AI Content Chat (Beta) logo

World Trend Index: Annual Report

March 16, 2022 2022 Work Trend Index: Annual Report Great Expectations: Making Hybrid Work Work From when to go to the office to why work in the first place, employees have a new “worth it” equation. And there’s no going back. IIllustration by Sébastien Thibault 1

2022 Work Trend Index: Annual Report We’ve been on the cusp of the shift to One thing is clear: We’re not the same people that went home to work in early 2020. hybrid work for more The collective experience of the past two than a year, with false years has left a lasting imprint, fundamentally starts attributed to a changing how we define the role of work in our lives. The data shows the Great Reshuffle pandemic that had is far from over. Employees everywhere are on while balancing business outcomes in an other ideas. Now, we’re rethinking their “worth it” equation and are unpredictable economy. at a long-awaited voting with their feet. And as more people experience the upsides of flexible work, the To help leaders navigate the uncertainty, the inflection point: the more heavily it factors into the equation. 2022 Work Trend Index outlines findings from lived experience of For Gen Z and Millennials, there’s no going a study of 31,000 people in 31 countries, along hybrid work. back. And with other generations not far with an analysis of trillions of productivity behind, companies must meet employees signals in Microsoft 365 and labor trends on where they are. LinkedIn. While we’re all learning as we go, As leaders puzzle over how to make hybrid the findings reveal an urgent opportunity— Already, hybrid work is up seven points year- work work, big questions loom: What is the and responsibility—for leaders to approach over-year (to 38%), and 53% of people are role of the office? How do teams build social the transition with intention and a growth likely to consider transitioning to hybrid in the capital in a digital-first world? The challenge mindset, or risk being left behind. 1 year ahead. ahead for every organization is to meet 1 The number of hybrid employees in our Work Trend Index employees’ great new expectations head- surveys is up seven percentage points year-over-year.

World Trend Index: Annual Report - Page 2
Current Time 0:00
Duration 4:17
Loaded: 0.00%
Stream Type LIVE
Remaining Time 4:17
 
1x
    • Chapters
    • descriptions off, selected
    • captions off, selected

      2022 W2022 Work Tork Trrend Index: Annual Reporend Index: Annual Reportt Findings 1 2 3 4 5 Employees have Managers Leaders need Flexible work Rebuilding social a new “worth it” feel wedged to make the doesn’t have capital looks equation. between office worth to mean different in a leadership the commute. “always on.” hybrid world. and employee expectations.

      World Trend Index: Annual Report - Page 3

      2022 W2022 Work Tork Trrend Index: Annual Reporend Index: Annual Reportt 53% 52% of employees are more likely of Gen Z and Millennials are to prioritize health and well- likely to consider changing being over work than before employers this year, up 3% the pandemic. year-over-year. Employees have a new “worth it” equation. 1

      2022 Work Trend Index: Annual Report he experience of the past shifting, and perks like free food and a corner two years has reshaped office are no longer what people value most. our priorities, identities, T and worldview, drawing a In our study, 47% of respondents say they bright line between what’s are more likely to put family and personal important—health, family, life over work than they were before the time, purpose—and what’s pandemic. In addition, 53%—particularly not. As a result, employees’ parents (55%) and women (56%)—say they’re “worth it” equation—what people want more likely to prioritize their health and from work and what they’re willing to give in wellbeing over work than before. return—has changed. The power dynamic is “ Work is only a part of life. It shouldn’t be your whole life or the only thing you care about.” —Team lead in professional services, Argentina

      World Trend Index: Annual Report - Page 5
      Current Time 0:00
      Duration -:-
      Loaded: 0%
      Stream Type LIVE
      Remaining Time 0:00
       
      1x
        • Chapters
        • descriptions off, selected
        • captions off, selected

