Moving beyond traditional talent acquisition and retention strategies
Moving beyond traditional talent acquisition and retention strategies
By Dr. Martin Hofmann, Executive Vice President of Human Resource, Orga & ITP of Volkswagen and David Plink CEO of Top Employers Institute
Executive summary
In this dramatic time of change, Top Employers must move beyond traditional talent acquisition and retention strategies to focus on economic value-based talent management. Regular organisational reviews as a way of adaption to business challenges, market impact and new technologies are forcing Top Employers across industries to rethink their human resource strategy and practices. Suddenly, there is an implicit challenge and criticism from employees to their employer, as cost efficiency, stricter performance orientation, a permanent exchange of competencies and, as a result, the steady renewal of organisational structures calls for new methods, tools, and processes. Managing the selection and separation of talents is becoming key for employers. Driving performance in the company to develop a high talent density organisation, applying new technologies with artificial intelligence to abolish inefficiency in processes and tools are core success indicators to keep the company a top performer and Top Employer in their industry. In this time, where major transformation has arrived in all industries, it is of utmost importance to every company to take care of the impacted talents in a professional manner. This needs new ways to define Top Employer excellence and correct the narrative that Top Employers are immune to professional separation management to maintain a dynamic, successful, and adaptable workforce.
Introduction
In today’s rapidly changing business environment, often called the “new normality,” driven by technological advances, globalisation, and evolving economic dynamics, the demand for skilled workers has skyrocketed, resulting in a growing talent shortage. A Korn Ferry study from 2021 predicts that skills gaps could result in more than 85 million unfilled jobs worldwide. Meanwhile, according to a 2022 Glassdoor report, 75% of job seekers consider a company’s reputation before applying. Being seen as a Top Employer has had a significant impact on talents and within the relevant industrial community.
The Top Employers Certification is the way to prove that the conditions for employees to develop themselves are at an adequate, often best practice level. A key attribute was to be attractive to potential recruits in talent acquisition and during their life cycle on board. However, this is has changed significantly, in the last few years after the COVID crisis.. As the economic landscape evolves, the influence of new technologies has arrived in all industries. Moreover, geopolitical impact and the disruption of value chains due to a global separation of spheres push companies worldwide into a mode where new efficiency requirements impact human resource management. High talent density approaches to strengthen employee performance and quickly adjusting organisational structures to new market needs are now essential.
In these tumultuous times, company success through a more efficient and leaner workforce is at the forefront of employers’ agendas. This leads to debate and confusion. On one side, the question is whether the investment companies have made in becoming a Top Employer over the past decade can be retained to win more and more specialised talents with rare skills. On the other side, the question is how to drive workforce reduction and create professional separation management. This contrast of investing in talents on one side and separating from talents on the other side is part of the same coin. However, the compounded technological shift in labour markets and industries now poses significant challenges for employers to innovate and remain competitive in a globalised economy. The key question is: what is the definition of a Top Employer in today’s environment?
Key human resource professionals from a variety of industries were interviewed to answer this question and share the practices of market leaders. These interviews provide valuable insights into the strategies used by leading organisations and help to reflect on what is needed for an up-to-date Top Employer definition. Additional case studies and practical insights were analysed to prove and support some key findings. Using thematic analysis, it was possible to synthesise key trends and strategies, especially those of Top Employers who can maintain their position in these ambivalent times. Three key areas are shaping an impactful part of an updated narrative when it comes to a Top Employer definition: first, core economic value and talent management; second, a consequent review of organisational and individual performance; and third, professional separation management.
Core economic value and talent management
Talent management has emerged as a cornerstone of success. Insights from Smith in 2020 suggest that companies excelling in this area enjoy a boost in employee engagement, productivity, and overall performance. This is not just about human resources; “Talent management is a strategic imperative that drives organisational success.” It is about recognising that the right people, effectively developed and engaged, can be the difference between a company that thrives and one that merely survives.
Under these circumstances, strategic workforce planning becomes a helpful solution. In practice, strategic workforce planning along certain competencies mostly gives good insight into what is coming and needed in the next two to three years. However, in long-term planning, it often remains a theoretical and analytical exercise. This needs to be converted into organisational renewal and consequent management of measures related to workforce capability and size.
Strategic workforce planning requires organisations to consider both economic trends and business developments in a rational, forward-looking manner. By aligning workforce planning with business value, organisations can minimise workforce size while ensuring that the right skills are in place to drive growth and profitability. This rational approach, combined with cascading action plans into the last business unit and clear economic indicators for each planning cycle, helps to optimise the workforce. This ensures it is right-sized and strategically positioned to meet current and future business needs, supporting better financial performance.
The research above links talent management to improved financial performance, while Collings & Mellahi’s research in 2009 found that it enhances a company’s economic value by optimising its workforce. Brown, in 2019, echoes this, noting that such practices lead to higher employee satisfaction and retention. Moreover, Jones, in 2019, observes that effective talent management is key to an organisation’s agility and resilience, allowing it to bend but not break in the face of challenges. The research paints a clear picture: organisations that prioritise action-based talent management see the benefits in their cost structure and business value creation. But this is not just theory; real-world examples show the impact of these strategies. It is a testament to the idea that considering economic value in talent management is more than a nice-to-have; it’s a must-have for organisations aiming to stay actively ahead.
Looking into the practice of human resources management teams in China within leading companies, it is demonstrated that management teams who manage their workforce with the principle of “right sizing to expected forward-looking volume” have faced severe challenges from both internal and external perspectives. Like many other top global companies, they have realised their overcapacity problem in the Chinese market in the recent past. They must take proactive measures to manage workforce structure under a new paradigm. Creating workforce flexibility while ensuring a stable supply of new competencies and having human resource strategies in place to adapt more quickly to shifting volume and competence demands is essential.
While the workforce must be planned forward-looking and more strictly according to product volume and competence demand, efficiency KPIs often do not allow contingency planning anymore. Active apprentice strategies, an ideal workforce structure of experienced senior and junior profiles, and innovative cells of internal talents and external experts need to be included in the planning to increase flexibility and adaptability during transformation times. As a result, Top Employers need concrete plans to size, up-skill, and re-skill their workforce, including necessary rotation if the structural aspect or competence level does not serve the business appropriately.
