Navigating the Remote Frontier

©2021 ARTHUR J. GALLAGHER & CO.

Navigating the Remote FrontierHow the Pandemic Has Changed the Workforce

Heather Eastman & Jessica Nikunen | September 29, 2021

2©2021 ARTHUR J. GALLAGHER & CO.

Multiple Converging Forces

A Perfect Storm Fueling a Seismic Shift

Workforce of

The Future

Generational Shift

Wage Wars

Worker Shortage

Diversity, Equity, & Inclusion

Technology AdvancesShifts in Leadership Paradigm

Global Pandemic

3 ©2019 ARTHUR J. GALLAGHER & CO. 3©2021 ARTHUR J. GALLAGHER & CO.

The Changing Workforce• Shifting demographics – surging of millennials• Generational values• Evolution of Employer Value Proposition• Pandemic-fueled values shift | Implications for Women and People of ColorThe COVID-19 Effect• The Experiment worked…and it’s complicated!• Geographic expansion of talent pool• Jobs impacted differentlyRemote Work Considerations – Risk Management• Role Suitability, Policies, Performance Management, Technology, State

Requirements

Today’s Topics


Why Does the Remote Work Conversation Matter?Talent Wars

Workforce Shortage – no end in sight

Turnover costs vs. retention costs

Generational differences & expectations

The competition for talent has never been

greater.Remote Work is

no longer an anomaly, it is an

expectation.


Minnesota Workforce Growth

Source: U.S. Census and MN State Demographic Center Projections. Federal Reserve Bank of Minneapolis Special Report, December 5, 2016


Twin Cities Jobs Forecast

Growth constrained by Workforce Shortage


The cost of replacing an individual employee can range from one-half to two times the employee’s annual salary

$50,000 salary employee = $100,000 to replace+loss of institutional knowledge+impact on morale of other workers+increase workload for other workers+decrease in community confidence

FOCUS ON RETENTION

The Cost of Turnover


The Changing Workforce



Graphic: The Executive Growth Alliance


Millennial / Gen Z Values & Preferences

Source: Deloitte 2021 Millennial and Gen Z Survey


• Millennials expect opportunities to contribute to the greater good through their corporate lives.

• In the perceived absence of social progress, compensation and benefits become a front and center priority for Millennials.

• Cadence of communication is KEY / frequent and consistent

• Career pathing and professional development opportunities are critical for attracting and retaining Millennials.

• Institutional knowledge held by retiring generations needs to be captured and transferred: Succession Planning


The Millennial Surge

Millennials want to work

for organizations

that foster innovation,

develop their skills and

make positive contributions

to society.


• A compelling Mission, Vision, and Values statement that is LIVED by leadership and woven into the corporate culture is imperative.

• Generational shifts + pandemic-fueled values shifts necessitate a review of Total Rewards to ensure proper mix to attract and retain.

• Changes in how and where we work demand adjustments to how we create and sustain culture: technology is a gateway to change.

• Employment Brand becomes the most important way you can differentiate and compete for talent.


Evolution of the Employer Value Proposition

A values shift within an

employee’s market

necessitates a review of

your Employer

Value Proposition

and Employer

Brand.


• How and where jobs are done: Work from home & schedule flexibility

• Caregiver duties and disproportionate impact on women and people of color; return to workplace inequities

• Burnout and “Pent up Turnover” “The Great Resignation”

• Spotlight on health, flexibility, and financial stability.

• New emerging themes in Performance Management core competencies: Adaptability, Resilience, Resourcefulness…


Pandemic-Fueled Values Shift

2020 Forever changed our workforce.

It proved what is

*possible* and forced a

re-evaluation

of priorities.


Mind the GapExisting gender wage gap

+

Women and POC exiting workforce in disproportionate numbers in 2020

+

Men more likely to want to return to physical workplace

+

Women and POC (especially Black women) less likely to want to return to workplace

+

Observed unconscious bias from managers for employees that work on-site/in-person

=

Deeper wage gap, propensity for higher performance ratings, propensity for higher merit increases


The COVID-19 Effect

The experiment worked…and it’s complicated


Geographic Expansion of the Talent Pool

Opportunities and Challenges

In a tight job market, recruiting remote workers gives employers access

to more candidates

Taxpayer Opinions

How does the state salary cap impact the ability to recruit out of

state workers for hard to recruit positions?

CompensationHow do taxpayers feel

about employees working remotely? Or

from other states? How is the “community”

feeling impacted if a portion of the workforce

is remote?

Access to deeper talent

With more employers competing for talent, it means your employees

are being recruited. How will you retain the

key performers?

Retention


Impacts Vary by Job

How concerned are you about real or perceived issues surrounding fair treatment and equity of remote employees related to promotions, project opportunities, etc.?

Not At All Concerned 35%

Slightly Concerned 25%

Somewhat Concerned 24%

Moderately Concerned 11%

Extremely Concerned 5%

Gallagher Workforce Trends Pulse Survey Q2 2021

What Remote Work?


Considerations


Considerations

• Why?

• Cultural Implications?

• Exception or Rule?

Philosophy | Spirit of the Program


Considerations

• Who?

• How?

Eligibility and Process


Considerations

• Technology

• Equipment

• Expenses

Infrastructure


Considerations

• Safety

• Quality

• Performance Management

• Security

Risk Management


Considerations

• Geographic Pay Differentials

• Time Worked

• State Leave and Pay Laws

Compensation & Recordkeeping


• How have workforce changes spurred by COVID impacted your organization’s ability to recruit and retain employees? If they haven’t, will they in the next 3-5 years?

• How can remote work be a part of the solution?

• What are your biggest challenges to remote work?

• What investments need to be made to overcome the challenges?

Closing

Evolving with The Changing Workforce

Gallagher Support• Workforce Evaluation• Succession planning• Leadership training• Engagement Survey +

Consulting• Leadership

Optimization


Thank You!

Heather Eastman Jessica Nikunen763.259.8813 [email protected] [email protected]

3600 American Blvd. W., Suite 500 Bloomington, MN 55431

Compensation

TalentDevelopment

Benefits

TalentRetention

Total Rewards

Executive Comp TechnologyDiversity

Compliance Financial Wellbeing

OrganizationalDevelopment

Company On-boarding

CultureDevelopment

Retirement Readiness

mailto:[email protected]

mailto:[email protected]

Navigating the Remote Frontier

Documents

Transcript of Navigating the Remote Frontier