What we learned from 2021 was that our businesses needed to manage around a pandemic and survive. Many employees did not want to work or return during the pandemic. In 2022 our companies will need to address both again—pandemic and survival.
Companies learned two big words in 2021 “PIVOT” and the “GREAT RESIGNATION”! In 2022, those two words will still be in our vocabulary. The “Great Resignation” began to hit all of our businesses in 2021. The Great Resignation is a phenomenon that describes record numbers of people leaving their jobs after the COVID-19 pandemic ends. Since the pandemic seems to continue, our companies will need to “PIVOT” through this in 2022. The Great Resignation positions that hit the hardest were the following.
- Resignation rates are highest among mid-career (supervisors and managers) employees,
- Resignation rates are highest in the education, technology, and healthcare industries,
- Front line workers (hourly hospitality, constructions, food service, retail, etc.).
Below are the Predictions for 2022 by the researcher Josh Bersin. Bersin has studied market trends and organizational performance. He has been featured in Forbes, Harvard Business Review, and The Wall Street Journal. Below are his top ten 2022 predictions.
- The economy will grow with a limited workforce.
- Businesses will need to embrace the Irresistible Organization –see chart below.
- Embrace meaningful employee work – see chart.
- Strong management needs to be better than ever – see chart
- Business should embrace Diversity, Equity and Inclusion – Millennials and Gen Z care about this topic (25% of the workplace is GenZ, Millennials is 35%)
- Companies will need to explore a hybrid work environment to include flexible hours, flexible work, etc.
- Compensation, rewards, and benefits will need to be re-reviewed based on the workforce needs.
- Businesses need to create a positive workplace – see chart for details
- Employees will require Health and Wellbeing benefits (i.e., daycare, personal fitness, emotional wellbeing support)
- Employees will want growth opportunities (significant to Millennials and GenZ) – see chart for details
Businesses should discuss the number #1 retention strategy, “Trust in the Organization.” Surveys conclude that employees require Organizational Trust. Trust includes a mission, a purpose beyond financial goals. In addition, their leadership’s transparency, empathy, and integrity are critical for employees to STAY and show commitment. Another factor for retention and trust is continuous investment in people (#2). Finally, focus on the social environment and community (#3). The chart below will give you some ideas on how to build your organization and create “The Irresistible Organization.”
Re: Josh Bersin 2022 Predictions, The Bersin Company, https://joshbersin.com/hr-predictions-for-2022/
Economic News Release: Employer Costs for Employee Compensation Summary, U.S. Bureau of Labor Statistics, December 2021. https://www.bls.gov/news.release/pdf/ecec.pdf
Economic News Release, Job Openings, and Labor Turnover Summary, U.S. Bureau of Labor Statics, November 2021 https://www.bls.gov/news.release/jolts.nr0.htm
