Small Businesses

McKinsey study shows deep employee-employer disconnect over the return to in-person work

  • 3 min Read
  • October 4, 2021

Author

Escalon

Table of Contents

Employers and employees are seeing the post-pandemic future of work very differently. While employers are keen to get back to a significant in-person presence, employees want to retain at least some elements of remote work. This broadening disconnect is likely to trigger a spike in attrition and disengagement, according to a new McKinsey report.

The report’s findings

As organizations grapple with the challenges of what a return to the office should look like, McKinsey conducted a study recently to gauge the views of leaders and their direct reports about the uncertain terrain before them. Here’s how the participants responded. 

What employers expect

  • More than three-quarters of 504 surveyed C-Suite executives report they expect the typical “core” employee to be back in the office soon for three or more days a week. 
  • Though they found the work-from-home experiment surprisingly effective, they also believe that remote work culture hurts organizational culture and the sense of belongingness, and are therefore keen to establish normalcy quickly.
  • In the view of surveyed executives, the new normal will be more flexible but not drastically different from the workplace of the past. That is, for employers, the office was and will be the primary center for work, and they want their employees back in the office sooner. 

What employees want

  • Most government and corporate employees in the survey preferred a more flexible work model where employees sometimes work on-premises and sometimes work remotely.
  • Nearly three-quarters of the 5,043 employees surveyed want to work from home for two or more days every week; over half want at least three days of remote work weekly.
  • Many employees expressed a disconnect between their personal lives and work obligations, prompting some to reevaluate their relationships with their employers.

What’s coming next?

With workers across the globe leaving their companies at a higher rate than normal, the much-hyped great attrition of 2021 (and 2022, and even 2023) seems to be shaping up. An April 2021 survey by Prudential Financial found that 26% of workers in the U.S. plan to look for new employment opportunities. Some 40% of workers globally are considering quitting their current jobs 2021’s end, cites a March 2021 report by Microsoft.

In all likelihood, the discordant views of employers and employees on returning to work will surface in the form of reduced engagement, a greater reluctance to work longer hours and attrition in the coming times.

What should employers do?

In the enthusiasm about the return to in-person work, employers risk exacerbating the disconnect with employees. Here’s how businesses can address the issue:

  • Instead of directing the rah-rah return to the office, leaders should focus on deeper listening to know where employees are today.
  • Organizations must come up with hybrid solutions for working arrangements to retain talent in the post-pandemic milieu. 
  • Employers must acknowledge they don’t have all the answers and will try to create a model that works for them and employees. 
  • Leaders should work transparently with employees to design how their companies work. 

Takeaway

Employers should not underestimate the schism between themselves and their employees about the future of in-person work. The divide runs deep and should be considered a reckoning. 

Talk to our team today to learn how Escalon can help take your company to the next level.

  • Expertise you can trust

    Our team is made up of seasoned professionals who bring years of industry experience to the table. You gain a trusted advisor who understands your business inside out.

  • Quality and consistency

    Say goodbye to the hassles of hiring, training and managing in-house finance teams. You will never have to worry about unexpected leave of absence or retraining new employees.

  • Scalability and Flexibility

    Whether you’re a small business or a global powerhouse, our solutions scale with your needs. We eliminate inefficiencies, reduce costs and help you focus on growing your business.

Contact Us Today!

Tap into the latest insights from experts in your industry

People Management & HR

How to Design Your First Employee Engagement Survey

How to Design Your First Employee Engagement Survey: A Startup Founder's Guide  If you're running a startup or small business and you've never sent...

Taxes

Year-Round Tax Planning vs. Last-Minute Filing

Year-Round Tax Planning vs. Last-Minute Filing: The True Cost of Waiting  Every year, the same pattern plays out for thousands...

Nonprofit

The True Cost of Volunteer-Run Finances

The True Cost of Volunteer-Run Finances: When Nonprofits Need Professional Accounting Help   It is one of the most common financial arrangements...

Nonprofit

Cash Flow Management Strategies for Nonprofits With Seasonal Funding  

Ask the finance director of almost any nonprofit what keeps them up at night, and cash flow will be near...

Accounting & Finance

State Income Tax Nexus 101

You hired your first remote employee in Texas. A sales rep was sent to work out of a co-working space...

Nonprofit

Top Grant Accounting Mistakes Nonprofits Make

Grant funding is the lifeblood of many nonprofit organizations. It fuels programs, sustains operations, and enables the kind of long-term...

Life Sciences

Transfer Pricing Considerations for Life Sciences Companies Expanding Globally  

Global expansion is one of the most exciting milestones a life sciences company can hit. New markets, new clinical partnerships,...

Accounting & Finance

The Role of Accounting Software in Simplifying Audit Prep  

If you have ever spent the weeks before an audit digging through spreadsheets, chasing down receipts, or reconciling accounts that should have...

Taxes

The SMB Owner’s Audit Preparation Timeline: 90 Days Out 

Three months before your audit starts is when you should begin serious preparation, not three days. Yet many business owners...