Consequent review of organisational and individual performance
An organisational review is not new to the Top Employer definition, as it linked strategic goals to the organisation for decades. However, the dynamic of how organisations structure their workforce and way of working is becoming a core criterion for success. Reviewing the current workforce structure helps identify skill gaps, inefficiencies, and areas for improvement. The overall organisation of work, processes, and decision-making structure amplifies success when reviewing Top Employer impact in different industries. Especially in disruptive industries, modern workforce and process structures are key differentiators of success in speed and efficiency.
Regular reviews and benchmarks help Top Employers make informed decisions about staffing, restructuring, and training. Make sure the workforce is adaptable to future needs. While this may be uncomfortable for units wishing for stability, it fosters operational efficiency and long-term growth. As Brown & Jones highlighted in 2019, regular assessments help identify inefficiencies and areas for improvement, leading to better performance. These reviews allow companies to assess their structures and operations, ensuring they are on track to meet both short- and long-term goals. Williams, in 2021, adds that companies that conduct these reviews are better equipped to identify new opportunities and mitigate risks, positioning themselves for success.
Companies should use a systematic, data-driven approach to conduct effective organisational reviews, including evaluating structure, employee performance and gathering stakeholder feedback. Researchers emphasise the importance of identifying bottlenecks, redundant processes, and skill gaps that slow performance. Continuous reviews, rather than one-time events, ensure organisations can fit market changes, improve efficiency, and refine strategies.
In practice, the final value of organisational renewal and restructuring always comes with reviewing and matching individual performance. Since organisations are composed of units, teams, and individuals, the questions come down to the core: who is the right person for the challenges ahead? Each function needs to be analysed for occupation or deletion. If there is a need to occupy the function, the question is, who can do it? In terms of competencies, skills, and performance, human resource strategies need to answer these questions during restructuring. Therefore, periodic personnel changes are essential to maintain competitive strength. A basis for this is not only excellent training and skill management but also a performance-driven culture, including a clear approach to differentiate talents. This includes the creation of talent relativity to award top performers and address low performers with the same distinction and clarity. Leaders and managers are crucial in this process but are often the weakest part of this value chain. It is essential for a high-performing organisation to address the right level of expectation and provide honest feedback to those who do not meet the set level. Human resources strategies need to support and select the performance and internal employability level in a revolving process.
Especially in challenging market situations, internal and external employability is key for talent development, which is not limited to the current position. Future companies that want to be Top Employers need to consider and address this openly and frankly, not just rest on good, solid, or acceptable performance in their current function. Taking transformation seriously and believing in the strategic role of personnel changes, most employees will likely be affected by new assignments, pivoting functions, or efficiency measures. As the organisation’s long-term health lies in its ability to renew and change, human resource strategies in this field are crucial to support high talent density in all aspects. Experience shows that managing resistance to change, especially during job cuts, is a critical success factor. The agility to change processes, tools, and methods is a differentiating factor for future Top Employers when assessing forward-looking, successful HR practices.
Professional separation management
One of the most common feedbacks during job cuts at Top Employers is the phrase: “Top Employers don’t lay off people.” However, the time to leave an organisation, voluntarily or involuntarily, is part of the employee journey. This process is necessary for Top Employers to maintain competitiveness, as it allows for the continuous renewal of the organisation with new influences, skills, traits, and competencies. This does not contradict talent retention strategies; rather, it complements them. Both parts underpin the need for companies to orchestrate healthy competition among talents based on transparent organisational and individual performance criteria and honest feedback.
When it is time to leave the organisation, effective separation management is critical to minimise the impact of employee departures on organisational performance and maintain a positive workplace culture. As Williams in 2021 points out, having professional separation strategies in place can significantly enhance an employer’s brand and reduce turnover rates.8 When managed well, separations can lead to higher employee satisfaction and morale, which in turn supports organisational stability. For example, one multinational company that implemented a comprehensive separation management programme saw a 10% reduction in turnover and an improvement in its employer brand. This example may be the best endorsement of this point of view. In addition, Smith in 2020 suggests that companies that implement professional separation strategies often report improved employer branding, which can attract top talent and create a more resilient workforce.
To achieve these benefits, organisations should establish clear, well-structured separation management systems, including well-defined policies and procedures to ensure fairness and consistency. Offering support to departing employees, such as career counselling or job placement assistance, can help make a positive impression and maintain strong relationships after they leave. In examining best practices, data from the Top Employers Institute shows a slight decline in the consistent use of formal offboarding programmes—from 85% to 79%. While most Top Employers maintain structured exit processes, this decline signals a potential concern. However, the increase in recognition of departing employees, from 50% to 54%, reflects a growing appreciation for their contributions. Similarly, the increase in post-departure conversations, from 18% to 21%, and alumni networks, from 16% to 18%, suggest an increased focus on maintaining positive relationships with former employees. These efforts can lead to a stronger alumni network, potentially aiding in rehiring and promoting the organisation’s brand.
While there is still significant room for improvement in this field across all industries, the trends observed in these practices point to a shift toward better recognition of departing employees and a greater emphasis on post-departure relationship management. Companies that excel in these areas are likely to experience not only reduced turnover but also improved employer branding and a more resilient workforce. The rise of more fluid employment relationships and the decline of lifetime employment are driving a shift toward long-term talent relationship management. Employers are increasingly focused on nurturing these relationships after employees leave, providing opportunities for future rehiring. Alumni networks and referral programmes allow organisations to stay connected with former employees, attract them back, or leverage their networks to identify new talents. This evolving approach reflects a dynamic and interactive talent ecosystem that extends beyond an employee’s tenure and contributes to long-term organisational success.