          2022 Work Trend Index: Annual Report Priorities have shifted 60% More likely Less likely 55% People are now more likely to 80% 53% 53% prioritize their health and wellbeing 51% 50%   over work than before the pandemic. 70% 60% 40%   ­ 50%  30%  40% 20% 30% 10% 20% 10% 0% Survey respondents were asked, “Com- 0% -5% -4% -7% pared to before the COVID-19 pandemic, - -10% how likely are you to prioritize your health -6 - -6 - -6 -11% -10% Gen Z Millennials Gen X Boomers and wellbeing over work?” Global Total North America Latin America Asia/ Europe Australia/ Pacific Islands New Zealand Illustration by Valerio Pellegrini Region Generation

          2022 Work Trend Index: Annual Report 47% And employees are acting on their employees are somewhat or extremely likely of respondents say they are newfound priorities. In 2020, 17% of people to consider changing jobs in the coming year, more likely to put family left their jobs, and we see that trend up slightly year-over-year from 41%. and personal life over continuing—reaching 18% in 2021. The top Some generations are even more likely to work than they were before five reasons employees quit were: personal consider changing employers—more than the pandemic wellbeing or mental health (24%), work-life half (52 %) of Gen Z and Millennials combined balance (24%), risk of getting COVID-19 (21%), may change jobs in the year ahead, up 3% lack of confidence in senior management/ since last year. By comparison, only 35% of leadership (21%), and lack of flexible Gen X and Boomers say they’re considering a work hours or location (21%). Somewhat job change. surprisingly, “not receiving promotions or “I can still be successful raises I deserved” landed in number seven on And the desire for flexibility extends to at work, but I need to the list at 19%, further illustrating the shift leadership, too—47% of leaders are likely in priorities. to consider applying for jobs not near their make more balanced homes in the next year. The data also shows the Great Reshuffle is decisions to pursue my far from over. In the year ahead, many hybrid Compared to last year, geographic employees (51%) say they will consider a migration is slowing. Today, 38% of own interests.” switch to remote, and even more remote respondents are considering moving because employees (57%) say they’ll consider a they can work remotely at their current job —Mid-level manager, UK switch to hybrid. At the same time, 43% of (compared to 46% in 2021), while 30% are

          2022 Work Trend Index: Annual Report For Gen Z, there’s no going back likely to consider a move in the year ahead What are employees looking for in a For younger employees, flexibility, mobility, and even if it requires finding a new job that lets job now? Beyond pay, the top five aspects entrepreneurial freedom are non-negotiable. them work remotely. Gen Z and Millennials of work that employees view as “very are even more willing to change jobs in order important” for an employer to provide • 58% of Gen Z are considering changing jobs in the year to live in a different location (44% and 38%, are: positive culture (46%), mental health/ ahead versus 43% overall. respectively), while just 27% of Gen X and 17% wellbeing benefits (42%), a sense of • 58% are considering a shift to hybrid work in the year of Boomers are considering the shift. purpose/meaning (40%), flexible work hours head versus 53% overall. (38%), and more than the standard two • 56% are considering a shift to remote work in the year weeks of paid vacation time each year (36%). ahead versus 49% overall. “Covid has not been While new-to-the-workforce Gen Z shares • 70% are considering earning additional income outside the same top three priorities, they their current employer via a side project or business in all doom and gloom list positive feedback and recognition the year ahead (versus 59% overall). for me. It forced as their fourth priority, while ranking a • LinkedIn data says Gen Z is the most mobile generation manager who will help advance their career on the platform: since the pandemic began, their me to dig deep and in fifth place. migration rate is up 23% in the U.S. • 52% of Gen Z hybrid employees say they’re moving to reevaluate what is a new location because they’re able to work remotely (versus 38% overall). important.” • Gen Z’s likelihood to engage with a company posting on LinkedIn if it mentions “flexibility” is far higher (77%) —Self-employed education professional, Canada than Millennials (30%) and others on the platform.

          2022 Work Trend Index: Annual Report And many employees are looking beyond Key Takeaway their “day job” for creative opportunities. Fully Meeting these new employee 70% of Gen Z and 67% of Millennials say they are considering earning additional income via expectations will require a a side project or business in the next year. For mindset shift that considers leaders, this is creating new challenges—not the experience of the past just in attracting and retaining top talent, but in engaging current employees who two years. Employees’ “worth increasingly define and design their careers it” equation has changed— around creative pursuits. and there’s no going back. In all, there’s no erasing the lived The best leaders will create experience—and lasting impact—of the past a culture that embraces two years. A few months of remote work could flexibility and prioritizes have been a blip, but 24 months in, people have proved you can be a great employee and employee wellbeing— have a life. Now, flexibility and wellbeing are understanding that this is a non-negotiables that companies can’t afford competitive advantage to to ignore. build a thriving organization and drive long-term growth.

