5 Workplace Shifts That Are Here to Stay
The last few years have altered almost every part of daily life making “business as usual” a thing of the past. What the pandemic has done is change the ways businesses operate and accelerated the need for a more modernized benefits offering. As radical shifts in business operations continue, the future of workplace financial benefits is being redefined.
In what seemed like overnight, remote working forced business to put digital modernization plans into practice. The typical way of working had officially been transformed revealing the opportunities for organizations to rethink and reimagine how they address cultural, societal, and technological shifts to thrive post-pandemic.
Here are five key trends that are here to stay.
- Exceptional Consumer Experience Is Table Stakes — In recent years we have seen the fastest shift in consumer behavior. People flocked to new technology, accelerating consumer trends of convenience and frictionless payments. Those expectations now extend to the workplace. Organizations may find value in offering an interactive participant experience. Delivering frictionless enrollment and benefits portal login, relevant communications year-round, and customized benefit solutions that tailor financial education to an individual’s specific life and career stage, can help build engagement for all workers. And studies show a direct correlation between engagement and performance. Companies with high employee engagement are 21% more profitable.
- Diversity & Inclusion Are Critical — Protests in cities across the U.S. have prompted a national conversation around the social and economic inequities facing Americans of color. Systemic racism dramatically limits the earnings, savings, home values and overall wealth of Black, Indigenous and people of color (BIPOC) Americans — resulting in a staggering retirement wealth gap. On average, white Americans have seven times the retirement savings of Black Americans, and five times the savings of Latinx retirees. Businesses are in a position to drive real change with hiring practices that prioritize diversity as an integral part of their business strategies and financial education that supports the unique needs of all employees, helping build financial resilience for BIPOC communities.
- ‘One Size Fits All’ Is Over — With five generations in the workplace, providing benefits support for employees at every life and career stage can pose a significant challenge. Millennials and Generation Z now make up more than half of the U.S. population and have different workplace needs than their Baby Boomer and Generation X colleagues. They also have different expectations when it comes to communication, financial education and support. The age of standardization has shifted to an expectation of highly personalized experiences in every aspect of life and work. Organizations looking to secure in-demand skills in an emerging and competitive talent pool may have to transform their thinking around financial workplace benefits and retirement planning. Strategies that use personalization to connect with a multigenerational workforce can help ensure every employee feels seen, valued, and engaged.
- Remote Working Is Here to Stay — A Gartner survey found that 82% of company leaders plan to allow employees to work remotely at least part of the time. Moving forward, it will be important for organizations to drive cultural shifts in the workplace that emphasize connection and belonging, a unique challenge in virtual environments. Recognition programs that highlight and amplify employee contributions can demonstrate an individual’s value to the broader organization, even when teammates are physically apart. Extracurricular activities can also provide meaningful experiences for connection and team building. And, when it comes to benefit programs, those that emphasize holistic wellbeing and work-life balance can help remote employees feel supported while providing valuable tools that can help reduce stress and keep employees motivated and engaged.
- Modernization of Financial Workplace Benefits — The shift to digital-first operations has pushed businesses to reimagine how they connect and engage with employees, and how they can add value both to their employees’ professional and personal wellbeing. New technologies for plan customization and personalization provide an opportunity to truly differentiate financial workplace benefits to better appeal to every employee’s specific preference and financial wellness needs. Workplace benefits portals can streamline communication and provide employees with easy access to information and resources. Mobile apps empower employees to manage finances and track goals when and where they choose. Digital portals for financial wellness can provide tailored, engaging financial education and actionable guidance to help every person potentially achieve their near and long-term goals.
The rapid change in the past years has rewritten the way we live, work and connect today and for the future years ahead. Morgan Stanley at Work leverages a vast network of Financial Advisors to provide guidance around how these trends will impact businesses, and their workplace financial solutions moving forward. Connect with a Morgan Stanley Financial Advisor today to put our broad knowledge base and topical insights to work in helping your business, and employees, adapt and thrive in the years ahead.