Based on other best practices, the approach to managing separations demonstrates a strong commitment to fostering positive relationships with departing employees while maintaining the integrity of the organisation. For managing separations, processes are needed to accompany this phase, starting with defining the ways to identify positions or functions that need to be abolished and defining selection mechanisms on the people side. Along with this first approach of a professional separation identification mechanism, it is important to integrate strategies for different incumbents in affected functions and positions. Best practices include programmes to facilitate departure for employees close to retirement age, programmes for re- and up-skilling, as well as measures of downgrading, ordered position transfer, secondments, and other assignments within the internal and external labour market. A significant trend among Top Employers is to invest in strategies to bridge this period and invest in this part of the talent lifecycle. It becomes clear that in challenging times, the last part of the departure process is as important as the talent acquisition part. However, not enough strategies are observable in the market.
A benchmark is a professional, clear, and structured process for separations, where the company ensures that both the management team and employees are well prepared for the transition and the ultimate decision of no longer working together. This is especially crucial in companies that have never experienced or applied a professional separation process. A key best practice was the on-site transfer hub, which allowed employees to cool off and maintain a connection with the company, creating a smoother exit process. In addition, the company’s focus on offering a variety of support options, such as on-site career consultations for employees, highlighted their care for departing employees, enhanced their employer brand, and fostered a resilient workforce. Furthermore, the company’s recognition of the importance of long-term professional relationships with former employees through alumni networks and referral programmes exemplifies a forward-thinking approach that not only aids in talent reacquisition but also strengthens the company’s reputation as an employer of choice.
Conclusion
Human resource management is no longer just about filling roles or managing processes. Companies must adopt strategic workforce planning, regular performance reviews, and effective separation management to navigate these challenges. These practices ensure that organisations remain competitive, driving growth and profitability. By focusing on core economic value and talent management, consequent review of organisational and individual performance, and professional separation management, companies can maintain their status as Top Employers and thrive in the “new normality.”
THE NEXT EDITION HR BEST PRACTICES CONFERENCE TACKLING CHALLENGES FOR 2025
HR BEST PRACTICES CONFERENCE: THE FUTURE OF HR IN 2024 AND 2025 REMAINS IN PEOPLE, TRENDS, TECHNOLOGY
We are excited to invite our Top Employers Poland to our upcoming HR Best Practices Conference event. On September 24, 2024 we will meet in Warsaw to share HR industry experts’ insights and discuss the best HR practices for managing and developing a successful workplace.
HR Best Practices Conference 2024 will be initiated with a business breakfast and a “Positive Relationships Session” with the speaker, mentor and networker – Grzegorz Turniak.
HR TRENDS FROM THE PERSPECTIVE OF EXECUTIVE BOARD MEMBER / CCO TOP EMPLOYERS INSTITUTE – ADRIAN SELIGMAN
The first keynote session will be dedicated to the essentials of (re-)humanizing the employee experience in the face of technological advancements, unleashing the power of data in organizational culture. Our Executive Board Member / Chief Commercial Officer at Top Employers Institute – Adrian Seligman will share the latest insights from Top Employers Institute on how HR leaders should balance tech advancements with human centricity, leverage data-driven insights to enhance the employee experience, all while maintaining empathy and connection in the workplace.
During our engaging discussion panel, we will talk about employee loyalty as a key to success in the context of achieving the organizational goals – in other words our HR experts will share insights of recruiting, enhancing employee collaboration with the company and retaining the talents in the workplace.
The Autumn HR Best Practices Conference will be simultaneously fired up by lectures on digitization, reporting and budgeting, HR transformation through AI, activities in the spirit of “Total Experience” (and effective employee engagement). Our speakers will also sparkle a conversation with the topic of the power of women in the current reality as well as we will accommodate the big return to ESG (Environmental, Social and Governance).
LIST OF PANELISTS AND SPEAKERS DURING THE HR BEST PRACTICES CONFERENCE, TAKING PLACE ON SEPTEMBER 24, 2024 IN WARSAW
During the HR Best Practices Conference event, we will have a chance to meet, among othes, the following speakers and panelists: Piotr Cykier, Dyrektor Biura Polityki Wynagrodzeń i Cyfryzacji HR, Bank Gospodarstwa Krajowego; Aleksandra Kubasiewicz, Ekspert, Pion Zasobów Ludzkich, Departament Zarządzania Rozwojem i Kultury Organizacyjnej, Bank Pekao SA; Dorota Benkowska, Senior Director HR, GEA; Małgorzata Makowska, Dyrektor ds. Rekrutacji i Marki Pracodawcy, Auchan Retail Polska; Dorota Zaperty-Łukasik, Senior HR Manager – C.H. Robinson; Łukasz Peliksza, Chief Employee Experience Officer, Santander Bank Polska; Aneta Trzcińska, Kierownik Biura Personalnego, Provident Polska S.A.
HR Best Practices Conference 2024 in Warsaw will be led by Katarzyna Konieczna – Senior HR Auditor at Top Employers Institute.
Insights from the People Summit 2024
Today, 84% of the organisations are defining a vision for how technology contributes to the overall employee experience. That was the focus of the People Summit 2024, hosted by SAP and the Top Employers Institute, which took place on June 12, 2024, at the SAP Labs Campus in Bengaluru, Whitfield in India.
And we’re delighted to share some of the resources shared during the People Summit:
World of Work Trends 2024
Top Employers Institute’s World of Work Trends 2024 analyses the latest trends in people strategies and practices from leading organisations globally. In the report, our analysis showed five significant trends affecting workplaces in 2024. Those trends are:
Empower through AI
The Future Defined with Purpose
Dialogue for Transformation
Evolution of Wellbeing Effectiveness
Broaden the Horizon of DEI
These trends were unpacked by Adrian Seligman, Executive Board Member at the Top Employers Institue. You can download the report here, and watch Adrian’s Keynote here:
Throughout the People Summit, insights were shared by SAP which also featured many insights from the research they’re doing into the future of work. SAP have identified future of work trends three strategic dimensions. You can access an array of resources shared by SAP during the conference here:
Future-Proofing HR: Trends and Transformations in India
The People Summit also featured a wonderful panel discussion on future-proofing HR and discussing trends and transformations in the Indian Landscape. On the panel was Kavita Kurup, Global Head HR and Corporate Communications at UST, Shilpy Sharma, Regional HR Head at Empower, Kiran Sn, Vice President – HR, HCLTech, Shweta Mohanty, Head of Human Resources: India at SAP and Billy Elliott, Regional Director Asia-Pacific, Top Employers Institute.
