Rewind to March 2020 and you’ll recall the mad dash to temporarily revamp your workplace. While most business leaders were planning for short-term changes, the pandemic set into motion an organizational transformation, creating a market where work-from-home, hybrid schedules, and widely dispersed teams are not only common — they’re a must for recruitment and retention.
Today, businesses in the GovCon sphere have more complex challenges than ever; they’re facing a looming recession, seemingly endless supply chain issues, and a talent shortage, to name a few. We surveyed 1,170 industry leaders to find out more about what’s keeping them up at night, and the results were surprising. Business leaders aren’t losing much sleep over their company’s economic stability — they’re tossing and turning over how to embrace post-pandemic changes that impact the future of their workplace and workforce.
This is the focus of the 2022 GAUGE Report — a thought-provoking collection of data that highlights the need for businesses to rethink everything from their physical space, to their employee benefits, to investments in technology. Its title, “Reimagining How We Work,” reflects the need to deliberately adapt, embracing these changes as opportunities for growth.
Major takeaways include:
● The opportunities and challenges of remote and hybrid workplaces. A mere 15% of respondents still required mandatory office attendance, with 70% reporting fully remote or hybrid teams. While a nontraditional approach seems to be the way of the future, employers are still working through the tax burdens and legal issues related to remote work.
● Resource recruitment and retention in a new world. While remote work is one piece of the puzzle, winning talent involves thoughtful compensation plans, innovative benefit strategies, and intentional culture building. 49% of reporting firms stated their ability to recruit and retain has worsened since the pandemic. The old rules no longer apply.
● Accounting-related trends and their impact on compliance. Robust accounting systems have become a necessity. Fifty-two percent of respondents reported no audits last year (probable reasons why outlined in the GAUGE Report). The vast majority of audits are focused on ICS, pre/post-award accounting systems, and provisional billing rates. A trend to watch: rising inflation and increased scrutiny around employee rates commensurate with their location and job title, as well as idle facility costs trending toward unallowable.
● Key insights on utilization and efficiency. Managing people, optimizing performance, and running an efficient business will always be vital to success. GAUGE examines how employee morale, mature project management, and fringe rates come into play.
● Growth occurring across the GovCon world. Both projected and actual win-rates more than doubled over the last year, with personal relationships remaining the top approach for securing new opportunities. A trend to watch is DEIB (diversity, equity, inclusion, and belonging). One in six respondents reported addressing DEIB in 25% or more of proposals.
Dive deeper into these issues and opportunities, and see how your company compares to its GovCon peers by downloading a copy of the latest GAUGE Report.
Download the 2022 GAUGE Report
Without a doubt, unprecedented times continue for government contractors. Reimagining the workplace and workforce is key to evolving with intentionality, securing the best talent in a competitive market, and taking advantage of new opportunities, even in an uncertain economy. We look forward to hearing how this report helps your business think about the future.