Surface Ripples

Will Employers Have to Change?

With China’s recent relaxation of its COVID restrictions on movement two years after it began, the virus has mutated to a less lethal variant, and the global vaccination program has succeeded in conferring at least a degree of immunity on most of the world’s population.

One of the results of the pandemic was the number of furloughs or forced retirements given by employers to staff, whom they could simply no longer pay due to a lack of income. The latter was hardly surprising: nobody could go about their daily business of working, shopping, going on holiday, eating out. This meant that any business that relied on “footfall” for its livelihood, went under. Hotels, airlines, restaurants, tourist sites all, but ceased their activity.

As workers were furloughed or laid off, they had a chance to re-evaluate their lives without the distraction and pressure normally provided by work. The really lucky ones found that they could retire early. Others started their own successful businesses. others found other means of earning a livelihood to the previous “traditional” employment.

Internet services also multiplied as “social distancing” required people to shop and interact online. 

Now that things are back to as nearly “normal” as possible, employers are finding that pre-pandemic compensation packages are no longer fit for purpose. The pandemic has woken workers up and new and different alternative compensation schemes will be required.

Of course, salary will still be a major element, but now we see that working-from-home (WFH) is becoming a standard rather than a perk or privilege.  “Traditional” attitudes are no longer acceptable to many workers.

Employers need to change. Depending on their industry or specialisation, this will be easier for some than for others. The retail industry, as an example, will still require staff to man cash, tills, lay out stock, and assist customers in selecting goods that they need. The hospitality industry (hotels, restaurants, tourist attractions) will need staff to look after guests, diners and tourists respectively. These are not industries which can offer the luxury of working from home across the board.

This shouldn’t come as a surprise. An example of how employers have had to change can be found in the maternity laws of many countries which allow both mothers and fathers to take time off work to look after newly born children. Their jobs must be held open for them for when they return. If we can do this, why can we not reorganise and change the way in which employers hire labour?

Some employers have already realised what is happening and are adjusting. These may be the ones who make greater use of modern technology to achieve their goals. As a result, as long as their staff have a robust broadband internet connection at home, it matters less whether they work from home or from an office. My son, for example, works entirely from home as his employer is the IT industry. Others are offer “blended“ working, i.e. being able to work from home on at least one day per week and coming into the office on others.

Many organisations have reported productivity increases as a result of shorter working hours. Workers have time to recharge, be with families and “decompress” or “disengage” completely from the workplace. As a result, when they do return to the office/workstation, they’re  reinvigorated and in a better mental place. 

We also need to understand that, apart from the current group of workers, the next generation have very different aspirations and requirements when it comes to work. This is the generation that is far more concerned with protecting the environment, having employment that contributes to the general social good. These workers will again require very different conditions or packages to attract employees.

When we examine our own businesses, what can we do as employers to keep the staff we want?

I’ve spent more than half my life delivering change in different world markets from the most developed to “emerging” economies. With a wealth of international experience in international financial services around the world running different operations and lending businesses, I started my own Consultancy to provide solutions for improving performance, productivity and risk management.  I work with individuals, small businesses, charities, quoted companies and academic institutions across the world. An international speaker, trainer, author and fund-raiser, I can be contacted by email. My website provides a full picture of my portfolio of services.  For strategic questions that you should be asking yourself, follow me at @wkm610.

Labels: Leadership, Productivity, Strategy, Teamwork

posted by William Martin @ 08:13