The Top 5 Workplace Trends For 2014

Earlier this week, I gave you my top trends for 2013 and now it’s time to look ahead to 2014. The economy is showing no signs of getting better and now with Obamacare next year, there are going to be some major changes. 2014 will be a slow period, where a lot of major workplace issues will surface and executives will be scrambling. As more boomers retire and more people work from home, the idea of “work” will start to change. Hiring processes are going to start to shift as more recruiters rely on the Internet and the word “reputation” will become even more important to professionals and companies alike. Here are the trends I’m following that will affect you one way or another next year:
1. Healthcare’s impact on the workplace
CNNMoney.com found that 9 out of 14 economists say that businesses are putting off hiring because of health care reform next year. The reform will force employers with 50 or more workers to provide affordable health insurance starting in 2015. Starting next year, small businesses will be able to get a credit for up to 50% of their health care premium costs if they buy insurance. It’s debatable exactly how Obamacare will impact the workplace but many are saying (at least Republicans and some economists) that companies will be laying off more full-time workers and hiring more contingent workers in order to dodge the penalty.
2. Freelancing becomes a normal way of life
One third of Americans are freelancers (17 million people), contractors and consultants right now and there will be more of them than full-time employees in six years. Employers are saving more money hiring freelancers because they don’t have to pay benefits (they will want to avoid the Obamacare penalties for instance) and they are looking to hire experts who can complete specialized projects. This also means that more professionals will be working from home instead of a traditional office setting, which saves companies money. Despite how the public views the working from home phenomenon, Gallup reports that you are more engaged when working from home.

3. Gender pay gap starts to close
Earlier this year, Gallup found that only 24% of women are happy with what they earn at work compared to 32% of men. This was a more general view of the workforce but what we found recently was that if you break it down by generation, there isn’t much discrepancy between millennials. After controlling for all other factors, there is only a 2-3% difference between male and female pay across all 3 generations, and that difference is the smallest for Gen Y. The gap is going to shrink overall because 36% of the American workforce will be millennials by next year and that number will continue to rise. As more women are becoming educated and more men leave the workforce, the gap will shrink even more. Millennials are all about equality in every aspect of life and want women and men to be treated the same. For instance, 74% of millennials support same sex marriage, which is a big reason why it passed in many states.
4. The economy delays career growth
The economy hit the workforce really hard and there are no clear signs that it’s going to bounce back any time soon. The Congressional Budget Office expects unemployment to remain near 8% in 2014 and Generation Opportunity reports that there is a 15.9% unemployment rate for millennials. A new study between my company and PayScale.com shows that millennials are most likely to have had to move back home with their parents due to financial hardship after starting their careers (28 percent) compared to Gen X (11 percent) or Baby Boomers (5 percent). Millennial workers are now 30 years old before hitting a median wage of $42,000–up from 26 back in 1980. Millions of millennials are moving back in with their parents when they graduate and Pew Reports that 36% of millennials are choosing to put off moving out on their own. Many recent graduates are finally getting internships, which delay their ability to actually get a full time job. Degrees and internships don’t guarantee jobs anymore and the economy has slowed down career development for many.
5. Boomers retiring – changing demographics in the workplace
We’re going to see a lot of boomers retire starting next year and it’s going to cause major shifts in workplace demographics. In fact, 18% of boomers will retire within five years and 68% of HR professionals say that boomers retiring will have a major impact on the workforce. Next year, millennials will account for 36% of the American workforce too. One of the biggest problems companies will have is succession planning. They are going to have to train Gen X’ers and Gen Y’ers before their boomers retire or they will be in major trouble. On the flip side, new opportunities will be created for younger generations who are more loyal to their companies.