The tables have turned. A rapid workplace transformation was spurred by the COVID-19 pandemic and accelerated by businesses. Now in a rapid series of evolutions and a tight talent market, employees are now driving the latest workplace transformation. Active agents in this transformation, these employees’ priorities have shifted and are driving how, when and where work gets done – and forever changing the future of work.

Through the wealth of data and unique expertise and purview into the labor market and human capital management, ADP identified four factors expected to continue to drive the evolution of the workplace in 2022:

Employee Visibility Will Be Redefined
With employees in a mix of hybrid, on-site and remote locations, employers have to work harder to understand the unique needs of their dispersed workforce and to increase employee visibility. ADP statistics show that in just one year, three-quarters (75 percent) of the global workforce made changes or plan to change how or where they live. That percentage is even greater (85 percent) among Generation Z. Additionally, ADP surveyed small and midsized U.S. employers and found that 66 percent have a hybrid work model in place.

This hybrid environment means that managers will have to rely on people data to deliver business insights into how their team is performing. People data can help employers fill the gaps caused by a dispersed or hybrid workforce, thereby helping drive employee engagement and performance.

People and Purpose Will Drive Workplace Culture
Employers need to focus on fostering inclusion, as connection will become a measurement of workforce culture: ADP Research Institute found that U.S. workers who feel they are “Strongly Connected” to their employer are 75 times more likely to be “Fully Engaged” than those who do not feel connected.

With connections driving engagement, employers will need to refocus on their people to find the larger purpose of uniting their workforce. Workforce flexibility will stretch beyond perceived limits, and employers will embrace people-centered initiatives to build a workplace where everyone can thrive. As businesses pursue growth opportunities, a continued focus on diversity, equity, and inclusion will broaden perspectives, drive progress, and fuel greater innovation. In fact, more than 50 percent of companies leveraging ADP DataCloud’s DEI analytics capabilities have analyzed the positive impact on their DEI measures.

Reliable Data and Expertise Will Power Resiliency
In the hybrid workplace, the existing complex regulatory compliance environment will see additional stressors. ADP’s HR Survey Series with HR Outsourcing found that nearly 20 percent of U.S. companies with 25 to 99 employees admit they are currently facing challenges with compliance and regulatory issues. That percentage could increase as regulations change. To navigate forward and address regulatory changes, leaders will rely more heavily on real-time data to guide decision-making and stay ahead of compliance mandates.

Timely, quality data will be the key to providing businesses with the confidence they need to make important decisions and act on them. For example, employers are using people data to better manage return-to-the-workplace policies, such as vaccination tracking and COVID testing. Through its ADP Return to Workplace mobile solution, ADP reports workers have completed nearly 3 million health status surveys since the tool’s launch.

Greater Innovation Will Accelerate Growth
As business models evolve amid global shifts, businesses will turn to technology to drive efficiency and expand capabilities by eliminating task work and refocusing efforts on strategic growth initiatives. Workers are already making use of mobile alternatives: According to ADP data, monthly users of its ADP Mobile Solutions app have increased more than 25 percent from last year. Mobile self-sufficiency provides employees with more flexibility and control while enabling HR workers to focus more on people.

ADP Research Institute found that more than one in four workers (28 percent) report having taken on a new or changing role due to pandemic labor market shifts. For Gen Z workers, the number jumps to 36 percent. Since the pandemic began, many employees have been forced to reskill. As a result, workers will continue to prioritize their skills and pursue opportunities to apply their unique strengths. Employers that want to accelerate performance will need to focus on those individual strengths and give their employees opportunities to develop new skills or embark on a new career trajectory with more opportunity for growth. Additionally, employers will also rely on helpful technologies like machine learning to identify workers with applicable skills in unique places, such as pools of former applicants who previously applied for other roles.

For a deeper look at additional 2022 trends, please visit adp.com/SPARK.

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