After the arrival of the Covid-19 pandemic, there was confusion everywhere. We can all remember the lockdowns that brought life to a standstill. Although the casino online [valid where legal] industry did well, many businesses collapsed. When 2021 arrived, vaccines started cropping up and they gave the world the hope that things would go back to normalcy. Now that we are 2022, we are not yet back to where we were before Covid-19 came. The labour market is still in chaos as organizations continue to witness utmost workplace disruption. Nobody knows if there will be new Covid-19 variants that will emerge in 2022. As a result, no one can tell if there will be future lockdowns.
The situation in 2021
When new Covid-19 strains emerged in 2021, the labour market got more volatile. Many people quit their jobs and others sought to work from home. Organizations had no choice but to scramble for the limited number of people who were willing to commute to work. In 2021 as well, the entire world recorded the highest inflation levels. Hence, there is a fair chance that the labour market will be more volatile this year. If organizations temporarily go remote due to new variants of the virus, there will be more chaos.
We all know that organizations now see the hybrid work system as the future. It entails a combination of office and remote working. If Covid-19 becomes harsher this year, the hybrid work system might be hard to work with. Employers will not know when and where their employees are working from because there is no supervision. Employers might deal with this confusion by reducing wages. When annual wage increases fall behind the current inflation rate, there will be more problems. We can summarize the 2022 labour market trends as shown below.
- Companies might refuse to increase the pay but reduce the workweek – Currently, organizations with a solid financial foundation are attracting workers by increasing compensation. If it were not for the rising inflation, less financially stable organizations could also afford to attract new talents with a higher pay rate. Since inflation might continue to bite, small and medium-size organizations with limited resources might adopt a 32-hour workweek. Hence, their workers will work fewer hours for the same pay. This method will allow all organizations to compete for new talent in the labour market at the same level.
- A hybrid work system will be the norm for employees – Employees will continue to demand flexible working hours and conditions. They will want an employer who can offer flexibility around where, when, and how they should work. Hence, employers without flexible working conditions will lose workers. Lack of interactions with core workers due to working remotely can increase employee turnover rate because there is no social pressure to stick to the job. As organizations continue to embrace the hybrid and remote work system, they will create more opportunities. For that reason, workers might find those vacancies attractive and leave their current employers.
- Automation of managerial roles will rise sharply – Before Covid-19 came, managers were used to workers who commuted to the office daily. So they had less direct contact with employees because they also had their managerial tasks to do. Now as we speak, technology is slowly eradicating some managerial roles, leaving managers more time to deal directly with workers. Now the question is: will companies terminate some of their managers or will they alter the traditional job roles of a manager?
Apart from the above, it is likely that companies will use their remote work tools to track and review employee performance. The remote working method is hard because employers cannot tell what their workers are doing at any time of the day. Thus, it is harder to create performance appraisals without bias. Collaboration technology such as Google Zoom will help employers track workers’ actions and set performance ratings. Lastly, some employers will likely not use the hybrid system long term because of its complexity. Due to high employees turnover, loss of organizational culture, and a less reliable way to track performance, most companies might ask their workers to come back to the office full-time.
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