If the immediate post-Covid-19 lockdown business trend was the ‘Great Resignation’, it appears we’ve now entered the ‘Great Renegotiation’ – and that could have greater consequences for employers, employees and internal communications.
What evidence is there of a ‘Great Renegotiation’?
We can see evidence of the ‘Great Resignation’ in employment trend figures, with people leaving roles in record numbers since the pandemic. Statista reported that the number of resignations in Q2 2022 was the highest number of resignations taking place in a single quarter since 2001.
Look more widely, and we can see a parallel phenomenon – the ‘Great Renegotiation’ – which is playing out in a number of ways. The most visible manifestation in the UK is the upsurge in pay and conditions disputes, with unions, employers and the UK Government at loggerheads over pay increases at a time of financial turmoil and a cost of living crisis. Strike action has become so widespread that news sites have needed to create calendars to keep up. The action isn’t limited to the UK, either. Cornell University’s strike tracker recorded more strikes by October this year than took place throughout the whole of 2021.
But it’s not just unionised labour that is pushing for a new arrangement. Employees across sectors are redefining the relationship between themselves and their employer, and communicators need to be alive to the issues and opportunities that can emerge.
McKinsey characterises the current situation as a significant disconnect between the aspirations of employees and the ways businesses engage and recruit:
“What we are seeing is a fundamental mismatch between companies’ demand for talent and the number of workers willing to supply it. Employers continue to rely on traditional levers to attract and retain people, including compensation, titles, and advancement opportunities. Those factors are important, particularly for a large reservoir of workers we call ‘traditionalists’. However, the Covid-19 pandemic has led more and more people to re-evaluate what they want from a job—and from life—which is creating a large pool of active and potential workers who are shunning the traditionalist path.”
So, what are the primary points of the ‘Great Renegotiation’?
While pay and conditions remain a critical driver of employee motivation, McKinsey and others have identified several spheres of negotiation which employers must consider, and internal communicators can play an important role in bringing these spheres to the surface.
The main areas identified are:
- Workplace flexibility
- Total compensation
- Meaningful work
- Support for health and wellbeing
- Reliable and supportive people at work
- Career development and advancement.
While there are other factors to consider, these are the main areas of employee concern and renegotiation for both existing employees and new colleagues.
For internal communications teams, this can help guide our thinking on priorities for engagement through this period.
Workplace flexibility
By now we may all be tired of communicating hybrid working policies, but as organisations and colleagues continue to shift expectations and practices mature, keeping a clear and consistent message front of mind remains critical. Now is not the time to drop this important area into the background, so continue to reflect on how your organisation is choosing to work, highlight best practice and promote the benefits.
Total compensation
Making sure colleagues are aware of and utilising their total benefits package is important at times of cost pressures. Many organisations leave communications around benefits to a single point of the year when it’s time to renew, but continue to seek opportunities to focus on the whole package when you can and promote the opportunities for colleagues to see value beyond the pay cheque.
Meaningful work
Keeping your purpose, vision and values at the heart of your communications feels more important than ever before. Help colleagues stay connected to the value they and your organisation create by highlighting their commitment and delivery in line with your purpose.
Your Environment, Sustainability and Governance strategy can also play a role by demonstrating how your purpose and values guide the way your organisation and people relate to wider social issues and good business practice. Consider what internal focus you need on what is normally an area reserved for shareholder communications.
Support for health and wellbeing
As the financial challenges bite, keep colleagues aware of how your organisation supports their health and wellbeing. Think beyond fun step challenges and lunch time yoga, valuable though they are, to consider more challenging topics, such as dealing with financial difficulties, policies on caring responsibilities or mental health support. Colleagues may find themselves facing increasingly difficult issues, so this will need a different response that doesn’t gloss over the reality of the times we are in.
Reliable and supportive people at work
Hybrid working has many benefits, but one risk to consider is the impact on workplace connections and support networks. Feelings of isolation and a reduction in regular contact can leave colleagues feeling a lack of support. Consider how you can help colleagues build and strengthen connections in a hybrid working environment. Regular opportunities to meet with colleagues or hear from leaders can help break that sense of isolation and making sure line managers know to stay connected will build a sense of support.
It’s not only remote workers who can struggle with this. Opportunities to reconnect within and across teams need to be encouraged, and internal communications can play an important role in shaping and facilitating these.
Career development and advancement
Helping colleagues understand opportunities to grow and develop is an important engagement challenge. People should feel that they can drive their career forward and be well supported with building skills and experience. Make sure all opportunities are shared and visible so colleagues are clear on the potential to build their capabilities without having to move employers.
We’ve supported many businesses tackle these communications priorities. If you would like help with these or any other engagement challenges, why not get in touch and drop us a line today?
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