The Evolution of Employee Mindsets Post-Pandemic: A Shift Towards Independence and Financial Freedom

The COVID-19 pandemic was a global event that profoundly impacted every aspect of life, including the way people work and view their careers. The pandemic, with its widespread health crisis and economic disruptions, acted as a catalyst for a significant transformation in employee mindsets. This shift has moved many towards a desire for greater independence and financial freedom. This evolution in perspective is reshaping talent motivations and the overall landscape of work.

The Changing Nature of Work: Catalysts and Realizations

The pandemic forced businesses to rapidly adapt to remote work, leading to an unprecedented shift in how work is done and perceived. 

This shift revealed several important insights to employees about their relationship with work and their employers:

• Near-Death Experience and Re-evaluation: The threat posed by COVID-19, led many individuals to a near-death experience mindset. People began to re-evaluate their lives, priorities, and what they want from their careers. The realization that life is fragile and uncertain has created a certain clarity amongst individuals about what they value and their own goals including motivating many to seek more meaningful and fulfilling work.  A 2022 Microsoft study revealed that 54% of global workers prioritize work-life balance when considering a new job now. There is a growing desire for flexibility and a healthy balance between work and personal life since individuals have realised that their work is not the only thing in their lives.
• Separation from the Company: Mass layoffs coupled with economic uncertainty triggered another type of reaction. Just as a child grows up and gains independence from their parents, employees have started to view themselves as separate from the companies they work for. 

• Feeling Empowered: Remote and hybrid working during the pandemic instilled a new confidence in individuals about being productive even when offsite and working from home.. The National Bureau of Economic Research found that post-pandemic, 20% of workdays will be remote, up from 5% pre-pandemic. ‘This shift is driven by positive remote work experiences, investments in enabling technologies, reduced stigma, and ongoing concerns about health risks in crowded spaces. The ability to work remotely has granted employees greater flexibility and control over their work environment, contributing to a sense of independence and self-reliance’  NBER.
• Emphasis on Financial Freedom: This newfound independence is characterized by a focus on personal goals, financial freedom, and the pursuit of multiple income streams. Employees now recognize that they are not just cogs in a corporate machine but individuals with unique aspirations and needs. A 2023 CNBC report found that 41% of millennials are considering leaving their jobs due to financial concerns. This highlights the importance of competitive salaries and financial security for today's workforce.

Desire for Impact:  Given that an individual today has access to technologies that enable individual working, many view working for a company as a choice between financial plus learning opportunities or socially positive work. Increasingly employees are seeking meaningful work that aligns with their values. A 2024 Deloitte report found that the majority of Gen Zs (86%) and millennials (89%) say having a sense of purpose is important to their overall job satisfaction and well-being. And these generations are increasingly willing to reject assignments or employers who don’t align with their values. Purpose is subjective, but for some it comes down to working for an organization that has a purpose beyond profit and is having a positive impact on society. 

In my opinion, a dream job today would actually be a company that provides good financial remuneration plus learning opportunities as well as socially positive and impactful work. I foresee companies that can provide this, winning in the medium to long term.

Financial Freedom and the Rise of Side Gigs

One of the most significant shifts in employee mindsets post-pandemic is the emphasis on financial freedom. The economic instability caused by the pandemic has underscored the importance of having multiple sources of income. As a result, more employees are engaging in side gigs and freelance work to supplement their primary income. This trend is fuelled by several factors:

- Job Security Concerns: The mass layoffs during the pandemic and more recently in the technology sector highlighted the precarious nature of traditional employment. Many employees now seek to mitigate this risk by diversifying their income streams. Side gigs, freelance work and fractional roles provide a safety net and a sense of control over one's financial future.

- Technological Advancements: The rise of digital platforms and the gig economy has made it easier than ever to find and perform side gigs. From freelancing websites to ride-sharing and delivery apps, technology has opened up numerous opportunities for people to earn extra income.

- Desire for Flexibility: The flexibility offered by side gigs allows employees to balance their primary job with other interests and responsibilities. This flexibility is especially appealing to those who seek a better work-life balance or wish to pursue passions outside of their main career.

The Importance of Corporate Purpose and Making an Impact

In addition to financial freedom, employees today are increasingly driven by a desire to make a difference and work for organizations with a clear corporate purpose. The pandemic has heightened awareness of social, environmental, and ethical issues, leading many to seek out employers who align with their values. This shift is evidenced by the growing popularity of job platforms like EthicalJobs.com.au and PurposeDrivenWork.com, which connect job seekers with purpose-driven organizations.

