As we are now nearly post-pandemic (or at least learning to live with it) businesses now have other (and new) challenges to consider.
As well as being 2 years post pandemic, the working environment is changing at a very quick pace. On top of that we are faced with rising cost of living and recruitment difficulties.
We have set out below what we think are the top 4 key challenges facing employers during 2022 and most probably beyond, what this means for employers and what they can do.
Challenge #1 – The Great Resignation
The theory is that the pandemic has made workers re-evaluate what they want from work and as such, some workers are no longer putting up with bad employers and will leave. Or that some are quitting their jobs altogether or others have had time to consider their current roles and are moving to another job. Hence it has been titled ‘The Great Resignation’.
A lot of employers are currently finding recruitment a challenge, and it is certainly a candidate’s market – but is there evidence to suggest this ‘Great Resignation’ yet? Employers report that if resignations did increase and skills lost, this would have a massive impact upon their business.
There is some movement in the job market, with older workers choosing to retire following the pandemic and a slightly higher than normal rate of resignations.
How can employers prevent employees leaving?
To avoid losing their top talent, employers need to think about attracting and retaining their workforce. Skills shortages and recruitment difficulties are making it more and more difficult to fill roles so it would be much more beneficial if staff didn’t leave in the first place.
Firstly, look at your employer brand. How does it reflect your business and what does it say about you as an employer and as a company.
Does it shout as a place people want to work and stay at?
You could survey your employees and ask them what they think about working at your company. You can use a free service, such as Survey Monkey or CrowdSignal. This will allow you to email surveys to your employees and collate the results very easily. You can choose whether you’d like to do this anonymously or not; if you want real honesty from your employees, it may be a good option to make it anonymous.
Ensure your employer brand aligns with your core values and brand identity. If it doesn’t, you run the risk of confusing potential employees, customers and even suppliers, as well as your wider audience.
Ensure your workforce are happy, motivated and engaged. They will be less likely to want to leave you.
Please see our article on Avoiding ‘The Great Resignation’: How to attract and retain a talented workforce in 2022.
Challenge #2 – Cost of Living Crisis
We are now seeing an increase in energy, fuel and food costs and UK employers and employees are really starting to feel this, with finances squeezed.
There has been a reported 7% increase in inflation over the last 12 months, with a warning it could rise further.
One solution which would ease financial worries would be to offer a pay increase – even in line with inflation. Some employers have stated they will consider a pay review, however, for many other employers this is just not possible.
In fact, the implications of price increases could see pay decreases or even redundancies.
How can employers help their workers?
Pay increases are not the only way employers can help staff, especially if they cannot afford it and having to cut back themselves.
Many employers report that they will review their employee benefits.
Talk to staff and find out how they are feeling the financial pressure. Different people will be facing different pressures and may prefer different benefits.
For some, it may be due to the increase in fuel and/or utility costs. Could they work from home to avoid the commute and therefore added fuel costs, or could they work in the office to avoid increased utility costs from working from home?
Hill HR partner with a company to offer Employee and Individual Healthcare Cash Plans and Employee Assistance Programmes (EAPs). EAPs also offer debt and financial advice and helplines. Healthcare Cash Plans allow employees to claim back money on health services and treatments such as dental, optical and physiotherapy.
Other options are discount schemes which offer savings on things the employee would normally buy.
All these are a great way to provide some financial support
Other areas where employers can help is by signposting useful sources of information and advice for employees seeking help and guidance in financial matters, including savings, debt, and household budgeting.
Challenge #3 – Continuing in a hybrid environment
One of the big challenges that many employers were thrust into during lockdown was working from home.
Even now after the pandemic, there has been a shift to this new way of working – hybrid working (although not completely new as many employees were working like this prior to the pandemic).
Many companies will need to permanently adapt to hybrid working, or else they could face the great resignation of their staff.
Employers new to this will need to navigate the challenges, such as the technology and tools to make hybrid working a success.
As well as technology and tools, employers have also had to develop new ways of collaborating and working as teams, and a change to their policies to cement the change.
What else should employers consider?
The manager has become the focus and vital to the success of hybrid working. It is therefore important that managers are trained to support their teams.
Employers will also need to consider developing a Hybrid Working Policy as well as modernising and amending other polices (such as flexible working), the legal implications, communication and engagement, and skills.
Please see our article on Hybrid working: a new blended way of working.
Challenge #4 – The mental health and wellbeing of employees
The past 2 years of the pandemic has been extremely difficult for many people, and now the added pressure of the cost-of-living crisis is having a major effect on the mental health of many people.
All this has caused (or should cause) mental health and wellbeing of the workforce to be a priority for employers.
The knock-on effect of not dealing with this, could lead to not only performance and productivity issues, but also absence and attendance issues.
In 2021, mental health days off cost UK businesses £12.6bn and 66% of mental health absences are for longer than five days.
What can employers do?
Employers need to be able to signpost employees who need help and support to the relevant places. In effect, employers will become a “knowledge hub” for accessing support. This could include financial clinics, wellbeing seminars/webinars, advice forums, mental health platforms and support, or provide access to trusted third-party sources of financial advice. If workers are struggling to make ends meet, employers could also see what additional practical support could be offered for individual cases.
It will be important that employers build a resilient workforce. Managers will be central to this and should receive training on how to recognise and support staff with problems.
Please see our article on How to improve your employees’ mental health and wellbeing at work.
There is no doubt that post-pandemic, employers have not seen the back of other pressures and challenges facing them in the workplace. It will be important that employers monitor and measure what is going on in their business so they respond proactively to any changes.
If you need any HR assistance, please Contact us to discuss it.
