Faster, Flexible, and Well-being

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It is always a good time in January to look forward into the new year and see what the trends in HR will be. It seems as we head into 2020, we can consider these three words to sum up the upcoming trends in the HR world:1

  • Faster
  • Flexible
  • Well-being

These words sound more in line with what you’d expect from an ad for a yoga class, rather than what you’d use to describe new organizational trends for HR, so let’s expand on these.

In 2020, the new 5G networks will start to take hold and have an impact in the workplace. Greater and faster communication will lead to the increased use of Artificial Intelligence to speed up all processes in the workplace. Workers will have to be ready to respond to change unlike ever before.

Companies in 2020 may also be forced into embracing the 4-day work week. A financial services company in New Zealand, called Perpetual Guardian, moved to a 4-day work week and saw a 20% increase in productivity.2 According to Human Resources Director article, “Workplace 2020: Key trends for the future of Work”, flexible working “has emerged as a super trend, with 62% of businesses worldwide now offering a flexible working policy.”1 Incorporating flexible schedules into their workplace will be challenging for some organizations, but with the tight labour market in North America, many will have no choice but to offer creative and flexible working schedules for their employees.

Employee burnout is real as well, and “research shows that 95% of HR leaders think that stress is ‘sabotaging workforce retention’.”1 If there can only be one change organizations make in 2020, it should be dealing with workplace stress and employee burnout. As the speed of workplace processes increase, so will workplace stress levels. As things get faster, there is a greater need in our workplaces to counterbalance the speed of change with greater organizational flexibility and well-being to support our employees.

Discussion Question:

Pick one of the three HR trends for 2020 to research. Create a 5-minute presentation to convince your VP of HR that a new program should be implemented so the organization can be more successful in 2020.

Sources:

1 https://www.hcamag.com/ca/specialization/hr-technology/workplace-2020-key-trends-for-the-future-of-work/195995

2 https://www.theguardian.com/money/2019/feb/19/four-day-week-trial-study-finds-lower-stress-but-no-cut-in-output

The Power of Three

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Vision. Mission. Values. These three elements form the fundamental pillars for an organization’s strategic plan. When we look at each of these as separate elements, they have inherent power. Vision is the big idea that drives and pulls the organization into its future self. Mission articulates the purpose or the reason for being in the organizational marketplace. Values are the beliefs upon which the organization exists in order to represent itself with its moral, ethical, and social character.

When these three separate elements are joined together, their power becomes solidified. Like a three-legged stool, their strength is reinforced through their reliance on each other. One leg does not function without the other two, and all three provide the basis of support for the organization’s success. Should one of the legs be weakened or break, the entire entity will topple over.

An example of how the strength of these elements work together—to support organizational and human resources success—can be found in a short interview with the CEO and President of Schneider Electric, Annette Clayton.

Click here to read the interview with CEO Clayton.

Click here to find out more about Schneider Electric.

As noted in the CEO’s responses, Schneider Electric has not only built its award-winning success on the “highest levels of business integrity,” it is deeply committed to its “people strategy,” so it can remain competitive within the industry, and future-focused to achieve its vision. As the organizational leader, the CEO can clearly articulate how organizational values shape her decision-making processes. It is also interesting to note how critical the role of Human Resources is, not only as a partner to the CEO, but also as a leadership champion for successful changes in implementing its strategic commitments to its people.

Discussion Questions:

  1. How can Human Resources use organizational values in the development of a “people strategy”?
  2. Think about your own work experiences. How did an organization’s vision, mission, and values impact you as an employee? Were these elements evident in the workplace? What advice would you give to your employer to change or improve the visibility and impact of the organization’s vision, mission, and values?

KitKat Is Updating…Maybe Employers Should As Well

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After six decades, the KitKat chocolate bar is updating its marketing tagline from “Have a break—have a KitKat” to “Make the most of your break.”

Perhaps modern employers need to refresh their views on the value of workplace breaks and vacation time as well. Even Fredrick Taylor, the inventor of scientific management theory during the 1800s Industrial Revolution, realized the value of taking breaks in the workplace. His famous pig iron experiment showed that if workers were given more frequent breaks, they could move up to 47 tons of iron a day—compared to moving only 12 tons of iron a day, without breaks, which is almost a 300% increase in organizational output. Taking breaks in most workplaces, however, is not an accepted practice. Research posted in a Forbes article illustrated that taking breaks is frowned upon by employers:

  • 38% of employees don’t feel encouraged to take a lunch break.
  • 22% of North American bosses say that employees who take a regular lunch break are less hardworking.

