Employees globally are less likely to protest about perceived injustices at work, but business leaders believe that the proportion of workers ‘keeping their heads down’ will decrease in the near future.

This is according to a new report, titled ‘Balancing Acts’, published by professional services business Herbert Smith Freehills, which suggests that continued economic anxiety, coupled with rapid digital transformation in many workplaces, is combining to revitalise fears about job displacement.

The report is the third in a series of three exploring the future of work, with the first released before the global pandemic. The latest report is based on research among the C-suite in global organisations, with a yearly revenue of at least £250-million.

The report also reveals that the economic pressures changing workers’ priorities have impacted on employers’ behaviour too, with 81% of business leaders surveyed saying that the cost of living crisis, inflation and the threat of recession are driving changes to workforce policies.

“Financial worries appear to have stemmed the flow of employee activism. However, it is entirely possible that the same economic pressures causing employees to think twice before acting today, will be the catalyst sparking higher levels of employee discontent tomorrow.

“This means employers need to strike a balance between doing what’s right for their organisation and their employees, without falling foul of regulations and meeting the demands of disparate groups within the workforce,” said Herbert Smith Freehills Europe, Middle East and Africa Employment Practice partner and regional head Emma Rohsler.

“A workplace which actively and practically encourages diversity, inclusion and equity clearly continues to be one that is sought after by employees.

“Employers that do not embrace these concepts both internally and externally will not only fail to attract quality candidates and fall behind in the race for talent, but will also struggle to maintain a diverse workforce,” warns Herbert Smith Freehills Johannesburg Employment Practice senior associate Jacqui Reed.

Key findings from the report include that scepticism breeds control, as regulators, investors and consumers increase scrutiny on organisations, and fewer employers now view activism as a positive force, at 20% today compared with 37% in 2021.

As a result, 97% of employers have ‘moderate’ or ‘high’ restrictions on activism, representing a turnaround from 2019 when 53% claimed to have no restrictions in place.

There is also a lack of appetite for activism, as, focusing on the state of the economy over the past 18 months, little over half, at 59%, expect employee activism to rise – a figure that has fallen from 72% in 2021 and 81% four years previously.

Employers are also exploring ways to influence employees’ working preferences through incentivisation. Nearly half, at 47%, expect remote working to become a privilege earned through trust and almost as many, at 43%, have plans to differentiate pay between remote and on-site workers in the next three to five years.

Although employee activism is falling in the immediate term, the report goes on to reveal that employers are under increasing pressure from their employees to provide better working environments.

Three-quarters, at 75%, say employees are demanding greater support for their health, while a similar proportion, at 74%, argue that work having a sense of purpose is essential for employee wellbeing.

Against this backdrop, 62% actively encourage regular breaks from work, 49% give employees the ‘right to switch off’ and 37% provide access to counselling.

However, the report also indicates that generational attitudes make it challenging for employees to meet all expectations.

The research shows, for example, that 46% agree that the entrance of Generation Z to the workforce increases the risk of employee activism. At the same time, 53% argue that differences in beliefs and values between generations makes it hard for employers to meet expectations on environmental, social and governance-related issues.

“Greater awareness of the importance of mental health is proving to be one of the pandemic's lasting legacies but wellbeing initiatives are not without risk, as what may be considered the norm in one country may not be readily available in another. The potential for a well-intentioned act as a trigger for activism cannot therefore go un-noticed,” Rohsler avers.