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

Accounting & Finance

The Role of Financial Reporting in Small Business Growth

Financial reporting often appears to be a routine exercise, but for small businesses, it can be the difference between reactive...

Read More
Accounting & Finance

The Impact of Accurate Financial Operations on Business Success

Financial operations encompass the systems and processes that govern every monetary aspect of a business—from managing payables and receivables to...

Read More
People Management & HR

The Benefits of Outsourcing Payroll for Small Businesses 

For many small business owners, running payroll is a time-intensive chore that requires meticulous calculation, familiarity with tax codes, and...

Read More
Accounting

Introducing C3: Your All-in-One Financial Management Platform

Managing your business’s finances can often feel like juggling too many tasks at once, especially when you’re trying to keep...

Read More
Accounting & Finance

Tax Planning Strategies to Maximize Small Business Savings

Small business owners often grapple with tax obligations that can swallow a large portion of their profits if not managed...

Read More
People Management & HR

Streamlining HR Processes, Best Practices for Small Business Owners 

Human Resources (HR) might feel like an afterthought for many small business owners juggling day-to-day demands, yet it has a...

Read More
People Management & HR

Leveraging AI for Efficient People Operations

Artificial intelligence (AI) isn’t just for tech giants anymore—it’s increasingly accessible to small and mid-sized businesses seeking a competitive edge...

Read More
Accounting & Finance

How to Set Up Payroll, A Guide for Small Business Owners 

Setting up a payroll system is an essential step that helps small business owners pay their employees accurately and on...

Read More
Accounting & Finance

Financial Planning for the Future, Setting Long-Term Business Goals

While small businesses must handle day-to-day tasks—like managing payroll or closing monthly books—long-term planning is the compass that keeps them...

Read More