Future of Work - Q2 2022

Q2 2022 | A promotional supplement distributed on behalf of Mediaplanet, which takes sole responsibility for its content

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Future of Work

“We must recognise that people experience and interact with the office in different ways.”

“It is important employers invest in workplace wellbeing initiatives for staff.”

Mark Kowal, President, British Council for Offices

Emma Mamo, Head of Workplace Wellbeing, Mind

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67% of HR teams plan to invest more in HR tech. Will you?

Flexible HR software for the future of work sage.com/en-gb/HR

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Mental health is getting worse Wellbeing must be front of mind and work is a factor for the future office With more than one in three UK employees unhappy in their job, employers need to not just change, but revolutionise ways of working to attract and retain the best talent.

WRITTEN BY Louise Aston Wellbeing Campaign Director, Business in the Community

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here are worrying signs that the nation’s mental health is getting worse and work is a significant factor. In the past year, over a third of employees have experienced a work-related mental health issue, citing excessive pressure, workload or long hours as the causes.1 The COVID-19 pandemic and international humanitarian crises have caused job seekers and employees to re-evaluate priorities based on whole life horizons. Evidence shows that 28% of UK employees left their jobs in 2021, or planned to leave in 2022, with 61% citing poor mental health as the reason and 65% seeking a work life balance.2 Businesses need to decisively respond to the shifting power dynamic between employees and employers and prioritise mental health and wellbeing.

What if your job was good for you?

BITC’s ground-breaking report, What if your job was good for you? launched in June 2021 was never intended to be an end in itself. It did not claim to have all the answers and much has been learnt in the past year.

The report has acted as a successful vehicle for convening a collaborative movement of BITC business leader members and stakeholders to drive action and share insights. These insights have informed the sequel report, ‘Your job can be good for you.’

Your job can be good for you The report will be launched in June 2022 and will highlight that traditional models of working have imploded and need to be redefined to meet the increasing and differing needs of employees. Business leaders need to revolutionise ways of working that put people first, enabling all employees to agree ways of working that support their personal wellbeing, benefitting both individuals and businesses.

Failure to meet these expectations will lead to poor colleague experiences, high people costs, lower productivity and innovation and worst service outcomes. Business leaders need to understand what the new generation want.

Informed by BITC research, a literature review, qualitative interviews with business leaders from across the responsible business agenda and case studies, the new report provides practical actions for business leaders to revolutionise ways of working that support thriving people, business, communities and a healthier planet.

References 1. Business in the Community (2020) Mental Health at Work 2020: key findings 2. Deloitte, Poor mental health costs UK employers up to £56 billion a year, April 2022

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crucial focus of the future office is wellness and how our work environment can encourage healthier lifestyles and act as a magnet for the best and brightest talent.

No longer a luxury Workplace wellness strategies have often been viewed as a ‘nice-to-have’, but the feedback I am hearing from occupiers and developers today paints a different picture. Wellbeing is increasingly seen as essential to the office of the future. Without a clear plan to keep people healthy and safe, organisations will find it difficult to attract talent back into the office.

A bolder approach It is time for offices to address the themes of light, air, sound and comfort in new and more radical ways.

People still want to see visible demonstrations of the wellness agenda, such as amenities that encourage healthy eating or active commuting, or colourful surroundings and biophilia which make workspaces more welcoming. But office users will also be more conscious of how intangible qualities, such as clean air, acoustics and brightness can shape their physical and mental health.

This change in mindset has influenced office design. For example, air quality is becoming an even bigger consideration, now seen as a key ‘selling point’ for developments.

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with conditions such as autism.

This greater sensitivity is pushing designers to think carefully about most aspects of the office, from the use of colour and wayfinding strategies to different workspaces and their range of lighting and acoustics. With a growing level of expertise in this area, we can create a new generation of offices that are more inclusive than ever.

Wellbeing is increasingly seen as essential to the office of the future.

