In the wake of the COVID-19 pandemic, the financial landscape has undergone significant changes, and so have the expectations of the workforce. The rise of remote work, a heightened focus on work-life balance, and the influx of younger generations into the labour market have all contributed to a shift in what employee’s value in a workplace.
In a tight labour market where the competition for workers is high, the need to ensure your business attracts and retains strong performers is more crucial than ever to business success. However, the traditional approach to incentivising and engaging employees is not working in a generation used to immediate gratification and a very different outlook to life in general. Competitive salaries and clear career progression paths are no longer sufficient to attract and retain top talent. Today’s employees are looking for employers that offer a compelling culture and innovative perks. In this article we explore the trendy workplace perks that are becoming essential in modern employment.
Flexible Work Arrangements
One of the most significant shifts in employee expectations post-COVID-19 is the demand for flexible work arrangements. In fact, a number of employers are now embracing a new way of looking at this issue. Remote work has proven to be viable for many industries, and employees are now seeking the freedom to choose when and where they work. Employers are therefore embracing an employee value proposition that offers flexible schedules, remote work options, and hybrid models to accommodate personal lifestyle and work choices.
Looking ahead, generation Z is projected to comprise a third of the workforce by 2030. Many from this generation spent years of their schooling or university life online, making them well-accustomed to remote environments. Additionally, the high cost of living in city centres, renders living close to the workplace infeasible for many, resulting in long commutes that often involve crowded public transport. Taking this into account, along with the growing desire to prioritize self-care, employees are increasingly inclined to choose jobs that offer remote and flexible work options over those that do not.
Notably, this is the first generation who will embrace artificial intelligence in almost all aspects of their work. This will give employers and employees alike more freedom to ensure mundane routine tasks requiring a physical presence can be done by AI. Employers who adapt to this changing capability will be better placed to allow employees more freedom to choose when, where and how they wish to work.
Many employers are now looking far beyond remote working to meet this lifestyle and work change. The advent of the 4 day work week, unlimited annual leave, work from anywhere policies and the like are becoming more mainstream. Employers who are open to their employees taking more time during traditional work hours to pursue their own interests, and who are still able to work productively and be supported by their employer, are more likely to succeed in attracting high calibre and engaged employees.
Although, as mentioned above some employers have introduced unlimited annual leave, others are supporting employee work-life balance by offering generous paid time off policies, paid parental leave, and family-friendly benefits. Initiatives such as paid time off on employees’ birthdays and the option for employees to purchase additional leave, can be a significant incentive to employees without a significant cost burden on the organisation.
Mental Health and Wellness Initiatives
Young workers are far more aware of their mental health needs, and in a number of surveys have rated employer recognition of this as an important factor in their choice of employer. The COVID-19 pandemic has underscored the importance of mental health and wellness and employers are recognising the need to support their employees’ well-being through perks such as:
- offering paid mental health days (in addition to paid personal leave);
- offering access to therapy and counselling services;
- offering mindfulness and meditation sessions in house;
- having nap pods in the office encouraging employees to take breaks;
- providing wellness stipends for activities like gym memberships or yoga classes; and
- creating team sports or run clubs.
Large organisations are embracing what is known as mental health benefits as a manner to ensure employees remain productive and committed. It appears that generation Z workers expect their employers to cater for this need, in addition to their physical wellbeing at work.
Furthermore, employers are exploring ways to alleviate financial stress and enhance employee quality of life. In the current climate where the cost of living and financial pressures on most working Australians is significant, employers who offer benefits to enhance employees’ financial wellbeing, including financial planning services, access to financial advice and information and in some instances access to their remuneration before it is paid (via third party apps) can assist employees manage their finances effectively, ensuring they can stay within budget and plan for the future confidently.
Employers who may traditionally have incentivised staff by paying cash bonuses may wish to consider offering employees subsidies or assistance for housing, or financial support for public transportation or petrol expenses for instance.
Learning and Development
While traditional career progression may not be the priority for many employees as it once was, employees are still looking for employers who support their continued learning. Employers are meeting this expectation by offering programs focused on upskilling their existing employees through:
- online courses;
- certifications;
- workshops; and
- mentorship programs.
By investing in personal growth, employers not only enhance their skill sets but also minimise turnover by fostering a culture of continuous improvement, innovation and trust.
Key Takeaways
To preserve a competitive advantage and engage innovative minds, businesses must adapt to this new age of expectations. This does not mean every employer needs to allow pets in the workplace or have a ping pong table in the break room. However, it does underscore the importance for employers to focus on cultivating a vibrant and appealing workplace culture.
To assess what is best for your organisation, we recommend that employers:
- consider the operational requirements of their business in light of the current economic climate to ensure that perks are not only appealing but also beneficial in enhancing productivity and morale;
- create open communication channels where employees feel comfortable sharing their concerns and ideas;
- implement regular one-on-one meeting between managers and employees to discuss workload distribution, career development, and overall wellbeing; and
- investigate the perks offered by your competitors to ensure your offerings remain attractive and competitive in the market.
If you wish to discuss any aspect of this client alert, or require specialist advice in relation to an employment law matter, please do not hesitate to contact us.
This alert is not intended to constitute, and should not be treated as, legal advice.