by admin | Oct 21, 2024 | Human Resources
Will employees ever re-gain leverage and grow more engaged in their work?
More than 40 years ago, workers could retire from the same company where they started their career. That implied employment guarantee shifted when the American economy changed from consistent growth to a boom/bust cycle that created uncertainty and volatility, impacting job stability. Since then, the employee-company relationship has entered a push-pull cycle. Companies push employees away via layoffs or involuntary job changes because of updated business models, advances in technology, mergers/acquisitions, consumer habits, and globalization.
Employees, in turn, push companies away by decreasing their level of engagement, causing companies to try to pull workers toward the business with programs or branding designed to re-engage them. According to Gallup, “The first quarter of 2024 continued this downward trend, with engagement dropping three percentage points to 30% among both full- and part-time employees. This decline represents 4.8 million fewer employees who are engaged in their work and workplace, marking the lowest reported level of engagement since 2013.” The cost of lost productivity is estimated at 8.8 trillion dollars.
Meet Employees Where They’re At
When employees are fully engaged, they tend to give a company more of their discretionary effort to help their organization achieve its goals. Less engaged employees tend to not feel excited about their job or experience fulfillment at the workplace. The downward trend of engagement was exacerbated by the COVID 19 pandemic which resulted in many more employees choosing to use their discretionary effort for their personal lives, and not their work. Although employee survey data can pave the way for incremental improvement in employee engagement, one layoff can remind employees of their tenuous relationship with work. Companies will continue to navigate this volatile world with an inevitable impact on their people so maybe it is time to ask a new question – how can companies satisfy employees instead of engaging them?
Factors that affect employee satisfaction with their job include work conditions, total rewards, nature of the work, relationships, advancement, career development, balance, recognition, leadership quality etc. These factors work together to influence an employee’s decision to stay or leave a company. Therefore, focusing on satisfaction is critical to retention and company success because talented individuals produce the products and services that keep a company going and growing. Of all the factors to prioritize, the one that can significantly impact retention is total rewards.
According to Randstad, studies show a direct link between higher pay and higher employee retention rates. A recent study conducted by Harvard University shows that a $1 per hour pay increase among warehouse workers resulted in a 2.8% increase in retention. Even more alarming results show that every $1 per hour loss in pay resulted in a 28% increase in turnover rates. It’s quite simple, if a company isn’t offering competitive salaries, workers are more likely to leave.
A Whole New World at Work
Many people are rethinking their relationship with work and their employers. It’s not just about more pay, more time off, or more expansive benefits. People view total rewards as a continuing negotiation of what they get for what they give. Therefore, a rigorous and ongoing analysis of a company’s total reward program is critical to ensure fair, competitive and equitable pay and benefits. A holistic organizational assessment of compensation and benefit programs can inform how to rebalance total rewards in a fiscally responsible way. Compensation includes guaranteed components like salary and other non-guaranteed parts like incentive, production bonuses, extra shift pay, to name a few.
Sometimes those components become unbalanced, and an assessment can inform the required changes. Even if more investment is required to bolster compensation and benefit programs, those costs can be offset. For example, in the healthcare industry, if average base salaries are below market, and staffing bonuses are overutilized, a company can increase base salaries which enable recruitment of staff and reduce the use and amount of staffing bonuses which contribute to burn-out.
Regarding benefits, hearing the voice of the customer is extremely important. Although changing benefit programs can be stymied by the enormity of effort required, a thorough analysis of program utilization and perceived value of benefits is critical to enable recruitment and retention. Focus groups or surveys can ensure that the benefits offered are valued by employees. Conduct a deep analysis of plan costs and utilization to determine the required changes. This review is also required to fulfill fiduciary responsibilities. Rather than viewing the assessment of total rewards as having the potential to add expense, view the balancing process as a mechanism to shuffle existing investments leading to a more effective use of budgeted dollars.
