It’s time for human resources to get a makeover. There’s plenty of evidence now that outdated employee performance ranking systems and punitive evaluative processes destroy corporate morale.
The application process is getting cleaner and more mobile-friendly and Recruiters are seeking new ways to attract talent beyond advertising. A 4% unemployment rate has forced employers to rethink how they keep employees on the job longer.
Where Do We Go From Here?
For companies to succeed, there must be a shift in corporate culture that values each employee for their unique contribution to workplace success. The end result may be that today’s workforce will ultimately grow stronger through collaboration, motivation, and support.
What we’re seeing is the rise of the human-centered search process. If your organization isn’t adapting to this new and improved model for human resources, you’re falling behind.
This article will help you understand the new approach to employee hiring and retention that is changing how we seek and manage talent before, during, and after the hiring paperwork is complete.
The Stick Is Out and the Carrot Is In
In a labor market where 96% of Americans are already working, the idea that any employee is expendable needs further reflection. Today’s human-centered search and retention process requires HR to manage toward cultural improvement, not simple resource management.
A recent employee recognition report from the Society for Human Resource Management and Globoforce surveyed HR managers across the United States.
The survey found that:
- 47% of HR teams cited employee retention as their #1 challenge
- 36% say recruitment is their top challenge
- Culture management has moved from the fifth most difficult problem in the workforce to the third biggest challenge
Think these numbers are off? Check out this Bureau of Labor Statistics report from March 2018 that says there are six million job openings in the U.S. and not enough warm bodies to fill them. The labor shortage has forced HR and management teams to begin to think about a more human-centered approach.
The SHRM/Globoforce report asked these professionals how they were changing their processes to create a kinder, gentler management style.
Here’s how HR managers are applying human-centered search and retention programs:
- 75% are engaged in creating a more “compassionate, caring culture”
- 73% have initiated an employee recognition program
- 70% said they offer employees opportunities for learning and growth
- 75% reported they spend time on “positive relationships and teamwork” activities
But does all this stuff work? The HR managers polled said the proof is in the numbers. For companies that have initiated employee recognition programs, most HR managers say these efforts are improving corporate culture.
Here are some more stats:
- 89% say their workers have noticed an improved employee experience
- 75% say trust between teams has improved
- 53% suggest that employee health and wellness, traditionally a big drain on the bottom line, has improved
One of the most important things for today’s HR managers to understand is that it’s the people within the corporate culture that help retain employees. The 2017 Ceridian Pulse of Talent Report showed “good relations with colleagues” were the top reason employees remained in their jobs.
Other factors included:
- Good salary (48%)
- Interesting work (47%)
- Good working conditions (46%)
This makes hiring for cultural fit more important than ever before. Of course, you have to first figure out what kind of culture your organization wants to promote.
HR Dive says:
HR's efforts need to go beyond compliance efforts. The survey results indicate that more than organizational culture matters when keeping employees engaged and positive about their jobs. And it's not just about office cupcakes and decked-out lunch rooms; a healthy culture is one in which company values match the reality of day-to-day experience at work.
How can a company help align corporate values with individuals? The answer may be tied to value-based recognition programs.
Value-Based Recognition Programs
Value-based recognition discards the outdated annual review and rating process for the immediacy of continuous feedback in a supportive and nurturing environment. The traditional annual review withholds employee praise or constructive feedback until the end of a designated period that could run as long as a year. In today’s fast paced-business environment, these reviews simply do not reward or counsel quickly enough to correct the course of a workforce. Is it no wonder that retention is such a big issue in the workplace?
HR Dive reports that 40% of HR managers say that performance reviews aren’t worth the paper they’re written on because “they do not provide an accurate representation of an employee’s work.” Another 20% said these reviews were not even accurate. So, why are employers still using them?
Interestingly, a new type of performance appraisal has begun to take hold in the American workplace. According to The 2018 SHRM/Globoforce Employee Recognition Report, 60% of HR managers have begun instigating value-based employee recognition programs. The survey showed that when companies invested just 1% of their payroll to these programs, employee retention and recruitment improved. In fact, companies with these programs are twice as likely to retain employees.
Value-based recognition programs require a holistic and more human approach to engaging employees in the success of the organization.
Staffing Agencies and the Human-Centered Search Process
It’s clear that a more human-centered HR process helps attract better employees, improve employee engagement, and retain top talent longer — but the Incentive Research Foundation reports that only 11% of today’s workforce are strongly engaged in their organization, while another 13% have completely disengaged and are just waiting on the next opportunity.
Here’s the good news: that leaves another 76% waiting and receptive for the change that you can bring to your company. HR managers and corporate leaders should focus more strongly on a new process of human-centered talent management. Motivating and encouraging employees should be an everyday part of the new human-centered workplace. Studies have shown us that the positive effects ripple around the talent search process to improve team collaboration on the job and ultimately lead to higher worker productivity and corporate profit.
Shameless plug: Artisan exemplifies the human-centered search process. If you’re an employee looking for a new corporate home, we can help. For employers, we have the talent you’ve failed to spot.