Wellbeing vs sustainability Outside of their core office space, occupiers will continue to develop surrounding public areas, encouraging their use for work, breaks and commuting. Some organisations may also invest in hubs outside of busy city centres, removing the need for daily commuting, which can impact people’s wellbeing, and carbon footprint.

Many of these efforts go hand-inhand with our increased focus on sustainability. Outdoor spaces, natural ventilation and lighting and the use of raw materials are just some solutions which benefit both our wellbeing, and that of our planet, creating greener and more energy-efficient spaces.

Inclusive strategies We must recognise that people experience and interact with the office in different ways. The modern workplace may be a challenging environment for some, particularly those who are neurodivergent, or those

“AI is key for the growth of businesses, but how will it impact jobs?”

IN THIS ISSUE

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While the pandemic acted as a true accelerator for change, we will continue to redefine the role offices play in our lives in years to come.

WRITTEN BY Mark Kowal President, British Council for Offices

“There has been a visible shift towards sustainability”

Stijn Broecke, Senior Economist, OECD

Debi O’Donovan, Director, Reward & Employee Benefits Association (REBA)

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HR leaders play a pivotal role in helping businesses succeed in a post pandemic world The pandemic has demonstrated HR’s value more than ever. With new ways of working and an ever-greater competition for talent, our new report looks at what comes next for HR leaders in a post-pandemic world.

F WRITTEN BY Amanda Cusdin Chief People Officer, Sage

rom demonstrating agility in a constantly shifting workplace to balancing new and often unexpected demands brought on by the COVID pandemic, HR and people teams have played a vital role in keeping organisations going during the toughest of times.

HR leaders have cool heads, quick reactions and strong shoulders. That was the main message from over 2,000 HR leaders, c-suite execs and employees Sage polled in recent research on the changing role of HR. The sector is shifting away from its traditionally admin-focused reputation and towards more agile approaches, with 87% of c-suite execs agreeing that the pandemic has accelerated changes in HR. In addition, 60% of employees also believe HR has recently evolved to become more strategic and people-focused since the pandemic began.

Yet more recently, companies are looking to HR to lead the way as they deal with a myriad of challenges facing them in the future world of work.

Reimagining a hybrid work future First, HR leaders must successfully navigate flexible and hybrid working. This presents a significant challenge, largely because there is no one size fits all approach. With no existing guidebook to draw from, many HR teams are embracing a ‘test-and-learn’ approach and drawing on feedback from employees.

For hybrid working to be effective, there must be a clear focus on outcomes and trust between leaders and their teams. Those that continue to monitor employees on a more traditional basis of where they are and how many hours they work, will not be successful in this new way of working.

At Sage, for example, we’ve created a flexible hybrid framework, with a clear set of guiding principles.

Within this, teams decide the specific ways of working that will enable them to best support our customers and the business.

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Building irresistible organisations Second, progressive and business-minded HR teams are having to be creative when it comes to redesigning talent acquisition strategies as they compete in the Great Resignation.

This means there’s no room for error when it comes to creating great candidate experiences and removing excessive admin from the recruitment process. One Sage customer, non-profit Youth Dynamics, sped up hiring decisions from 30 days to just 10 with automated recruitment workflows.

Likewise, software company Reiz Tech have been able to make their onboarding process four times faster by moving to cloud HR and using data more smartly.

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Companies are looking to HR to lead the way as they deal with a myriad of challenges facing them in the future world of work.

Creating people-focused companies Focusing on great employee experiences is also another key focus for HR leaders. According to Gartner, 96% of HR leaders are more concerned about employee wellbeing today than before the pandemic.

HR leaders told us in our research they’re further prioritising employee mental health and diversity, equity and inclusion (DEI) strategies. Many are also working to embed sustainability into how their company operates, as they respond to increasing demand from employees who want to work for organisations that prioritise purpose.

HR’s long to-do list The task ahead of HR leaders is enormous. To face it, they need support from other business leaders, the right technology, adequate resource and budgets and more innovative skillsets than HR may traditionally be known for. Worryingly, however, less than half (45%) of HR leaders told us they’re equipped with the right tools to navigate this future.

