Stakes Are High for Employers Post Covid-19
A RETURN TO “BUSINESS AS USUAL” ISN’T LIKELY TO HAPPEN. THE ACTIONS EMPLOYERS TAKE NEXT ARE CRITICAL IN DEFINING THEIR FUTURE.
The speed at which the U.S. economy is emerging from the cocoon of the coronavirus pandemic is noteworthy, but it isn’t without impact, particularly for employers. The “new normal” for major employers is far from defined, forcing any business that survived the pandemic-driven recession to work their way through a story that is still being written, one still without a clearly defined ending.
What is clear is that the last 16 months have given us all the opportunity to rethink many things, not the least of which seems to be how, where and when we work. What is not as clear is how that narrative will wrap up—leaving many employers dealing with a seemingly endless string of challenges as they try to define, and work within, the emerging “new normal”.
THE RISKS FOR EMPLOYERS ARE HIGH
In a recent COVID-19 briefing by McKinsey & Company, the article recognizes that while the goal of many employers is to reestablish normalcy, recent surveys found that 40 percent of workers globally are considering leaving their current employers by the end of this year. One of the reasons for that discrepancy is the push by employees for more flexibility with “work from home” and other working arrangements, a trend that was in its infancy pre-pandemic but rapidly became the norm over the course of the last year. As employers push for a return to pre-pandemic working models, they must carefully weigh the impact of their decisions and consider the potential for loss of key employees in the process.
As businesses have reopened with an eye towards rebuilding, progress has been swift in many sectors but that rapid progress has come with challenges. Pricing for raw materials is, in many sectors, at an all-time high. Housing is scarce. Delivery of items commonly associated with moves and housing upgrades such as furniture and appliances takes months longer than normal. And even with millions of workers still unemployed, employers have struggled to fill millions of vacant spots on their employee rosters. There is a great disconnect.
FROM TEMPORARY TO PERMANENT
Further, while most would agree these are unusual and even unprecedented times, a great debate still rages over how many of these disruptions are temporary and how many are actual, fundamental shifts in behavior that will outlast the post-pandemic recovery. Employers in the midst of great change must now also wrestle with how much of that change they must embrace long term.
Some changes are obviously going to stick around, at least in one form or another. Many roles were possible to handle remotely pre-pandemic, but status quo and a lack of technology infrastructure kept those positions on-site. However, in March of 2020 many companies were forced to abruptly abandon the status quo and rapidly invest in the technology to support remote workers—a move to which many workers have now become accustomed and from which many do not wish to hastily move away.
ADAPT OR DIE
Forward-thinking companies are already working on their plans. A recent webinar poll of employers performed by Gartner Research showed that 90% of their respondents expected to allow employees to work remotely at least part of the time, 65% expect to grant flexibility to employees with regard to when they work, and only 1% expect to offer no change at all. Clearly, change is coming.
Where the old buzz word might have been “Optimization”, clearly the future is about “Adaptation” for employers and employees alike. Employers have always worked to balance the equilibrium between the supply and demand of talent, but today they must do it amid a torrent of high-frequency change, making agility and foresight even more prized skillsets than they were pre-pandemic.
IMPACT ON THE CONSTRUCTION INDUSTRY
In the construction industry, the effects of COVID-19 on supply and demand have been game changing in many sectors. There have been shifts to project timelines across the board, driven by reduced workforce, availability and rising cost of materials, and changes in the financial stability of many clients that have brought about change to the market, affecting both in-progress and future projects. In an article in The Washington Post, one homebuilder mentioned altering his standard contracts to no longer guarantee a firm date or price, explaining to potential clients that pricing and timing of materials can no longer be guaranteed before, or even during an in-progress construction project.
That said, a recent article by Construction Dive points out that the construction market may be in a position to help lead economic recovery in the United States thanks to the number of sectors it touches and the way changes in housing demand, infrastructure development and consideration of new workplace arrangements and even housing types have opened up unforeseen construction opportunities. And, as those in the higher income brackets have not been impacted to the degree of those in the lower tiers, the high-end residential construction market may have even more of a role to play in the recovery. Numerous sources point towards 2021 as a year where luxury construction and high-end real estate development projects surged despite challenges posed by materials costs and labor shortages.
NEXT STEPS TO POST-PANDEMIC SUCCESS
How all of this will play out in the months ahead is still not certain. Experience, and human nature itself suggests that once given something they consider a perk, and employee is not quick to give it back, and employers that capitalize on these trends may find themselves able to lure key employees away from companies that are more hesitant to embrace the new normal.
Many working arrangements once considered a luxury have quickly become not only the norm, but also the preference. Employees are seeking more flexibility than many employers are currently embracing, leading towards a tipping point in a story with an ending that is not yet written. The companies that will thrive in the coming months are those that are forward-looking, agile, and responsive to the changing marketplace. As employers keep their finger on the pulse of rapid and seemingly endless change, the way they respond to challenges and opportunities will shape their growth coming out of the pandemic, and help write the next chapter of their post-pandemic story in a way that is favorable to the future of their organization.
At CLT Recruiters, we’re passionate about helping our clients understand the current landscape and rise above challenges as they find their new normal. If you want to work with someone who knows this industry and can have a meaningful conversation with you about your unique challenges and opportunities, we invite you to start the conversation today. We look forward to partnering with you as you write the next chapter of your story!