation and are voting with their feet. And as more people experience the upsides of flexible work, the more heavily it factors into the equation. For Gen Z and Millennials, there’s no going back. And with other generations not far behind, companies must meet employees where they are.’??????????????????????????????????????????????
2022 Work Trend Index Annual Report
Hanging on to outdated models of how, where and when we work is not going to cut it if the workforce has other ideas. And, given the results of the survey, workers certainly do – and that is as clearly spelt out in New Zealand as it is elsewhere round the globe.
The scale and speed with which our working lives have changed over the past two years means we’re learning as we go, employers and business leaders included, many of whom have had the added burden of trying to keep their organisations above water in highly unpredictable circumstances.
While they might feel the safer or easier option is to return to full-time, workplace-based operations, now is a time of opportunity to reimagine work life, accept that employees value flexibility and wellbeing, and make hybrid work work.
Resisting change will mean being left behind.
Leaders need to:
As the report says, this moment calls for a new mindset if organisations want to come out ahead.
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#lynnaire (follow me to get great results on LinkedIn)
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2 年What a brilliant post, thank you!
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2 年thanks for the summary Lynnaire Johnston some interesting stats and trends. Particularly interested in the social capital component. I know from the experience of my son in his last two years of uni (all online) that the whole social impact of uni - where I made some of my enduring friendships) has largely vanished.
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2 年I wrote a post about this earlier in the week too because I felt there was so much useful information in the report. It's also interesting to see how NZ differs from Australia and other countries.
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2 年The great thing about the world we're living in today, is that we all have choice. Whether that's in current workplaces, or somewhere new if where someone is working doesn't offer a model that aligns with their personal needs.
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2 年I love the change to the overall hierarchy of what we hold dear to us in our careers now; health and mental wellbeing should always be a priority for all of us!