They addressed the integration of technology, the distinction and enhancement of employee experience vs. engagement, the importance of diversity, equity, and inclusivity (DE&I), and strategies for skills development and talent management.
Key points included:
Technological Integration: Shilpy Sharma highlighted the evolving role of technology in HR, emphasizing advancements that boost organizational efficiency while considering potential drawbacks like job displacement and privacy concerns.
Employee Experience vs. Engagement: Kavita Kurup differentiated between the two concepts, sharing successful UST initiatives to enhance both through personalized approaches and flexible work arrangements.
Skills Development and Talent Management: Kiran SN discussed HCLTech’s approach to upskilling and reskilling, aligning talent initiatives with strategic goals, and addressing challenges like budget and time constraints.
Diversity, Equity & Inclusivity: Shweta Mohanty shared effective strategies and impactful programs at SAP to promote DE&I, acknowledging challenges like unconscious bias and tokenism.
Haier Europe: Elevating its People Practices with the Top Employers Programme
About Haier Europe
Haier Europe is a global leader in home appliances and consumer electronics, recognised for 15 consecutive years as the world’s No.1 brand globally in major appliances, selling under the Candy, Hoover and Haier brands. The organisation comprises of 750 colleagues in the UK&I and 100,000 globally.
Haier Europe’s Top Employers Journey
Haier Europe had been on an improvement journey, investing heavily in people systems, processes and benefits and whilst colleagues inside the business would have seen the transformation, they wanted to receive external recognition in order to attract great talent, and give candidates the confidence to know that they had been certified by an external, independent validation process. They therefore joined the Top Employers Certification Programme, and following completion of the HR Best Practices Survey and Validation Process, were certified as a UK Top Employer 2023.
Elevating its People Practices
“We have definitely seen the profile of our employer brand increase, we see our candidate numbers are very strong and our retention figures are improving in key areas, but the most important outcome from joining the Top Employers Programme is that it has really made Haier Europe a better workplace for our colleagues because it has given us the impetus and direction to keep improving.” Matthew Given, Group HR Director UK & Ireland, Haier Europe
Having achieved Top Employer Certification in year one, the Haier Europe team immediately started work on its action plan to further improve its HR, using the Top Employers Results Dashboard. They did this by:
Having a dedicated team of specialists within the HR team working on the Top Employers Certification project.
Aligning the Top Employers HR Best Practices Survey topics and results with the action plans and choosing focus areas which would add most value to the business.
Regularly reviewing with the team each quarter to ensure that improvements were being made within these focus areas.
Impressive results
In year two, following on from the action planning, Haier Europe increased their score on the Top Employers Best Practices Survey by 20% points.
They had prioritised Employee Listening, wellbeing and DEI, with the new colleague listening strategy bringing great insights and making sure that they really understood how colleagues felt about the business and its programmes. They also mapped, explored and improved many more colleague and candidate journeys.
The leadership team has also taken notice of the tremendous progress and are now championing many new initiatives across engagement, wellbeing and DEI.
How to Manage and Succeed with a Multigenerational Workforce
By Sinakho Dhlamini, HR Content Specialist, Top Employers Institute
Across today’s modern workforce, many organisations are witnessing a unique blend of generations working side by side. From Baby Boomers and Gen Xers to Millennials and Gen Zs, the workplace has become a melting pot of diverse experiences, perspectives, and work styles.
As leaders and managers seek to create a productive, inclusive and welcoming environment for all these different groups, it is essential to understand and effectively manage this multigenerational dynamic to foster collaboration, innovation, and overall team success. Cultivating this understanding will help to better utilise everyone’s talents from an individual and a generational level.
In 2023, there are currently five generations working side-by-side. Those generations are:
The Silent Generation: This generation was born between 1928 and 1945, making them some of the oldest in the workplace. Many have already retired, but many still choose to participate in the labour force. It is estimated that they still make up 3% of the workforce in the USA. It can be easy to underestimate the number of older people still active in the workplace, especially when you consider that according to the United States Bureau of Labor Statistics, in 2030, 11.1% of those 75 and older will still be active participants in the workforce in 2030.
Baby Boomers: This generation was born between 1946 and 1964 and currently makes up around a quarter of the working population in the United States. The youngest members of this generation will start retiring in the upcoming years. Still, some of this generation have already begun retiring, this many because they are further along in their careers and often hold higher positions of power at work.
Gen X: Born between 1965 and 1980, this is one of the smaller generations compared to the ones that came before it and the ones that are coming after it and many in this generation.
Millennials (also known as Gen Y): Millennials are often quite technologically adept because they have lived through some of the most significant technological advancements. They were born between 1981 and 1996, and they make up the biggest group in the workforce in the USA, making them around 35% of the working population.
Gen Z: The youngest generation to enter the workforce were born between 1997 and 2012, and they are remarked to be the first actual tech generation as they have never known a world without the internet. While many are still in university, the first groups are becoming active participants in the workforce. As such, organisations need to learn how to support them.
What are the Benefits of a Multigenerational Workforce?
In many places, we hear about the difficulties of generational differences affecting people’s ability to relate to each other, but there are many benefits for organisations. Those include:
Skill Diversity: Different generations tend to have distinct skill sets. For example, older employees might excel in interpersonal skills and relationship-building, while younger employees might be adept at leveraging technology and digital tools. This mix of skills can enhance the team’s overall capabilities.
Knowledge Sharing: Older generations often possess valuable industry experience and institutional knowledge, which they can share with younger team members. This knowledge transfer helps bridge the generation gap and ensures that essential insights are passed down to the next generation. Equally, the younger generation can share knowledge that older generations may have previously ignored, making the sharked knowledge sharing a fruitful opportunity.
Diverse Perspectives and Ideas: Each generation brings unique life experiences, perspectives, and approaches to problem-solving. This diversity can lead to a broader range of ideas and solutions, fostering innovation and creativity within the team.
Adaptability: A multigenerational team is often more adaptable to changes in the business landscape. Younger members might embrace new technologies and trends, while older members can provide stability and a long-term perspective during times of transition.
Reduced Bias and Stereotyping: Working closely with colleagues of various generations challenges stereotypes and biases. Team members learn to appreciate each generation’s strengths and qualities, breaking down preconceived notions.
Effective Communication: Interacting with colleagues from different generations can improve communication skills. Team members learn to adapt their communication styles to accommodate diverse preferences, leading to more precise and effective information exchanges.
Enhanced Problem Solving: Multigenerational teams can bring diverse problem-solving approaches to the table. This diversity allows the team to tackle challenges from multiple angles, increasing the likelihood of finding effective solutions.
Market Insights: Different generations have varying consumer behaviours and preferences. A diverse team can help the organisation better understand and connect with a broader range of target demographics.
Mentorship Opportunities: Multigenerational teams provide natural mentorship opportunities. Older employees can mentor younger ones, offering guidance and wisdom, while younger employees can offer insights into new technologies and trends.
Increased Employee Engagement: Recognising and leveraging the strengths of each generation can boost employee engagement. When team members feel valued for their unique contributions, they are more likely to be motivated and committed to their work.
How Organisations Can Get the Best Out of Their Multigenerational Workforce
The benefits of having a multigenerational workforce show that having a work environment that is diverse in age range creates a positive impact on organisations and their employees; it is still important to figure out how organisations can foster that environment. Some of the ways that HR professionals can learn how to manage their workforce to foster collaboration and innovation effectively include:
Embracing Diversity and Inclusion: A multigenerational team offers diverse skills and perspectives. By fostering an inclusive environment, HR professionals and leaders can help team members feel valued and respected regardless of age. Encourage open dialogue that celebrates the unique strengths and experiences each generation brings to the table. They can organise cross-generational mentorship programs to facilitate knowledge sharing and skill development.
Flexibility in Work Arrangements: Different generations often have different expectations regarding work-life balance and remote work options. By offering flexible work arrangements, organisations can accommodate the diverse needs of their multigenerational team. Allowing for flexibility in where employees work, flexible hours, and job-sharing opportunities ensures everyone can maintain a healthy work-life balance.
Continuous Learning and Development: Promoting a culture of constant learning to keep all team members engaged and up to date. Provide opportunities for professional development, training, and upskilling. Encourage cross-generational learning by pairing experienced employees with newer ones to facilitate knowledge exchange.
Flexibility in Leadership Styles: Different generations may respond to different leadership styles. Some may appreciate a hands-on approach, while others prefer a more autonomous working environment. HR professionals should understand these preferences and adapt leadership strategies to manage and motivate their multigenerational teams effectively.
Conflict Resolution and Mediation: Generational differences can sometimes lead to misunderstandings and conflicts. HR professionals and leaders should be equipped with effective conflict resolution and mediation skills to address any issues that may arise. A proactive approach to resolving disputes can prevent them from escalating and disrupting the team’s harmony.
Managing a multigenerational team requires a thoughtful and inclusive approach. By embracing diversity, fostering open communication, offering flexibility, recognising individual contributions, promoting continuous learning, and adapting leadership styles, organisations wanting to get the best out of their people can work to create an environment where everyone thrives. Suppose they successfully create this environment by navigating the complexities of a multigenerational team. In that case, they will not only be able to enhance team performance, but they will also be able to cultivate a workplace where everyone feels valued.
Becoming LGBTQ+ Allies: Going Beyond DEI Initiatives for Pride Month
By Sinakho Dhlamini, HR Content Specialist, Top Employers Institute
Over the past several years, organisations have used Pride month to begin, reinvent or sharpen up their DEI efforts for members of the LGBTQ+. But it only happens once a year; for many people, more is needed beyond this concentration of action once a year. Instead, organisations will need to become active allies for the LGBTIQ+ community throughout the year by creating an inclusive environment at work. The work of becoming an active ally to support co-workers of the LGBTQ community involves more than just celebration, and this article will examine some of the ways businesses can show their commitment to not only raising awareness for the rights of the community but also to prioritise equal rights.
What is an ally?
In a few words, we can understand that being an LGBTQ+ ally means actively supporting and advocating for the rights, dignity, and wellbeing of lesbian, gay, bisexual, transgender, and queer individuals. In the workplace, being an ally involves creating an inclusive and accepting environment where LGBTQ+ colleagues can feel safe, valued, and respected.
5 Ways organisations empower their employees to be allies for the LGBTQ+ Community.
Develop and Enforce Inclusive Policies and Practices: Policies protecting LGBTQ+ employees from discrimination and harassment are essential for organisations, including and supporting community employees. That can be done by ensuring inclusive language in company communications and having policies that ensure that LGBTQ+ individuals have equal opportunities for career advancement, promotion, and leadership roles. Organisations must set the tone for their employees, which requires action and intention.
Provide Education and Training: Organisations must provide comprehensive education and training on LGBTQ+ issues, terminology, and experiences. That can be done by offering workshops, seminars, or online resources to increase employee awareness and understanding. The education should cover topics such as LGBTQ+ history, intersectionality, and the challenges faced by the community. Educating employees on issues like this will teach them to listen, respect and look at their prejudices – helping them become better allies to their co-workers.
Create Employee Resource Groups (ERGs): Establishing LGBTQ+ employee resource groups or affinity networks within the organisation to help create a safe space for discussion. These groups provide a safe and supportive space for LGBTQ+ employees and their allies to connect, share experiences, and collaborate on initiatives that promote inclusion. Organisations can support these groups by allocating resources, budget, and executive sponsorship.
Leadership Support: Leaders and managers should openly support LGBTQ+ employees and allyship efforts. They should set the tone by demonstrating inclusive behaviours, including using inclusive language and addressing any discrimination or bias in the organisation. Leadership support helps create a culture of acceptance and sets expectations for the entire organisation.