The shift from engagement to satisfaction can be predicated on a more practical and transparent employee value proposition that resets mutual employment expectations. Transparency in business means that leadership is open, honest, and straightforward about the true nature of the employment relationship. Here is what that proposition could be:
“We will operate our business with the utmost thoughtful decision-making. We will invest in programs to bolster your job satisfaction in exchange for your services and support of the company. However, there may be times when we must make difficult business decisions that will directly affect our people. During those occasions, we will be transparent, fair and respectful to all, especially those impacted.”
An employee proposition such as this one is honest and balanced. Business reality and the importance of employee satisfaction are not mutually exclusive. They can coexist because one does not negate the other. Focusing on employee satisfaction and retention in the context of a new employee proposition can help workers and companies find a healthier, balanced and realistic relationship.
By Vaso Peramenis
Originally posted on HR Exchange Network
by admin | Oct 2, 2024 | Human Resources, Workplace
In today’s diverse workplaces, effective communication across generations is essential for fostering collaboration, productivity, and a positive work environment. Understanding the unique communication preferences of each generation can help bridge the gap and create a more inclusive and harmonious workplace. Technology can play a crucial role in bridging the generational gap and facilitating seamless communication.
Understanding Generational Preferences
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Baby Boomers (born 1946-1964): While comfortable with traditional communication methods like face-to-face meetings and phone calls, Baby Boomers may also benefit from using technology to stay connected.
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Generation X (born 1965-1980): Gen Xers are generally comfortable with technology and may prefer email or instant messaging for communication.
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Millennials (born 1981-1996): Digital natives, Millennials are highly proficient with technology and often prefer using social media and collaboration tools.
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Generation Z (born after 1996): Even more tech-savvy than Millennials, Gen Z is comfortable with a wide range of digital communication platforms.
Leveraging Technology for Effective Communication
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Choose Appropriate Tools: Select communication tools that are familiar and accessible to all generations. Consider using a combination of platforms, such as email, instant messaging, video conferencing, and project management tools.
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Set Clear Expectations: Establish clear guidelines for communication, including response times, preferred methods, and expectations for etiquette.
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Provide Training: Offer training on how to use communication tools effectively, especially for those who may be less tech-savvy.
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Facilitate Face-to-Face Interactions: While technology can be a valuable tool, don’t overlook the importance of face-to-face interactions for building relationships and fostering trust.
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Encourage Open Communication: Create a culture where employees feel comfortable sharing their thoughts and ideas, regardless of their generation.
Specific Technology Tips
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Video Conferencing: Use video conferencing tools to facilitate virtual meetings.
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Instant Messaging: Choose a platform that is widely used and accessible to all generations, such as Slack, Microsoft Teams, and WhatsApp.
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Social Intranet: Create a company-wide social intranet to foster connections and facilitate knowledge sharing.
By leveraging technology and understanding generational preferences, organizations can create a more harmonious and productive work environment where employees from all generations feel valued and respected.
by admin | Sep 23, 2024 | Hot Topics, Human Resources
Positive employee experience begets customer experience. It’s the circle of life in business, in fact. The concept is simple to follow. Employees, who feel valued and whose wellness at work is a priority of their managers and executives, will have the motivation to produce and treat customers with respect and white-glove service. Any organization who abides by this philosophy is rewarded with employee retention and repeat business.
“To be the best place to buy, you must be the best place to work,” Shep Hyken, bestselling author, keynote speaker, and customer service thought leader, has said. “Treat your employees the way you want your customers to be treated, maybe even better.”
Therefore, Human Resources professionals, who collaborate with the C-suite and middle management to improve the employee experience, can have a great impact on customer service and therefore the bottom line.
The Impact of Employee Happiness on CX
Recently, on CX Network, a sister portal to HR Exchange Network, writer Jerome Small shared a guide to the connection between employee engagement and customer experience. He offers much in the way of data and case studies. Here is one example:
“Spotify is a standout performer when it comes to employee engagement and its subscribers reap the rewards through innovative personalization, automation and a great customer communication strategy. When it comes to traditional employee engagement Spotify has a range of tech platforms to support collaboration and goal measurements, but the streaming platform offers a range of other competitive perks for its employees that help it stand out from competitors and motivate its huge global workforce.”
