With the rise of individual choice heightened by the Covid-19 pandemic, employees have been increasingly looking for employment that works on their terms, and are more than happy to change employer in pursuit of what they perceive to be the right balance. However, in recent months the dial seems to be shifting back in the other direction, with employees opting for job security.
CIPD research found that the Great Resignation is over, replaced by what has been dubbed the Big Stay, with employees increasingly likely to remain in their current roles as they prioritise stability amid an uncertain economic outlook. Similarly, the WTW found that a majority (54%) of UK employees are choosing to stay with their employer for a sense of security – putting an end to a period of intense retention challenges for many businesses. There’s also a chance that workers have come to the same realisation as many have in America – that the grass isn’t always greener – with job switchers reporting lower satisfaction at work than those who stayed, particularly in relation to interest at work and colleague relationships.
And while this shift towards job loyalty will be music to the ears of employers, there’s no time to rest on their laurels.
Three key challenges facing organisations and their people right now
Just as one flame has seemingly been put out, the world of work is in a state of flux, and the speed at which it is changing has left businesses fighting fires on multiple fronts.
Ongoing disruption fuelled by AI:
Despite the growing optimism surrounding the integration of AI technology within the world of work, there are still concerns around how it may impact certain roles and functions. Goldman Sachs predicts that AI will disrupt 300 million jobs worldwide by 2030, while a study by IPPR found that nearly 60% of current human tasks could be automated, meaning up to 8 million British workers could lose their jobs within a similar timeframe.
Redundancies and restructures will always be a part of doing business, especially as employers pursue greater efficiency in the way they operate through artificial intelligence. But the key, as with any organisational change, is to integrate new technology with people in mind – ensuring that anyone expected to work with it on a daily basis feels sufficiently equipped to do so – both in terms of skills and knowledge. The last thing employees need is for the automation of certain operations to inadvertently make more work for them because they haven’t been properly upskilled. Unfortunately, research from Workday found that 23% of employees doubt their employer has prioritised them when introducing new technology, resulting in a lack of understanding as to which systems should be automated and where human intervention will be required.
A lack of change readiness:
The frequency of organisational change has increased by 500% since 2016, resulting in it becoming exceedingly difficult for employers and their people to achieve a state of readiness in their ability to navigate it. Our research found that just 22% of HR professionals believe their business leaders are ‘completely ready’ for change within their organisation – a worryingly low percentage that drops even further when considering employee readiness, sitting at just 18%. On a similar note, Cornerstone discovered that 63% of executives see their workforce as being unprepared for change, while 45% of employees believe they need more support.
Organisational change is complex and highly demanding for all those involved; and when people are faced with multiple, often overlapping change initiatives within a relatively short space of time, their resilience can be worn down – leading to increased stress, burnout and sickness absence – all of which negatively impact individual and organisational productivity. In order to successfully navigate transformation, businesses have to work with their people throughout the change timeline – from start to finish. Unfortunately, our latest report and much of the wider data around the subject suggests businesses aren’t quite getting it right.
Growing skill gaps in management:
It’s no secret that businesses are struggling to find the skills they need to succeed. ManpowerGroup’s 2024 Talent Shortage survey reveals a widening skills gap in the UK, with cross-sector shortfalls reaching an 18-year high of 80%. And while there’s an understandable focus on finding technical skills in response to the introduction of AI, it’s a gap in ‘soft skills’ that may prove most troublesome for employers.
LinkedIn’s research found that 9 out of 10 UK business leaders believe soft skills are more important than ever, with communication, management and leadership making up 3 of the 5 most in-demand skills for 2024. To get the most out of a workforce, businesses need managers who can connect with, support and inspire their people on a human level. And yet, despite recognition of the importance of interpersonal skills in leadership and people management, a survey by Robert Walters has found that two-thirds of managers at British businesses were given no formal training before they took on leadership responsibilities – leaving organisations awash with ‘accidental managers’.
When people who excel in their role on a technical basis are promoted and given people management responsibilities without sufficient training, everyone suffers. New managers can quickly become overwhelmed and burn out, while their direct reports miss out on the mentorship and support that only a properly trained manager can provide. And while certain appointments have to be made in order to drive progress within an organisation, taking a sink or swim approach to the appointment of new managers will more often than not result in somebody drowning.
Empowering your people to succeed in the face of a challenging world of work
Mastering new things
If businesses want to ensure their people are ready to adopt new technology and/or working practices with minimal disruption, they first have to identify what skills and knowledge their employees are going to need for future success, and evaluate the current capabilities of their workforce. These insights can then be used to create success profiles that all existing and new employees are assessed against. Skill gaps are an inevitable consequence of progress within the world of work; but with the correct processes in place, these gaps can be more accurately identified, and leaders can make more informed decisions when investing in training and development support for employees.
Our Impactful Leadership report found that ‘supporting employee and career growth’ was the 2nd most important outcome for leaders last year. And only through staying true to this commitment with targeted development initiatives and a two-way dialogue with their workforce, will businesses be able to ensure their people are ready to benefit from the integration of AI, and prevent it from becoming yet another obstacle for them to overcome in an already hectic working life.
Overcoming change
Change is omnipresent right now, and for employers looking to navigate it without having people’s wellbeing or the wider business performance suffer, they must adopt best practice when implementing change and transformation initiatives – especially if they want to prevent change fatigue taking hold.
Our Organisational Change report explains how clear communication, taking a data-driven approach and engaging employees as active facilitators of change, are all key components for successful change management. And while each of these recommendations encompasses a number of best practice activities, businesses have to remember that it is people who are at the heart of everything. When given the proper support and guidance, people are incredibly resilient and can drive long-term success for their organisation – even in the face of ongoing change. Business leaders simply have to be willing to listen to their employees to understand when to hold fire on an initiative, knowing it won’t be long before their workforce is ready to go all over again.
Supporting managers to thrive
Managers are often described as the glue holding organisations together, a sentiment that rings true in our Gen Z leadership report where 43% of employees say their manager is the main driver for them bringing their best self to work. But as research has shown, there is a widening skills gap in the management population – many managers simply don’t feel equipped with the interpersonal skills needed to effectively lead people.
In order to reverse this trend, organisations have to focus their attention on creating a culture of ongoing learning, where the impetus around professional development lies with both the business and its people, in equal measure. Business leaders must create opportunities for their managers to develop the skills needed for success – whether it’s via formal training programmes or learning from their colleagues in facilitated peer coaching sessions. At the same time, new managers have to take ownership of their own development by practising self-awareness and adopting a growth mindset. It’s then up to them to facilitate conversations with their line manager to explore career growth opportunities, and to actively step outside of their comfort zone in pursuit of new experiences.
