- It’s definitely going in the right direction shortage of skilled workers
- higher salary remains the most important engine
- More flexible working: Came to stay
- happiness and well-being are important
- The Secret Desires: Diversity, equity and inclusion
Do you want Elon Musk as your boss? Probably not after the staff at Twitter and Tesla report what he allows himself. Linette Lopez, Editor at business insider, headlined: “Twitter doesn’t stand a chance: Elon Musk has always been a phony – now he’s exposed”. That the Musk a blatant one lack of respect towards his employees is surprising. Actually, a completely different behavior is announced. Because: Employees are increasingly shaping, shaping and changing the labor market and companies. In times of a shortage of skilled workers, you decide where to go. And that’s good. But: At what points do the employees want to put their stamp on the working world? A search for traces of the rating portal Glassdoor and the job portal Indeed.
There is a clear lack of skilled workers
In the next 10 to 15 years, the last employees of the baby boomer generation will retire. At the same time, there are not enough workers to compensate for the departure. Result: Demographic change is having a huge impact on the labor market. What many bosses and managers didn’t really want to believe is becoming reality: There is a lack of skilled workers, especially in industrialized countries. The economists teams from Indeed Hiring Lab and Glassdoor Economic Research have pooled their expertise and described the expected trends (Hiring and Workplace, Trends Report 2023). What will the coming years bring to the labor market, how will these changes affect employers, employees and the future of work?
Trend 1: The starting point has changed. Companies are having increasing problems finding and hiring new employees. It is a fundamental error to think that COVID will recede and with it the hiring difficulties will go away. COVID has accelerated the changes. This means that the shortage of skilled workers that can now be observed will continue. And even if economic momentum weakens (keyword: Ukraine war) and companies are hiring fewer labor supply is likely to remain tight in the long term. There will be fewer qualified workers and, in comparison, many vacancies. The experts’ calculations show falling numbers in the labor force between 15 and 65 years of age in the period 2026 to 2036 in western industrialized countries:
- UK down 3.1 percent
- US down 3.2 percent
- Canada down 3.3 percent
- France minus 3.8 percent
- Germany minus 7.2 percent
The strongest decline (minus 7.2 percent) in skilled workers is expected for Germany. This signals shifts in the balance of power in the labor markets. It is the employees who shape and change the labor market.
Higher salary remains the most important driver
Trend 2: Employees strive for higher pay. The salary is still a decisive factor in the choice of company, but additional benefits can have a binding effect. That’s according to an Indeed survey of US workers (25 to 54 years old) who were looking for a job. When asked about the most important reasons for changing jobs, the following picture emerged:
- More money: 31 percent men, 30 percent women
- Other activity: 17 percent men, 15 percent women
- Desire for more home office: 11 percent men, 16 percent women
- More flexibility: 11 percent men, 12 percent women
- Dissatisfied with management: 9 percent men, 11 percent women
- Shorter commute: 9 percent men, 8 percent women
- Change of location: 7 percent men, 6 percent women
- Temporary contract: 7 percent men, 6 percent women
In addition to the salary, additional perks are important. In the US, financially supported health insurance is an important issue. In Germany, these are an additional company pension plan, flexible working hours, a paid job ticket, lunch allowance, health care, sports programs, fitness offers, etc. What is the message behind the additional benefits? Employers have to make an effort and be creative if they want to attract job seekers.
More flexible working: here to stay
Trend 3: Home office and more flexibility in working places and times will remain. The gateway to more flexibility in many areas was the corona pandemic. Now the protective measures have been lifted, but the desire to do it in everyday work has remained further flexible to be. The experts from Indeed and Glassdoor assume that that change is and will remain.
A certain proportion of employees continue to work from home on a regular basis. According to the assessment of IFO Institute every fourth employee in Germany will continue to work in the home office (USA: 30 percent) – significantly more in some sectors.
“Overall, the share in the German economy has stabilized at 25 percent of the workforce. That should also be the new long-term value,” says Oliver Falk, Head of the IFO Center for Industrial Organization and New Technologies. A sure indication of the continued existence of home office are tax advantages, which are now permanent.
Happiness and well-being are important
Trend 4: Happy employees are more likely to stay with the company. 86 percent of around 5,000 US employees surveyed stated that the Atmosphere at work influences private life and also how employees feel at home. Around 46 percent expect happy at work to be, increased in the past year. To be happy at work is the right one Dealing with stress another important indicator.
According to that Work Wellbeing 2022 Insights Report by Indeed 90 percent of people believe it’s important that we feel comfortable at work. But only 49 percent say that their company perceives happiness and well-being at all. But: Perceiving and understanding the well-being of employees is becoming increasingly important to attract and retain talent.
It is also significant that the superiors employees take their feelings seriously and that they are given space to address things. After salary considerations, too much stress, lack of satisfaction and lack of happiness are the main reasons why people look for new job opportunities.
The secret desires: diversity, justice and inclusion
Trend 5: Diversity, justice and inclusion are becoming increasingly important. Those are points raised for respondents in developed countries over the past year gained importance to have. For example, 40 to almost 50 percent of those surveyed found a diversity program important to the company.
72 percent of workers aged 18 to 34 said they would consider a Reject a job offer or leave a company if they do not believe their manager (or potential manager) supports diversity, equity and inclusion initiatives. The value is lower for older employees. Around two-thirds of those surveyed criticize the fact that there is a gender imbalance in corporate governance or when there is a lack of ethnic diversity.
The economists from Glassdoor and Indeed publish in their report that there are age-related differences, “but especially with a view to future generations, German companies should also address this issue – and not just on paper.” The authors confirm that precisely the points Diversity, justice and inclusion play an even bigger role in the USA than in Germany.
Conclusion
Of course, the Glassdoor and Indeed team of economists don’t know exactly what’s going to happen to the job market in the next few years either. And there are also no paradisiacal conditions for employees. But the five trends make it clear that attracting, hiring and retaining workers will be a challenge for employers for the foreseeable future. The strength of a company’s employees is directly related to their business success – even if Mr. Musk has not yet understood this.
More on the subject:
