What to expect from the world of work in 2021, and what that means for employee benefits
Now is the time for employers to develop strategies to drive employee engagement in a year that could be every bit as unexpected as the last.
This year has been a tumultuous one for everyone, but especially for employers and their employees. Even with the first vaccinations happening as we speak, the COVID-19 pandemic has transformed the American workforce in a way that will have long-standing ramifications. Beyond requiring everyone who can to work from home, the pandemic brought about a dramatic shift in work-life priorities, and employer expectations and understanding of where work fits in the grand scheme of our lives.
Companies must brace for another wild ride in 2021. A major post-pandemic economic recovery and a massive expansion of job options enabled by the work from anywhere revolution, promises to spark a battle for talent unlike any other. Turnover can cost employers 20% of an employee’s annual salary, making attracting and retaining employees all that much more essential to business success.
Related: Recruiting, hiring top employer challenges in 2021
As we embark on 2021, now is the time for employers to internalize these paradigm shifts and develop strategies to drive employee engagement in a year that could be every bit as unexpected as the last one.
The office will never be the same again
Ten months of working from home has normalized remote work–and there’s no going back to the old way.
A global survey conducted by Gartner found that 88% of businesses around the world mandated or encouraged all their employees to work from home as the virus started to spread at exponential rates. And employees are in no rush to return to the office; Slack’s Future Forum found that nearly three-quarters (72%) of knowledge workers would prefer a hybrid remote-office model in the future.
Benefits leaders should prepare for this massive culture shift by focusing on retooling benefits to address what matters most to their employees in this new environment. In a recent survey we conducted at BrightPlan, employees reported that financial wellness benefits were more important to them than paid time off and even healthcare. By replacing in-office perks like catering and happy hours, for benefits that directly affect the wallet and overall employee wellness, organizations can demonstrate their commitment to their employees and drive competitive differentiation to better attract and retain talent while fueling business growth.
The proof is in the data: a recent IDC report found that employees working at companies with robust employee experience programs―including programs for well-being and financial wellness―stay an average of 6-10 years with their companies.
COVID-19 is a digital accelerant in unexpected ways
Digital transformation has been smoldering in workplaces for several years now, slowly bringing about technological changes to companies as they found time and budget. The tremendous disruption brought on by the pandemic has been akin to pouring gasoline on those digital embers.
Virtually overnight, cloud services became the lifeblood for every organization. Embracing digital transformation went from a future project for many to an immediate requirement for all, with companies speeding through years of change in just a matter of a month or two. Technology now powers the new world of work even for slow-adopting companies, and it will continue to fuel major shifts across organizations. That includes in obvious areas, such as collaboration tools, but also in less obvious ones, like employee benefits programs.
In the year to come, the challenges of delivering compelling employee experiences and well-being across remote and hybrid workplaces will take center stage. Companies will embrace new digital tools that are increasingly personalized and cater to our new reality. Consider financial wellness solutions that aren’t just designed for retirement, but also help employees pay off student debt or purchase a house–whatever financial goal is a priority for a particular employee. Team-building can’t just be a big Zoom meeting; instead, consider creating tailored, dynamic experiences like online cooking classes or exercise groups that create community among like-minded employees. We’re just at the tip of the iceberg exploring new ways to create connections with digital tools; look for much more experimentation in 2021.
Pandemic challenges will usher in a new era of well-being
The advent of widespread remote work has made employee experience more vital to the success of a company than ever before. Yet employees must contend with cramped quarters, working alongside children in virtual classrooms and working spouses. When your kitchen is also your conference room, work-life integration can quickly fall out of balance. With this transition, well-being has come into focus as a renewed organizational priority.
Leaders who don’t act quickly to improve employee experience are likely to lose people. IBM found that employees with more positive experiences are 52% less likely to want to leave their companies. People are seeing the added value in employers that support their well-being, and companies that prioritize financial, mental and physical health will have a competitive edge in with top talent in 2021.
Employees expect their employers to be more socially aware
It used to be that polite work conversations didn’t delve into politics or social issues. That’s changed. Fueled by a more socially aware generation and a spate of major civil rights upheavals, employees are not simply demanding that conversations around diversity, equity and inclusion take place at work–they expect their employers to lead social change.
Consumers and employees have wanted companies to take a more active role in social improvements for several years now. Employees increasingly look for meaning in their work, and want their company’s purpose to align with their own. According to The Harris Poll, 82% of Americans report that companies working to improve racial equality is very/somewhat important, yet only 21% believe companies have actually made a difference.
In 2021, forward-thinking employers will continue to build greater diversity, equity and inclusion in the workplace, and must answer the increasing pressure from their employees to be involved in larger social movements. For benefits leaders, one way they can work towards a more equitable workplace is by providing tailored education and enrollment nudges to employees. Training sessions and one-on-one support focused at underrepresented communities can make a powerful difference in empowering all employees to maximize their benefits, build wealth and ultimately make generational change.
The future will surprise us
Nobody’s predictions from a year ago were remotely accurate for the roller coaster of 2020, and the future will bring us more earth-shaking surprises. Companies must continue to nimbly respond to the needs of their employees, prioritize engagement and well-being, and break out of established patterns to embrace social justice. No matter what 2021 has in store for us, by listening closely and acting swiftly companies can improve the employee experience and foster highly productive workplaces that fuel an economic recovery we’re all looking forward to.
Marthin De Beer is founder and CEO of BrightPlan.