Evaluating the new normal
Column by JAY PERRY
A new era is upon us, and it is not the time to panic. It will be two to three decades before we start to see the fuller effects of what the pandemic has done to society. Right now, we are seeing the first glimpses of how it has changed the workforce permanently.
We read articles about bosses strongarming workers to go back to the office.
We see the rise in unionized labor as a component of the working class. We see higher absenteeism. We see an adjustment of the traditional work-life balance. We see labor advocating for social issues in the most vocal ways possible, putting pressure on companies to take positions. We see what has been termed “quiet quitting” and a rise in the disengaged employee class. We see demands for pay raises, more flextime and improved benefits. We have seen retirement become a more focused-upon destination as many of the hardships imposed by Covid-19 reactions have created an early exit for many of the highly skilled workers who have reached the point of “enough.”
The “new normal” has started to show itself. This is not a negative piece bemoaning the unprecedented challenges being faced by business today. For those who are in tune with what is happening and realizing that the situation needs a well-thought response (not a reaction), it is a huge opportunity. Inflation as a by-product of the pandemic monetary policies has put price pressure on every one of the varying strata of the workforce. Of course, that pressure is going to be passed onto the consumer and it will be still quite a while before things calm down to manageable levels. So, look at pivoting. In the words of Jim Sinegal (co-founder of Costco): “It is a people business. If you don’t do that well, you are going to screw up your company.” He’s right and the quicker you figure out a way to work with labor and their demands, the faster you will get to be the lead dog in an ever-tightening labor market. People are not commodities and need to be treated in unique ways. I’m not saying you must capitulate to every harebrained request, what I am saying is get your house in order from the “Who are we as a company” perspective first.
Assess what reasonable profits need to be produced for sustainability and set the highest standard of wages you possibly can afford to pay. Then you need to figure out how to express yourself to current and prospective employees in terms they can understand. You might run into people that do not believe in what you believe in. They are not the right choice for being a team member of yours. You might find some suppliers that worship the almighty dollar (just theirs—not yours) and they might not be the right people to do business with either.
It is simple, just not easy. Sometimes we must get some help with perspective, but it is always the leaders that continuously evaluate the reality of the day that stay the one who’s driving!