          2022 Work Trend Index: Annual Report The workforce is still in transition Many hybrid employees are Remote employees Hybrid employees considering a switch to remote while considering a shift to hybrid considering a shift to remote even more remote employees are considering a switch to hybrid in the year ahead. Respondents were asked, “Thinking ahead, 57% how likely are you to consider doing the 51% following in the next year?” Percentages shown in graphic include those who are somewhat or extremely likely to shift to remote or hybrid work in the year ahead. Illustration by Valerio Pellegrini

          2022 W2022 Work Tork Trrend Index: Annual Reporend Index: Annual Reportt 74% 54% of managers say they of managers say leadership is don’t have the influence or out of touch with employees. resources to make change for employees. Managers feel wedged between leadership and 2 employee expectations.

          2022 Work Trend Index: Annual Report he past two years have 2 of leaders say their company already requires, T taught us that culture will or plans to require, full-time in-person work in stand or fall with managers. the year ahead. This percentage is even higher But many managers feel for leaders in the manufacturing (55%), retail stuck between leadership (54%), and consumer goods (53%) industries. and new employee expectations, and they feel This stands in sharp contrast to the data on powerless to drive change for their team. the importance of flexible work to employees. Over half of managers (54%) feel leadership at Over half of respondents (52%) say they are their company is out of touch with employee likely to consider shifting to hybrid or remote nearly 3 times more applicants compared to expectations. And 74% say they don’t have work in the year ahead. And remote and on-site roles. the influence or resources they need to make hybrid jobs are still on the rise. According to changes on behalf of their team. LinkedIn, in March of 2020, 1 in 67 U.S. jobs 2 The 50% of business leaders who say their company already offered a remote work option. Today, that requires or plans to require full-time in-person work in the year The source of this tension is clear as business number is about 1 in 7. And remote jobs on ahead reflects leaders who are in information worker roles. It does not include leaders who work in frontline settings such as leaders seek a return to what once was; 50% LinkedIn attract 2.6 times more views and hospitals, warehouses, retail settings, etc.

          World Trend Index: Annual Report - Page 12
          Current Time 0:00
          Duration -:-
          Loaded: 0%
          Stream Type LIVE
          Remaining Time 0:00
           
          1x
            • Chapters
            • descriptions off, selected
            • captions off, selected

              2022 Work Trend Index: Annual Report Back to the office Many leaders say their company is planning a return to the office full time within the next year, but a majority of employees prefer the Half of leaders say their flexibility of remote and hybrid work. company plans to require full-time in-person work 50% of leaders in information worker roles 50% say their company is currently or planning to focus on requiring full-time in-person work in the year ahead, while Over half of employees are 52% of respondents say they are somewhat or extremely likely to consider 52% considering going hybrid or going remote or hybrid in the year ahead. remote in the year ahead Illustration by Valerio Pellegrini

              2022 Work Trend Index: Annual Report There’s no question technology helped Key Takeaway preserve productivity during the pandemic, An important lesson of the past but fears about lost gains may be factoring into the pullback to in-person work. Despite two years is that managers embody 80% of employees saying they are just as and instantiate the culture for every or more productive since going remote or organization. Managers are a critical hybrid, 54% of leaders fear productivity has bridge between evolving employee been negatively impacted since the shift. expectations and leadership priorities. Leaders have spent the past two years If empowered, they hold the key to under crushing pressure, shepherding their unlock the potential of hybrid work. people and organizations through uncertainty Equip them with the resources and amid unprecedented economic challenges. training they need to manage the It’s easy to imagine why they might see a transition. While policy is set at the top, return to the office as the solution. But now, leaders need to decentralize decision- leaders have a new and urgent challenge making and empower managers in an uncertain economy and labor market: setting the standard for flexible work in a way to make change on behalf of their that balances business outcomes with new employees’ individual needs. Microsoft employee expectations. encourages managers to use this template to create team agreements for hybrid work.