Establish Feedback and Listening Channels: Establish feedback mechanisms where employees can provide suggestions, voice concerns, or share their experiences related to LGBTQ+ inclusion. Actively listen to employee feedback and make necessary improvements based on their input; this demonstrates that the organisation values employee perspectives and is dedicated to continuous improvement.
Why is it important for Organisations to Support the LGBTQ+ Community?
Supporting the LGBTQ+ community promotes a culture of inclusivity and diversity within the organisation. Embracing and celebrating differences, including sexual orientation and gender identity, fosters a sense of belonging among all employees. In addition, when employees feel valued for who they are, regardless of their sexual orientation or gender identity, it increases employee morale, engagement, and productivity.
It also has additional benefits, including:
Attracting and Retaining Talent: Creating a supportive environment for the LGBTQ+ community helps attract and retain diverse talent, especially in the current competitive job market, where many candidates actively seek organisations prioritising inclusivity and equality.
Employee Wellbeing and Mental Health: Supporting the LGBTQ+ community directly contributes to the wellbeing and mental health of LGBTQ+ employees. Employees who feel supported, accepted, and respected experience reduced stress and anxiety levels.
Brand Image and Reputation: Organisations that champion LGBTQ+ rights and inclusivity contribute to building a positive brand image and reputation. Consumers, clients, and stakeholders increasingly expect businesses to prioritise diversity and social responsibility.
Social Impact and Corporate Social Responsibility: Organisations can make a positive social impact by supporting the LGBTQ+ community. By actively engaging in initiatives, sponsorships, and partnerships that promote LGBTQ+ rights and equality, companies can contribute to broader social progress.
Final Thoughts
June is a time for celebration, but, more importantly, it is a time to raise awareness for LGBTQ+ people and educate people to become effective allies in the community. It is only one month, but the issues are significant throughout the year. Organisations should use June to be more active in communicating their policies and initiatives, but it should have already been a part of their people practices strategy. It is also critical to allow LGBTQ+ people the space to become powerful voices while their friends and coworkers support them by taking action to become an ally.
Make inclusion a part of your organization, get in touch for free to become an employer of choice!
Balancing AI and Human Expertise in HR: Insights from SABIC India and Top Employers Institute
Artificial Intelligence (AI) is rapidly growing in various industries, including HR. While AI technology offers numerous benefits, such as increased efficiency and reduced bias, it raises concerns about the lack of personal touch. In a recent LinkedIn Live event, Preet Boparai, Head of HR for India, at SABIC and Billy Elliott, Regional Director for APAC at Top Employers Institute, discussed the emerging use of AI in HR and the importance of maintaining a balance between AI and human expertise. The webinar explored examples of how AI has proven beneficial and the potential downsides of relying solely on technology. The session also provided insights into how SABIC India leverages AI while retaining the human element in HR operations. Here are some key learnings from the session:
Read ahead to get a snapshot of some of the session’s highlights; fill in the form to get the recording of the webinar to watch whenever you have a moment.
Balancing the Benefits and Concerns of AI in Human Resources: The Need for Human Oversight and Intervention
Using AI tools in HR has proven successful in saving time and effort. For example, AI tools have proven successful in recruitment by saving time and effort for recruiters and offering personalised feedback to candidates. These tools employ natural language processing and facial analysis technology to evaluate the fit of candidates for job positions. However, a critical issue with AI tools in recruitment is the potential for bias and discrimination. In a notable case, a recruitment tool demonstrated a preference for male candidates over female candidates. Therefore, it is necessary to have human oversight and intervention to ensure that algorithms are not giving biased results.
SABIC Shows How AI Tools Can Help HR in Employee Engagement and Retention
SABIC, a global leader in diversified chemicals, has harnessed the power of AI to enhance employee engagement and retention. Here are some ways they’ve implemented it:
Development of a chatbot for employee experience: SABIC developed an advanced chatbot called Amber, which has proved invaluable during the pandemic. It acted as a seamless two-way communication tool, promoting connection and dialogue by regularly seeking feedback from SABIC employees about their experiences working in an evolving, flexible environment. The chatbot is used to identify disengaged employees and those who are at risk of leaving. By proactively identifying these employees, SABIC has been able to retain them, thereby reducing its attrition rate. However, SABIC also emphasised the importance of informing employees about the tool and ensuring that conversations between employees and HR are confidential.
Gathering feedback from employees: SABIC has also used AI tools to gather employee feedback during the COVID-19 pandemic. This feedback was used to launch SABIC Care, a flexible employee health benefits plan.
Personalised learning journeys: SABIC also uses Percipio, a platform that offers a range of courses and content for employees to upskill and reskill themselves. This platform uses AI to personalise the learning experience and improve the efficiency and effectiveness of the learning process.
Balancing AI and Human Intelligence
While AI tools can provide valuable insights and baseline information, SABIC emphasised the importance of involving human intelligence in decision-making. The solutions SABIC created were well thought through and catered to the entire organisation. SABIC also recognised that AI tools are not infallible and that there may be instances where the predictions made by these tools need to be corrected. Therefore, the company has created a feedback loop where human intelligence can correct and improve the accuracy of AI tools.
Fostering Collaboration Between AI and Humans in the Workplace: HR’s Vital Role
In today’s fast-paced, technologically driven world, it’s easy to get caught up in the idea that machines and algorithms can do everything better than humans. However, as we rely increasingly on artificial intelligence (AI) in the workplace, it’s essential to remember the value of the human touch. Recent studies have shown that many employees negatively perceive their HR departments. Some don’t even know who their HR representative is, while others don’t trust that any action will be taken if they report a concern, such as harassment or discrimination. With the increasing use of digital tools, this gap between HR and employees could widen further.
However, the solution isn’t to eliminate AI and go back to the days of paper forms and in-person meetings. Instead, HR departments need to remember that technology should be used to enhance and support human interaction, not replace it entirely. The key is to maintain honest and meaningful conversations with employees. This means closing the loop and letting employees know what actions are being taken in response to their concerns, even if the news isn’t always positive. No amount of technological advancement or process improvement can replace regular communication and connection between HR and employees.
