There are gaps between employers and employees in both perception and priorities.
Entrepreneurs staying ahead in a changing world
A New Era of Leadership
The workplace as we knew it no longer exists. COVID-19 put remote work on the map, shifted power dynamics in favor of workers, and ignited fierce competition for talent during the Great Resignation. Now, as the pandemic wanes and new economic challenges emerge, employers and employees alike are reevaluating their priorities. Leaders are making operational and strategic decisions based on economic, labor, and geopolitical pressures, while employees seek new opportunities with better pay, more flexibility, and enhanced benefits. To retain top talent, employers must adopt a people-centric focus. Embracing a “we, not me” mindset is crucial for fostering trust and engagement and applying the most creative thinking to the challenges of the moment.
The labor market is challenging right now. Employees have a set of expectations that we all need to accommodate while we’re balancing productivity, culture, and trust. If we’re not offering greater flexibility, if we’re not being serious about our commitment to ESG, including diversity, equity, and inclusion, if we don’t care about well-being and we’re not talking about mental health, employees, especially Gen Z, will leave in a heartbeat. And they will go find a company that does that.”
Foster belonging
of Gen Z thinks it’s important to be authentic and true to oneself.
Fortunately, there are a few things they agree on.
To thrive in this misaligned environment, organizations need to address
the gaps and lean into workers’ priorities.
believe that leadership
is in tune with
the workforce
believe that leadership is in tune with them
Employers
76
%
Employees
54
%
vs.
Source: EY 2023 Work Reimagined Survey
want improvements to benefits
and rewards plans.
80
%
Employers
Employees
79
%
rank learning and skills development
as their top priority.
45
%
43
%
Employers
Employees
Employees who report
high levels of trust,
empowerment, and care
from leadership are
40
%
less likely to quit.
Source: EY 2023 Work Reimagined Survey
Source: EY 2023 Work Reimagined Survey
Lee Henderson, Americas EY Private Leader, Executive Sponsor,
EY Entrepreneurs Access Network
—
“
There are four key areas that employers can prioritize to keep their workforces engaged.
1.
Everyone wants to be valued and bring their authentic selves to work. Gen Z, in particular, expects inclusivity, transparency, and authenticity from their employers. Cultivating a sense of belonging at work leads to happier, more productive, and more motivated employees, making them likely to stay with the company longer. It also results in tangible wins: Greater belonging leads to higher performance, growth, and success across the organization.
Employees who feel a sense of belonging:
have a shared
sense of identity,
purpose, and
vision with others.
91
%
of workers say that empathetic leadership creates loyalty among employees.
88
%
of workers report having felt excluded at work.
75
%
Sources: EY Belonging Barometer 3.0; 2021 EY Empathy in Business Survey; 2023 EY Gen Z Segmentation Study
Lead with clear purpose and values—and communicate
your vision for stakeholders
and society.
To foster belonging:
Embrace purpose-driven leadership.
1.
Make belonging a central part of the employee experience and hold leaders accountable for prioritizing worker belonging and wellness.
Prioritize culture.
2.
Encourage employees to embrace their authentic selves and create a safe environment where everyone feels heard and valued.
Promote authenticity and high-belonging behavior.
3.
Sources: Seven steps to build high-belonging teams, EY Strategic Growth Forum® 2024 workshop: Create higher belonging teams
It’s we, not me. It’s trusting one another. It’s how you do things that matters. It’s not just where you’re going but treating each other with kindness, with respect, with a culture of openness, with assumption of positive intent, just being together. … We create a culture where if somebody knows something was wrong, you encourage them to raise a hand and celebrate them.”
“
Daniel Lubetzky, Founder of KIND Snacks, Camino Partners
—
As inflation and the cost of living rise, it’s no surprise that higher pay is the primary reason why employees change jobs. To retain top talent, employers must adjust compensation to match the market. But employees want more than higher wages from their employers: Workers crave meaningful support through comprehensive rewards programs that go beyond standard benefits, such as medical, life, and dental. Today’s top employers offer flexible programs including training for career growth, flexible scheduling options, peer recognition plans, and expanded, holistic health plans—mental, financial, and physical.
Reevaluate compensation, well-being, and rewards
2.
of employees cite equitable pay as the main factor in their perception of equity at work.
40
%
of Gen Zers indicate they are very to extremely worried about not having enough money.