Technology holds the key. Automated HR processes and people analytics can be used to drive tangible business decision-making and more equitable DEI policies, while cloud systems can create smooth employee and candidate experiences in a new hybrid working world. So it’s no surprise that 67% of HR leaders told us they’re planning to invest more in HR tech.

That investment should alleviate the weight on those strong shoulders – but cool heads and quick reactions may still be needed for a while.

For more information, visit sage.com/en-gb/HR

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Mental health at work has never been more important As we look forward to a post-pandemic world, workplaces need to make sure they invest and prioritise employee mental health.

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he pandemic has taken a toll on our mental health.

For many of us living with mental health problems already, our symptoms have worsened – and some of us have experienced mental health problems for the first time. Regardless of the size of your workplace, many - if not all - of your workforce will have been affected in some way, so it’s never been more important to promote staff wellbeing.

WRITTEN BY Emma Mamo Head of Workplace Wellbeing, Mind

Hybrid working During the pandemic and lockdowns, many staff found themselves working from home full time for the first time.

At Mind, some staff told us they appreciated the added flexibility and unexpected benefits of homeworking, including more time to spend with family and less time, money and stress spent commuting. But others found working remotely isolating, particularly those who were living alone or had difficult relationships with those they lived with. There is no one-size-fits-all approach to returning to the workplace, with most employers now offering a hybrid working approach, whereby staff divide their working week between the workspace and their homes.

It’s worth remembering that for some staff it can be a big adjustment returning to former workplaces, especially if they have moved and now face a longer journey to work.

Employees are looking to their employers to provide guidance on how to manage returning to work, working from home or hybrid working, with many employers trialling different options. It is important staff adjust in a

way that doesn’t make anyone feel unsafe or distressed. For employers, that means regularly surveying staff and putting in place measures based on their feedback.

It’s worth remembering that for some staff it can be a big adjustment returning to former workplaces, especially if they have moved and now face a longer journey to work.

Investing in mental health Given the toll the pandemic has taken on the nation’s mental health, it is important employers invest in workplace wellbeing initiatives for staff. Measures such as flexible working, generous annual leave, access to the Employee Assistance Programme (EAP) and subsidised exercise classes can help staff feel valued and supported. But most importantly, employers need to create an environment where staff feel able to talk about their mental health and know that if they do, they’ll be met with support and understanding.

Mind’s website has information on staying mentally healthy at this time, as well as tips for staff and employers: www.mind.org.uk/work Free resources are also available via the Mental Health at Work website: www.mentalhealthatwork.org.uk

AI is key for the growth of businesses, but how will it impact jobs?

The real challenge of AI AI’s biggest challenge is unlikely to be the threat it poses to the number of jobs, but rather how it will affect workers in their current jobs, or when they apply for new jobs.

Lawmakers across the world are reviewing existing laws and regulations to make sure they are up-to-date with no loopholes. To also be able to promote trustworthy AI, there are a few key issues that need to be resolved, such as:

Advancements in AI are helping to rapidly streamline, automate and ease many aspects of our daily lives. In the world of work, it is an opportunity for businesses to grow, but where does this leave employees?

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smart speaker can answer your questions, video streaming technology is able to give you movie recommendations and your phone can suggest words when you are texting. Artificial intelligence (AI) has already made its way into various aspects of our lives.

AI is also being deployed in the workplace in many different ways, such as chatbots to help answer HR questions, tools to assist with medical diagnosis or even fitness-tracking wearables to measure employee stress levels.

The fear of automation As with previous technological revolutions, AI raises fears about

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automation and job loss. AI is likely to affect every single occupation, in every sector of the economy.

A difference between AI and previous technologies is that it is capable of doing non-routine, cognitive tasks. In other words, it is no longer just the manual tasks of workers that can be automated, but also the tasks of high-skilled workers, such as lawyers, doctors and managers.

