Undoubtedly, the COVID-19 pandemic has set a new global trend: working from home. It is now very common to find people who want to work remotely or at least in a hybrid job. Companies can certainly save resources by applying this trend. Additionally, a temporary service agency can assist you with this.
In this article, you will learn everything about the global staffing trends in 2022 is. Companies must adapt to new trends to avoid being left behind in the staffing market. Here are the trends that our team believes will emerge this year. Let us observe:
- A global outlook
- What are the global staffing trends in 2022?
- How can a temporary service agency help you with your staffing needs?
1. A global outlook
Everyone assumed that the end of pandemic benefits would force workers back into the labor force. We used to believe that a pay raise would be the panacea. Yes, there was a minor interruption. But what now? As we approach 2022, here are the staffing trends we are keeping an eye on that may have an impact on these figures.
Economic pundits have several hypotheses about where all the workers have gone. Many people have become remote workers after learning how to work from home. In fact, according to a new World Economic Forum report, 84 percent of employers intend to expand remote working.
What is more interesting for a temporary service agency like Connect Staff in the report is that:
- 43 percent of responding leaders say they are planning to reduce their workforce due to technology integration.
- And another 41 percent say they will use contract workers for task-specific work through 2025.
This, combined with the fact that it is a job seeker’s market, means that HR teams must be forward-thinking and creative. This is to sell a desirable workplace environment and culture, particularly for “gig” staffing jobs that require workers to be on-site.
It is work mentioning that an agency like Connect Staff can help you on how to manage your staffing agency remotely, and more.
2. What are the global staffing trends in 2022?
2.1. Organizations’ defining issues will be fairness and equity
Debates about fairness, whether about race, climate change, or the distribution of COVID vaccines, have become flashpoints in society. According to a study, 500 earnings calls, the frequency with which CEOs discuss equity, fairness, and inclusion has increased 658 percent since 2018.
And issues of fairness and equity are surfacing in novel ways:
- Who is eligible for flexible work? We have seen organizations where some managers provide their employees with flexibility while others do not.
- What happens when employees relocate to lower-cost-of-living areas? Should employers reduce their pay even if the importance of their work has not changed?
- Companies are paying 20% compensation premiums to hire new employees in today’s labor market. Is it fair to pay new employees significantly more than experienced employees?
- Companies are making new, targeted investments in certain segments of their workforce (e.g., additional financial resources to support employees with children). These investments are critical to assisting those employees in doing their jobs. However, employees without children have asked, “Why employees who are parents are getting something and I am not?”
In 2022, executives must address how they manage fairness and equity across an increasingly diverse employee experience. This will be the top priority for Human Resources executives in the coming year.
2.2. A significant number of employers will not implement a vaccine mandate, instead of relying on testing to keep their workplaces safe
In January 2021, less than 2% of businesses planned to implement a COVID vaccine mandate. This figure steadily increased throughout the year before peaking at less than 50% at the end of 2021. Even with the rise of the Omicron variant, the number of companies implementing a mandate will not increase significantly by 2022.
To comply with the administration’s rules, roughly half of large employers will continue to offer to test. This is due to several factors.
2.2.1. What are the employers’ thoughts?
First, employers are concerned that a vaccine mandate will result in mass layoffs. According to some research, HR leaders expect nearly 7% of their workforce to quit if a mandate is implemented. While 7% may not appear to be a significant number and may be an overestimation, whatever turnover occurs will not be distributed evenly.
Some departments in some geographies may have turnover rates of 15%. Secondly, many employers are concerned that a vaccine mandate will be overturned by a slew of ongoing legal challenges. Given that risk, they are hesitant to adopt a mandate that could be repealed in the future.
Thirdly, some employers do not believe they have the authority to make this decision for their employees, arguing that it is still a matter of employee choice.
Finally, there is confusion about what it means to be vaccinated. For example, people ask if they need a booster shot to be considered vaccinated. This adds to the complexity of managing the entire process. Despite the additional effort of managing a testing process, many businesses will continue to do so rather than implement a full vaccine mandate.
2.3. To compete for knowledge worker talent, some companies will shorten the workweek rather than raise pay
In today’s market, employers are offering significant pay increases to attract and retain talent. According to our research, year-to-date salary increases have exceeded 4%, compared to a historical norm of 2%.
Nonetheless, when inflation is taken into account, real wages have fallen. And if inflation continues to rise, employers’ compensation packages will be worthless and less in terms of purchasing power for their employees.
While some companies can compete for talent solely through compensation, others lack the financial resources to do so. Rather than trying to win the war for talent by increasing pay, some employers are reducing the number of hours employees work while keeping pay flat.
