Having a job and an employer that employees feel good about is a top priority for talent in 2023.
The recent spate of layoffs and return to the office has a lot of pundits proclaiming the labor market is back to pre-pandemic levels. There’s no disputing that big reductions in force in the technology sector, coupled with growing concerns about a looming recession, are making talent nervous about job security and the future of their careers.
Even so, the paradigm shift that occurred during the past two years doesn’t appear to have tilted much in employers’ favor. Talent scarcity is still a real challenge for leadership everywhere — the skills gap continues to widen and people are holding on to their ideals about careers, work-life balance and personal values. Despite job losses in the tens of thousands, the labor market remains strong and hiring is occuring in some sectors. And with many business leaders preaching a mild recession ahead, talent is expected to continue to call the shots.
These conclusions were clear in Randstad’s 2023 Workmonitor research, an annual survey of more than 35,000 working adults in 34 countries. The data shows that while people are more concerned about job security, barriers to retirement and economic uncertainty, they are also insistent about having a job and an employer they feel good about.
Talent want it their way
It’s been 20 years since Randstad launched the Workmonitor research in the Netherlands to gauge worker sentiments — what keeps them up at night about their jobs, what excites them at work and what they want from an ideal employer. It’s no surprise that job security, fair pay and a good work-life balance have perennially been at the top of the list. This year, however, findings reveal a global workforce that prioritizes social values and job flexibility, and who are increasingly turning to employers for help with the soaring cost of living. And they aren’t afraid to leave an organization in search of the right employer.
For instance, one-third of those surveyed say they would rather be unemployed than be unhappy. This was especially the case among the youngest generation (18 to 24), with more than 2 in 5 (41%) feeling this way. Just about the same percentage say they would walk away from an employer that ignored their request for better working conditions. A slightly higher percentage (42%) say they wouldn’t accept a job from a business whose values on social and environmental issues don’t align with theirs; more than half of 18 to 24 year olds express this view.
The pandemic changed how people view their jobs and careers permanently. As a result, a new social contract has emerged between workers and employers — one that calls for greater empathy, flexibility and equity. It’s readily apparent that going back to the old dynamic isn’t going to work, and CEOs know they must provide a better experience for people, even when this means letting them go, as Microsoft has done in its recent workforce reduction.
Or when it comes to remote working policies, which have been a point of contention at many organizations. Despite mandates for employees to be on site, many leaders are realizing it’s a difficult edict to enforce, and some are even walking back their demands. In fact, as one economic professor reports, return to office (RTO) practices haven’t changed much since September.
Workmonitor research shows that remote working and job flexibility overall remain key benefits desired by people around the world, with 40% saying they wouldn't accept a job if it didn’t offer flexibility regarding where they could perform their job. This figure is higher (45%) among those 18 to 34 years old, but just 33% among older workers (55 to 67). The desire for flexible hours is even higher across the generations, with 45% declaring they wouldn’t take a job lacking such flexibility. A majority (50.3%) of 18 to 24 year olds feel this way as well.
Social values gaining as an important requirement
Beyond how they want jobs that fit their lives, workers around the world are insistent their employers’ values align with their own on a number of issues, including the environment, diversity and belonging. More than half (54%) say they will quit a job if they don’t feel they belong with the organization, and 77% say an employer’s values and purpose are important. Nearly half (44%) wouldn’t accept a job from an organization that is not making a proactive effort to improve its diversity and equity practices.
Part of this new social contract is the focus on diversity, equity and inclusion (DEI). People not only expect organizations to change how they support diversity and equity internally but also for society overall. In fact, businesses with DEI at their heart are poised to become societal leaders and employees are cheering on such efforts.
Aside from corporate responsibility, why is DEI increasingly important to business leaders? From a performance perspective, it is well established that a diverse workforce outperforms its peers. But beyond the numbers, the C-suite understands it’s important to talent attraction. As the Workmonitor data shows, more than 2 in 5 people would reject any employer not making an active effort to enhance their DEI practices. Dig deeper into the numbers and it shows more than half (52%) of those 18 to 34 hold such beliefs. If companies want to build sustainable workforces, they must align with the views of workers when it comes to DEI and other values as well.
While it may seem employers are regaining the upper hand in their relationship with workers during slowing economic times, great talent is still hard to acquire and retain. The strong labor market is evidence of this. By offering a compelling employee value proposition that connects with people, progressive leaders and businesses are positioned to win the resources they need to gain a competitive advantage in the war for talent.
