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Re-defining Skills Sets with Upskilling

The workplace trends of 2021 reflect a large-scale diversification of employees’ skill sets. This trend of upskilling and reskilling is a result of pandemic-era changes for both employers and employees.

As reflected by the talent shortage and changing workforce models, employees have been looking for more flexibility, better benefits, and opportunities for career growth.1 Now, employees aren’t just looking for more flexible, profitable options—they’re also looking to work for companies that provide them with resources for upskilling.2 By upskilling through companies, employees are aiming to increase their professional value and compensation.

Employers are also now looking to potential workers’ skill sets more than their degrees to qualify for positions.3 IT workers, for example, have seen noticeable increases in their opportunities and compensation due to upskilling.4 Similarly, manufacturing employers prioritize candidates with specialized skills over those with degrees, leading manufacturing workers to upskill.5

A survey found that 84 percent of employers are using or transitioning to hybrid models.6 To adapt, employers are now more focused than ever on specific, specialized skill sets. In effect, the remote, digital-only elements of a hybrid model have caused certain skills to become increasingly relevant. Going into 2022, some of the most desirable skills will be digital, collaboration, and project management skills.7

This rising importance of skill sets is contributing to a reskilling revolution that will continue into 2022.8 By 2025, the World Economic Forum estimates that 50 percent of employees will need to reskill or upskill to maintain relevance in the global workforce.9

84%

A survey found that 84 percent of employers are using or transitioning to hybrid models.6Postit Notes on Whiteboard

Re-defining Work Models with Remote Work

Re-defining Work Models with Remote Work

Remote work experienced a noticeable and continuous boom throughout the pandemic. This trend of upward growth is expected to continue, according to a survey conducted by Upwork.10

Employers are becoming enticed by the benefits of a partially remote workforce. A Stanford study found that performance increased by 22 percent for employees working remotely. A study done by Mercer showed that 94 percent of employers experienced similar or higher productivity levels with a fully remote workforce.11

The percentage of the workforce working virtually will continue to increase; a total of 27.7 percent of Americans (40 million) are planning to work remotely in 2022, and 22 percent of the American workforce is estimated to be completely remote by 2025.12 Remote work is here to stay. A study by Owllabs found that 80 percent of employees plan to work remotely for three days or more weekly, and 59 percent of employees would work for an employer that offers remote work over one that doesn’t.13 On a global scale, 16 percent of companies employ fully remote workforces.14

The large-scale shift to remote work also largely impacted big cities and metropolitan areas. Five key cities were affected by people moving out to new states: Chicago, New York City, Detroit, Washington D.C., and New Orleans.15 New York and Washington D.C. each saw 14 million people leave.16

Chicago, Boston, New York, and Los Angeles saw decreases in their total share of U.S. employment,17 with 18 percent of office space in central business districts now being vacant (up from 12 percent pre-pandemic). However, if COVID fears begin to decrease in 2022, there is potential for both employees and employers to begin returning to cities.18

This migration trend has directly impacted organizations, with 34 percent of employers looking to relocate their significant operations to an entirely new state.19 Employers listed Texas and Florida as the most desirable locations to move or begin business operations when surveyed.20

Workers have begun to take advantage of the benefits of remote work and are now moving to affordable cities or rural areas. NYC saw 391,000 residents move to regions more than 150 miles away, while 248,700 LA residents moved to locations more than 150 miles away.21 This migration is partly due to the substantial gap in housing prices, leaving many workers looking for homes in different states.22 Some workers in cities also currently feel underpaid or undervalued, and as a result, are moving to areas with better pay and cost-of-living.23

Employers listed Texas and Florida as the most desirable locations to move or begin business operations when surveyed.10

Re-defining Organizational Purpose

Re-defining Organizational Purpose

Remote work has helped decrease employers’ environmental footprints. Currently, 69 percent of employers plan to make workforce and workplace changes that will noticeably reduce their environmental impact.24 Employers cite sustainability as the fourth most significant driver of expansion. Start-ups are paving the way with sustainable practices and growth,25 and larger organizations are beginning to implement green roofs,26 use eco-friendly materials, and take steps to reduce their plastic footprint significantly.

Employees are also more inclined to apply and work for organizations whose environmental values align with their own.27 For both organizations and talent, 2020 and 2021 highlighted the importance of sustainability and environmental impact, and this trend is sure to continue in 2022.

69%

69 percent of employers plan to make workforce and workplace changes that will noticeably reduce their environmental impact24Single tree half dark half in sunlight

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