Like so many of us, I have reflected on the year that was, to learn and identify the opportunities and challenges that may lie ahead. As with every year there are highs and lows, and it is our ability to cope with the rise and fall of that tide that defines us and our relative success.
In 2022 we saw most of the Covid restrictions fall away and life take a shape that was more akin to pre pandemic patterns but with some indelible differences. Flexible and hybrid working expected by many workers, almost as a right rather than a sought-after benefit and many employers acquiescing or agreeing to this way of working in order to retain skills and talent. Against the continuing back drop of a challenging recruitment and retention market, the provision of a flexible working arrangement has become expected as the norm and with it a shift in the way that people work together and are managed. Those who have embraced hybrid working positively have benefitted from improved productivity and employee engagement, but it should be actively managed with a clear set of expectations of how it works in practice, clear communication of expected deliverables and outcome and a high level of trust. Those who have fuzzy boundaries or persist with management by control and command have found it less fruitful and we have seen tricky employee relations consequences. In my view there is a high level of expectation for some level of flexibility in working arrangements to fit with individual personal circumstances and to meet that expectation will bring engagement and positivity from employees. It does have to be managed and it will not happen by chance successfully.
Pay and conditions became a very hot topic and will continue to be a defining challenge through 2023. The stacking of external pressures caused by multiple global and political events and decisions have resulted in permacrisis – one crisis after another or so it would seem if you have watched the news broadcasters and the reality is extraordinary inflation not seen for 40 years or so. This has been a real challenge for employers who have contractual pay increases linked to inflation; pay increases linked to a collective bargaining process or just competing with the external market. We have seen employers have to consider different strategies towards reward as they seek to retain employees and balance budgets. I think that this will be a continuing pressure through 2023 and as the affordability of budgets becomes more stretched, employers should be looking at broader engagement strategies, as though pay is important it is not always the defining factor.
Through 2022 I became more aware of a trend of heightened demand, expectation and open discussion from employees about what they are looking for from employment. Yes, there is a level of need in terms of salary and reward but increasingly it is more than just that. The needs and wants do differ depending on personal circumstances and life stage so understanding and listening to what employees are saying is important. Included in the list of consideration are:
- The ability to bring your whole self to work – inclusion is important
- The opportunity to work with people from different and diverse backgrounds – diversity is important
- Consideration towards wellbeing of self and others is welcomed
- Proactive personal and professional development is a must
- Positive working environment and working practices should be standard
- Collaborative management styles and approaches seem to work more effectively
- Effective leadership with clear vision and goals for the organisation
- Doing work that matters or makes a difference – and is definitely recognised
- Positive impact on environmental, social and sustainability issues – workplaces with a conscience are valued
These are more about the kind of workplace that is created and managed, the colleagues and work relationships that are established and the impact that the organisation has on the world and people it touches. As we all struggle to come to terms with the macro economics and politics that impact our lives, the ability to have some control over the work that we do, the kind of workplace that we spend our time and the people that we engage with during the course of our working life, I believe will become more important to us all. These are characteristics of employment that business owners, leaders and managers can have an impact and influence through the decisions we make, the conversations that we have and the approach we take in carrying out our business.
Lots of opportunity to make a difference in 2023. If any of these points resonate with you or you would like to discuss further, please reach out for a call with me.
Margery