2021 Trends in the Workplace Series: Organization Impacts

You might have heard that Prince Harry and Meghan Markle gave a big interview this week. Like many institutions, Buckingham Palace and the British royal family are facing disturbing accusations, including their own organization’s response to racism. They’ve got some big changes to make – to say the least. Based on the interview alone, one could surmise that changes need to happen at the individual, team, and institutional level. Their changes are out of reach for us, but it’s a glaring example of the shifting landscape of work, especially when the system is rooted in colonialism.

This is the fourth post in a six-part series discussing trends in the workplace that have evolved over the last year. The switch to remote work (when possible) and socially distanced spaces for prolonged periods of time has transformed the workplace. Entrepreneur Andrew Yang says, “We’ve gone through about 10 years of technological change in 10 months.” That’s a lot to absorb. And these changes are impacting every aspect of our lives. In December 2020, 48% of small businesses feared that they would close permanently due to the pandemic. Oh. My. God.

While securing a quick cash infusion may be the top priority for small businesses right now, changing for the future is a close second. Employees are facing new realities. Working in an office may not be a requirement anymore. Some jobs may support more flexible work schedules. A virtual workplace requires more effort with connection and socialization. How we gather now also shifts team dynamics. Virtual collaborative workspaces have become the new gathering spot. An inclusive organizational culture starts in teams. An evolving workplace is happening at every level of the organization.

Today I am sharing how the employee and team alterations roll up into the organizational impacts. When I use the term “organizational”, I am referring to the key design elements of an organization – strategy, structure, work processes, reward systems, and people. These design elements compose the backbone of a business, and changes in these design elements creates radical transformation throughout the company.

1.       Diversity, equity & inclusion (DEI) is a long-term strategic change. DEI is not a program. DEI is not an HR initiative. DEI is not one role or department leading the strategy. These are all dominant culture business practices that celebrate individualism more than community. DEI work within an organization requires a renegotiation of every relationship – from employees to vendors – that addresses systemic racism and structural inequities. This will require work at every level for many years, especially within the deep changes required in organization design. The field is FULL of people who have lived experience here. Listen to them.

2.       Staffing strategies will permanently expand to include gig work and outsourcing, even at the small business level. Staffing strategies are critical to achieving an organization’s goals. The addition of virtual collaborative workspaces and remote-only positions open up the talent pool to global outreach. The strategic use of asynchronous and synchronous work allows companies to segment tasks and workflow differently, which sets up new circumstances for short-term positions and outsourcing of certain functions (Ex. HR, social media, L & D, etc.). Short-term positions, or gigs, work well for people with changing life circumstances, such as long-term care giving or unexpected financial emergencies. However, this staffing expansion must be viewed with an equity and inclusion lens. Not everyone benefits from a gig economy.

3.       Traditional pay structures will be upended by wage stagnation and cost of living. Think of pay structures as pyramids. Most pay structures have a large base that’s driven by government wage rates, such as FLSA salary minimums and minimum wage. The next pyramid piece is industry pay reports. Then the pyramid pieces get smaller with pay for knowledge & behavior and finally market rates. This traditional pay structure pyramid does not address US wage stagnation, US rising cost of living, pay equity, or pay disparity. A new pay structure must be created where cost of living and pay equity & disparity are the pyramid base. Otherwise, deep and system-wide changes will never happen.

4.       A hybrid workplace prompts a hybrid benefits plan. The distributed workforce – working in an office, working from home, or a combination – means that office-focused benefits do not fit everyone anymore. Think of company cafeterias or even offices located near food establishments. Employees working remotely lose out on these benefits, which stimulates new conversations about benefits. Some businesses are offering Uber Eats gift cards and stipends for WiFi and cell phone coverage. As an HR professional, I realize that changing a benefits plan sounds like a dreadful project right now. However, diversifying your benefits plan supports inclusion in your workplace.

5.       The workplace evolution is not done. Yes, we have absorbed an exorbitant amount of change in the last twelve months, and it’s only the beginning. Do you remember when the internet was first launching? Society knew that the internet would change everything, but we weren’t quite sure how and when. We are facing a similar situation here. It will take years to understand the full range workplace changes happening now, yet we do know some things now. In a 2021 Workplace Learning report by LinkedIn Learning, participants noted that upskilling and reskilling were top learning & development priorities. As we deconstruct colonialism in our leadership frameworks, leaders will shift to convener roles. Who knows what innovations will happen as we adjust to the new reality of a hybrid workplace.

Once you start tugging at the webs of organizational systems, changes start happening everywhere. Activist Grace Lee Boggs said, “We never know how our small activities will affect others through the invisible fabric of our connectedness. In this exquisitely connected world, it is never a question of ‘critical mass.’ It’s always about critical connections.” A changing workplace offers new ways to build and deepen our connections. What connections do you need to make today?

Photo by Gene Gallin on Unsplash

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2021 Trends in the Workplace Series: A New Player

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2021 Trends in the Workplace Series: Team Impacts