Ultimately, the best approach is to view AI and humans as a united team working together to empower the future of the workplace. It’s up to us to take responsibility for making positive changes and not depend solely on technology to solve all our problems.
Changing the Game: New Rules at Work
If there is one topic on the agenda in all organisations, it is undoubtedly to need to design – and implement – a new working model. While it is a priority it is also the topic that raises the most questions amongst HR leaders and decision makers.
Hybrid, flexible, personalised, digital we are all familiar these terms. But as we incorporate these terms into our organisations strategic objectives, we continue to look around us at the most cutting-edge businesses, to find ideas that work, initiatives that inspire us, and of course, the right results.
To begin with, we seem to have the dilemma of number – what is the optimum percentage of time to work remotely? Data shows that since the emergence of the pandemic 80% of the companies certified as Top Employers worldwide have defined a work from home policy for their employees that clarifies this working model. It also shows that for 21% of Top Employers, employees are able to work remotely between 80% and 100% of the time. Moreover, if we expand this range, we see that in 35% of them it is possible to work remotely more than 50% of the time, usually depending on the job position.
A Model of Total Flexibility
The debate on the number of days of remote work is beginning to become obsolete. Looking at certified Top Employers, we can observe that the most advanced organisations are opting for a total flexibility-type model in their working policies. Flexibility means personalisation and it prioritises the employee’s ability to choose. More than half of Top Employers worldwide place decision-making power in the hands of the employee and promote a high degree of autonomy and flexibility since they are companies based on a culture of trust and responsibility.
Obviously, there are practical limitations or restrictions that prevent the application of full flexibility in certain jobs, but in that case, alternatives are offered to employees to allow them to make decisions about how to organise their work. It is a cultural approach, which far exceeds a model based on percentages of working from home time. Companies that have a culture of autonomy and flexibility have indicated that employee satisfaction is very high, with these organisations report a score of more than 9/10, and short-time working has been noticeably reduced. Now the focus is on monitoring whether mental and emotional well-being improves in the medium term.
Physical and Virtual Spaces for Collaboration
As organisations look to incorporate new ways of working to be successful, they will need to redesign the workspaces, both physical and virtual. Flexibility and collaboration are the concepts that inspire this new work environment. In newer offices, flexibility allows you to choose the workspace you need at that moment, with quiet rooms for work requiring concentration, as well as rooms for connecting, sharing, chatting informally, and taking a break – and, of course, rooms for working together as a team. If flexibility is the first key to this new work environment, the second is the plan for collaboration.
The plan to optimise and encourage collaborative work among employees should be embodied in the new design of the physical company facilities and should extend to virtual spaces. Doing this work in the virtual spaces is done to make it easier for people to connect, share ideas and work collaboratively. Tools such as Microsoft Teams, Google Suite, Slack, Trello, etc. are already part of our lives and are evolving rapidly, moving towards a more immersive experience which will undoubtedly arise in the years to come. Nine out of ten Top Employers design not only their virtual workspaces, but also their physical ones, to meet both needs – flexibility and personalisation, and collaboration. Moreover, companies have noted that the plans they have implemented are by no means definitive; these plans are constantly evolving because the needs of employees shape the setup of their workspaces.
Initiatives for digital disconnection
Inevitably, in this new working environment, digital disconnection initiatives have emerged at an accelerated pace. 76% of companies certified as Top Employers explicitly discourage working extra hours and reinforce this particularly in the case of remote work. Half already have policies to discourage the use of email outside of established working hours, and it is a growing practice. Disconnection extends to the holidays, and a third of Top Employers have implemented a “do not disturb” policy during the holidays, and of course, paid leave for all. Alerts in the form of pop-up windows are already frequently displayed with an alert whenever any of the disconnection rules are about to be violated. This, by the way, is meant as a right, not an obligation. The goal is to significantly improve the well-being of employees, helping them to disconnect, freeing up time which can be used for personal care and enjoyment.
This reinvention of the working model generates new challenges; employers must learn to benefit from this new way of working while simultaneously limiting the risks involved.
“Without data, you’re just another person with an opinion.” – W. Edwards Deming
Data is one of the most important resources available to organisations. Leveraging data, can help organisations to develop and create efficient systems to improve their business practices. While data analysis has been used across different departments, it is often overlooked for its applications in HR teams.
As part of our Inside the Mind of the HRD series, Line Vercammen, HR Auditor at Top Employers Institute, and Britta Fischer, Standards Analyst and HR Researcher at Top Employers Institute, acknowledged the importance of getting and analysing HR data. Their knowledge, which was firstly shared in an internal presentation, was essential to this article as their presentation informed many of the points that this article hopes to reach.
We are regularly analysing the responses of Top Employers to understand how the world of work is changing on any given day. In our latest survey and in the validation sessions, HR Auditors at Top Employers Institute saw that some leading organisations are experimenting with predictive & prescriptive people analytics. With this kind of analytics, they get a prediction of the future via data analysis. That gives them more insights into the specific actions that need to be taken to achieve a certain goal.
An important question is if other companies, who have not yet began to work with their data, feel ready to ‘predict’ and look forward, instead of only looking back. Essentially, are more companies ready to break through the wall?
Descriptive analytics are more common than predictive analytics. This analysis tool is applied by many Top Employers worldwide. Already in 2022, we noticed that 87% of the Top Employers are translating their people strategy into key HR metrics (and related targets). This number increased by 12% since 2020 and it’s bond to keep growing.
You can find out more about thie and other trend downloading, for free, our World of Work Trend Report 2024 at the end of this article!
These numbers and their noticeable increase begin to paint a picture of the growing role for HR analytics for leading organizations. The painting is, however, unfinished and for many organizations the painting is something that they are looking to improve.
The use of HR analytics goes across many of the expected HR tasks like reporting on talent acquisition KPIs, but it also can be used in more interesting ways that may include the tracking and analysing the employee experience.
What are HR Analytics?
HR analytics offers a systematic process to drive business decisions about people. It offers businesses a way to use their data to uncover, interpret and communicate meaningful patterns in work-force related data to inform decision making while improving performance.
