10 Facts About the Workforce 4.0—Are You Ready to Close the Experience Gap?

• The Workforce 4.0 reflects an increasing number of workers that have developed a higher awareness about their expectations, needs and priorities towards their work and the organisations they are working for.
• Their expectations, needs and priorities can be summarised around 10 dimensions—ranging from contractual to transformational considerations.
• It is time to ask, listen, and understand to your workforce’ wants and needs to redefine a compelling work value proposition and deliver a fulfilling work experience.

This is the second part of a two-part series of articles on “Myths & Truths about the Great Resignation.” 

About the Workforce 4.0

The Workforce 4.0 reflects an increasing number of workers—across generations and geographies—that have developed a higher awareness about their expectations, needs and priorities towards their work and the organisations they are working for. While this movement did not start with the pandemic, the pandemic sped up the pace.

Why?

The pandemic is probably one of the largest natural experiments on how workers and organisations have been experiencing—for good or bad—new ways of living and working. 

Let’s discover 10 categories of expectations, needs, and priorities. 

Fact #01: The Workforce 4.0 wants purpose-led organisations 

The expectation

The Workforce 4.0 wants to work for purpose-led organisations that contribute positively to society

• 75% of workers want to work for an organisation that contributes positively to society (PricewaterhouseCoopers, May 2022)¹.
• 71% of workers expect to work for an organisation that provides opportunities to make a social impact (Edelman Trust Institute, August 2021)².

• 34% of workers have left their organisation solely because it remained silent on a societal or political issue (Edelman Trust Institute, August 2021)².
  
  

Fact #02: The Workforce 4.0 wants healthy working cultures 

The expectation

The Workforce 4.0 wants to work for organisations with healthy cultures that are aligned with their personal values and beliefs

Culture & values  

• 66% of workers want to work for organisations with similar values to their own (ManpowerGroup, June 2022)³.
• 59% of workers would change organisations for a better fit with their personal values (Edelman Trust Institute, August 2021)².
• 61% of workers would choose, leave, avoid, or consider employers based on their values and beliefs (Edelman Trust Institute, August 2021)².

Diversity, Equity & Inclusion

• 60% of workers consider that having the possibility to be authentic at work is an essential factor when considering a change in the work environment (McKinsey & Company, April 2021)⁴.
• 74% of workers consider that corporate investments in diversity, equity, and inclusion is “very important” or “somewhat important” to them when considering a new job (Indeed & Glassdoor, December 2022)⁵.

The reality

Healthy culture & values  

• A toxic culture is 10.4 times more likely to contribute to attrition than compensation (MIT Sloan Management Review, June 2022)⁶. Five attributes define a toxic culture: disrespectful, non-inclusive, unethical, cutthroat, and abusive (MIT Sloan Management Review, March 2022)⁷.
• When the employees feel their employer embodies their values, they are 27% more likely to have more engagement and 23% more likely to stay over 3 years (Qualtrics, December 2022)⁸.

Diversity, Equity & Inclusion

• 76% of workers would consider looking for a new job if they discovered their organisation had an unfair gender pay gap or no diversity and inclusion policy (APD, April 2022)⁹.
• 62% of workers would consider turning down an offer or leaving a company if they did not think that their manager supported DEI initiatives (Indeed & Glassdoor, December 2022)⁵.
• 67% of workers (aged 18-35) said they would consider turning down a job offer or leaving a company if there was a gender imbalance in company leadership (Indeed & Glassdoor, December 2022)⁵.
• 65% of workers (aged 18-35) said they would consider turning down a job offer or leaving a company if there was a lack of race/ethnicity diversity in company leadership (Indeed & Glassdoor, December 2022)⁵.
• 14% of workers left their organisation between April 2021 and April 2022 because of non-inclusive and unwelcoming work environments (McKinsey & Company, July 2022)¹⁰.

Fact #03: The Workforce 4.0 wants people-centric leaders

The expectation

The Workforce 4.0 wants to work for organisations with purpose-led and people-centric leaders whose behaviours align with the organisation’s purpose, mission, and values

• 71% of workers want leaders they can trust (ManpowerGroup, June 2022)³.

The reality

• 34% of workers left their organisation between April 2021 and April 2022 because of uncaring and uninspiring leaders (McKinsey & Company, July 2022)¹⁰.

Fact #04: The Workforce 4.0 wants a sense of belonging and connection 

The expectation

The Workforce 4.0 wants to work for organisations with caring and supporting teams and managers

• 79% of workers want a team they can trust and a manager who can support them (ManpowerGroup, June 2022)³.

