Some of the major trends for next year include healthcare in light of ACA penalties increasing to the maximum in 2016, the flexible yet modernized office space and the first group of Gen Zs starting work in May. As with every year, there are some significant obstacles such as workplace planning, the challenge for talent, adapting to change and training the next generations of workers. While these might be challenges, there are also great opportunities for companies to automate, modernize and lead in 2016.
The acceptance of boomerang employees and the challenges for job seekers.
A boomerang employee is one that leaves a company only to return later, a decision that is typically based on compensation, opportunity or family affairs. In the past we found that 48% of companies had a policy against hiring boomerang employees, but now 76% say they are more accepting of hiring them. This trend is happening because professionals are switching jobs more often, and the access to talent through technology is greater than ever before. Companies have recognized this and have created LinkedIn groups, Facebook groups and email groups so their former employees can stay connected. The benefits of rehiring former employees are that they are familiar with the company culture, don’t require as much training and have a new perspective.
The leadership gap will start being filled as boomers retire in numbers.
Next year, more than 3.6 million baby boomers are set to retire and more than one-fourth of millennial workers will become managers. Succession planning and next generation leadership development will start to be prioritized. In order to cope with the loss of boomers, companies will be hiring some back as consultants and advisors to current executives as well as new or upcoming leaders. This new generation will fill the leadership gap by flattening corporate hierarchies, empowering others to succeed and forcing companies to make an impact on society, rather than just focusing on money.
Workplace flexibility becomes the biggest topic of conversation.
In study after study, the topic that keeps coming up is workplace flexibility. It’s such a big topic and affects us all in some way, shape or form. First, we work 47 hours per week now, and there is no longer such a thing as a 40 hour workweek. Second, 64% of managers expect their employees to be reachable outside of the office on their personal time. Third, more employees are willing to either switch employers or stay at their current employer, based on their flexibility programs. With the rise of telecommuting, co-working spaces, globalization and new technology tools, workers are demanding flexibility. In the next few years, nearly every company will have a workplace flexibility policy.
Companies get serious about office design and use it as a way to increase collaboration and attract top talent.
With the rise of collaborative technologies, generational preferences, globalization and an employee’s desire for work-life balance, the office is becoming more decentralized, and space is shrinking. By 2020, the average amount of space per employee will drop to 150 square feet, down from 400 in 1985. More employees are working remotely, and companies can save millions of dollars by shrinking their offices. Companies will move away from open offices and create multi-facet office spaces that give employees options. Some employees work better in cubicles and others work better in a lounge or cafeteria. Based on our research, employees want flexible furniture, a distraction-free environment and lounge areas. Companies will have to pay close attention to their office environments and invest in improving them so employees can be more productive and happier at work.
Companies figure out how to automate more jobs and modernize their workplaces — at the cost of employees.
There are a lot of factors that have led us to believe automation will be a major force next year in our economy. The contributing factors include: minimum wage increases, companies striving to create more business value with fewer expenses, the rising costs of healthcare, pressure to be modernized and advances in robotics. Automation is impacting all types of jobs from bank tellers to cashiers to receptionists to mail carriers and even telemarketers. Employers benefit by creating a more efficient production line and lowering the cost of talent, while workers have fewer jobs and more pressure to produce or be replaced.
The first group of Generation Z graduates from college and enters the workforce.
Generation Z, born between 1994 and 2010, will enter the workforce starting next May. Compared to millennials, our research shows that members of Gen. Z are even more entrepreneurial, loyal, flexible and realistic in their approach to careers and purchasing. They choose opportunities for growth and work-life balance over salary when selecting what company to work for. Like millennials, they will seek mentors and supporters because they are first starting out in their careers, and they will be even more connected through technology. About a third desire to become managers in the next five years already, and 45% believe working with boomers will be challenging.
More professionals seek gigs instead of full-time jobs as the sharing economy and freelance marketplaces expand.
Professionals choose freelance jobs in order to gain more control over their lives, have flexibility and be their own boss. By 2020, about 40% of Americans will be part of the gig economy, and Uber already has over one million drivers globally. The trends that have created the gig economy include: the rise of freelancing, the access of technology (especially on the mobile phone), the impact of the recession, and the desire to have “side-gigs” and flexibility. For employers, the gig economy allows them to hire on-demand, lower costs and have more competition for talent.