Companies have gone through a lot over the last couple of years. When it came to working, they had to experiment with a few different work models — remote, hybrid, and others — primarily driven by the COVID-19 pandemic. Besides that, a few other aspects, such as compensation and benefits, employee experience, and DEI, have emerged as top priorities for companies. So, how will work or the workplace look like this year?
Forrester recently published a few predictions about the workplace for 2022. While some of them align with the findings we published from a TrustRadius study, a few others are quite different, and a few are quite interesting. For example, one major prediction is that many companies would fail at anywhere work. At the same time, many organizations will also invest more in employee experience.
The following are a few major predictions by Forrester about work for this year.
See more: 71% of HR Professionals Think the Great Resignation May impact DEI Efforts: HR Trends Report
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Many Companies Will Fail at ‘Work from Anywhere’ Culture
COVID-19 variants and vaccinations are one thing. But Forrester predicts that about 60% of organizations that will try a hybrid work culture will not get it right. While company leaders claim to support a hybrid culture, many design job roles, meetings, and even promotion opportunities around face-to-face experiences. Further, many of them will not make the right investments to support hybrid work and then blame it if productivity suffers. As a result, about one-third of the companies will fail at ‘work from anywhere’ culture.
Forrester also predicts that a few failures will come from organizations that insist on the in-office model, which may not sit well with many employees. This will lead to an increased attrition rate and resignations till employers are forced to make work-from-anywhere actually work.
2. About 20% of HR Budgets Will Be Dedicated to Employee Experience
There is no doubt that employees have been negatively affected in many ways over the last couple of years, leading to the Great Resignation. To combat this, many organizations will invest in improving employee experience (EX) to retain existing employees. A study conducted by Forrester during the pandemic showed that only 48% of companies actually have a proper EX program. This is expected to jump to 65% this year, and the allocated budget will also increase.
Most companies may also realize that everything they do will affect their employees. Hence, they will start fine-tuning everything, from their policies to rewards and recognition and hiring talent to benefits and compensation.
3. Almost All Companies Will Fail at Figuring Out Compensation
Talking about compensation, Forrester predicts that a full 100% of the companies will fail at figuring out the proper compensation. According to the research company’s Q3 2020 US Future of Work study, only 45% of employees said they were paid well for what they did. Then came the Great Resignation and associated challenges, which makes identifying the right compensation almost impossible. While some companies may want to hire remote talent and pay them based on their location, another company may offer a higher package to the same person. Some companies may pay more in the short term. Then, there are a large number of job applicants who feel that just money is not enough. They want the right culture, meaningful work, and tools to stay engaged. As such, most companies will struggle to get employee compensation right.
4. Half of Fortune 1000 Companies Will Provide DEI Statistics in Their Next Annual Report
Diversity, equity and inclusion (DEI) has become a critical part of a company’s success. Further, in 2020, the Security and Exchange Commission (SEC) in the U.S required companies to report their approach to human capital. Since then, many companies have slowly started including data on how people are key in their business. A few companies have also begun providing detailed statistics about women and employees of color in their workforce. Some companies have started reporting on ‘diversity councils’ they have created in the organization. With the increased emphasis on DEI, more companies may be expected to provide details and statistics about people from various backgrounds involved in the workforce.
5. Companies May Announce Their “Automation First†Workforce Strategy
Many companies have already realized, and many will continue to realize, that technology is as vital as human talent. Specifically, tools and technologies that automate mundane tasks and make complex tasks simpler, such as artificial intelligence (AI) and machine learning (ML), will become as crucial as human talent. Many companies will also see that intelligent automation can fill the talent and skill gap at different levels and roles. Some may also put a cap on human employment, increase their intelligent automation investment, and even witness improvement in productivity and quality. One or two companies may also announce this strategy, shifting their future net employment gains to software. A few may not make such bold announcements but will see the value in heading in that direction. This may lead to “employing†robots that work along with human staff members.
See more: The Great Resignation: One in Four U.S. Workers Plan to Quit in 2022
Our Take
While a few predictions by Forrester may look dystopic, there is a huge opportunity for organizations to get things right. For example, while pay is one of the top deciding factors for many employees to stay in an organization, a few other factors are also on the priority list for them. For example, a beqom study showed that 77% of people were willing to take a lower than market pay if they got flexible working hours. Further, by creating a supportive work environment and helping employees upskill, organizations can retain and hire quality talent.
While Forrester also predicts that most companies will fail at the “work-from-anywhere†culture, many organizations have also implemented it successfully. While there will still be a few kinks, organizations will learn to overcome them through technology and process optimization.
Ultimately, organizations can move toward business success this year by providing the right employee experience and technology integration.
What are some of your predictions when it comes to the workplace this year? Share with us on FacebookOpens a new window , TwitterOpens a new window , and LinkedInOpens a new window .