              2022 Work Trend Index: Annual Report “There’s no erasing the lived experience and lasting impact of the past two years. Empowering managers to adapt to new employee expectations helps set businesses up for long-term success.” —Jared Spataro, CVP, Modern Work, Microsoft

              2022 W2022 Work Tork Trrend Index: Annual Reporend Index: Annual Reportt 38% 28% of hybrid employees say their of leaders have created team biggest challenge is knowing agreements for hybrid work to when and why to come into define why and when to go to the office. the office. Leaders need to make the office worth 3 the commute.

              2022 Work Trend Index: Annual Report s the world shifts more fully into hybrid work, the biggest between 12 p.m. and 2 p.m., two days a week. opportunity for business Consider quarterly offsites that bring far- leaders is to reimagine flung teammates together regularly. The key A the role of the office and is for managers to provide clear guidance to create clarity around why, employees as they experiment and learn what when, and how often teams works for the team. should gather in person. More than a third (38%) of “You must design workplaces with enough hybrid employees say their biggest challenge is knowing when and why to come into the flexibility to support every employee. A mix of office. Yet few companies (just 28%) have established team agreements to clearly define quiet places, collaboration areas, and touch- the new norms. down locations helps ensure everyone can be Making the office work for all employees will take radical intentionality. There’s no connected, engaged, and productive.” one-size-fits-all approach: Experiment with “Team Tuesdays” or in-person office hours —Michael Ford, CVP of Global Workplace Services

              World Trend Index: Annual Report - Page 17
              Current Time 0:00
              Duration -:-
              Loaded: 0%
              Stream Type LIVE
              Remaining Time 0:00
               
              1x
                • Chapters
                • descriptions off, selected
                • captions off, selected

                  2022 Work Trend Index: Annual Report Hybrid work requires new team norms Few companies have created new team norms to ensure time together is intentional. Hybrid employees were asked, “Which of the following have been the biggest challenges for you personally in working a mix of remote and in person?” Remote employees were asked if they were “thriving or struggling” when it comes to feeling included in meetings. Leaders were asked, “What has your company done to ensure remote workers are not disadvantaged/have an equal opportunity to succeed and contribute?” Illustration by Valerio Pellegrini

                  2022 Work Trend Index: Annual Report 27% of organizations have estab- lished new hybrid work meet- ing etiquette. This intentionality extends to hybrid Data suggests companies are making meetings. Making hybrid meetings a great progress on investments in space and experience for everyone requires investing in technology, but there’s more work to do on three things: hardware, software, and culture. culture. On technology and space, monthly Start by augmenting existing hardware with use of Microsoft Teams Rooms, optimized for AI-powered cameras designed for the people hybrid collaboration, has more than doubled not in the room; consider adding larger year-over-year. And 54% of leaders are screens to give everyone a seat at the table currently redesigning meeting spaces for hybrid and create a canvas for collaboration. Second, work, or plan to in the year ahead. However, have everyone join Teams—including those despite 43% of remote employees and in the room—to create a shared experience. 44% of hybrid employees saying they do Third, create new cultural norms for hybrid not feel included in meetings, just 27% of meetings to help everyone feel included and organizations have established new hybrid able to contribute. work meeting etiquette.

                  World Trend Index: Annual Report - Page 19
                  Current Time 0:00
                  Duration -:-
                  Loaded: 0%
                  Stream Type LIVE
                  Remaining Time 0:00
                   
                  1x
                    • Chapters
                    • descriptions off, selected
                    • captions off, selected

                      2022 Work Trend Index: Annual Report Key Takeaway Leaders must establish the why, when, and how of the office. This means defining the purpose of in-person collaboration, creating team agreements on when to come together in person, defining hybrid meeting etiquette, and rethinking how space can play a supporting role. Organizations that fail to grasp the new intentionality required to define the role of the office risk missing out on the true benefits of hybrid work. Microsoft’s new hybrid meeting etiquette will be posted physically and digitally for the company’s 180,000 employees in over 100 countries around the world.

