New reality in the world of work: companies are insufficiently prepared
Although employers are taking steps to address "new reality" challenges and work models, a Willis Towers Watson study shows they are not prepared.
As companies shift to new ways of working, there is a growing number of organizations in Western Europe that are making improving the employee experience a top priority, according to a new study on the so-called employee experience by Willis Towers Watson. As the sum of all touchpoints and moments that matter between employees and their employer, this experience is at the heart of delivering outstanding customer experiences and superior business results, it says. However, while employers recognize that adapting to the new reality will take time and require a hybrid work model, many are not ready to address the challenges associated with improving the employee experience.
Positive experience is the key factor
Almost all employers surveyed in Western Europe (91 %) indicated that improving the employee experience will be a key priority in their organization over the next three years. By comparison, only 40 % said it was important to their company before the pandemic. And for good reason. Most Western European respondents believe a positive employee experience is an important factor in employee well-being (81 %), engagement (74 %), productivity (68 %) and talent attraction and retention (67 %).
Many respondents believe it will take time to fully adapt to a post-pandemic world. Only 9 % indicated that the pandemic has receded enough to end temporary pandemic-related policies and programs. The rest felt they would be ready to do so in the second half of this year (42%) or in 2022 or later (49%). In addition, employers expect the percentage of their employees who work primarily from home to drop from 51 % currently to 21 % in three years. However, they expect one in three employees (34 %) to be working a mix of on-site and remote work in three years, twice as many as today (17 %).
Employers are not prepared for the new reality
"Whether through employer actions such as pay cuts and layoffs, or through virtual work and personal hardships for some employees, the pandemic has exposed shortcomings in the employee experience at many companies," said Chloe Karam, director of talent and rewards at Willis Towers Watson. She added, "Improving the employee experience has therefore become an imperative for employers that will take time and present challenges that many are currently unprepared for."
In fact, nearly nine in ten employers (87 %) recognize that the new reality of labor markets will require a hybrid model for many roles; however, many employers are not yet ready to implement this aspiration. Only four in ten (42 %) of employers surveyed plan to adapt career models in response to the changing way work gets done. A similar proportion (39 %) are in the process of dissolving Total Rewards to reflect a changing employee profile. More than half of employers surveyed (57 %) are flexible about where or when they work.
Digitization important tool
Leveraging digitization to fundamentally transform the employee experience over the next three years was highlighted as an important focus area by a large proportion (75 %) of companies surveyed in Western Europe. And areas where companies said they plan to improve the employee experience by enhancing their offerings or changing aspects of their programs to meet needs include learning and development (63 %), manager training (61 %), inclusion and diversity (61 %), and flexible work arrangements (59 %).
Marijana Cvitkusic, Associate Director Employee Experience at Willis Towers Watson Switzerland, added: "As companies move towards a post-pandemic era, their ability to improve the employee experience will be critical. To succeed, they must start with a bold employee experience strategy that supports their business strategy and is based on a consistent model. Then they can turn to execution - aligning programs and policies that reflect flexible working, paying employees fairly, improving benefits offerings, including well-being programs, and also supporting employees in a more agile and flexible work environment and aligning total rewards programs to meet the needs of a diverse workforce."
Source: Willis Towers Watson