52
%
of CEOs see a greater need to focus on workforce well-being during a downturn, including childcare
and mental health.
59
%
of employers feel it is somewhat to very
likely their employees will expect more
robust benefits offerings in the future.
60
%
Sources: EY Belonging Barometer 3.0; 2023 EY Gen Z Segmentation Study; How to transform your organization during turbulent times; EY 2023 Future of Workforce Benefits
To create enticing compensation packages:
Leverage technology to personalize benefits and rewards to suit evolving multigenerational employee needs and priorities.
Use digital tools to personalize offerings.
3.
Seek feedback and prioritize worker voices to rethink and accommodate alternate schedules and locations.
Engage with employees.
2.
Assess your existing compensation, benefits, wellness, and rewards offerings by using anonymous surveys to understand employees’ needs.
Evaluate current programs.
1.
Sources: “Why the future of work will depend on the future of total rewards”; EY 2023 Future of Workforce Benefits
We’re focusing our strategy on whole-person wellness, and we’re doing this from a foundation
of access and equity. I work very closely with our inclusion, diversity, and equity team to look at how we’re moving forward with our well-being pillars. ‘Access and equity’ is our driving force mantra.
And then we have physical, emotional, social, intellectual, spiritual, and financial health as our pillars that we build everything from. We’re making sure that employees have an equitable experience in terms of their health, wellness, and well-being.”
“
Sharon Ellen Smith,
Corporate Medical Director, Estée Lauder
—
Hybrid work is here to stay. With little appetite to return to the office on a full-time basis, employees expect autonomy in their work arrangements, from where and how they work to how they interact virtually and in person. Choice is a key element of employee satisfaction, and companies that try to implement strict return-to-office policies may face challenges around retention and/or recruiting.
Promote flexibility and autonomy
3.
employees want flexibility regarding where and when they work.
9 out of 10
Source: EY 2021 Work Reimagined Survey
Source: EY 2023 Work Reimagined Survey
of employees would prefer to work one day in the office per week.
50%
Source: EY 2023 Work Reimagined Survey
of employees would like to be fully remote.
34%
Source: “How to transform your organization in turbulent times”
of CEOs say that flexible and remote work are critical to attracting and retaining talent.
70%
To promote flexibility and autonomy:
Meet employee requirements for flexibility by considering whether their individual job duties require in-person collaboration
and proactively seek feedback to understand their ideal work dynamics.
Evaluate roles.
1.
Don’t make showing up to the office an arbitrary requirement. Ensure that in-person work has purpose and makes the best use of an employee’s time.
Be intentional about
in-office work.
2.
Leaders must be able to inspire new ways of working, supercharge staff engagement and collaboration, enable healthy work habits, and deepen trust to effectively manage their teams in a dynamic environment.
Give managers what they need to run remote teams.
3.
Time spent in the office doesn’t equal higher productivity. Outcome
is more important than output—redefine performance criteria to measure productivity
and consider training programs for employees with skill gaps.
Rethink employee performance.
4.
Source: “The future of work: One size doesn’t fit all”
All generations in the workplace want the same three things: learning and development opportunities that are equitable, a focus on flexibility and well-being, and a sense of belonging and connection. What we realized is that we needed to stop worrying about presenteeism, and we needed to create an environment where there was meaningful togetherness. We stepped back and said, ‘What is the right amount of time that people need to come together to get the full benefit out of the organization?
“
Ginnie Carlier,
EY Americas Vice Chair, Talent
—
Learning and skill development rank high on the priority list for employers and employees alike. For leaders, upskilling and reskilling their workforces can help secure talent, hone skills to thrive in a tech-driven future of work, and help them stay productive with distributed teams. Workers want improved career development resources to learn skills required for the future workplace and stand out in a competitive job market. With technology and AI-related jobs growing and soft skills remaining critical, employers must consider the skills, capabilities, and tools they need now and in the future and align learning and development programs to talent-retention strategies so they can remain attractive to prospective employees and future-proof their workforces.
Promote skills development
4.
consider training to improve remote working skills a top priority.
52
%
43
%
Employers
Employees
think their organizations are equipped to adapt
to change.
80
%
43
%
Employers
Employees
Source: EY 2023 Work Reimagined Survey
agree.
agree.
of CEOs are upskilling
their workforces
vs. hiring new talent.
52
%
Sources: “How artificial intelligence can augment a people-centered workforce”; EY 2023 Work Reimagined Survey
Define critical skills needed to support your company’s goals and ensure your workforce has the capabilities to help your company grow.
Assess your organization’s skills.
1.
Create an employee training plan and distribute relevant and skills-targeted learning and development content.
Develop a training roadmap.
2.
Match individuals’ innate strengths and experience-based skill sets to role gaps and encourage them to explore new opportunities for growth within the company.
Move talent where
it belongs.
3.
To promote skill development:
DEI is evolving: Belonging is now the desired outcome. A high-belonging culture is built one
high-belonging team at a time. It’s up to business leaders to close the “say-do” gap and go beyond what’s stated in an employee handbook and show employees what the company is actually doing to fulfill its promises. This sows the seeds of belonging. And the results are clear: High-belonging teams are higher performing teams.”
“
Jeff Stier, EY Americas Strategic Purpose Vision Realized Leader; EY Americas PAS Sustainability & ESG Leader
—
For more insights from the entrepreneurs and innovators creating the shape of things to come, visit EY.com.
The future of work lies in employee satisfaction
Employees rank pay as their top concern.
Employees
#1
Employers rank offering competitive pay as a top concern, behind attracting and retaining talent.
#3
Employers
vs.
want to be
fully remote
Employees
1
support fully
remote work
1
Employers
vs.
out of
5
out of
3
say they feel
connected to
their teams
Employees
68
%
think employees
feel connected
to their teams
82
Employers
%
vs.
receive positive
social signals in
everyday interactions,
which reinforces emotional safety.
feel a greater
sense of flexibility
and autonomy.
Create an employee training plan and distribute relevant and skills-targeted learning and development content.
Develop a roadmap.
5.
Define critical skills needed to support your company’s goals and ensure your workforce has the capabilities to help your company grow.
Assess your organization’s skills.
4.
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vs.
vs.
vs.
Sources: EY Belonging Barometer 3.0; 2021 EY Empathy in Business Survey; 2023 EY Gen Z Segmentation Study
Sources: Seven steps to build high-belonging teams, EY Strategic Growth Forum® 2024 workshop: Create higher belonging teams
Sources:
Seven steps to build high-belonging teams, EY Strategic Growth Forum® 2024 workshop: Create higher belonging teams
To promote skill development:
Encourage employees to embrace their authentic selves and create a safe environment where everyone feels heard and valued.
Promote authenticity and high-belonging behavior.
3.
Make belonging a central part of the employee experience and hold leaders accountable for prioritizing worker belonging and wellness.
Prioritize culture.
2.
Lead with clear purpose and values—
and communicate your vision for stakeholders and society.
Embrace purpose-driven leadership.
1.
Sources: EY Belonging Barometer 3.0; 2023 EY Gen Z Segmentation Study; How to transform your organization during turbulent times; EY 2023 Future of Workforce Benefits
Sources: “Why the future of work will depend on the future of total rewards”; EY 2023 Future of Workforce Benefits
Sources
Create an employee training plan and distribute relevant and skills-targeted learning and development content.
Develop a roadmap.
5.
Define critical skills needed to support your company’s goals and ensure your workforce has the capabilities to help your company grow.
Assess your organization’s skills.
4.
Match individuals’ innate strengths and experience-based skill sets to role gaps and encourage them to explore new opportunities for growth within the company.
Move talent where
it belongs.
3.
Create an employee training plan and distribute relevant and skills-targeted learning and development content.
Develop a training roadmap.
2.
Define critical skills needed
to support your company’s goals and ensure your workforce has the capabilities to help your company grow.
Assess your organization’s skills.
1.
“How artificial intelligence can augment a people-centered workforce”; EY 2023 Work Reimagined Survey
The labor market is challenging right now. Employees have a set of expectations that we all need to accommodate while we’re balancing productivity, culture, and trust. If we’re not offering greater flexibility, if we’re not being serious about our commitment to ESG, including diversity, equity, and inclusion, if we don’t care about well-being and we’re not talking about mental health, employees, especially Gen Z, will leave in a heartbeat. And they will go find a company that does that.”
“
Lee Henderson, Americas EY Private Leader, Executive Sponsor, EY Entrepreneurs Access Network
—