The reality

• 34% of workers left their organisation between April 2021 and April 2022 because of unsupportive teams or managers (McKinsey & Company, July 2022)¹⁰.

Fact #05: The Workforce 4.0 wants a meaningful work

The expectation

The Workforce 4.0 wants a meaningful work that leverages their skills, experiences, and career aspirations

• 70% of workers consider that their sense of purpose is defined by their work (McKinsey & Company, April 2021)⁴.
• 64% of workers want daily meaningful work to help improve society (ManpowerGroup, June 2022)³.
• 36% of workers would change organisations for more meaningful work (Willis Towers Watson, June 2022)¹¹.

The reality

• Only 18% of workers believe they get as much purpose from work as they want (McKinsey & Company, April 2021)⁴.
• 85% of frontline managers and employees are unsure or disagree that they can live their purpose in their day-to-day work (McKinsey & Company, April 2021)⁴.
• 50% of workers consider they can use “almost all” or “a lot” of their experience and skills; 23% of workers consider they could use “almost none” of their skills on the job (McKinsey & Company, June 2022)¹².
  
  

Fact #06: The Workforce 4.0 wants to grow personally and professionally  

The expectation

The Workforce 4.0 wants to work for organisations that provides opportunities to grow personally and professionally

• 82% of workers expect to work for an organisation that provides career advancement opportunities (Edelman Trust Institute, August 2021)².
• 76% of workers and 83% of executive workers consider that if they could benefit from more learning opportunities, they would stay at their organisation longer (Microsoft, September 2022)¹³.
• 81% of workers expect their organisations to provide learning opportunities that help keep skills up to date (ManpowerGroup, June 2022)¹⁴.

The reality

• 41% of workers left their organisation between April 2021 and April 2022 due to a lack of career development and advancement opportunities (McKinsey & Company, July 2022)¹⁰.
• 56% of workers and 68% of executive workers consider there are not enough growth opportunities in their organisation to stay in the long term (Microsoft, September 2022)¹³.
• 55% of workers consider the best way to develop their skills is to change organisation (Microsoft, September 2022)¹³.
• Providing employees with lateral career opportunities is 2.5 times more powerful as a predictor of an organisation’s retention rate compared with compensation (MIT Sloan Management Review, March 2022)⁶.

Fact #07: The Workforce 4.0 wants flexibility on where, when, and how they work

The expectation

The Workforce 4.0 wants to work for organisations that offer flexibility on where the work is done when the work is done, and how the work is done

Working flexibility

• Candidates consider flexible working arrangements as the #3 priority (after compensation as #1 and work-life balance as #2)—when looking for a job (LinkedIn, October 2022)¹⁵.

Working locations 

• 35% of workers would like to have fully flexible workplace locations (ManpowerGroup, June 2022)³.
• 47% of workers consider that flexibility in the working location is an important factor when considering a change in the work environment (PricewaterhouseCoopers, May 2022)¹.
• Over 60% of Americans would quit their job for a remote working opportunity (Zapier, May 2022)¹⁶.
• 80% of desk-based workers say they want location flexibility (Future Forum, October 2022)¹⁷.

Working times

• 45% of workers would like to choose the start and end times of their work (ManpowerGroup, June 2022)³.
• 50% of workers consider that flexibility in the working time is an important factor when considering a change in the work environment (PricewaterhouseCoopers, May 2022)¹.
• 94% of desk-based workers say they want schedule flexibility (Future Forum, October 2022)¹⁷.

The reality

• 26% of workers left their organisation between April 2021 and April 2022 due to a lack of workplace flexibility (McKinsey & Company, July 2022)¹⁰.
• 32% of American workers said they have already quit a job because of being forced to physically be in an office setting (Zapier, May 2022)¹⁶.

Fact #08: The Workforce 4.0 wants to be fairly rewarded and recognised for their contributions

The expectation

The Workforce 4.0 wants to work for organisations that recognises and fairly rewards performance

• Compensation is the #1 priority when looking for a job (LinkedIn, October 2022)¹⁵.
• 70% of workers want their contributions to be recognised by management (ManpowerGroup, June 2022)³.
• 71% of workers consider that being fairly rewarded at work is an important factor when considering a change in the work environment (PricewaterhouseCoopers, May 2022)¹.
• Depending on surveys, between 35% (PricewaterhouseCoopers, May 2022)¹ and 75% (ADP, April 2022)⁹ of workers are planning to ask their employers for a raise in the next 12 months.
• 56% of workers would change organisations for better pay and benefits (Willis Towers Watson, June 2022)¹¹.
• 20% of employees would leave their organisations for the same pay; 40% of employees would leave their organisations for a 5% pay increase (Willis Towers Watson, June 2022)¹¹.