Another example is the retail chain Wegmans, which consistently get ranked on lists of the best places to work and leads in customer service, too. The company has made it a priority to connect employee’s purpose to their work as means of ensuring people feel purposeful and find meaning in what they do. They have established different channels of communication for employees to voice concerns or campaign for changes. Often, leaders respond and act on those suggestions. In addition, they have set up an employee advocacy system. And advocates do not report to people in the employees’ chain of command. Instead, they report directly to HR to ensure objectivity.
“We are united in delivering on this mission together, and recognize it takes all 53,000 employees to succeed,” said Peggy Riley, Vice President of Employee Communications and Engagement, on a case study on the website Great Place to Work. “On employees’ first days at Wegmans, we take time to explain our mission, values, and the integral role they play in our success. We explain how every individual’s work and role at Wegmans helps us collectively deliver on our mission.”
Nick Hedderman, Senior Director of Microsoft’s Modern Work business group, has talked at conferences about a study his company led that found a highly engaged workforce had a better performance on the stock market and therefore better profitability, according to CIO.
Key Strategies to Boost Employee Experience
Positive Work Culture – Building a culture that makes employees feel included and safe to share their genuine opinions, findings (even when they’re not positive), and experiences goes a long way to set the tone of a workplace.
The culture should foster a healthy relationship with management that is built on respect. It should also enable teams to get creative, brainstorm, and feel camaraderie. Leaders should demonstrate that they care for the employees, including their well-being, the well-being of their families, and their progress in the company and career.
Recognition and Rewards – Organizations that want to foster a positive employee experience must recognize the hard work and dedication of those who work for them. People need to feel appreciated. There are simple ways to show gratitude for someone’s work. Shout outs at the weekly meeting, an employee of the month, or a reward like a gift certificate can make someone feel valued. A simple thank you does not cost anything.
IAG in Asia-Pacific recently revamped its recognition program. They turned two previous programs into one, put more power into the hands of employees to recognize each other’s work, and created a system to help those with outstanding performances gain monetary rewards when appropriate. Niki Kesoglou, Executive Manager Culture, Diversity, Inclusion and Belonging at IAG and APAC Advisory Board member, shared details with the HR Exchange community recently.
Training and Development – Creating a way for people to learn and continue to grow both in their roles and careers is another way for leaders to show they care. It is also a necessity in today’s business world, which is centered on swiftly advancing technologies and unpredictability in geopolitics and the markets. To create an adaptable and flexible workforce, organizations must provide opportunities for continuous learning or risk getting left behind. Recently, Kathryn Carpenter-Fortin, Senior Technical Account Manager at LinkedIn, talked to HR Exchange Network about the skillsets being lost and how companies fail to teach at their own risk.
Measuring KPIs
HR can work with other departments in the organization to compare the results of employee surveys with those of customers. They can also look at the employee engagement versus sales and bottom-line results. Taking the pulse of the employees and the customers is vital.
Gartner calls this the Total Experience. Taking into consideration the multi-experience (MX), customer experience (CX), employee experience (EX), and user experience (UX) and how they all relate to technology is a strategic way to look at an organization’s road to success. The suggestion is to keep tabs on all these stakeholders and recognize the links in the data for each and how they relate to one another.
The point is that there is no turning back now. Employee experience is forever linked with customer satisfaction. This realization, although perhaps tardy, is motivating companies to simultaneously improve customer and employee experiences. Finding ways to reach employees through the building of a positive culture, recognition, and training are key to beginning this process. Once the plan is in motion, Human Resources leaders are charged with measuring KPIs and continuously tracking performance to ensure no one gets complacent.
By Francesca DiMeglio
Originally posted on HR Exchange Network
by admin | Aug 20, 2024 | Human Resources
In today’s fast-paced work environment, burnout has become a pervasive issue. Ironically, one of the most effective tools for combating burnout – paid time off (PTO) – is often underutilized. Let’s explore strategies to encourage employees to take their well-deserved breaks and reap the benefits of a refreshed workforce.
Understanding the Problem:
- Fear of Missing Out (FOMO): Employees may feel pressure to constantly be available and connected, leading to hesitation in taking time off.
