Future of Work | As employees seek 'workplace of the people', organisations have their task cut out

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The workplace is changing with employees demanding wellbeing, diversity and equity to stay productive. The coronavirus outbreak that changed work has also led to the democratisation of the workplace, as organisations focus on building a “workplace of the people” than “workplace for the people”.

While compensation remains a key focus area, human resources (HR) leaders will have to prioritise employees' well-being and inclusivity to curb attrition, attract talent and drive growth, industry experts, recruiters and HR consultants say.

Pankaj Khanna, head, revenue assurance and human resources, at IT company Coforge said the shift is happening as employees demand a better balance in life and seek wellbeing incentives.

The great resignation debate was “getting fuelled by the current generation of professionals who are entering active workforce seeking work-life balance and other well-being incentives”, said Khanna.

‘Workplace of the people’

In a recent report, consulting firm PwC suggested the need to focus on a “workplace of the people” as against a “workplace for the people” to deal with the emerging challenges and build a future-proof organisation.

Earlier, challenges centred around broader areas of organisational design and capabilities woven in with the workplace’s culture.

But with the changes, the challenges seem to be more employee-driven, both globally and locally, said Chaitali Mukherjee, partner and leader (People and Organisation and HR Transformation) at PwC India. She said leaders need to pay attention to address the changes.

Fine balance

According to Michael Page, a global recruitment firm, the employer is focussed on creating an environment where employees can balance personal and professional lives.

Employers need to create inclusive and diverse working environments. “Employees need to feel connected, comfortable and like they belong in the organisation and the culture. Companies that adapt to these needs will thrive,” it said.

As per a Michael Page survey, one out of three employees in India are seeking diversity, equity and inclusion at a company to pursue a career there.

Happiness over money?

As many as 63 percent said they were willing to sacrifice salary (growth) for happiness and well-being. At least 54 percent asserted that workload and work-related stress had gone up significantly after the coronavirus outbreak and this is where a better work environment commands a premium.

The development and realisation also come as attrition has zoomed in the past year in several sectors, including IT, and internet-enabled sectors.

The attrition rate observed by Indian companies skyrocketed to 21 percent in 2021 as against lower than 13 percent in the previous year. The attrition rate of 21 percent is highest since 2003.

While the overall attrition standing at 21 percent, the voluntary attrition rate was 15.4 percent, as per the recent annual salary trend survey by consulting firm Aon. Voluntary attrition is a subset of the overall attrition, and shows the willingness of the workforce to shift jobs.