HR analytics cuts across the business and encompasses a data-driven solution for HR leaders to gain insights into the whole business. For this to succeed, there is a strong need to encompass a data-driven culture at the organisation level. We can see this in the number of Top Employers that have leaders that are committed to using HR analytics to make their decisions about their workforce.
While many organisations are beginning to embrace HR analytics, many are not getting the most out of their HR analytics because they are not yet at a stage where they can analyse them. In fact, many businesses are still merely reporting their data and not taking the next steps in leveraging that data.
This may be because many organisations do not yet understand the difference between the two activities.
The Differences between HR Analytics and Reporting Data
One way to explain the difference is to recognise that reporting summarises and organises data in easily digestible ways while analytics enables questioning and exploring that data further.
Where reporting focuses on reportable data, analytics is seeking to look at several points in the data to see if there is a link and do more work to uncover why the data is the way that it is. Reporting is a full stop, whereas analytics is an open question that can inform business decisions and strategies from a place of knowledge.
Three Ways Businesses can Integrate HR Analytics to their Benefits
Businesses need to move beyond merely collecting data and begin analysing the data if they are to move beyond the what and begin to explore the why.
This can be done in a variety of ways, but in this article, we will limit our exploration to three:
HR needs to develop an expertise in their team to analyse the large amounts of people related data. This can be done by welcoming new members in their team that have a knowledge base that favours them proactively leading their team to analyse the data within their organisation. Organisations can also upskill and reskill the workforce in theri HR team so they do not leave anyone behind in the journey that their organisation will undertake in leveraging the HR data.
Businesses will need to select relevant analytics software that they will be able to integrate across the organisation. The integration of this software is especially important in large multinational organisations as the data they will uncover may be more far reaching than their local workforce.
HR teams will also need to embrace the ongoing and continuous collection and analysis of data. That is because data, and the patterns that can be drawn from it, is only effective if it is incorporated as a task that they do throughout the year.
HR Leaders and team members are beginning to understand that data-driven analysis is no longer a nice to have but an essential part of the business to improve decisions around their workforce.
The challenge, for HR leaders, is to adopt the use of HR analytics in their organisation with the right tools and an enthusiastic team that will lead them to have analytics that allow them to make strategic workforce decisions to improve their business performance. This can only be done with clear insight as they undertake this exciting work.
People Strategy: from talent management to strategic workforce planning
What do HR leaders need to consider when creating, or recreating, their people strategy?
Leading organisations across the globe are forced to transform rapidly – and continuously – in order to remain purposeful, relevant and stay ahead of competition. This in turn means that the very definition of people strategy is itself evolving at pace. The role of HR leaders is changing too, and the number of challenges they are asked to solve is increasing. Most likely, when answers are found, the questions themselves will change.
Despite these complexities, it’s worth unpacking the concept of people strategy in terms of definitions, roles and challenges a little better.
People strategy: three definition that you need to look at
People strategy has a myriad of different definitions – it depends what you read and where you look. Top Employers Institute’s HR experts and auditors propose three broad lense.
1. Invest in talent
Let’s first look at people strategy through an investment lens. In this sense, it is seen as a battles for talents. If an organisation matches its investment in talent to business objectives, it is more likely to get the right people with the right skills focused on the right initiatives. The return on investment that this then creates will drive the business forward and accelerate results.
2. Align hr strategy with business strategy
The second lens defines people strategy in relation to its alignment with business strategy. To think in terms of alignment allows us to ask important questions, such as “What capabilities do we need?” and “Where do we need them?” This simple approach sharpens our understanding of the gaps (or overlaps) in aligning our strategic workforce planning and other HR strategies to the business needs.
Our research shows that 97% Top Employers demonstrate the importance of aligning their people strategy with their business strategy. Yet it is worth noting that only 77% of Top Employers translate their people strategy into key HR metrics and related targets.
3. People strategy is the business strategy
The final lens moves beyond alignment to the complete integration of a people strategy within the business. By this definition, your people strategy IS the business strategy. Here, forward-looking leadership teams explicitly reject thinking about their people as assets.
Rather, it is the employees who are the “investors”: they call the shots and choose to invest their precious time, energy and talent. It is the organisation that needs to work hard to keep them engaged and motivated.
Leadership cannot take their talented employees’ hard work and commitment for granted.
A strategic role for the HR leader
The definition of people strategy vary greatly across organisations of different shapes and sizes, but research from the Top Employers Institute global survey shows that HR leaders are taking on a more strategic role. In the past, business strategy has been driven largely by the CEO and the CFO. This has been because the twin drivers of organisational success were firmly rooted in strategy and finance.
Now, however, organisations are increasingly moving from this “Dynamic Duo” to a “Transformative Trio”. According to the Harvard Business Review (HBR), the CEO and CFO are being joined more and more regularly by a CHRO who together need “to fuse the strategic, financial and people issues into business strategy”.
Challenges and priorities in people strategy
To play their full role in the triangular alliance with CEO and CFO, there are four challenges that the CHRO needs to meet:
Being able to look ahead and identify strategic workforce challenges that will come about as a result of the changing business world.
Creating talent supply chains that can support innovation and growth.
Developing the talent management skills of business leaders.
Provide employee insights through greater use of metrics and analytics to show the effectiveness of their people strategy.
Significant data obtained from 1.679 certified Top Employers organisations globally, closely resembles the challenges set out in the HBR. When asked to rank their Top HR priorities the majority of Top Employers indicated:
Supporting cultural and organisational change;
The development of talent strategy;
Leadership development;
And the role of technology in providing metrics and analytics within all HR disciplines is, according to Top Employers Institute research, moving up the priority list for HR leaders as way of underpinning significant changes in people strategy that we are seeing within so many of our Top Employer organisations. Amid the changing HR landscape, the need and the consequent move towards a broader and more holistic scope of people strategy is obvious.
It is no longer something that only focuses on talent management but encompasses strategic workforce planning to future-proof the skills and capabilities gaps and is supported by concrete metrics and the likes of predictive analytics.
As a result, HR leaders are also expected to devise and execute people strategies that align with the current and future business needs.
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