Navigating the new world at work
A guide to US tech employees’ most pressing needs, and how your organization can meet them, based on Mercer’s 2023-2024 Inside Employees’ Minds study.
What keeps tech workers up at night?
2023 has brought new concerns and shifting priorities for tech employees:
Job security concerns abound — but not for the reason you might think
This year, job security was the number one concern of tech workers. However, less than 20% of employees said they were concerned about job security due to the current economic environment — but nearly half of employees in tech roles said they were concerned due to the impact of new technologies.
The impact of Generative AI (GenAI) on the tech sector cannot be discounted. Unlike prior automations which largely impacted repetitive rules-based work, GenAI is trained on vast datasets — which include source code — allowing programmers to write code more effectively and efficiently.
Tech employees clearly see the benefit of these technologies — with over 70% of employees saying it will help them do their job more efficiently and effectively. But nearly half of employees say they are concerned about job security. Young men (age 18-24) are the most concerned — with 57% saying they are worried about job security (compared to only 1 in 3 women of the same age).
What will move the dial on well-being?
Work life balance remains a top 3 concern of employees — and while mental health concerns declined slightly, they remain the #1 concern for the youngest employees (below age 35), as well as LGBTQ+ employees and those with invisible disabilities.
Employees say that flexibility — both from work (time off) and at work (where and how they work), will help. In addition, tech employees were also more likely to say enhanced mental health benefits, such as mental health apps and enhanced employee assistance programs will provide support. This is a divergence from other industries, who rated more sustainable work above increased benefits.
Despite headlines, employees are largely satisfied with flexibility
When it comes to flexibility, the vast majority (86%) of tech employees say they are satisfied with their company’s flexible work arrangements. Satisfaction is most pronounced amongst those who work remotely (93%), but remains high for both hybrid employees (88%) and on-site employees (81%). This is despite nearly 40% of employees saying they want to work remotely full-time — compared to the 21% who are currently working in fully remote roles.
The good news for employers: Employees working in hybrid arrangements are more engaged, satisfied and committed relative to their peers — with those working onsite 4-days per week being the most engaged. Engagement scores for those who worked 3-days onsite closely followed, and was the most prevalent hybrid work arrangement reported by employees.
Pay transparency has paid off – but opportunities with careers and skills abound
In 2023, pay transparency went mainstream, with legislation coming into effect in large markets such as California and New York — major markets for tech employees. And certainly employees are taking advantage of this information, with over 66% of employees saying they’ve researched pay ranges through their employer’s job postings, and rising to 77% of those age 25-34. And the benefits of pay transparency are becoming increasingly clear, as employees who have access to their pay range reporting significantly higher levels of engagement and commitment.
Employees who say they are paid fairly are…
3x more likely to say:
My manager/employer provides me with the pay range for my job
But where there are some cracks emerging in the tech sector relate to broader transparency around skills and careers — and how that connects to pay. While over 72% of tech employees say their career goals can be met at their company, career confidence plummets to 54% for employees with 1 to 3 years of tenure (down from 72% for those in their first year) — and drops again to 66% for employees with more than 10 years of experience.
New — and highly tenured — tech employees feel in the dark when it comes to insight, training and compensation for skills
What are the top actions tech employers can take to increase engagement, attraction and retention of their workforce?
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Assess the unmet needs of your own workforceEmployees needs have shifted dramatically in a post-pandemic environment — and those needs can vary widely across organization, depending on your demographics, culture and the programs you provide. In order to create a differentiated value proposition, start with employees’ unmet needs to develop data driven strategies that will truly have an impact.
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Address employees fears about job securityBe transparent about the state of your business and the impact of emerging technologies. The true strength of AI lies in augmenting — rather than replacing — employees. Capitalize on employees’ optimism about the positive impacts on enhancing the effectiveness and efficiency of their work — and engage employees in the process of redesigning roles.
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Embrace flexibility to drive well-beingEmployees today are prioritizing their well-being today — and seeking flexible work models that allow them to work in a way that “works” for them. Hybrid work models clearly benefit both employees and employers — but rather than focus on “rules and mandates” around where and how employees work — focus on building a culture of flexibility where managers can utilize flexibility as a tool to support employees when they need it most.
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Move beyond compliance for pay transparency and seize the opportunity to shape your narrativeThe business case for pay transparency is clear — employees with access to pay ranges are significantly more likely to say they are paid fairly, and more engaged and committed to their employers. Employers have an opportunity to embrace pay transparency as a key pillar in their talent philosophy and employee value proposition to drive greater employee attraction and retention.
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Embrace skills-based talent modelsTransparency should not stop with pay — but move beyond to skills and careers. Tech employees who are new to the organization — where skill development is most critical — increasingly feel lost when it comes to understanding the skills they need — how they can attain them — and the impact on pay and careers. Employers can get started by linking skills to jobs — enabling managers and employees with the information they need to drive more effective career management.
Contact your Mercer consultant
Whether you need support understanding the needs and experiences of your own employees, or taking action to improve the health, wealth and careers of your workforce, Mercer has an expert who can help.