Study shows conflicting interests in working from home
The pandemic is slowly calming down. After two years working from home, many employees want to continue working remotely, at least partly, but Microsoft’s annual work index shows a conflict with leaders wanting the staff back to the office. “The source of this tension is clear as business leaders seek a return to what once was”, the report says.
50% of leaders say their company already requires, or plans to require, full-time in-person work in the year ahead. This percentage is even higher for leaders in the manufacturing (55%), retail (54%), and consumer goods (53%) industries.
”This stands in sharp contrast to the data on the importance of flexible work to employees. Over half of respondents (52%) say they are likely to consider shifting to hybrid or remote work in the year ahead. And remote and hybrid jobs are still on the rise.”
”According to LinkedIn, in March of 2020, 1 in 67 U.S. jobs offered a remote work option. Today, that number is about 1 in 7. And remote jobs on LinkedIn attract 2.6 times more views and nearly 3 times more applicants compared to on-site roles.”
Already, hybrid work is up seven points year-over-year (to 38%), and 53% of people are likely to consider transitioning to hybrid in the year ahead.
THE ROLE OF WORK
As the report says: “One thing is clear: We’re not the same people that went home to work in early 2020. The collective experience of the past two years has left a lasting imprint, fundamentally changing how we define the role of work in our lives.”
Microsoft´s 2022 Work Trend Index is based on study of 31,000 people in 31 countries, along with an analysis productivity signals in Microsoft 365 and labour trends on Microsoft-owned LinkedIn.
The study says that these are the five urgent trends business leaders need to know in 2022:
- Employees have a new “worth it” equation.
- Managers feel wedged between leadership and employee expectations.
- Leaders need to make the office worth the commute.
- Flexible work doesn’t have to mean “always on.”
- Rebuilding social capital looks different in a hybrid world.
What are employees looking for in a job now? Beyond pay, the top five aspects of work that employees view as “very important” for an employer to provide are: positive culture (46%), mental health/wellbeing benefits (42%), a sense of purpose/meaning (40%), flexible work hours (38%), and more than the standard two weeks of paid vacation time each year (36%).
HEALTH AND WELLBEING
”While new-to-the-workforce Gen Z shares the same top three priorities, they list positive feedback and recognition as their fourth priority, while ranking a manager who will help advance their career in fifth place.”
53% of employees are more likely to prioritize health and wellbeing over work than before the pandemic.
52% of Gen Z and Millennials are likely to consider changing employers this year, up 3 percentage points year-over-year.
47% of respondents say they are more likely to put family and personal life over work than they were before the pandemic. In addition, 53%—particularly parents (55%) and women (56%)—say they’re more likely to prioritize their health and wellbeing over work than before.
“I used to think of my work as part of my identity. Now I think of my work as something I do, but not necessarily as a core part of myself.”
—Information worker in the energy industry, Australia
“Work is only a part of life. It shouldn’t be your whole life or the only thing you care about.”
—Team lead in professional services, Argentina
“I can still be successful at work, but I need to make more balanced decisions to pursue my own interests.”
—Mid-level manager, UK
QUITTING THE JOB
And employees are acting on their newfound priorities, the report concludes:
In 2020, 17% of people left their jobs, and the trend continues—reaching 18% in 2021. The top five reasons employees quit were: personal wellbeing or mental health (24%), work-life balance (24%), risk of getting COVID-19 (21%), lack of confidence in senior management/leadership (21%), and lack of flexible work hours or location (21%).
“Somewhat surprisingly, “not receiving promotions or raises I deserved” landed in number seven on the list at 19%, further illustrating the shift in priorities.”
Many hybrid employees (51%) say they will consider a switch to remote, and even more remote employees (57%) say they’ll consider a switch to hybrid.
At the same time, 43% of employees are somewhat or extremely likely to consider changing jobs in the coming year, up slightly year-over-year from 41%. Some generations are even more likely to consider changing employers—more than half (52%) of Gen Z and Millennials combined may change jobs in the year ahead.
NO GOING BACK
For Gen Z, there’s no going back, the report says. For younger employees, flexibility, mobility, and entrepreneurial freedom are non-negotiable.
Compared to last year, geographic migration is slowing. Today, 38% of respondents are considering moving because they can work remotely at their current job (compared to 46% in 2021), while 30% are likely to consider a move in the year ahead even if it requires finding a new job that lets them work remotely. Gen Z and Millennials are even more willing to change jobs in order to live in a different location
”Fully 70% of Gen Z and 67% of Millennials say they are considering earning additional income via a side project or business in the next year. For leaders, this is creating new challenges—not just in attracting and retaining top talent, but in engaging current employees who increasingly define and design their careers around creative pursuits.”
The report concludes that meeting these new employee expectations will require a mindset shift that considers the experience of the past two years.
”Employees’ “worth it” equation has changed—and there’s no going back. The best leaders will create a culture that embraces flexibility and prioritizes employee wellbeing—understanding that this is a competitive advantage to build a thriving organization and drive long-term growth.”
STAND OR FALL WITH MANAGERS
”The past two years have taught us that culture will stand or fall with managers. But many managers feel stuck between leadership and new employee expectations, and they feel powerless to drive change for their team. Over half of managers (54%) feel leadership at their company is out of touch with employee expectations. And 74% say they don’t have the influence or resources they need to make changes on behalf of their team.”
50% of leaders in information worker roles say their company is currently or planning to focus on requiring full-time in-person work in the year ahead, while 52% of respondents say they are somewhat or extremely likely to consider going remote or hybrid in the year ahead.
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