Employees are undoubtedly the biggest asset to any business. As we face an economic shift and volatile work environments after the influx of resignations, record-high inflation, and series of mass layoffs, it is going to be super critical for employers, and HR managers, in particular, to keep a pulse on employee engagement. Workplace tides are shifting, so the focus is not just on making employees happy. But it's about recognizing talent, creating an inclusive powerhouse of employees, and retaining and making employees fulfilled their roles.
The focus of 2023 is to increase employee engagement and take work commitments to the next level by addressing challenges that have hampered the work-employee relationship for decades.
So, let's take a look at some of the most pressing challenges and trends that employees will want to be addressed in 2023:
Trend #1: Equal Rights, Equal Pay
The wage gap is real. It persists in all countries and across all industries. According to UN Women, women only make 77 cents for every dollar earned by men. Consequently, if a man earns $100, a woman in the same position with the same amount of workload will take home $33 less. When you include other forms of discrimination, these statistics get even more alarming.
Related: All-Women’s Equal Pay Day
The gap is even wider for women of color, immigrants, and working mothers. The U.S. Census Bureau reports that due to the compounded effects of racism and sexism, black women are paid ONLY 58% of what non-Hispanic white men are paid.
Trend #2: The Great Breakup
It’s time corporate America recognizes women. Because it’s been a long and uncomfortable ride for underrepresented women in leadership roles and womenfolk have had enough. The Women in the Workplace Report – one of the largest research on the state of women in the workplace by LeanIn.org and McKinsey & Company – has reported that women are leaving their jobs at a record high rate. Women in leadership roles are breaking up with corporate America and demanding equal rights in all ways possible.
This ’Great Breakup’ trend will have troubling implications for organizations already struggling to promote diversity and gender equality. Only one in four C-suite leaders is a woman, and only one in 20 are women of color, and with the "Great Breakup", organizations are losing those vital few women in leadership.
Following are some of the reasons that are leading women leaders to quit their jobs:
- Equal Path to Advancement: While women leaders aspire to grow and advance in their careers, they face challenges that hinder their advancement. It is common for women leaders to experience microaggressions that undermine their authority and make colleagues question their judgment, implying they are not qualified. Women are also often denied or passed over for raises or promotions due to their gender.
- Negative Day-To-Day Experiences: Women leaders want a more supportive work environment. It has become increasingly critical for women to be flexible, inclusive, and diverse in leadership roles since the pandemic. Compared to their male counterparts, women leaders are also building meaningful relationships with the next generation of employees, including younger and underrepresented women. As allies, they promote equality, flexibility, and inclusivity at work. It is more likely that companies will lose women leaders when they do not provide a flexible and inclusive work environment for them.
- Burnout and Under-Recognition: Women are stretched thinner than men in leadership positions. There is no surprise that women become burnt out or feel overworked and under-recognized. Many organizations never acknowledge the substantial work women put into fostering diversity, equity, and inclusion – all of which lead to better employee retention and satisfaction. It is frustrating and exhausting for women in leadership.
- Glass Cliff Effect
The researcher, Michelle Ryan, coined the term ‘Glass Cliff Effect’ to highlight the real-world phenomenon that is hindering women in leadership roles and setting them up for failure. It refers to the phenomenon where women leaders are assigned to situations where they are less likely to succeed or grow in their role as leaders. Compared to men, women are more likely to be appointed to senior-level leadership positions in struggling or failing organizations than they are in well-performing organizations. This is a dangerous and devious form of discrimination that prevents women from becoming successful leaders.
The Glass Cliff Effect not only limits women from becoming successful leaders but also hinders workplace diversity. In addition, it reinforces the stereotype that women aren't competent leaders. However, different studies suggest otherwise. The Peterson Institute for International Economics surveyed 22,000 global firms and reported that firms with more women in the C-suite are more profitable. Having no women in corporate leadership roles versus 30% female C-suite share is associated with a 1% increase in net margins or a 15% increase in profits.
- Frontline Workers of Color
Most Americans enter the workforce through frontline jobs, such as babysitting, sales, nursing, teaching, food production, waiting tables, and more. According to the Bureau of Labor Statistics, approximately 70% of the current US workforce is involved in frontline jobs. These frontline jobs contribute tremendously to the US economy with 112 million workers earning an average annual income between $33,000 and $54,000. In spite of this, frontline workers suffer the most from economic disruptions.
These challenges are multiplied for workers of color who are overrepresented and under-recognized. The overrepresentation of people of color in the US frontline workforce leads to a vicious cycle of low-paying jobs where employees of color have very limited opportunities for advancement and professional development. Consequently (and unfortunately), workers of color have no path to advancement, and they are stuck with lower-quality jobs that lack basic perks like healthcare, commute/travel, or cash incentives.
To put things into perspective, here are some facts about workers of color in frontline jobs:
- Compared to corporate employees, frontline hourly employees are nearly 20% less likely to believe DEI policies are effective.
- In the bottom 10% of incomes, only one-third of frontline workers received paid sick leave.
- 45% of frontline workers believe their organization does not encourage them to take advantage of work-life policies (leaves, perks).
- Only 39% of frontline workers believe their employer measures performance and promotions objectively.
Thousands of workers of color can make a living from frontline jobs. But companies need to invest significantly in frontline roles to make them more fruitful career paths and a means to transition into meaningful roles and jobs in different sectors.
- Mental Health In The Workplace
According to the Mental Health At Work statistics, 14.7% of workers develop mental health disorders at work. This trend has increased with Covid-19.
From 2019 to 2022, mental support has evolved from a good-to-have to a real business imperative. The one "bright" side to the whole Covid-19 pandemic is that it has made mental health challenges normal at work. Employers and employees are becoming more aware of the factors that contribute to mental health at work, the stigma that contributes to it, as well as how it relates to DEI.
Organizations need a major cultural overhaul to provide sustainably and mentally fit workplaces where employees from all origins, ethnicities, and races can thrive and grow as a team.
Related: How Black Women Can Take Care Of Their Mental Health?
Your Turn!
The biggest drivers of these trends are inclusivity, diversity, and equality. Adapting and addressing these employee trends will help organizations become more robust and sustainable in the long run. But which of these trends do you think will have the biggest impact on workplace dynamics? What do you think organizations can do to counter and address challenges such as the great breakup and the glass cliff effect? How frontline workers of color can get better representation and opportunities in corporate America? Chime in!
