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The new employee deal

The new employee deal

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As COVID-19 transforms the work experience, technology companies want to know how their workers are adjusting and how they can plan for a smart transition to a new working environment. Additionally, the renewed emphasis on responsible environmental, social, and governance (ESG) practices is forcing organizations to examine their corporate citizenship and inclusion and diversity efforts and adjust their employee deal.

the new employee deal

While organizations consider the long-term implications of the current health crisis, climate change, and social movements on how and where people work, companies that enthusiastically support the new employee deal will thrive. They can use the disruption as a catalyst to enable a new, flexible, digitally skilled workforce that is equipped to perform in the new reality.

While many industries are confronted with the need for accelerated digital transformation, technology companies are ahead of the curve on this journey. Instead of focusing on the tactical elements of technology enablement, they can hone their employee experience and talent management strategies. This is critical because:

  • Creating a consumer-like experience will help to keep employees engaged and motivated
  • Digital transformation without a workforce strategy is just optimization
  • The most brilliant innovation is irrelevant if employees are not skilled enough to use it

CEOs, CIOs, and CHROs who embrace the new employee deal and quickly implement corresponding human capital and technology strategies will be well positioned for success in the new reality and their employees will be better off for it.

 

Create a consumer experience to keep employees engaged

Times of crisis lead people to reevaluate their personal situations, including their careers. COVID-19 and the resurgent call for improved corporate ESG practices represent a litmus test against new employee expectations. The tech sector is already in a war for talent and companies need to recruit, retain, and engage top performers. One way to do this is to treat employees and candidates like consumers who have freedom of choice and therefore must receive an exceptional experience from a company with similar values. In exchange, successful organizations will receive long-term loyalty and an engaged workforce.

 

Defining the new employee deal

The employee deal, or the psychological contract between an employer and an employee, has changed. Today’s “contract” includes:

  • The type of work employees are doing. Is it personally fulfilling? Does it maximize the employee’s unique abilities?
  • Are employees able to connect their personal values and beliefs to their work and employer?
  • The degree to which the employer facilitates employee well-being, mental health, and skills.

The way an organization interacts with, leads, and develops people during the phases of COVID-19 and recent social movements will determine employees’ willingness to remain in the contract. Corporate support for environmental stewardship, social and workplace equality, strong governance, continual digital transformation, and human-centered design are now all part of the new expectation— not a “nice-to-have” as they once were.

The culmination of recent social, political, and cultural events is a pivotal moment where organizations have the opportunity to combat inequality and make a positive impact in their workforce and communities. Employees are now expecting that employers provide access to robust resources for underrepresented populations and their allies. However, resources are not enough. People are also expecting that their organizations take a role in advancing equality and justice through actions. Inclusion and diversity strategy will be a new component of the employee deal and will impact how candidates and employees feel about working for an organization.

Flexibility, autonomy, life-long training, and remote working opportunities are also becoming more important aspects of the employee deal. Employees expect to be treated as consumers and be provided high levels of service in exchange for “buying into” the organization. Organizations must realize that employees have choices and tailor their efforts to appeal to different individuals with unique values and motivations.

The excerpt was taken from KPMG article, The new employee deal in the technology industry

© 2020 R.G. Manabat & Co., a Philippine partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved.

KPMG International Cooperative (“KPMG International”) is a Swiss entity.  Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

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