Economic headwinds & their impact on employer-employee dynamic
Last three years have changed the expectations for good
In the first few months of the pandemic, there was a lot of debate around the type of recovery that the world could expect. Fed’s & other central banks settled the debate by pumping liquidity at no cost and suddenly a V shaped recovery seemed imminent. However soon inflation took over and now even a W shaped recovery looks elusive.
Employees sense of job security went through a similar curve. As the markets & economy collapsed in March 2020, everyone feared for their jobs. This despondency was son replaced by a extreme buoyancy resulting in phenomenon like the “Great Resignation” and “Moon Lighting”. However belt tightening by startups, soaring inflation, rise in EMI due to rate hikes and threat of job loss means that employees are feeling more helpless, vulnerable and exposed than ever.
In our most recent survey 85% of the employees felt that employers ae not doing enough to help address their financial challenges. Employees were most concerned about their salary not keeping up with the increase in their expenses. Some of the numbers are staggering
80% of the employees have seen their EMI’s increase between 5K -20K/Month
90% of the employees believe their overall monthly expense has risen by 25% since their last salary hike
Employees are expecting employers to step in and make up for factors that are largely macro economic in nature. This is far cry from the pronouncements just a year back that permanent jobs are passe and gig working is the future.
Top considerations of employees right now are security, salary and flexible working, as users in various survey, job review sites and focus groups indicate. Add to that the heightening competition for increasingly attractive employee benefits, from earned wage access, employer sponsored loans etc and we are beginning to see a new beginning in the employer-employee dynamic where employers and employee relationship is based on common values and goals that are in sync with the society at large.
Some of the key trends today are
1) Hybrid working is now mainstream
2) Top talent prioritizes wellness - Physical, Mental & Financial
However what is often missed is that employees really value flexibility.
Employers have to realize that “one size fits all” approach is definitely dead. World is entering a phase where there are five generations working together in a workplace. This is particularly true for India where we are in the last phase of the demographic dividend. There are people in the workforce who really value social connection and are most effective when they are face to face with their colleagues. There are others that would rather work out of a remote hamlet in Himalayas. Same logic applies for timings. Some employees would rather put 5 hours of intense work while others are happy with 12 hour timing with multiple breaks.
We believe the same logic applies to how employees should be paid. Lot of employees are happy with a monthly pay schedule but there is a significant population that wants it when they need it.
FINFI makes it flexible. Help us help your employees.
Join the revolution by mailing us on care@myfinfi.com