Changing employee expectations.

Driven by evolving work environments, technological advancements, and shifting societal values, employee expectations have undergone significant change in recent years.

Now, a new study by Oracle that surveyed 1,000 employees and HR leaders in the UK has found that despite current economic uncertainty, worker expectations for pay, flexibility, and training are continuing to increase. At a time when many of those surveyed were worried about job stability, burnout, a lack of career growth, having to reduce their standard of living or take on a second job, 57% of them still had higher expectations than they did three years ago. Pay raises to meet inflation, flexible work options and more learning and development opportunities were seen as essential, with 89% of them saying they would walk away from a job that doesn’t meet their expectations, even during a recession whilst 55% were more worried about having the right job than the right salary.

What employees expect from employers is obviously changing and with recruitment and retention problems in many industries, organisations that don’t address these changed employee expectations may find it difficult to build a positive work environment, retain talent, foster productivity, and create a strong organisational culture that benefits both the employees and the organisation as a whole.

To address these changing expectations, employers should consider implementing the following strategies:

• Flexible work arrangements, with remote and flexible options

• Opportunities for continuous learning and career development.

• The development of a strong company culture with a clear mission and purpose.

• The embracing of diversity and inclusion initiatives and the creation of a sense of belonging for all employees.

• Prioritising employee well-being and the creation of a supportive work environment.

• Investment in technology and tools that improve productivity and collaboration.

• Enhancing transparency and communication channels within the organisation.

By understanding and addressing these evolving expectations, employers can attract and retain top talent and create a positive work environment that promotes employee engagement and satisfaction. Failure to meet employee expectations can have negative consequences for both the employees and the organiation with detrimental effects on job satisfaction, employee retention, morale, teamwork, customer satisfaction, and the organisation's overall reputation. It is therefore essential for organisations to prioritise understanding and meet employee expectations to foster a positive work environment and achieve long-term success.

The growing importance of ESG in recruitment and retention

Companies may risk losing talent if they don't take account of the greater ethical awareness of younger jobseekers and employees, with the majority willing to sacrifice earnings for their value.

Over the past few years we’ve seen businesses move their priorities to embrace environmental, social and governance (ESG) issues. Whilst it may not seem like the most exciting element of a remuneration package, increasingly job seekers are highlighting that its effective implementation is one of the reasons that leads them to initially accept a position and then stay with an organisation.

The influence of millenials and their commitment to social contracts is already being felt across business. Research by Robert Half shows that 38% of employees would look for a new role if they thought their organisation was not doing enough on ESG issues, and this rises to 47% of 18-34-year-olds. 53% said they would never work for an employer they thought was unethical, regardless of the salary on offer and this increases to 59% among the younger group.

When it comes to attracting new talent, it’s no longer as easy as offering the most competitive remuneration package. 22% of the 18-34-year-old group listed corporate values as their leading concern when choosing a new role, with 50% saying they research potential employer’s corporate values before making an application.

In a tight recruitment market a clear ESG strategy is becoming a vital tool for differentiation. If it came down to two employers offering the same salary, 69% of the 18-34 group said they would review the companies’ corporate values before making their decision.

Young professionals are looking to make a positive impact, in the workplace through the work they do and the choices they make. To attract the best and brightest talent, it’s vital to remember that todays and tomorrow’s job seekers aren’t just considering salaries and benefits. ESG has become a critical part of recruitment and retention especially among younger employees who want to work for an organisation that has a clear, demonstrable ESG plan in place with tangible, measurable actions.