- Workload Concerns: Fear of falling behind or overwhelming colleagues can deter employees from using their PTO.
- Culture of Overwork: In some workplaces, there’s an unspoken expectation to prioritize work over personal time.
- Lack of Encouragement: Employees might not feel explicitly encouraged to use their PTO.
Creating a PTO-Positive Culture:
- Lead by Example: Managers should model healthy work-life balance by taking their own PTO.
- Communicate the Importance of Rest: Emphasize the benefits of taking breaks for both individual well-being and overall team performance.
- Flexible PTO Policies: Consider offering unlimited PTO or flexible PTO options to empower employees to manage their time effectively.
- Mandated Time Off: Implementing mandatory vacation policies can ensure employees disconnect and recharge.
- Education and Support: Provide resources and workshops on stress management, time management, and work-life balance.
- Recognize and Reward: Celebrate employees who successfully utilize their PTO and return refreshed and productive.
Measuring Success:
- Track PTO Usage: Monitor PTO usage to identify patterns and potential issues.
- Employee Surveys: Gather feedback on PTO policies and identify areas for improvement.
- Productivity Metrics: Measure employee productivity before and after vacation to assess the impact of rest and recharge.
By fostering a culture that prioritizes rest and rejuvenation, employers can mitigate burnout, increase employee satisfaction, and ultimately improve overall productivity and business performance.
Remember: Encouraging PTO utilization is an ongoing process that requires continuous effort and evaluation. By implementing these strategies, organizations can create a healthier and more balanced work environment for their employees.
by admin | Aug 12, 2024 | Hot Topics, Human Resources
The lack of affordable and available child care in the United States continues to take its toll on workers and employers alike. It not only affects working parents with child care needs, consider the effect on coworkers who have to pick up the slack of absent team members or the staffing shortages organizations experience, especially small businesses, when parents take leaves of absence or quit their jobs because of child care complications.
The Business Case for Providing Support
Employers lose an estimated $23 billion a year because of child care-related complications, resulting in a $122 billion hit to the U.S. economy (lost wages, productivity, and tax revenue), according to a recent study from ReadyNation.
KinderCare, one of the country’s largest day-care operators, is constantly fielding questions from employers asking for help in solving child-care needs—needs they didn’t realize they were a part of before COVID.
In an environment with a tight job market—more job openings than people looking for work—the child-care industry is hit particularly hard. There is a need for more people to work in child care and a need for a career pipeline. But it’s hard to attract workers into a profession that requires credentialing and where the pay is so low. The child-care workforce was one of the slowest to recover from the pandemic, and it was predicted it would lose another 232,000 jobs once the federal pandemic child-care subsidy program ended.
How Employers are Responding
Conflict can often prompt creativity. The same can be said of crisis. Employers are responding in some very unique ways, from the conversion of office space to building new, on-site centers.
Micron Technology opened a center across the street from its HQ in Boise, Idaho and one near a manufacturing plant in central New York. It also invested money to train care providers and early-childhood teachers to address the talent shortage.
The Washington Post reports that Tyson Foods built a center in Humboldt, Tennessee to accommodate its shift workers; Hormel is building a $5 million child-care facility in Austin, Minnesota; and medical services company VGM Group is converting 8,000 square feet of office space into a day-care center in Waterloo, Iowa. While costly, employers are finding that on-site child care can attract and retain employees.
Pittsburgh International Airport opened a child-care center with plans to expand it to round-the-clock care to accommodate night-shift workers. They also added public bus routes to make transportation to work easier.
A charter school in Wisconsin—to avoid losing staff in a tight labor market—converted space into an infant-care center and are providing a 25% subsidy to the parents.
Another creative option is offering tuition subsidies to parents that can be used anywhere or in any manner to meet their needs, such as summer camps or after-school programs. Since child care needs vary over time, there is no one-size-fits-all solution.
Organizations such as Bright Horizons and KinderCare report a large uptick in employers inquiring about on-site child care along with information on backup options for emergency care.