To date, there is no evidence that AI has resulted in job loss overall. On the contrary, in occupations where computer use is high, greater exposure to AI appears to be associated with greater employment growth. This suggests that AI may complement rather than substitute workers that have the skills to work with AI.

WRITTEN BY Stijn Broecke Senior Economist, OECD

• Making sure that workers are informed and can give consent when AI collects and uses their data.

• Reducing the risk of bias creeping into the algorithm and, when it does, placing accountability where it is due.

• Guaranteeing a human is in the loop and that individuals have the right to an explanation.

Attention should also be given to the working conditions of workers who train AI by labelling and tagging data, or who are engaged in the maintenance of AI. Some of these workers are gig workers and many are based in low and middle-income countries.

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Harnessing the hybrid work revolution... there’s an app for that A Silicon Valley start-up is providing organisations with on demand access to thousands of flexible workspaces around the globe. But what are the benefits of this hybrid work revolution?

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hat Airbnb is to travel or OpenTable is to restaurants, Upflex is to the world of workspace. From WeWork’s global network to a myriad of boutique flexible workspaces, the tech platform provides organisations with work locations to meet almost any need. Isobel Mckenna, Head of Upflex EMEA, shares how the company is helping organisations harness the full potential of hybrid working.

What are the benefits of hybrid working?

There are a multitude of benefits.

We’ve become familiar with the improved work/life balance and better health and wellbeing outcomes, which of course flows through to better outcomes for the employer, in terms of increased motivation and productivity.

There are also significant financial benefits to an organisation, in terms of reducing office floor space and the cost that goes with that but there are much wider benefits as well.

Hybrid working allows for a more distributed workforce, which means you are less reliant on a specific geography so have access to a wider talent pool – not merely those within commuting distance – and that can mean a more diverse and inclusive workforce. Hybrid working is also better for the planet.

out-of-the-home and an interface that enables them to book desks or meeting spaces – whatever they need – on an on-demand basis. But what is also unique is our ability to capture behavioural data and analytics and help organisations use this to drive strategic change.

Why is data important?

We have all been living through an accelerated revolution in work. Postpandemic almost every organisation is under pressure to introduce some form of hybrid working, but what version do you implement? There’s no one size fits all solution, but many organisations are now having to make very serious decisions about their future without having an evidence base to support their adopted strategy.

WRITTEN BY Isobel McKenna Head of Workplace Solutions EMEA, Upflex

So how can you help?

By providing organisations with a vast network of on-demand spaces, employers are able to track how those spaces are being used. What behavioural patterns are emerging?

Which locations are most popular?

Is it for collaborative or focused work or just meetings? Capturing this real time data and transforming it into meaningful intelligence will help determine the best hybrid work solution for an organisation over the medium to long term.

Hybrid working allows for a more distributed workforce, which means you are less reliant on a specific geography so have access to a wider talent pool.

Image provided by Upflex

Tell us more about what your platform provides?

Upflex provides organisations with on demand access to over 6,000 flexible work locations around the globe, including over 500 in the UK and more than 2,000 across Europe.

We have exclusive access to WeWork’s global network, as well as workspaces provided by more than 700 other boutique providers.

This gives employees a huge array of choice as to where they work READ MORE AT BUSINESSANDINDUSTRY.CO.UK

Can you tell us about the sustainability benefits?

Take commuting for example: prepandemic employees spent around 30 billion hours commuting to and from work every year, so reducing this is the easiest and most effective way for organisations to reduce their carbon footprint. Annually, 51 million metric tons of carbon emissions could be saved through the widespread the introduction of hybrid working.

Having on-demand workspace through our network means organisations don’t have office space sitting underused, which leads to greater efficiencies, less waste, a reduction in building and energy costs and associated emissions.

When you consider that over half of millennials and Gen Z talent say they would take a pay cut to work for an environmentally conscious company then its clear that being more sustainable is not only an imperative to tackle the climate crisis, but also to attract the best and brightest.

