ROSELAND, N.J., Nov. 19, 2020 /PRNewswire/ -- Significant
shifts to the workplace in 2020 are making way for a newly
transformed world of work in 2021. The changing landscape this year
has employers and workers looking to digital solutions to help them
push through the challenges presented by a global pandemic,
economic recession and social injustice. As businesses navigate
forward, ADP identifies the key trends reshaping the 2021
workforce.
"As we move into a new year, it is clear businesses are having
to accelerate their transformation to adapt to new realities," said
Don Weinstein, corporate vice
president of global product and technology at ADP. "Not only do we
see an increased need for rapid, real-time data to reveal gaps and
empower nimble and impactful decision-making; we're also seeing a
resounding call for employers to focus on the well-being of their
workers and create a workplace where everyone can work confidently
and thrive. These trends will shape a new, stronger foundation for
how work gets done in the future."
Trends Shaping the 2021 Workforce
Focus on Resilience and Safety
Employers will prioritize the needs of their workers and take
steps to ensure a safe return to the workplace by putting protocols
in place to limit potential exposure. In tandem, employees will be
looking for support to help them adapt and grow amid changing
working conditions.
- Key Findings
- ADP surveyed employers with 1,000+ employees at the onset of
the pandemic and found 39% of employers reported that employees'
health fear was a top concern. As employers prioritize the health
and safety of their workers, the nature of the workplace itself
will evolve.
- Workers themselves cited significant stressors. In its study,
"A Post-Pandemic Workforce: Tracking Perspectives Amid COVID-19,"
ADP Research Institute found that in the first few weeks of the
crisis, as workers struggled with childcare constraints, fear of
the virus, technical issues and trouble completing their tasks,
over 40% of workers reported increasing levels of personal
stress.
- According to ADP data, employer calls for guidance on wellness
issues, including benefits, paid time off and employee assistance
programs, increased 40% year over year.
- However, in the face of these challenges, employees are
becoming more resilient. According to ADP Research Institute,
research conducted in recent months has begun to unravel the
picture of resilience in the workplace. The Institute surveyed over
26,000 employees across the globe from 25 countries to understand
Engagement, Workplace Resilience and the impact of COVID-19 on the
workplace. In its "Global Workplace Study, 2020," the more
workplace disruption workers experienced, the more resilient they
feel, and are up to 13.2x more likely to be highly resilient.
- In the "Global Workplace Study, 2020," a large part of those
studied, 37.3%, continued to work as normal during the pandemic and
26% had already returned to work after the global shutdown. Top of
mind for the workers studied was safety. Some had returned to work;
others anticipated their return in a couple of weeks and others
said it might be months to feel safe again. Fifteen percent of the
global workers expressed that they will feel safe when their
government tells them it is safe to return. Seven percent of the
sample stated that they may never feel safe returning to work.
Drive for Diversity
Employees will increasingly demand greater action from employers
in advancing diversity, equity and inclusion (DEI) within the
workforce and continue to pay close attention to culture and social
responsibility. In response, businesses will turn to their HCM
partners to help them identify opportunities and establish a plan
for progress and ongoing transparency.
- Key Findings:
- Employers increasingly sought data insights on the racial and
cultural demographics of their workforce accounting for a 74%
increase in searches. Employers increased searches for gender-based
demographics by 42%.
- With greater data transparency comes accountability.
DiversityInc has seen an uptick in the number of businesses
seeking partners to close the gaps in their workforce. There has
been a noted increase in requests for DEI consulting, content
support and training support.
Fuel for Flexibility
A drastic and rapid move to formalize remote work suggests
potential permanence as the modern workforce navigates forward and
increasingly looks for dynamic solutions to support the new way
work gets done.
- Key Findings
- A recent ADP Research Institute study found that 44% of
employers now have official flexible working policies in place, up
from 24% pre-COVID-19. In fact, the study revealed most workers
(65%) are upbeat about the flexibility of opportunities they will
have in the future.
- ADP data shows employer calls for guidance on flexible work and
pay options rose 116% year over year.
Spotlight on Compliance
As the regulatory environment becomes more complex and new
legislative changes are introduced, businesses will look for ways
to streamline compliance-related tasks to alleviate the burden on
HR and payroll departments while leveraging aid.
- Key Findings:
- In the initial months of the pandemic, ADP analyzed more than
2,000 legislative updates associated with COVID-19 across the globe
in order to provide businesses with the guidance they needed to
navigate compliance and seek essential relief.
- When surveying employers with 1,000+ employees, ADP found that
68% said they needed guidance on government relief programs
including direct monetary assistance, low interest business loans,
enhanced unemployment assistance and tax relief and deferral.
- From ADP data, employer calls for guidance on compliance
questions jumped over 1,500% year over year.
Agility in Action
Many businesses are changing their models to adapt as they
operate amid a fluctuating economic environment and a business
landscape still punctuated by the uncertainty of the pandemic. To
drive true transformation, businesses will focus in on their people
and access to technology.
- Key Findings
- As expected, in surveying employers at the onset of the
pandemic, ADP found their top concern is keeping their business
running, while supporting their employees and their clients.
- 78% of those employers reported that it will take 6 months or
longer for their revenue to return to pre-COVID-19 levels.
- In additional surveying of both small and medium-sized
businesses (SMB) and enterprise organizations, ADP found that half
of small businesses and 84 percent of larger businesses are making
adjustments to their business model. The most significant shift is
seen in the way they are delivering their products or services to
market.
- Despite these challenges, the ADP Research Institute
study found confidence has declined less than one might
expect, with 84% of workers today still feeling optimistic about
the next five years in the workplace (down from 86% pre-pandemic),
and 75% who feel buoyant about the year ahead.
- Small businesses have demonstrated agility in their response to
the pandemic, evidenced by recent rehiring gains. At the onset of
the pandemic as they navigated closures and restrictions,
year-over-year declines in employment at small business clients
were in the high teens, a number that has since improved to
declines of single digits.
- Workers themselves are taking agility to the next level with
new business formations up significantly year over year. According
to Census Bureau data, business applications were up nearly 40
percent YTD as of late October, compared to just two percent in
2019.
For a deeper look at additional 2021 trends, please visit
adp.com/SPARK.
About ADP (NASDAQ: ADP)
Designing better ways to work
through cutting-edge products, premium services and exceptional
experiences that enable people to reach their full potential.
HR, Talent, Time Management, Benefits and Payroll. Informed
by data and designed for people. Learn more at ADP.com
ADP, the ADP logo, and Always Designing for People, are
trademarks of ADP, Inc. All other marks are the property of
their respective owners.
Copyright © 2020 ADP, Inc. All rights reserved.
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SOURCE ADP, Inc.