Push and pull factors
In line with last year’s survey, pay remained the top concern for employees (35%). However, this ranked as the third highest concern for employers, who are more focused on attracting new talent (37%) and retaining talent (34%), demonstrating a disconnect in workplace priorities.
Employers also risk overestimating the sway of flexibility as an incentive to attract new talent. According to the findings, 84% of employers believe that offering flexibility will positively impact their ability to recruit talent, but just 63% of employees agree. This is especially true for knowledge workers, whose work is traditionally based primarily on using analysis or subject expertise in a professional office setting, flexibility is now a baseline expectation, with more than a third wanting to be fully remote.
A remote versus office stalemate has emerged between employers and knowledge workers with regard to flexibility and return to the office. While 47% of employers prefer their staff to be in the office two to three days per week, 50% of workers said they are willing to come in no more than one day per week.
Employees, however, are pulled toward in-office engagements that are centered around staying socially connected (36%), collaborating with colleagues (30%), and building and maintaining relationships (29%). While employees are not more frequently visiting offices in “Class A” real estate, those with the best amenities and locations, the survey finds that investment in high-quality real estate is positively correlated with a range of key workforce outcomes including culture, productivity and retention.
Bridging the employee-employer disconnect
There is a clear gap between employers’ and employees' optimism about leadership alignment on new ways of working. While 73% of employers agree managers and leadership are aligned on new ways of working (e.g., work schedule, time off, remote and hybrid work), only 55% of employees agree.
However, a silver lining emerges for organizations that demonstrate qualities of empathetic leadership. Employees who report high levels of trust, empowerment and care from leadership are 2.3x more likely to agree that their company has successfully navigated external pressures over the past two years and are 40% less likely to quit.
Generative AI in the new era of work
While generative artificial intelligence’s (GenAI) potential is still being realized, there is growing momentum and a generally positive outlook on how the technology will impact new ways of working, with 48% of employees anticipating GenAI will improve flexibility and 84% of employers currently using or planning to use the GenAI within the next 12 months.
However, despite both employees and employers ranking “learning and skills” as the number one factor to ensure employees thrive in new ways of working, only 18% of employers plan to provide training on GenAI-related skills.