With the rise of hybrid work during the pandemic and a tight labor market as the world heads into 2022, employee engagement remains top of mind for leaders. In this “next normal” market, workers have more power in employment decisions than they have in decades, and labor trends reflect that power.

Both Gartner and Glassdoor recently published employment and performance management predictions for the next year and beyond, and their predictions reveal how employee experience will influence four key areas:

4 Key Areas That Will Influence Employee Experience

Attracting and hiring talent

In the current labor market, workers have a great deal more power than they’ve had in recent years. As Glassdoor’s predictions point out, the imbalance between labor supply and demand means that companies have to make joining their firms more appealing than ever. So what do job seekers want?

• Flexible work models: The rise in remote and hybrid work is only going to continue as employees explore options they’ve never had before, and employers will need to get creative to offer expanded flexible options even for traditional in-person positions.
• Better pay: A tight labor market usually leads to higher financial incentives for employers, but the current environment introduces a new wrinkle: competition from remote employers who can pay more. These new models can put local employers in direct competition with remote employers who pay better.  If a worker in a lower-paying market can earn a better salary from an employer in a remote market, there’s no incentive for the worker to take a local job.
• Transparency in DE&I: A Glassdoor survey from September 2020 reported that 76% of employees and job seekers consider a diverse workforce a critical factor when evaluating companies and job offers.

Onboarding and joining teams

The first six months or so of employment can make or break the employee experience. As leaders consider improving retention, it’s vital to think about how onboarding through the first six months of employment can set the tone for what comes after. Companies can begin to improve engagement during this critical period by focusing on a few key areas:

• Community and connections: A survey of US workers by Glassdoor revealed that 48% felt isolated from co-workers during the pandemic, and 69% wished they could learn about the team they’ll be working with when deciding whether to take a job. These desires for connection reveal an excellent opportunity for employers. By looking for creative ways to improve relationships internally and promoting those connections to new talent, they can offer an advantage over companies that present a less community-oriented environment.
• Holistic goal-setting: In the 2021 Gartner EVP Employee Survey, 82% of employees said they wanted their companies to see them as people rather than just employees. By encouraging personal goal-setting and integrating it into overall performance management, leaders and managers can foster an environment where everyone takes a more holistic view of development. People are more than just their jobs, and the accomplishments and skills acquired outside of work contribute to overall development. Setting goals that look outside the job from day one can help improve long-term retention.
• Career pathing and development: Gartner predicts that managers will transition away from managing performance and toward supporting employee career growth and development. From day one onward, leaders should empower employees to manage their day-to-day performance and focus on long-term development that keeps talent engaged and focused on growing into bigger roles.

Performing and growing

Gartner predicts that the workplace of 2022 and onward will see a transition away from traditional performance management that focuses on productivity outputs. Instead, performance management of the future will shift in three key areas:

• Project-based feedback: With the rise in project-based work and contingent workers, many leaders and employees will find project-based evaluations more helpful in guiding long-term development and growth.
• Team-based evaluations: As companies pivot to more project-based work, they will also move to more team-based evaluations. Teams will have more opportunities to manage performance together and provide members with feedback in the moment.
• Empathy and context: In the new performance management models, managers and leaders will take a “big picture” look at how employees perform within a broader context. For example, an employee who takes on a new role or expands responsibilities may be evaluated in light of the learning curve required. Likewise, an employee focusing on a particularly challenging personal situation may be assessed as “focusing outside of work” so as not to be penalized for facing difficult circumstances.

Championing

All of these trends reveal a changing workforce and evolving employer/employee relationship that will require leaders to adapt. However, they also present opportunities to shape a workplace that attracts and hires top talent and provides an environment where talent can grow, develop, and eventually champion the company as a great place to work.

Stewart Leadership can help your organization adapt and grow in this changing employment environment. To learn more, visit our Employee Experience page, or contact us to speak to an expert.