1. Purpose-Driven Work: Employees are no longer satisfied with just a pay check; they want to know that their work has a positive impact on society. Companies with a strong sense of purpose and a commitment to social responsibility are more attractive to top talent. This trend is particularly pronounced among younger workers, who prioritize values and ethics in their career choices.
2. Corporate Social Responsibility (CSR): Businesses that actively engage in CSR initiatives are better positioned to attract and retain employees who are passionate about making a difference. CSR programs not only contribute to social good but also enhance employee engagement and loyalty.
3. Transparency and Authenticity: Employees are increasingly demanding transparency and authenticity from their employers. They want to work for companies that are open about their goals, challenges, and impact. Authenticity builds trust and fosters a sense of shared purpose, which is crucial for employee satisfaction and motivation.

Additionally, more companies are seen to be adopting the McKinsey’s ‘influence model’ that highlights four key actions that influence employee mindset and behaviour. This includes understanding and conviction, reinforcements with formal mechanisms, confidence and skill building, and role modelling. In order to work however, they require a commonly espoused set of values and organisational purpose (see below a model I had developed a few years ago).

The Future of HR: Strategic Partners and Talent Champions

The evolving landscape of employee needs and expectations will require a significant shift in the role of HR. HR needs to move beyond process orientation and tasks and become strategic partners with business leaders. This involves understanding business needs, developing talent strategies, and ensuring the workforce has the skills to achieve company goals.

 Here's what HR departments will need to focus on:

• Building a Strong Employer Brand: In a competitive talent market, attracting and retaining top talent will be crucial. HR needs to develop a strong employer brand that not only reflects the company's values, culture, and commitment to employee well-being but also connects meaningfully with a more empowered and cynical workforce. HR will need to work with the company leadership to better define company culture, values and philosophy. Today who you are as a company is critical to stand-out and engage with customers, employees and potential talent. (Bricoleur ICETM model)
• Fostering a Culture of Well-being: HR will play a key role in promoting employee well-being and mental health. This may include offering wellness programs, creating a supportive work environment, and promoting healthy work-life boundaries. Equally this involves re-enforcing how the work each employee does day-to-day is helping the company make a positive impact. Employees seek meaningful work and building in reminders of it is something HR will need to ensure.
• Designing Flexible, Skills Based Work Models: HR will be responsible for developing and implementing flexible work arrangements that meet the needs of a very diverse workforce that not only comprises employees but also specialist external contractors. The systems and processes needed may include planning for remote and hybrid work options, team augmentation, cross border talent acquisition and compressed workweeks. The options for specialist talent have gone up tremendously for HR, thanks to technology, remote working and a desire for specialist talent to take on side-jobs and fractional roles.
• Prioritizing Upskilling and Reskilling: The pace of technological change requires a continuous focus on employee development. HR teams have access to multiple flexible learning and development programs and platforms that equip employees with the skills they need to stay relevant and competitive while also. Tapping into 
• Data-Driven Decision Making: There is a deluge of data within companies. Identifying what is relevant and important and then leveraging the people analytics will be critical for HR to make informed decisions about talent acquisition, development, and retention.

In Summary

The post-pandemic era has ushered in a new era of work, characterized by a shift towards independence and financial freedom among employees. The pandemic's challenges and uncertainties have led to a re-evaluation of priorities, with many seeking greater control over their careers and financial futures. This evolution is marked by a growing engagement in side gigs, a heightened focus on corporate purpose, and a desire to make a meaningful impact. As businesses navigate this changing landscape, understanding and responding to these new employee motivations will be key to attracting and retaining top talent. Companies that embrace flexibility, promote financial well-being, and commit to a clear and authentic purpose will be well-positioned to thrive in this new era of work.

Anu D’Souza is CEO of Bricoleur Consulting, a leadership recruitment and development consultancy headquartered in Singapore. A thought leader on innovation, transformation and leadership, Anu has spent many years with companies like Unilever, Ogilvy and BBDO and has lived and worked in multiple cultures and geographies. Having served on multiple Boards Anu is currently theMarketing Advisor to the Board of womenoffatorda.in, an e-commerce start-up supporting village women in Goa, India, volunteers with the Council of Single Mothers and their Children and author of the HR Foresighter Blog. She regularly writes about employee motivations, on leadership for tomorrow, employer and corporate branding. Anu is also the author of ALIGNED Why CEOs need Company Brand Alignment in the Age of a Questioning Workforce. You can reach her on anu@bricoleurconsulting.com.sg.