I covered economic data plus some hiring and financial data yesterday, and today let’s look at the new round of employee surveys.
Genpact’s Tech for Progress 360: Engage employees, strengthen company culture study found that 97% of business leaders think hybrid work environments will not damage corporate culture long-term. Nearly two-thirds (62%) of respondents said hybrid working arrangements will continue next year, 24% said they expect work to be primarily remote, and only 13% expect mostly in-office work.
One of the main challenges for employees working remotely is maintaining casual interactions with other coworkers. During the pandemic, 91% of respondents said most employee interactions have shifted toward problem-solving and away from socializing.
The relationship between managers and the people they oversee has also negatively impacted 42% of organizations. This dynamic hinders the development of future leaders, the report said.
Another challenge 48% of employers said they face because of remote and hybrid work arrangements is integrating new hires into the organization.
Pair that with Eden’s recent “Where Tech Works” report, which says employees in the tech sector preferred to be in-office. In addition, the report details that older employees prefer fully remote work setups as opposed to the hybrid model chosen by their younger counterparts. Those falling into the Generation Z age range liked working full-time in the office to make work-based connections with fellow employees and assist in fast-tracking their career growth. On the flip side, 42% of baby boomer tech workers chose full-time remote work as their ideal work setup.
For those falling into the categories of Gen X’ers and Millennials, a hybrid work style is preferred. Per the survey, 50% of millennials and 47% of Gen X’ers favor this option due to having additional responsibilities at home, such as children, while continuing to try and grow their own personal careers. Flexibility is key for these employees to thrive in the new era of work.
And per the World Economic Forum, Generation Z and Millennials will make up more than half of the tech workforce by 2025. Why focus on that age? Because per a recentsurvey by PwC, IT workers under 30 are two and a half times less likely to stay long-term in a job than those over 50. And IT workers are more inclined than workers in other areas to quit, with IT workers showing a 10.2 percent lower intent to stay than non-IT employees.
The final data point today – Carta looked at startup compensation based on the shift to remote work. Carta found that most startups (around 84%) adjust compensation based on location. Startups with bigger valuations are more likely to keep pay the same across the board.
Tweaking comp based on location will only become more common as the number of remote employees grows. Around 62% of new hires were based in a state outside the company’s HQ, up from 35% in 2019.
Why do we care?
I’ll remind listeners that the reason I keep covering this space is that it’s both complicated and does not appear to have a single answer. Those areas are ripe for explorartion and opportunity. There is a lot to perfect – can you hire remotely? Build culture? Position and grow new leaders?
Those that can will thrive.
I’ve been thinking a lot about demographics, particularly as it relates to IT services. The common observation at most traditional IT services shows is both how older and whiter it is. Then I pour over my YouTube data and see how much younger that audience is.
IT workers are more likely to leave – why? I’d offer it’s the numerous conflicting pressures of the role. Take everything else and layer this additional pressure on, the IT business owners have new pressures.
They do say acknowledging the problem is the first step, right? This feels worthy of exploration.