Covid-19: How it Rocked the Global Labor Market

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Boston Consulting Group (BCG), a global management consulting that advise organizations on value creation strategies and innovation has released the 28th edition of its BCG Executive Perspective report on the effect of Covid-19 on the labor market and organisations.

The report revealed that global workforce has dropped by millions. “200 million workers have dropped out of the labor market during the pandemic” the report stated.

The stress and challenges that accompanied the pandemic caused a lot of professional and workers to reassess their priorities. BCG reports that workers now rank higher compensation, flexible hours healthcare provision and organizational culture as job requirements  

This has led to increased hiring requests and smaller number of applicants globally. Many professionals are rethinking their fit with their present place of employment following a difficult year.

They are requesting more noteworthy acknowledgment and adaptability while searching for flexible work  arrangement such as remote work.

The study revealed that employees now rank higher salaries and work flexibility as the most important work factors before they take a job.

Other factors the global labor force consider before taking a job post Covid-19 include reward system (pay, benefits, acknowledgment), work flexibility which includes working from home, relationships with associates and director, alignment of occupation with values, opportunities for career growth and  general company direction and potential.

The report also noted that “36% Of global workers were laid off or forced to reduce working time due to [Covid-19] (while) 76% Are looking for added flexibility in where they work”. Factors like Increased childcare requirement due to the pandemic affected employees particularly working mothers.  

Manual and service workers, as well as employees below the manager level also saw the biggest decrease in their well being during the pandemic.

For employees and job seekers this means higher salaries and flexible hours should be strongly negotiated as organisations are trying to fill positions due to the drop in workers during the pandemic.

More and more international companies are willing to raise salaries, expand bonus system and offer flexible and remote work arrangements. For more articles on negotiating salaries and bonus Click Here

The BCG report urged companies to engage its existing employees and attract new talent by Investing in improving employee welfare and value propositions.

With the Delta variant of the Covid-19 currently ravishing the world the ever changing global labor market requires companies to increase employee value and raising wages is the key.

“Winning the war for talent means expanding the employee value proposition by offering financial incentives, work flexibility, social impact, and a strong culture”

“To stay competitive, companies must remain focused on what matters most to today’s talent pool. Regardless of circumstance, no company can afford to miss out on this investment” the report concluded.

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