The reality

• Insufficient pay is the #1 reason that causes employees to leave their organisation (Mercer, October 2022)¹⁸.
• Only 61% of workers indicate that they are paid fairly for what they do (Qualtrics, December 2022)⁸. 
  
  

Fact #09: The Workforce 4.0 wants well-being

The expectation

The Workforce 4.0 wants to work for organisations that supports emotional, social, financial, and physical well-being

• Candidates consider support of work-life balance as the #2 priority—after compensation and benefits—when looking for a job (LinkedIn, October 2022)¹⁵.
• 60% of workers consider that well-being shown by the team is an important factor when considering a change in the work environment (PricewaterhouseCoopers, May 2022)¹.
• 50% of workers would change organisations for a better work-life balance (Edelman Trust Institute, August 2021)².
• 82% of executives would be more likely to stay with their organisation if it better supported their well-being (Deloitte, June 2022)¹⁹.

The reality

Well-being in the workforce

• Burnout because of a demanding workload is the #2 reason—after compensation—that causes employees to leave their organisation (Mercer, October 2022)¹⁸.
• 38% of workers are experiencing symptoms of burnout and, as a result, are likely to be less productive (Qualtrics, December 2022)⁸.
• 1 in 3 workers and executives are constantly struggling with fatigue and poor mental health (Deloitte, June 2022)¹⁹.
• 53% of workers believe their work is suffering because of poor mental health (ADP, April 2022)⁹.
• 26% of workers left their organisations between April 2021 and April 2022 because of a lack of support for health and well-being (McKinsey & Company, July 2022)¹⁰.

Well-being in the executive workforce

• Between 40% (LinkedIn, October 2022)¹⁵ and 53% (Microsoft, September 2022)¹³ of executives consider they are burned out at work.
• Executives have been experiencing a 40% decrease in the work-life balance between August 2021 and August 2022. Only 30% of them consider they have acceptable levels of work-life balance (Future Forum, October 2022)¹⁷.
• Executives have been experiencing a 40% increase in stress and anxiety between August 2021 and August 2022. Only 15% of them consider they have acceptable levels of stress and anxiety at work (Future Forum, October 2022)¹⁷.

About providing and receiving support

• Only 25% of workers agree that the resources and plans offered by the employer support their health and have encouraged them to live a healthier lifestyle (Willis Towers Watson, June 2022)¹¹.
• 89% of workers reported experiencing burnout over the previous year and 70% would consider leaving their current company for a different one that offered comprehensive resources, benefits, support, and/or policies intended to reduce burnout (Visier, 2022)²⁰.
  
  

Fact #10: The Workforce 4.0 wants job stability and security

The expectation

Workforce 4.0 wants to work for organisations that provides job security and stability

• 54% of workers consider job security to be an important factor to them (ADP, April 2022)⁹.
• 33% of workers would change organisations for better job security (Willis Towers Watson, June 2022)¹¹.

The reality

• Only 25% of workers consider their job or their industry to be secure (ADP, April 2022)⁹.
• 75% of workers consider the high inflation and market volatility to have significantly increased their financial stress (Mercer, October 2022)¹⁸.
• Insufficient pay is the #1 reason that causes employees to leave their organisation (Mercer, October 2022)¹⁸.
• A lack of job security is 3.5 times more likely to contribute to attrition than compensation (MIT Sloan Management Review, June 2022)⁶.
  
  

Key takeaways for people-centric leaders

Last 2 figures:

• According to “Gallup's State of the Global Workplace: 2022 Report”, only 21% of employees are engaged at work. This percentage drops to 14% for European workers and 11% for Swiss workers²¹. 
  
  
• According to the latest McKinsey research published in December 2022, 33% of three European workers are considering quitting their organisations within the next 3 to 6 months. This percentage is 34% for Switzerland²². 
  

If you are not addressing the expectations, needs and priorities of the Workforce 4.0, you will face major talent challenges: the key question is not if key talent will leave your organisation—but who, why, and when they will leave your organisation. If this scenario is not appealing to you, it is time to ask, listen, and understand your workforce’ wants and needs. Only then, you will be in a position to redefine a compelling work value proposition and deliver a fulfilling work experience.

What’s next?