                      2022 W2022 Work Tork Trrend Index: Annual Reporend Index: Annual Reportt 252% 32% Increase in weekly time Increase in chats sent per spent in meetings for the person since April 2020. average Teams user since February 2020. Flexible work doesn’t 4have to mean “always on.”

                      2022 Work Trend Index: Annual Report 28% The trillions of anonymized productivity increase in after-hours work signals across Microsoft 365 show flexible since March 2020 work in action. But as employees make flexible work work for them, there’s still a need to combat digital exhaustion. On the face of it, for the average Teams user, meetings, chat, workday span, and after-hours and weekend work have all risen over the past increased more than 13% (46 minutes) two years.3 since April 2020, and after-hours and Meetings are still consuming a lion’s weekend work has grown even more share of our time. Since February 2020, the quickly, at 28 percent and average Teams user saw a 252% increase in 14%, respectively. their weekly meeting time and the number of weekly meetings has increased 153%. The 3 Workday span: Time between the first and last meeting or average Teams user sent 32% more chats chat of the day for the average Teams user. each week in February 2022 compared to After-hours work: Average span between the first Teams chat/ April 2020 and that figure continues to climb. call/meeting after 5pm local time to the last signal for the day. Weekend work: Average span between the first Teams Workday span for the average Teams user has meeting/call/chat to the last signal on Saturdays and Sundays.

                      2022 Work Trend Index: Annual Report The metaverse is coming to work We also asked respondents about emerging technologies at work. “Avatars and the metaverse bring us one feel more natural.” • 16% of employees say they step closer to making people feel like they’re • 52% of employees are open to using never expect to do any work in together even when they are physically apart,” digital immersive spaces in the metaverse the metaverse. says Mar Gonzalez Franco, principal researcher for meetings or team activities in the • 13% of employees say they don’t know at Microsoft Research. “Our early research next year. what the term ‘metaverse’ means. shows that when compared to an audio-only • 47% of employees are open to call, people feel more engaged, more present, representing themselves as an avatar in Leaders need to consider how and even more comfortable when using meetings in the next year. emerging technologies like the metaverse an avatar in a meeting. The people you are • 51% of Gen Z and 48% of Millennials and AI can augment collaboration and speaking with are better able to see your body envision doing some of their work in the facilitate co-creation and creativity in a language, and back-and-forth conversations metaverse in the next two years. distributed work world. Millennials and Gen Z are more likely to envision doing some of their work in the metaverse in the next two years.

                      2022 Work Trend Index: Annual Report Work is more flexible, but digital overload is still a risk After-hours work and workday span are still increasing, as are the number of weekly meetings and chats per person Analysis of collaboration activity across Microsoft 365 tools the past two years. This visualization is based on aggregated data, without personal or organization- identifying information. Illustration by Valerio Pellegrini

                      2022 Work Trend Index: Annual Report Making flexible work meetings at five or 10 minutes after sustainable the hour) Tips from Mary Czerwinski and Shamsi • Keep meetings as short as possible; if Despite the digital overload, people are they’re longer than 30 minutes, include a making flexible work their own, taking control Iqbal, two Microsoft researchers with decades 5-minute break of their time and reshaping the workday. of experience studying productivity, focus • Avoid scheduling large, presentation-only Productivity patterns in Outlook show and wellbeing. meetings in the first hour of the workday 1. Too many meetings when people tend to multitask and catch up people are becoming more intentional about on emails and to-dos taking breaks, avoiding double booking, • Make it a team practice to ask, “Could we 3. Chats or emails from colleagues outside and establishing meeting-free work blocks. cover this in email or chat instead?” my own work hours or during meetings Between March 2021 and February 2022, • Look for opportunities to divide and • Use the delay delivery feature in Outlook for anonymized Outlook calendar data show the conquer meetings with team members emails outside established working hours average number of overlapping meetings • Use the “required” and “optional” lines of • As a team, set expectations on response per person per month decreased by 44%. meeting invites to help people prioritize time to emails and chats sent outside of Compared to last year, teams are starting their time working hours meetings later on Mondays and wrapping up • Block focus time on your calendar for • Use NOT URGENT in the headline of emails earlier on Fridays. There are also fewer noon personal productivity and wellbeing, and or chats when your colleague is in a meeting meetings, which may point to people taking a protect it or it’s outside working hours midday break. More employees are also using • As a team, consider designating certain 4. Working in different time zones their vacation time, with out-of-office time days or time blocks “meeting-free” • Share meeting-related documents ahead of blocks on calendars increasing by 10% in the 2. Waning energy or focus due time and ask for comments so participants last year. to back-to-back meetings can review asynchronously • Share an agenda ahead of the meeting • Record meetings and share notes with and assign an owner to each part invitees afterwards • Create team norms around established breaks between meetings (e.g., start all

