Hooray, this is the third edition of my choice of most appealing HR articles published last week. Sure, they are appealing to me, but they usually help me to realize that there are specific components I should think of at work.
As people are returning from their winter vacations, the number of published articles starts to grow steadily. It is great because I have so many pieces to choose from.
This week is about turnover (yup, again), dramatic shifts in talent management, sustainable recruitment costs, and corporate culture. I see them also as priorities for 2019. Also, these are the topics that drive the competitive advantage of Human Resources.
Being unique to employees and candidates, that is what matters in 2019. They help to distinguish our institution from the rest on the market. They help us win the best talents.
So, happy reading! The next selection will come on Saturday.
Do Managers Influence Employee Turnover?
Employee turnover damages and undermines the competitiveness of the business, and it is also highly costly. Surprisingly, most firms do not have a precise calculation of turnover costs. If they would acknowledge the real costs of turnover, they put turnover on a monthly Board Agenda immediately.
Our challenge is that we usually do not understand why employees leave the company. We ask them, or they fill in an online questionnaire, and they typically express two reasons to go. First, they received a better job offer. Second, they leave because of their manager.
There is a problem with the first reason. When you look for the new job actively, you always find a better offer. Always, there is a company that offers you a better compensation package. This firm calculates in all the investments, your skills, and advanced competencies. It does not have to repeat the investment. It can also check your track record. It can take the risk of offering a better pay package.
The second reason to leave is more tricky. Managers have a high impact on teams. Their proactivity or inactivity drives the most important decisions of employees. An employee is always voting in mind if the risk should be taken or not. In some circumstances, the employee determines that the potential career advancement gain is higher than the risk of failure.
The article summarized the results of the study when the researchers went through two managerial influence tactics. They studied both “downward influence” and “inspirational appeal.” Most managers tend to use just one approach, and researchers were observing, which one influence employee turnover more. It is interesting reading, and maybe you will find out you should upgrade skills of your line managers.
The value of Talent Ecosystem
Talent Management is a value-added HR process because it is an essential component in a much broader succession planning procedure. Most HR Organizations consider talent management and acquisition as a strategic one.
In Human Resources, we believe and trust that it protects our best talents against competitors. The well-crafted process continually identifies best high potential employees in the workforce, and it offers a wide variety of developmental activities. However, does this approach still work?
The war for talent has been an HR hot topic for many years. Honestly, most businesses still lose positions in this war. They invest huge money into the development of employees. On the other hand, they do not win a higher employee engagement and lower turnover rates. Employees still leave to find a better place to work. There is something wrong in the matrix.
Human Resources needs to take a holistic approach. By connecting all relevant HR processes, it can design a wholly new system. It needs to bring a new way of thinking and hiring into the organization.
To bring a new recruitment strategy is not sufficient; it needs to be replaced by the broader and well-interconnected umbrella. The HR team has to design, approve and implement a new talent management strategy.
We enjoy the most competitive marketplace in modern Western history, and we have to learn how to act on the employee market, not the employer one.
Newcomers to the market look for different values and motivators. They do not look for life-long employment; they look for part-time contracts and project-based jobs.
They expect full flexibility from employers. However, organizations are not flexible and agile enough, so far.
How to Recruit Top Talent on Budget
A creative recruitment strategy is the best way how the small or start-up organization can compete with the large multinational businesses in the current job market. Small companies and start-ups usually struggle to meet staffing needs. They still miss an appealing brand name, and a tight budget still limits their employer brand investments. Plus, they also carry higher employment risks than the large and mature businesses.
When it comes to recruitment, we still think the old fashioned way. We consider just traditional full-time employment. Today, we cannot rigidly hire only full-time staff. Do you know that there is an attractive new pool of talents? There is an attractive market niche of freelance employees.
A freelance employee does not require an expensive commitment from the company. They do not need much; they usually ask just a small space and timely payment of invoices.
They understand there are certain risks that both parties carry. They can leave sooner than expected; the company can finish the contract sooner than expected.
Also, freelancers are usually a part of the strong informal network. They can recommend anyone from the community when they cannot accept another assignment. They can spread your good brand name if the first one is satisfied.
There are also other cost-saving opportunities in the recruitment process. Today, you can run the process almost entirely online and digitally. You do not need to do interviews in a person; you can use Skype or any other video-conferencing tool available.
Also, you can save much time by building a great career section on the company website that covers all the basic and advanced potential questions of job candidates and applicants. You can publish your calendar, and you can leave candidates to schedule job interview meetings.
The five most significant HR learnings from 2018
We are still just a few weeks into a new year. We can consider that we are only at the beginning of new uncovered and hidden challenges. Also, it means we can always reflect on the most important learnings from 2018.
Everyone can choose a different set of personal HR learnings, but I like the following list.
Diversity and fair pay still matter. We talk about diverse teams, fairness and equal opportunities for years, and we have not achieved the results yet. In Great Britain, most companies pay men better than women. We know that because the government made it a regulatory requirement to analyze earning on a yearly basis. So, it is a fact.
It is not just a difference in base pay, which makes it even worse. Organizations usually pay higher bonuses to men. You can argue about higher base pay, but you cannot explain higher bonuses so easy.
Another important reflection is about the flexible working arrangements. They are not considered as a nice extra by employees. They demand them as a standard and non-negotiable item in the employer value proposition.
On the other hand, as the number of freelancers grows, there will be a focus to provide them with the necessary employment law protection.
There are other trends, so go and read The 5 Biggest HR learnings from 2018.
Does your organization live the Culture you say you want
Corporate culture is a competitive advantage. Your competitors can copy a product, but they cannot replicate your workforce. On the other hand, our values and behavior are a hot topic discussion in Human Resources.
However, it should be a hot topic for the executive leadership team, as well. Culture is comprised of both an organization’s values and the people who bring those values to life.
However, there is a question. Are we fully committed? Do we live the culture we say we have? Do we have an alignment between what we say and what we do?
It is always important to make a step back and analyze our current status. Maybe, we claim that we have a fair pay policy, and we can find out that we have a large number of exceptions. Interestingly, no one can remember why this particular one exception was granted and approved.
In reality, we designed a system that looks perfect on paper, but as a result, we have implemented an unfair pay policy. We do not know about it, but employees feel it.
Culture is not just about values; it is also about employee experience. If employees see and feel a conflict between values and reality, they will never trust HR and the leadership team. We then need to go back to basics and repair what is wrong.