It’s fair to say that 2020 rocked many organizations and business models, upending priorities and plans as business leaders scrambled to navigate a rapidly changing environment. For many organizations this included responding to the social justice movements, shifting to a full-time remote staff, determining how best to support employees’ wellbeing, managing a hybrid workforce, and now addressing legal concerns around the Covid-19 vaccine.
It would be nice to believe that 2021 will be about stability and getting back to normal; however, this year is likely to be another full of major transitions. While there has been a lot of focus on the increase in the number of employees working remotely at least part of the time going forward, there are nine additional forces that I think will shape business in 2021:
1. Employers will shift from managing the employee experience to managing the life experience of their employees. The pandemic has given business leaders increased visibility into the personal lives of their employees, who have faced unprecedented personal and professional struggles over the last year.
It’s become clear that supporting employees in their personal lives more effectively enables employees to not only have better lives, but also to perform at a higher level. According to Gartner’s 2020 ReimagineHR Employee Survey, employers that support employees with their life experience see a 23% increase in the number of employees reporting better mental health and a 17% increase in the number of employees reporting better physical health. There is also a real benefit to employers, who see a 21% increase in the number of high performers compared to organizations that don’t provide the same degree of support to their employees.
That’s why 2021 will be the year where employer support for mental health, financial health, and even things that were previously seen as out of bounds, like sleep, will become the table stakes benefits offered to employees.
2. More companies will adopt stances on current societal and political debates. Employees’ desire to work for organizations whose values align with their own has been growing for some time. In 2020, this desire accelerated: Gartner research shows that 74% of employees expect their employer to become more actively involved in the cultural debates of the day. I believe CEOs will have to respond in order to retain and attract the best talent.
However, making statements about the issues of the day is no longer enough: Employees expect more. And CEOs who have spent real resources on these issues have been rewarded with more highly engaged employees. A Gartner survey found that the number of employees who were considered highly engaged increased from 40% to 60% when their organization acted on today’s social issues.
3. The gender-wage gap will continue to increase as employees return to the office. Many organizations have already adopted a hybrid workforce — or are planning to this year — that enables employees to work from the corporate office, their home, or an alternate third space (coffee shop, co-working space, etc.). In this hybrid scenario, we are hearing from CHROs that the surveys of their own employees are showing that men are more likely to decide to return to their workplace, while women are more likely to continue to work from home.
According to a recent Gartner survey, 64% of managers believe that office workers are higher performers than remote workers, and in turn are likely to give in-office workers a higher raise than those who work from home. However, data that we have collected from both 2019 (pre-pandemic) and 2020 (during the pandemic) shows the opposite: Full-time remote workers are 5% more likely to be high performers than those who work full-time from the office.
So if men are more likely to work from the office, and managers retain a bias towards in-office workers, we should expect to see managers over-rewarding male employees at the expense of female employees, worsening the gender-wage gap at a time when the pandemic has already had a disproportionate impact on women.
4. New regulations will limit employee monitoring. During the pandemic, more than 1 out of 4 companies has purchased new technology, for the first time, to passively track and monitor their employees. However, many of these same companies haven’t determined how to balance employee privacy with the technology, and employees are frustrated. Gartner research found that less than 50% of employees trust their organization with their data, and 44% don’t receive any information regarding the data collected about them. In 2021, we expect a variety of new regulations at the state and local level that will start to put limits on what employers can track about their employees. Given the variability that this will create, companies are likely to adopt the most restrictive standards across their workforce.