                      2022 Work Trend Index: Annual Report Meeting habits are changing Meetings now start later on Mondays and finish earlier on Fridays, and there are fewer meetings at lunchtime. While 9-11 a.m. is the most used meeting time, 2-3 p.m. is rising in popularity. Analysis of collaboration activity across Microsoft 365 tools the past two years. This visualization is based on aggregated data, without personal or organization-identify- ing information.” Illustration by Valerio Pellegrini

                      World Trend Index: Annual Report - Page 26

                      2022 Work Trend Index: Annual Report While meetings are up overall, they Key Takeaway are getting shorter and more ad hoc. As employees find digital equivalents of Teams need to create the “drive by” or “hallway conversation”, unscheduled, ad-hoc calls have risen 8% in new norms around the last two years and now make up 64% of all Teams meetings. And meetings under flexible work to reduce 15 minutes now make up a majority of all meetings (60 percent) and are increasing time spent in meetings more than any other meeting length (39 and empower people to percent between February 2021 and 2022). to shift as much work as you can to be asynchronous and get really intentional hit the off switch. This The data also shows the shift to about the use of the synchronous time you asynchronous work as part of the new normal. have together,” says Jaime Teevan, Microsoft’s should not be a solo Monthly use of meeting recordings that allow Chief Scientist. people to catch up on meetings, training, and effort, but a team-led town halls on demand has more than doubled Taken altogether, the data indicates that since March 20204. And new patterns—like employees are doing what they can to make movement to establish the “triple peak day”— are emerging as some flexible work their own but making flexible people leave the 9 to 5 behind to do what work sustainable long-term will require more sustainable hybrid works for them. new team norms to guard against being work practices. “Because everyone is working at different “always on.” times and in different places, it’s important 4 Monthly usage of Microsoft’s Stream platform as a way for employees to work asynchronously has more than doubled between March 2020 and February 2022.

                      World Trend Index: Annual Report - Page 27
                      Current Time 0:00
                      Duration -:-
                      Loaded: 0%
                      Stream Type LIVE
                      Remaining Time 0:00
                       
                      1x
                        • Chapters
                        • descriptions off, selected
                        • captions off, selected

                          2022 W2022 Work Tork Trrend Index: Annual Reporend Index: Annual Reportt 51% of hybrid employees say they’re likely to go remote in the year ahead. Rebuilding social capital looks different in 5 a hybrid world.

                          2022 Work Trend Index: Annual Report 43% of leaders say relationship-building is the greatest challenge in remote and hybrid work. ne of the most felt aspects In a digital-first work world, where 51% of remote and hybrid work of hybrid employees are considering a shift O is the impact it’s had on our to remote work in the year ahead, we can relationships. Last year’s no longer rely solely on the office to recoup Work Trend Index revealed the social capital we’ve lost. Leaders must be that teams became more intentional about reconnecting both hybrid siloed, and this year’s study and remote employees into the fabric of the shows the trend one year later. organization. While a majority of hybrid employees seem This won’t be a trivial task—43% of leaders to be maintaining their work relationships, only say relationship-building is the greatest half of remote workers say they have a thriving challenge in hybrid and remote work—but relationship with their direct team, and even it’s one worth prioritizing. Building social fewer have a strong relationship with those capital is crucial for organizational success. outside their team. Employees who have thriving relationships