This is unfortunate, as we have known since the 1800s, from scientific management, that breaks actually increase productivity. Current research by Tork reinforces the idea of employee productivity and engagement being improved on by taking breaks. Tork’s research shows that “employees who take a lunch break on a daily basis feel more valued by their employer, and 81% of employees who take a daily lunch break hav[e] a strong desire to be an active member in their company.”

Now let’s consider the most beneficial workplace break of them all: vacation time. Employers are not respecting this workplace break either. CBC reports only a dismal 33% of employees take their full annual vacation allotment.  

It is time for employees to stand up and take the advice of KitKat: “Make the most of your break.” It is time for employers to wake up and realize workplace burnout is real, and they should support their employees in taking regular breaks, from lunches to vacations. How do we really want to spend the rest of our lives—working in an economy, or living in a society with an economy?

Discussion Question

Research the average amount of paid leave days employees receive in Europe compared to employees in North America. Develop a persuasive argument that could be presented to a VP of HR, asserting that there is value in providing more paid leave days per year to North American employees. Use this link to start your research.

When 81% Is Considered a Failure

81%—Why Current Workplace Leadership Gets a Failing Grade

Usually a rating of over 80% is praised as a positive HR Key Performance Indicator (KPI); however, in this case, 81% is a failing grade.

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According to a recent global report by the O.C. Tanner Institute, 81% of Canadian employees are experiencing some type of workplace burnout, which is 2% higher than the global average. The 2020 Global Culture Report of the workplace done by the O.C. Tanner Institute has provided some startling insights about current workplace cultures:

  • 59% of employees would leave their job for a comparable one
  • Only 42% of employees rated their employment experience as positive or extremely positive

These are very discouraging results revealing that many employees have negative workplace experiences, and some of these experiences can be related back to the dominant workplace culture, which is not supportive of employees.

Creating a supportive workplace is a function of organizational leadership and having a supportive workplace can reap very positive employee engagement benefits. In the very same survey, the O.C. Tanner Institute reported that organizations that have a positive workplace culture are:

  • 13 times more likely to have highly engaged employees
  • 3 times less likely to have layoffs
  • 2 times more likely to have increases in revenue
  • 7 times more likely to have employees innovating

The above list is not just great for the HR departments of these organizations, but are great business results overall. If one extrapolates their research though, this shows that only 19% of Canadian employers are reaping the benefits of positive employee engagement.

The O.C. Tanner Institute commented that current workplace leadership is dead. To counteract this, organizations have to fundamentally change their leadership style to one that promotes hope, employee engagement, and inspiration. No longer will mindful mediations, onsite yoga, and weak work–life balance policies work to reduce employee burnout. There needs to be a fundamental change in how leaders in organizations treat their employees.

Organizations must cultivate an environment that is one of mentoring and coaching rather than managing. Understanding current research, such as the O.C. Tanner Global Report, is a great starting point for organizational leadership to turn their dismal employee engagement numbers around.

Discussion Question:

Briefly review the O.C. Tanner Institute Global Report on Culture. Use this link to assist your research. Once done, prepare a 5-minute presentation outlining the highlights of the report that could be presented to a VP of HR.

Are Female CEOs Better?

Whenever over-generalizations are made one must always try to better understand with data and parameters of what you are trying to generalize. Are female CEO’s better? An interesting question but very generalized. Let’s look at some data; the HR professional may find interesting.

The research shows that females may be better than male CEO’s in a number of business categories. Forbes magazine research shows that companies that have female CEO’s are better in the following categories:

  • Meeting their financial targets
  • A more desirable place to work
  • And greater employee engagement

Click here to read about details of the benefits of female CEO’s.  

Having success in business and an enjoyable place to work seem to be the main business goals of any HR department. Improving ones organization may not be as much about HR as it is about leadership.

Peakon, a HR research organization that measures a variety of organizational metrics did not find any categories where male CEO’s beat the performance of female CEO’s. That is a very positive statement about the success of female CEO’s. 

However, in reality females make up a very small portion of CEO’s in Canada. In fact, as of July 2018, none of the top companies listed on the TSX 60 had a female CEO, and less than 8 percent of females were even on the senior management team of those company’s.

HR leaders have been speaking out for years about the benefits of diversity in the workplace, what has to happen for organizations to wake up and truly embrace the success of female employees in senior leadership positions.

Discussion Question

Developing a diversity policy is the first step at closing the workplace gender gap. Research organization in Canada that have diversity policy’s review three specific policies.  Identity the one that you think is the most effective at improving diversity and state why you think it is?