Our next series is a trilogy of articles that will focus on "Myths & Truths about the Great Resignation in Switzerland"

AUTHOR

Tanguy Dulac is the Founder & CEO of PeopleCentriX,  a research and advisory firm that empowers leaders shape a future-fit world of work. If you want to connect, please reach me at tanguy.dulac@peoplecentrix.eu 

NOTES
Some words that inspired me during my writing experience

1. PricewaterhouseCoopers. Global Workforce Hopes and Fears Survey 2022. https://www.pwc.com/gx/en/issues/workforce/hopes-and-fears-2022.html (2022).
2. Edelman Trust Institute. 2021 Trust Barometer Special Report: The Belief-Driven Employee. https://www.edelman.com/trust/2021-trust-barometer/belief-driven-employee/new-employee-employer-compact (2021).
3. ManpowerGroup. What Workers Want: From Surviving to Thriving at Work. https://workforce-resources.manpowergroup.com/home/infographic (2021).
4. McKinsey & Company. Help your employees find purpose—or watch them leave. https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/help-your-employees-find-purpose-or-watch-them-leave (2021).
5. Indeed. Work Wellbeing 2022 Insights Report. https://www.indeed.com/career-advice/career-development/workplace-wellbeing (2022).
6. Donald Sull, Charles Sull & Ben Zweig. Toxic Culture Is Driving the Great Resignation. MIT Sloan Management Review https://sloanreview.mit.edu/article/toxic-culture-is-driving-the-great-resignation/ (2022).
7. Donald Sull, Charles Sull, William Cipolli & Caio Brighenti. Why Every Leader Needs to Worry About Toxic Culture. MIT Sloan Manag Rev https://sloanreview.mit.edu/article/why-every-leader-needs-to-worry-about-toxic-culture/ (2022).
8. Qualtrics. The Top Employee Experience Trends in 2023. https://www.qualtrics.com/blog/2023-employee-experience-trends/ (2022).
9. ADP. People at Work 2022: A Global Workforce View. https://www.adpri.org/wp-content/uploads/2022/04/PaW_Global_2022_GLB_US-310322_MA.pdf.
10. McKinsey & Company. The Great Attrition is making hiring harder. Are you searching the right talent pools?https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/the-great-attrition-is-making-hiring-harder-are-you-searching-the-right-talent-pools (2022).
11. Willis Towers Watson. 2022 Global Benefits Attitudes Survey. https://www.wtwco.com/en-US/Insights/2022/06/2022-global-benefits-attitude-survey (2022).
12. McKinsey & Company. Meet the psychological needs of your people—all your people. https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/meet-the-psychological-needs-of-your-people-all-your-people (2022).
13. Microsoft. Work Trend Index: Pulse Report. https://www.microsoft.com/en-us/worklab/work-trend-index/hybrid-work-is-just-work (2022).
14. ManpowerGroup. The Great Realization Report: Accelerating Trends, Renewed Urgency. https://workforce-resources.manpowergroup.com/home/the-great-realization-accelerating-trends-renewed-urgency-xp (2022).
15. LinkedIn. Global Talent Trends - October 2022. https://business.linkedin.com/talent-solutions/global-talent-trends (2022).
16. Zapier. Zapier Report: The Future of Work. https://zapier.com/blog/future-of-work-report/ (2022).
17. Future Forum. Fall 2022 Future Forum Pulse. https://futureforum.com/research/pulse-report-fall-2022-executives-feel-strain-leading-in-new-normal/ (2022).
18. Mercer. 2022 Inside Employees’ Minds Report. https://www.mercer.us/our-thinking/2022-inside-employees-minds-report-rethinking-what-we-need-from-work.html#contactForm (2022).
19. Deloitte. The C-Suite’s Role in Well-Being. https://www2.deloitte.com/us/en/insights/topics/leadership/employee-wellness-in-the-corporate-workplace.html (2022).
20. Visier. The Burnout Epidemic Report. https://www.visier.com/lp/burnout-epidemic-report-2021/ (2021).
21. Gallup. Gallup’s State of the Global Workplace: 2022 Report. https://www.gallup.com/workplace/349484/state-of-the-global-workplace-2022-report.aspx (2022).
22. McKinsey & Company. European talent is ready to walk out the door. How should companies respond?https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/european-talent-is-ready-to-walk-out-the-door-how-should-companies-respond (2022).

Some sounds that inspired me during my writing experience

• Florence + the Machine (2022). Dance Fever. Polydor Republic.
• Florence + the Machine, The XX (2019). You’ve Got the Love (Jamie XX Rework). Island / Universal Music.
• Jamie XX (2022). KILL DEM. Universal Music.
• Jamie XX (2022). LET’S DO IT AGAIN. Universal Music.