                          World Trend Index: Annual Report - Page 29
                          Current Time 0:00
                          Duration -:-
                          Loaded: 0%
                          Stream Type LIVE
                          Remaining Time 0:00
                           
                          1x
                            • Chapters
                            • descriptions off, selected
                            • captions off, selected

                              2022 Work Trend Index: Annual Report with their immediate team members report with weak organizational networks. Having a better wellbeing than those with poor broad network also fuels career opportunities relationships (76% versus 57%). They also within a company—LinkedIn data shows that report higher productivity (50% versus 36%) employees at companies with high internal and are less likely to change employers in the mobility stay almost twice as long. year ahead (61% versus 39%). Our research shows many hybrid employees Strengthening networks outside of the have been successful at maintaining their immediate team matters, too. Employees workplace relationships. More than half (58%) “When people trust one another with thriving relationships beyond their say they have a thriving relationship with immediate team members say they’re more their direct team, and 48% say they have a and have that kind of [social] satisfied with their employer (76% versus thriving relationship with people outside their capital, you get a willingness 57%), more fulfilled by work (79% versus immediate team. However, these numbers to take risks, you get more 59%), and have a more positive outlook on dip to 50% and 42%, respectively, for remote workplace stress (40% versus 30%) than those employees—highlighting the need for leaders innovation and creativity and to help fully remote employees build strong less groupthink.” and broad networks. —Nancy Baym, Principal Researcher, Microsoft Research

                              2022 Work Trend Index: Annual Report Employees who onboarded the past two years also need extra support. Nearly two- Work Friends Matter, Too thirds (62%) of leaders are concerned new or would support me in my time of need.” And employees aren’t getting the support they In addition to looking at formal workplace need since moving to hybrid or remote relationships, our research explored deeper research shows loneliness at work brings health work—and for good reason. The data shows workplace friendships. problems, reduced productivity, turnover, and that employees hired since March 2020 are • 59% of hybrid employees and burnout. less likely to feel included (60% versus 64%), 56% of remote employees have fewer work Hadley says, “Without a new approach, have weaker relationships with their direct “friendships” since going hybrid or remote. employee isolation and disconnection will team (51% versus 55%), and are at greater risk continue to grow—regardless of whether of attrition (56% versus 38% are likely to leave • This may be contributing to feelings of people are back in the office. The post- their employer in the year ahead). loneliness. 55% of hybrid employees and 50% pandemic transition provides the perfect of remote employees feel lonelier at work than opportunity to put the structures and rewards in before going hybrid or remote. place to facilitate a more connected workforce.” • 66% of respondents say doing informal Managers should prioritize time for coffee chats virtually feels like “more of a chore” employees to connect in more deep and than an in-person get together. authentic ways beyond the to-do list and foster Organizational psychologist Constance a culture that rewards psychological safety, so Noonan Hadley describes loneliness at work employees can be vulnerable and lean on each as the belief that, “Few people truly know me other for support when needed. 31

                              2022 Work Trend Index: Annual Report The impact of strong Direct team workplace relationships Research shows the massive benefits of thriving relationships within and outside of your direct team. Broader organization Respondents were asked several questions on this topic, such as, “Would you say you are thriving or struggling with the following types of bonds or relationships at work?” and “When thinking about your network/social circle at work, how much do you agree or disagree with the following statements?” Illustration by Valerio Pellegrini Illustration by Valerio Pellegrini

                              2022 Work Trend Index: Annual Report Key Takeaway Leaders should not see a return to the office as the only solve for rebuilding the social capital we’ve lost over the networking-related activities drive business past two years. They should prioritize impact. To reap the benefits of social time for relationship-building to capital, leaders need to make time and happen, knowing remote and newly space for employees to build their networks onboarded employees will need extra and deepen relationships beyond the support. Managers play a crucial role in transactional in a hybrid world. fostering close team bonds and acting “When work-life balance is out of whack, as dot connectors to help employees most people cut out relationship-building broaden their networks. for more urgent matters,” says Constance In a hybrid world, it’s up to leaders to Noonan Hadley, an organizational The data shows employees are ready to psychologist who studies workplace help all employees prioritize time to stop emailing and start connecting. While relationships. “Regardless of remote status, build relationships, with additional 48% of employees say they want to spend building relationships will still feel like a support to remote and newly onboarded less time on things like answering emails luxury workers cannot afford unless there is a employees, who our research shows are and scheduling meetings and more time shift in how time is prioritized and valued by most at risk of being left behind. networking, just 30% of leaders feel that managers.”