As employers are realizing they need to be part of the solution to this crisis, can they expect to see a return on these hefty investments? According to an analysis of five companies that offer child care benefits, the positive financial impact can include an ROI of up to 425%. The benefits included monthly stipends of $1,000, near-site centers, and emergency on-site daycare. The companies have seen reduced absences and better retention, not to mention increased morale:
“It’s not just the money, it’s the principle. It feels like a ‘thank you.’ It’s an incredible morale booster. Even if another company offered me more money tomorrow, I wouldn’t even consider it, given how much this company has invested in my personal life.”
Government Programs and Public Policymakers
As mentioned in the previous article, most child-care businesses operated with less than a 1% profit before the pandemic. Other countries address that instability by subsidizing parents’ costs, an investment that allows child-care providers to charge adequate rates. However, the United States spends less than almost every other rich country on child care and early education.
During the pandemic the federal government sent out $24 billion in aid packages to the industry, which helped head off 75,000 child-care center closures. However, the Child Care Stabilization Grant expired on September 30, 2023. The Century Foundation’s Child Care Cliff Survey anticipated the impact the expiration of funds will have, including a loss in tax and business revenue of $10.6 billion.
Long-term solutions are needed. In its 2023 Kids Count Data Book, The Annie E. Casey Foundation offers suggestions: federal, state, and local government investment in child care including reauthorizing and strengthening the Child Care and Development Block Grant Act; collaboration among public and private leaders to improve the infrastructure for home-based child care; expanding the federal Child Care Access Means Parents in School program which serves student parents.
Private industry is beginning to see a return on its investment in child care benefits. Imagine the results—and the effect on society—if policymakers along with industry leaders take the leap to implement programs and build a system to make child care more affordable, available, and accessible.
Beyond it being an economic issue, a social issue, and a workforce issue, “…it’s a humanity issue,” writes Petula Dvorak, Washington Post Columnist.
by admin | Mar 5, 2024 | Hot Topics, Human Resources
A better work/life balance is at the top of the list for many employees. However, with the absence of nationwide paid leave regulations for American workers, employers typically determine the extent of paid time off for their employees. In an increased effort to remain competitive and improve employee attraction and retention, a new survey found that a majority (84%) of U.S. employers plan to add to their leave programs within the next two years to enhance their employees’ experience.
Due to changes in how and where people work in recent years, employers are contemplating updating their paid time off (PTO) and leave programs to meet the needs of their employees.
Specifically, these are the areas that are being revamped:
Caregiver Leave – Paid caregiving leave is time off with partial wage replacement to care for a family member with a serious illness. It is different than parental leave (leave to care for a newborn or newly adopted child) and from medical leave (leave to care for one’s own serious illness.
Many companies are realizing that with the aging of the baby-boom generation, millions of working families are part of a growing “sandwich generation” as they juggle to care for young children as well as aging parents. Paid caregiver leave is gaining popularity; 25% of companies have a policy in place and another 22% are planning to offer it in the next two years.
Bereavement Leave – Bereavement leave is offered by some employers to provide time off to an employee following the loss of a loved one.
Many companies are realizing that since grief can have an impact on employees well- being, both physically and emotionally. Complications from unresolved grief may include anger, fatigue and depression and can plague employees for months or even years. Offering paid leave to employees dealing with grief isn’t just the right thing to do – it’s a smart move for companies. Employees that feel valued and cared for at work are more likely to stick around, reducing turnover costs.
Parental Leave – The purpose of paid parental leave is to enable the employee to care for and bond with a newborn, newly adopted or newly placed child. In fact, one-fifth of companies that offer parental leave plan on increasing the length of their programs in the next few years.
General Paid Time Off – PTO is a benefit where an employee has access to paid time off that may be used for personal reasons, vacation, or sickness. 23% of employers plan on increasing the number of days off provided.
Your workplace may be a “good” place to work but the truth is, your key employees might just be one LinkedIn message away from being recruited to another company. Having competitive leave policies in place to create the best employee experience is critical.
Retention and turnover affect everyone in the company, not to mention the company’s bottom line. After all, employee turnover is very costly. It never hurts to review your leave policies to ensure you are doing what you can to remain competitive while keeping your team happy and healthy.
