Post-Pandemic Workplace Trends

Everything about work has changed. Have you heard this too? It’s all the buzz recently with several surveys on employee and employer perspectives.

In Part 1 of our two-part series on the future of work post-COVID-19, we’re taking a look at the changes in the job market and employee expectations for the post-pandemic workplace.

COVID-19 and Employment

In 2020, we saw near record-high unemployment. From an industry perspective, the strain was felt across the board, but the service-industry workers took the biggest hit. According to Pew Research, more service jobs were lost than any other sector from February 2020 to February 2021.

Service jobs started returning in the spring of 2021, but not to pre-pandemic levels. Consumers are slow to return to “normal” behaviors: they are content with self-service, taking meals to-go, and working at home. This stalls the rebound some service businesses. Until the economy expands further, or those workers are redeployed, unemployment rates aren’t expected to completely return to 2019 levels.

Across industries, blue collar employees experienced layoffs and unemployment at higher levels than white collar employees (66% vs. 40%). White-collar workers also had much more opportunity to work from home; for those blue-collar workers who did work from home, the majority returned to work by the summer of 2020. In Q1 2021, only 16% are still working remotely compared to 49% of white-collar workers.

And what about those white-collar workers? The spotlight is on them. Will they return in droves?

Flexibility in the Post-COVID-19 Workplace

EY recently titled a press release: “More than half of employees globally would quit their jobs if not provided post-pandemic flexibility.” While surprising, the claim was based on their 2021 Workforce Reimagined survey. This type of response is not isolated to the EY data. Prudential did a similar survey in March 2021 where workers expressed a strong preference for flexibility: 87% wanted work to work remotely at least one day a week, and 33% did not want to work for a company that required full-time, onsite work.

Additional research shows that many employees already changed jobs in 2020. Prudential reported work-life balance as the top reason (30% of respondents). For those who plan to look for a new job in 2021, flexibility is also a top reason listed.

Employee Attitudes About Post-Pandemic Work

American office culture has a notorious reputation for long hours, high stress, and terrible balance. In 2020, companies overcame their own biases about remote work to create productive remote models. Among the many changes, the cultural adaptation was a big one. But, employees report positive results: 50% of EY’s respondents claim their companies’ organizational culture has improved since March 2020 (and only 31% said it was worse). In the post-COVID-19 workplace, in-person work may not equal better company culture.

PWC, in their March 2021 Workforce Pulse Survey, reported an even larger issue:

“…the past year has prompted many employees to reconsider their values or make major changes in their personal lives, which is changing how they work and what they need to be productive.”

These changes include moving away from urban job hubs to more economical locations and seeking additional paid time off to pursue interests and family activities. Both examples will influence the future of work post-COVID-19.

PWC reports another key finding: the prioritization of new skill development. Participants expressed a desire for more training in areas that would increase their productivity and employability–analysis, creativity/innovation, technology and leadership. Employers should be pleased that employees want to acquire more skills. But if training and development were not previously emphasized at their company, it will also pose a potential challenge for their post-pandemic workplace.

And the Employers’ Response?

The year 2020 had a big impact on the American worker. Will 2021 be the year when work changes for the better? It depends. First of all, a person’s definition of “better” is relative to their situation; the health of the employment market varies greatly based on the type of job. Secondly, now that white-collared workers have said their piece, all eyes are on the employers and their response. The story continues to unfold. Stay tuned.