Historically, as wages rise, workers’ leisure time becomes more valuable and appealing. Reducing the number of hours employees must work allows less liquid employers to compete with organizations that offer higher overall compensation but do not offer reduced hours. In the end, we are likely to see a few organizations adopt 32-hour workweeks with equal pay as a new way to compete for knowledge workers.
2.4. As hybrid and remote work become the norm for knowledge workers, employee turnover will continue to rise
Flexibility in how, where, and when people work is no longer a differentiator. It is now considered standard practice. Employees in the UAE expect job flexibility. Employers who do not provide flexibility will see increased turnover as employees move to roles with a better value proposition. A better position that aligns with their desires.
Unfortunately, in today’s tight labor market, increasing flexibility will not slow turnover. In fact, turnover will increase for two reasons that we are going to discuss.
2.4.1. What are the turnover reasons?
For starters, there will be fewer forces keeping employees in their seats. Employees who work in a hybrid or remote environment have fewer friends at work. Thus, they have weaker social and emotional connections with their coworkers. These weakened ties make it easier for employees to leave their jobs. This is by reducing the social pressure that can encourage employees to stay longer.
Second, as the pool of potential employers expands, there will be stronger forces enticing employees away. With hybrid and remote work becoming the norm, the geographic radius of organizations for which someone can work expands.
Even in a hybrid model where employees expect to come into the office at least once a week, there is an increased risk of attrition. Employees are much more willing to accept a longer commute when they have to do so less frequently. The pool of potential employers grows in tandem with employees’ commute tolerance.
These factors will result in sustained, higher turnover rates than any previous norms. Hence, the great resignation will be replaced by a sustained resignation. On the other hand, if you want to learn how to motivate your remote employees, contact us and we can provide you with the best assistance.
2.5. Managerial tasks will be automated, allowing managers to focus on developing more human relationships with their employees
The manager-employee relationship is more important than ever. For hybrid and remote employees, their managers are the primary point of contact with their employer. Managers are also the first line of defense in surfacing and elevating concerns about fairness.
Additionally, managers’ actions can mean the difference between a highly public walkout and a co-created solution to employee concerns. Simultaneously, HR technology vendors have been developing products to replace an increasing number of repetitive managerial tasks, such as:
- Approving expense reports
- And monitoring direct reports’ task completion
Additional managerial tasks, such as providing performance feedback and assisting employees in developing new peer-to-peer connections, will be replaced by the next generation of technology. According to our research, up to 65% of the tasks that a manager currently performs have the potential to be automated by 2025.
2.5.1. What are the consequences of automation rising?
With the rise of automation, businesses will need to choose. They must choose between reducing the number of managers and changing the expectations of what it means to be a manager.
Organizations that extend managers’ spans of control across more direct reports will be able to reduce labor costs because they will require fewer managers. Organizations that choose to shift their managers’ expectations must shift their managers’ mindsets and skillsets from managing tasks to managing the entire employee experience.
This extends beyond managing employees’ specific responsibilities to managing:
- Their perception of their career trajectories
- The impact of work on their personal lives
- Their overall relationship with the organization
While this shift may slow attrition, it will necessitate significant managers.
2.6. The tools we use to work remotely will evolve into tools for measuring and improving performance
Managers have less insight into what work their employees are doing as work becomes more geographically dispersed. As a result, inaccurate and potentially biased performance ratings are generated based on where employees work rather than the impact they have. According to some research to 3,000 managers conducted in the fall of 2020:
- 64% of managers and executives believe in-office employees outperform remote employees
- 76% believe in-office workers are more likely to get a promotion
2.6.1. What are the tools?
Moving forward, the same tools that employees are currently using to work in a virtual environment will be used to assess employees’ contributions. For example, new technologies will be able to provide background information about the other people on the call during virtual meetings.
Participants will be able to focus on the issues that are most important to them by learning more about who is on the call.
Collaboration technology can also nudge employees to act in new ways, which improves the overall set of interactions among employees. It can, for example, nudge managers to call on people who have not been as active in the meeting as others.
These nudges will cause participants to change the types of interactions they have to improve the meeting’s quality.
3. How can a temporary service agency help you with your staffing needs?
Technology and working from home are two important factors for businesses to keep in mind these days. A great percentage of people prefer to work from home and not come to an office every day.
Now you know what the most important global staffing trends are. It might be a little bit challenging for businesses to adapt to this new situation. However, a professional temporary service agency like ours can assist you with this.
Would you like to contact Connect Staff to obtain more information about what the global staffing trends in 2022 are? If you have any questions, you can email us at firstname.lastname@example.org. Then, you will talk to one of our representatives who will answer your questions.
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