Will Work from Anywhere Change in Tough Times?
“Inflation is the dragon we need to slay.” The post-Budget battle cry from Treasurer Jim Chalmers all but confirmed challenging economic conditions will persist for some time to come.
Inflation is the highest it’s been in a generation. Prices and interest rates are rising. The dollar is low, supply chain issues continue and there’s a skills shortage. These conditions add a difficult dimension to the war for talent.
Many leaders felt these headwinds early and have implemented spending cuts already. Some sectors are enjoying record performance. They’re bullish about their prospects in these economic conditions and investing in their people. How can companies with these contrasting experiences and responses compete to attract talent? And what does it mean for retention?
Executives and HR leaders could easily revert to their pre-COVID strategies to attract and retain people. But working culture and staff expectations have changed after so many of us worked from home during the pandemic, meaning previous playbooks may no longer be applicable.
Hybrid work and diversity
Should work from anywhere policies change now that times are tough? Would the end of hybrid practices make it more difficult to keep high performers and attract new talent?
Many people enjoy hybrid working and don’t want to give it up. But we know younger workers are generally happy to return to the office. They thrive on the social aspect of work. Many Millennials and Gen Zs live in share homes or with their parents, so they didn’t have the same convenience of a dedicated workspace that their older colleagues enjoyed.
Flexible working is particularly beneficial to primary caregivers. And we know women typically benefit more from hybrid practices because they carry the bulk of the domestic load. If there’s a push for staff to return to office-based working, what does this mean for how companies can attract and retain a diverse workforce?
Relationships and productivity
We learned to operate outside our norm, forming productive and efficient teams in virtual environments during COVID. But we’re innately social creatures and most of us are visual learners and communicators. That means relationships are best formed and firmed through face-to-face interactions. And productivity is the result of relationships: the ability to work with and through people.
Those relationships and in-person support can be essential to boost morale when companies are navigating economic challenges. What does this mean for leaders when they’re asked to remove business costs, including positions? Is it easier to reduce roles when the human element isn’t present? Are leaders unconsciously favouring staff they see, meaning those who do work from the office more are likely to enjoy job security and career progression?
Culture eats strategy
Work practices reflect a company’s culture. Key, though, is creating and enhancing the sense of community that everybody seeks from their work. Staff engagement, loyalty and satisfaction are the drivers of a company’s ability to attract and retain high-performing staff.
Some companies provide free coffee, meals or drinks to encourage their people to be in the office and to create opportunities for culture to percolate. This can be a hit with younger staff but is less popular with others, even though it creates the opportunity for informal conversations, to build relationships and share ideas.
The leadership challenge
Work practices, economic conditions and people’s expectations will continue to change as Australia navigates this new fiscal cycle.
We know people leave toxic cultures and bad managers. We also know high engagement drives loyalty and helps create a positive working culture across the entire organisation.
How should leaders evolve their skills and strategies so they can continue fighting at the frontline of the war for talent and retention?