                              World Trend Index: Annual Report - Page 33
                              Current Time 0:00
                              Duration -:-
                              Loaded: 0%
                              Stream Type LIVE
                              Remaining Time 0:00
                               
                              1x
                                • Chapters
                                • descriptions off, selected
                                • captions off, selected

                                  2022 Work Trend Index: Annual Report The Way Forward The past two years have made a lasting imprint on work—the impact of which will be felt long into the future. The new “worth it” equation is not a zero-sum game. Employees value flexibility and wellbeing, and these great expectations create an opportunity for every organization to reimagine work-life integration as a win-win. Giving people agency to do their best work is not only in their best interest—it’s good for business. To make hybrid work work, leaders need to empower managers to be the culture keepers, rethink the role of the office, rebuild social capital for a digital-first workforce, and create new practices for sustainable flexible work. Technology plays a key role, but this moment calls for a new mindset. As the world continues to evolve, organizations that take a culture- first, learn-it-all approach will come out ahead. Learn more about how Microsoft is innovating to help organizations make hybrid work work.

                                  World Trend Index: Annual Report - Page 34

                                  2022 Work Trend Index: Annual Report Methodology and Thailand, Vietnam ; Europe: Czech Republic, Finland, Director, General Manager, EVP, C-Suite, President, Audience Definitions: France, Germany, Italy, Netherlands, Poland, Spain, etc.) and have at least some influence on decision Sweden, Switzerland, United Kingdom ; Latin making related to hiring, budgeting, employee America (LATAM): Argentina, Brazil, Colombia, benefits, internal communications, operations, etc. The Work Trend Index survey was conducted Mexico ; North America: Canada, United States. • Non-Business Decision Makers: employees by an independent research firm, Edelman Data x who are not in mid to upper job levels and have Intelligence, among 31,102 full-time employed or Audiences mentioned in the report are defined no influence on decision making related to self-employed workers across 31 markets between as follows: hiring, budgeting, employee benefits, internal January 7, 2022 and February 16, 2022. This survey • Frontline Workers: self-selected at time of survey communications, operations, etc. was 20 minutes in length and conducted online, fielding as being required to be in-person to do their • Managers: Employees who manage at least one in either the English language or translated into a job and do not work at a traditional ‘desk setting’ employee as a direct report. Managers can be BDMs local language across markets. At least 1,000 full- (for example work at a healthcare facility, school, or non-BDMs. time workers were surveyed in each market, and construction site, or warehouse). global results have been aggregated across all • Hybrid Workers: self-selected at time of survey responses to provide an average. Each market is fielding as currently working a mix of in-person and evenly weighted within the global average. Each remotely, at least one day every other week in a market was sampled to be representative of the typical week. full-time workforce across age, gender, and region; • Remote Workers: self-selected at time of survey each sample included a mix of work environments fielding as currently working remotely every day of (in-person, remote vs. non-remote, office settings the week in a typical week. vs. non-office settings, etc.), industries, company • Information Workers: self-selected at time of sizes, tenures, and job levels. Markets surveyed survey fielding that their typical work setting is include: at a desk (whether in an office or at home). This Australia and New Zealand (ANZ): Australia, group includes those who are in-person or working New Zealand; Asia-Pacific (APAC): China, remotely in some cAsia-Pacificity. Hong Kong, India, Indonesia, Japan, Malaysia, • Business Leaders/Business Decision Makers: Philippines, Singapore, South Korea, Taiwan, those in mid to upper job levels (i.e., SVP, VP, Sr.

                                  World Trend Index: Annual Report - Page 36