A properly implemented hybrid work solution enables organisations to do that – it’s important to get the right solution in place and that’s where we can help.

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Find out more at upflex.com

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HR teams must meet the pressures of the sustainability drive WRITTEN BY Debi O’Donovan Director, Reward & Employee Benefits Association (REBA)

Sustainability and corporate purpose are changing the way we do business, but employment practices have been slower to catch up.

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hile the sustainable revolution has begun, there are doubts on whether human resources teams are on the front foot on what sustainability means for workforce planning, talent development, reward practices and supply-chain procurement.

Employers are stepping up We are just eight years away from the UN’s Global Sustainable Development Goals 2030 deadline and 28 years away its 2050 net zero target. We can already see how employers have started to come to the table on global challenges such as the climate crisis, inclusivity and poverty.

Changing products and services In REBA research, Sustainability is driving business change, produced in association with Mercer Marsh Benefits (published in June 2022), we discovered that eight out of 10 respondent organisations have changed at least some of their products or services to meet sustainability objectives. Meanwhile an equally high proportion are making ongoing changes.

Astonishingly, over a quarter told us that within the next two years they will have changed all their products and services to meet sustainability targets.

Sustainability revolution The revolution to become sustainable needs human resources teams front and centre with strategies to hand.

This level of radical corporate change can only be achieved if employees

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are able to adapt or learn new skills in order to produce or deliver new types of products and services; they will need to work differently; and believe in values that go beyond monetary profit.

Not surprisingly, HR teams are feeling the internal pressure.

They are caught between aligning with evolving business goals from the c-suite as CEOs drive to meet environmental, social and governance (ESG) goals and workforces which are increasingly questioning current and future employers about their corporate values.

Visible shift in sustainability proposition At REBA we see HR teams remapping their employee value proposition to incorporate ESG values, including diversity, equity and inclusion (DEI) and employee wellbeing in order to attract or hold onto talent.

There has been a visible shift towards sustainability as a business differentiator and employer brand marketing opportunity.

HR teams also have a key part to play in helping their employer meet external pressures. Supply chains are under scrutiny, with suppliers being increasingly audited against a list of sustainability practices – ranging from working against bribery to the recognising the right to collective bargaining.

The future of work will be shaped by the business transformation to sustainability impacting people and planet, and HR professionals are key to this.

Diverse women need to be listened to, not silenced The future of work needs to include everyone. The only way to do that is to have a care for everyone’s mental health. But women, especially from ethnically diverse backgrounds, are often overlooked.

WRITTEN BY Sandra Kerr CBE Race Director, Business in the Community

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t is a sad fact that women of Black, Asian, Mixed Race and ethnically diverse backgrounds face more bullying, harassment and unwanted aggressive behaviour than White colleagues.

When it comes to mental health concerns, there’s the twosided situation of female employees facing issues but not knowing how to handle them, and managers and employers not having the training on how to care for their employees.

This is exacerbated for workers who are Black, Asian, Mixed Race and come from ethnically diverse backgrounds.

BITC has created two mental health kits, Self-Care and Wellbeing for Ethnically Diverse Women: a practical guide for employees and Mental Health and Wellbeing for Ethnically Diverse Women: a practical guide for managers. These toolkits offer tips, guidance and ways to cope with the mental health challenges faced at work.

Psychological connections Sometimes what a person needs is for someone to listen.

In establishing a psychological connection, managers should listen, engage and try to educate themselves about an employee’s lived experience, and listen to how they are feeling. By actively listening to how women are feeling and encouraging them to speak up and express themselves, this is one step toward mental health support.

Relational connections By approaching with a relational connection, managers need to show inclusive behaviours that demonstrate respect, awareness and empathy. Managers should actively listen to their colleague’s concerns and be open and transparent about the situation, even if they don’t have all the answers. Being honest about their understanding or lack thereof will go a long way.

