Welcome to my first blog post with the choice of HR management articles worth reading. I do not have a highly elaborated plan in place. In reality, it is straightforward and simple. I will post every weekend the selection of up to five articles that I find interesting. So far I suppose that Saturday will be the day for publishing my carefully chosen collection of the best HR blog posts.
Sometimes, it is the article that confirms a simple HR management practice. Quite often, it can happen that I can’t entirely agree with the point of view presented. However, having different opinions always help to shape your one.
In Human Resources, we usually face similar challenges and issues. As we work with the people, we typically want to achieve the same targets. I could call it the holy grail of Human Resources. We want our employees being engaged, loyal and high performing. Unfortunately, employees make this a real challenge occasionally.
The Internet HR community is very active, and nobody can read everything, what experts and friends from HR post. That is the reason I see a choice of my favorite articles useful.
This week is mainly about the retention of employees, turnover, corporate culture and compensation practices. Nowadays, recruiting is tricky, but keeping employees in the business is a more significant challenge.
Proven Retention Strategies to Reduce Employee Turnover
There is one big truth in the article. Employee Retention is everyone´s responsibility. Leaders and managers usually blame Human Resources that employee turnover is too high. They expect that HR Managers have magic pills that will cure the company. Managers call HR managers to decrease it. They complain and feel no responsibility.
However, it is not just a task on the HR agenda. It is a high priority goal on everyone´s list. Employees do not leave the company; they abandon their bosses. The role of Human Resources is to make all leaders and line managers aware of this common objective.
The blog post summarizes all the best practices starting with recruiting new employees, onboarding them and managing the entire employee lifecycle in the organization. It rightfully emphasizes that one of the most critical components is the employee experience.
As always, a positive experience brings higher employee engagement (or we can call it a satisfaction). Then, it transforms into decreasing turnover rates. The blog post is nothing overengineered, all the steps are down to earth and applicable to all businesses, starting with those small family ones.
Should you hire a Chief Happiness Officer?
Wellbeing and employee engagement are usually top priority items on the HR Agenda, today. The job market is not in favor of employers. It will not probably change after the next recession. There will always be the war for talents.
Each organization needs to invest in the human capital, and it cannot afford to lose critical players. The company and its HR team have to bring creative approaches how to make employees happy, satisfied and loyal.
That is why the role of the Chief Happiness Officer evolved. Most companies do not use the name, but large organizations employ a specialist, who designs and develops the framework for how to make the state-of-the-art workplace environment.
This blog post is not just about happiness at work. It clearly describes the critical components of how to make employees feel happy at work. It is about corporate culture, engagement, well-being and internal communication. It is an excellent post on how to connect all essential components to build a mix that works and delivers.
In the end, you should consider that someone in the business should have the happiness of employees as the responsibility. Not like making employees happy, but just by cultivating the internal environment. You cannot send the internal memo that everyone is happy starting now. You can build the workplace that supports employees in finding ways to become happier.
The Chief Happiness Officer should manage and coordinate wellbeing, employer brand and engagement strategies to make sure the organization receives the best outcome.
First, Clean the Toilets
The next blog post is a great short story about corporate culture. It does not bring any theory; it just demonstrates how business owners care about their companies. They do not leave any trash unattended, because they care. They are the owners. Also, the article demonstrates how difficult is the transfer of the ownership culture to large multinational organizations.
Honestly, the ownership culture is a crucial leadership issue. Making CEOs act like owners because the culture of ownership always begins at the top of the business. If employees see the CEO caring about small details and willing to fix them, they start to pay attention to them, as well.
As a solution, most companies introduced various equity compensation plans or Employee Stock Ownership Plans. Surprisingly, they failed.
Being the owner and feeling the ownership are not the same behaviors. A feeling must come first, but most companies introduced the scheme in the reverse order. They implemented remuneration components, and they expected that the ownership would come.
The only way how to succeed is to convince the CEO, who needs to start acting as the owner of the business.
Competitive Pay Is Not Enough
It is no doubt that your company offers a competitive compensation package. On the other hand, look at job adverts around you. You can see the competitive package in all of them. Every business offers a competitive salary, but no organization explains what it is. Moreover, no firm says that it pays non-competitive wages.
A competitive wage usually means that you pay at the market median. As such, half of the companies offer a better salary than your business. As employees do not leave the company for a smaller package, they come back from job interviews that Company ABC pays better than you are. Sure, because you pay at the market median.
The best way how to pay competitive is paying more than others on the market. However, most organizations cannot bear such costs. Paying the market median is the most efficient approach, at least from the cost management perspective.
The real issue comes when the organization starts to pay at the lower end of the salary bracket. It does not pay a competitive wage; it just pays slightly above the first quartile.
Employees perceive a difference between the compensation strategy and the real wages they receive. Slipping below the median is always dangerous, and Human Resources needs to act swiftly. Otherwise, employees will start leaving the company.