In Part 2 of this two-part Blog, I continue to explore how the balance of power in business has shifted from employer to employee post-pandemic.
In Part 1, I outlined the changes and factors leading to the balance of power shifting.
Now in Part 2, I workshop some practical areas business owners (employers) should focus on to combat this shift in the balance of power.
Based on the challenges faced by business owners, where should they focus on tackling the challenges presented by employees in the post-pandemic workforce?
CHALLENGE: Employers grappling with introducing suitable virtual work models between physical attendance at business locations and working from home. Employees have greater expectations around flexible working conditions. FOCUS: Explore ‘trials’ to run for 6-12 months on hybrid working weeks split between office and home. TWT weeks in the office are Tuesday/Wednesday/Thursday. 4-day office hours with one day working from home. ‘Hump Day’ with Wednesday work from home. 4 Day work week (Work 38 hours in 4 days working 9.5-hour days). Explore 4 Days for Full Pay (employees work 4-day week but trade 20% productivity increase - note this is very hard to measure and manage so tread carefully).
CHALLENGE: Employees are being offered significant pay rises to change jobs (up to 30% in some cases). FOCUS: Pay at or above market salaries. Increase salaries at or above CPI as a minimum and significantly more for merit-based increases. Explore other financial and non-financial retention strategies (see below).
CHALLENGE: Employees seeking better terms and working conditions. Retention of talent is more challenging with a more transient workforce. FOCUS: Explore financial incentives such as bonuses, profit share, or even equity. Explore non-financial benefits such as mentoring, travel, industry events, professional development, and flexible work, and outline 3-5 year career path modeling with team members.
CHALLENGE: Difficulties faced by employers in replacing departing employees with new employees. Incumbent continuing employees complaining of being overworked because of labour shortage. FOCUS: Ramp up 1-1’s with continuing staff and ensure workload is constantly discussed in internal meetings. Increase mini check-ins when staffs are in the office. Listen to internal feedback and take prompt action where possible on stretched resources before more staff leave from fatigue. Engage more and lean in.
CHALLENGE: Employers find it hard to measure productivity under new virtual work models. FOCUS: If not already a key priority, ensure productivity is measured as accurately as possible within your business. Explore how to improve the measurement of productivity and assess findings on a rolling basis. Cast your net far and wide to get the best intel on productivity and become a ‘productivity junkie’.
CHALLENGE: Leadership noting difficulties in clarity of messaging to teams. Managers report a struggle to manage teams and individuals remotely. FOCUS: Stay close to your leadership and management teams to get regular feedback. Focus on management training and internal feedback loops. Ensure leadership and management team members network, attend industry forums and elevate their professional development in remote work management.
CHALLENGE: Reported decline in knowledge transfer and training. Reports of reduction in incidental information sharing between employees/teams a as result of remote work model. Employers are concerned over future career progression and promotion as employee development is not seen as fast-tracked compared to working together in central business locations (For example, a Graduate needs strong hands-on guidance, supervision and direction in early working life). Professional development was reported to be weaker as ‘on-the-job’ training was not as strong as junior employees not sitting shoulder-to-shoulder with their managers and co-workers. Less mentoring is occurring through the remote work model. FOCUS: Increase on-the-job training significantly on in-office days. Educate junior staff and management on accelerating focus on these areas ‘when we are together. A proactive and robust internal meeting regime is critical on in-office days. Don’t let team members hide on laptops buried in email, admin work, and back-office activities when on-site. Much of this can be attended to when working remotely and a focus on time together when in-office is paramount.
CHALLENGE: Morale and culture are reported to be weakening as teams are spending less time together in person. FOCUS: Get the entire team regularly in the tent and have courageous conversations on what you can do better to create a winning culture. Lead from the top, but also identify internal champions at the coalface to leverage culture for you and empower them to act.
I really hope some of my observations and suggested focus on the workforce challenges have provided food for thought in your business.
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