Visual connections A visual connection is where managers, employers and senior executive sponsors for race can play a part. Take care to become aware of cultural holidays and allow colleagues time off to celebrate with their loved ones. Try to learn about the barriers some people face that may prevent them from being their true selves at work. Internally, make sure that all colleagues who are Black, Asian, Mixed Race and come from ethnically diverse backgrounds have a safe space to talk, with access to an internal support network.

The best thing you can do is educate yourselves, don’t be afraid to admit it if you don’t have the answers and listen.

Sometimes a person who is hurting wants to speak, but they don’t know how. That’s why the best thing employers can do is one thing: listen.

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Giving employees choice and flexibility is good for them — and your business Keeping staff engaged isn’t always easy, says Ross Seychell, Chief People Officer of HR tech company, Personio. But it’s crucial for their wellbeing — and your company’s growth.

INTERVIEW WITH Ross Seychell Chief People Officer Personio WRITTEN BY Tony Greenway

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new study from Personio shows that nearly half (46%) of workers in Europe’s small to mediumsized companies are planning to look for a new job in the next 12 months. What are the main reasons for this?

We have to consider two things: the factors that make people want to stay with a company, and the factors that make them want to leave. Number one on the ‘stay’ side is competitive payment. Close behind, though, is good appreciation and recognition of employees, and an improved work/ life blend.

On the ‘leave’ side we see a big correlation between stress and the working environment, which overlaps with the issues of work/life blend and appreciation and recognition.

Plus, employees — particularly younger ones — want opportunities to move forward and progress in their careers. If they don’t recognise those opportunities, they will look for employment elsewhere.

What could this worrying statistic mean for organisations?

It’s a definite challenge. Replacing a leaver is a significant cost in terms of time and effort. But it’s not just an inconvenience and the fact that someone else within the company has to pick up their work. It also impacts the company’s bottom line. However, our study showed that 96% of HR decision-makers in small to mediumsized organisations recognise that staff retention is a problem and are trying to do something about it.

Read more at personio.com

What impact has the pandemic had on the way people view employment?

It’s made people question their work/ life balance, because home-working blurred people’s work and personal lives. It also shone a light on those employers who are truly focussed on supporting the mental wellbeing of their workforce.

Around a third of the people in our study said they felt the pandemic had a negative impact on their career plans because companies slowed their hire rates and restricted their investment

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— although this didn’t happen in every sector.

While this feeling has been exacerbated by the pandemic, we’d seen these trends emerging before it began. People, especially new graduates, were beginning to ask: ‘What does my company stand for and can I align with its values?’

What can HR professionals do to retain and re-engage younger workers?

Every employee I talk to tells me they want choice and flexibility in an uncertain world. For instance, some people value being in a work environment where they can learn, collaborate, receive coaching and have coffee conversations and lunch with colleagues.

Others like the idea of being empowered to work from home if and when they wish to do so. For progressive companies, it’s about having a framework in place so that individuals and their leaders can discuss the type of working arrangements that are right for them; be more focussed on outcomes rather than input; and ensure that staff understand the opportunities for career progression and growth.

Also, employers shouldn’t make assumptions about their employees.

Instead, they should gather real insight by actually talking to them. If you’re a small company, you can have oneon-one discussions. If you’re larger, you can run a survey. However you do it, though, it’s crucial to hear what’s important to your people, because it can vary.

Are regular performance reviews important?

Actually, the term ‘performance reviews’ feels very backwards. We prefer ‘performance growth’. What we mean by that is a balanced discussion between individuals and their managers that, yes, looks back — but, crucially, looks forward, too.

It gives people a chance to reflect on how they’ve done in the last period, based on their objectives and goals.

Importantly, though, it’s about where they are going and how they take their knowledge and experience forward to realise new opportunities.

Images provided by Personio

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The future of work will be shaped by the business transformation to sustainability impacting people and planet, and HR professionals are key to this. ~ Debi O’Donovan, Director, Reward & Employee Benefits Association (REBA)

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