Picture the workforce of the future.
Did your mind go to a team of energetic youngsters clutching Mac books and chatting about TikTok? Hold your horses, as today's workplace is more diverse than ever and will likely be so soon.
Employment for people 16 years+ is close to its highest recorded rate, with 27.8 million people in employment at the time of the last census, and the workforce of the future has a raft of ages and experiences, with those working at 65 years and over at a record high as of June 2022.
While the pandemic did see people leave the job market in the 50+ age bracket, fewer people in skilled trades roles left. The takeaway? Innovative businesses have to appeal to a huge demographic. But, what does the new workforce need?
Family time
We don't choose them, but we love them. Family matters, and the new workforce is invested in spending more time connected with home life than ever before. In a study of 16 - 21-year-olds, over 40% put 'family time' above the need for leisure or even high income. A study of over 8000 professionals, the 2023 Salary & Recruiting Trends report revealed that almost 56 per cent of employees are even willing to accept a lower-paid job in exchange for a better work-life balance.
But being there for family means different things. And it’s not all about parental leave!
For example, the latest ONS data shows that there have been higher female activity rates in returning to work in the ages of 50 - 64. This puts these employees firmly in the grandparent demographic, as according to the ONS, the average age of becoming a grandparent is 63.
For employers, now is the time to consider flexible working, the right to rest, and how they can offer family-helping benefits. Examples could be childcare vouchers, but for grandparents and other family members, tangible rewards that can be used on everyday essentials to lighten the burden during the cost of living crisis could be essential.
Benefits
Employees' satisfaction with their benefits fell to 61 per cent in 2023, down from 64 per cent in 2022 and reaching its lowest point in the past decade, according to a MetLife study, and this is something that the workforce of the future needs to have on offer.
The survey of nearly 3000 employees shows that there could be a big disconnect between what's on offer and what employees expect or even need. The trends all point to employees wanting more financial and mental health support and finding meaning in their work.
Wise employers will be able to reward and recognise their team members not just at the big moments or with huge benefits packages but should opt to recognise effort and show appreciation frequently. Additionally, they should be communicating their existing benefits package far and wide or even replacing elements. Are there ways to spread an employee benefits budget into different areas, such as events and other initiatives?
Income
ONS research has found that from 2015 to 2016, 24% of young people (aged 16 to 21) felt a high income was significant to them in their occupation, whereas 86% thought it was very important or important. But the workplace of the future has employees who have expectations far exceeding those before them.
An excellent study showed that half of 16- to 17-year-olds expect to earn £35,000 by the age of 30, while actual stats indicate they may get around £23,000.
For employers, this disconnect in salary expectations could spell disappointment! Mitigating and managing expectations is critical, but building a brand matters. Employees who have intrinsic motivation have so because they have a cause. A business needs to have a positive and unique culture, purpose, and roles with meaning in order to retain the future workforce.
Security
The layoffs keep coming, even for big brands, affecting us all. While the older generations have lived through disasters aplenty, an analysis discovered that job satisfaction and security were much more important to young people than a high income.
While the studies aren't recent, in 2016, 60% felt that job security was paramount in an ONS survey. We can only imagine how this has increased given the rise of zero-hours workers, a gig economy, and a pandemic between then and now!
How can you engage the workforce of the future? The best principles for an engaged and happy workforce are to nurture your teams and ensure they meet all their needs. Maslow's hierarchy of needs is a great starting point, but at the top of the pyramid, it's time to do more. Supplement your long service rewards with milestone moments and offer regular rewards and recognition. Integrate peer-to-peer rewards and incentivise regularly.
Need a hand? We'd love to help! Speak to us today about reward and recognition, long service or even events, all part of the puzzle when it comes to retaining and inspiring the workforce of the future.
Sources
The employment-population ratio and changes in the UK labour market: 2008 to 2023
Annual Survey of Hours and Earnings