In the most recent Fortune/Deloitte CEO survey, approximately three-quarters of CEOs predicted labor and skill shortages will be the biggest disruptors of business strategy over the next 12 months. Additionally, employees are more willing than ever to leave their current employment in search of new opportunities.
As COVID-19 has changed the landscape of the workplace, the workforce has undergone significant introspection with its relationship to employment. This introspection has led to resignations and churn. How can corporate and government leaders work to address the challenges associated with current labor and skill shortages?
Organizational leaders must adapt to the environment and explore ways to remain effective. When shaping their relationship with the new workforce, organizations must now create opportunities for purpose-driven work and accommodate hybrid work environments more effectively. The goal should not only be to attract and retain employees, but to reimagine work itself!
With the changes brought by the pandemic, hybrid and remote work are here to stay; therefore, government leaders need to consider the tools and resources their employees need to be productive, engaged, and motivated. In addition to location flexibility, workplace culture and societal impact are key factors for millennials seeking new employment. These are purpose-driven incentives and rewards that current and future employees will seek from their employer, along with increased compensation requirements in today’s tight labor market.
One area that attracts and retains top talent is redesigned incentives that align personal employee interests with broader organizational goals. Deloitte’s research found that leaders need to focus on well-being and benefits that support the physical and mental health of their employees. Allowing employees to co-locate when needed or work remotely when preferred provides flexibility while supporting overall, positive employee well-being. Hybrid work encompasses not only how many hours employees want to work but where, how, and with whom.
In conclusion, employers must focus on reimagining the employee-employer relationship, the virtual and physical aspect of the workplace, and the overall workforce management to realize the potential of underutilized capacity to meet the current labor challenges. A one-size-fits-all approach can no longer be applied across industries, generations, and organizations given the rapid need for diversity from an increasingly more complex labor environment. Leaders must continue to leverage investments in technology to optimize high-priority activities, thus enabling their employees to contribute more to areas that are aligned with their own interests and, ultimately, creating more purpose-driven work for current and potential employees.