Recap
In Part I of this series on the Future of Work, we wrote about the Great Resignation and the evolving expectations of the modern workforce, and how the traditional "loyalty contract" between employers and employees is no longer sufficient. To achieve the loyalty they once had while keeping employees happy, companies must embrace the new “social contract” and implement strategies that align with the changing dynamics of the workplace.
Embrace the New Social Contract
Here are six ways companies can attract and retain employees under the new social contract...
1. Acknowledge and Accommodate Employees' Lives Outside the Office
Recognizing that employees have personal responsibilities and commitments beyond work is crucial. Companies should offer flexible schedules, remote work options, and support systems to help employees balance their professional and personal lives. According to Gallup, 54% of employees would leave their current job for one that offers better work-life balance.
2. Provide the Right Programs, Policies, and Benefits
One size no longer fits all - employees' sense of wellbeing and security is becoming closely connected to the completeness of their benefits package, as it relates to their individual needs. Offering benefit packages that extend beyond the traditional benefits of salary and healthcare to mental health support, financial wellbeing and more could be make-or-break for individuals’ employment decisions. A study by the Society for Human Resource Management found that companies with robust benefits packages experience 53% lower employee turnover rates.
3. Prioritize Flexibility
Embracing a flexible work culture that allows employees to manage their time and responsibilities effectively is essential. Companies should encourage open communication and trust-based management, focusing on results rather than strict adherence to traditional work schedules. Gartner suggests organizations consider moving from an Office-Centric Design to a Human-Centric Design.
4. Offer Childcare and Pet Care Subsidies
Recognizing the importance of caregiving responsibilities by providing subsidies or on-site facilities for childcare or pet care can alleviate financial and logistical burdens, improving work-life balance and employee satisfaction. A report by BCG and Moms First noted five companies that are leading the way in childcare benefits, demonstrating a compelling up to 425% ROI for businesses that choose to invest in the well-being of their employees’ families. And according to a survey by insurance carrier Nationwide, nearly one-third of pet owners surveyed said they would be more likely to stay at an employer that offered pet benefits; this is even more important to Gen Z (49%) and millennials (45%).
5. Recognize and Reward Excellence
Implementing robust recognition and reward programs that celebrate employees' contributions, both tangible and intangible alike, can foster a sense of value and appreciation. Effective recognition programs can take many forms - from written or verbal praise, to monetary rewards, to non-monetary incentives like additional time off - but they should always be timely, specific, and tailored to individual preferences. A Gallup WorkHuman study noted that employees who receive regular recognition are 56% less likely to quit their jobs.
6. Construct Clear Career Paths
As the workforce environment, and the associated skills required, continues to evolve by the day, having visible professional objectives ensures transparency and builds employee-employer trust. Companies should offer opportunities for professional development, career advancement, and meaningful work that aligns with employees' values and aspirations. 90% of employees say that greater professional development and upskilling opportunities would encourage them to stay with their current employer.
By embracing the new social contract and implementing these strategies, companies can foster a culture of trust, respect, and mutual commitment, ultimately attracting and retaining top talent in the evolving future of work. In an era where employees prioritize purpose, flexibility, and work-life integration, companies that fail to adapt risk losing their best talent to organizations that better align with the evolving values and expectations of the modern workforce.
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