By Dr. Susan Hanold
While many Human Resources (HR) leaders still expect a focus on growth in 2021, cost optimization as a focus is up from last year. HR leaders will continue to prioritize workforce needs, employee experience and business goals. As the VP of ADP’s Strategic Advisory Services, I partner with clients to provide strategy, advice, and insight solutions to help clients build out their HR strategy and drive change. This past year, listening to clients and studying the market has led me to 3 key talent trends HR leaders should prioritize this year.
Managing a Hybrid Workforce
For some companies, unpredictability in demand and fluctuating lines of business will continue into the new year as the global health event continues to have an impact. Companies will need to consider when to bring employees back to the workplace, considering not only business need but employee readiness and availability. In addition, companies will need to take a stance on workplace flexibility. This includes putting HR policies in place and providing resources that support those decisions. Companies may consider putting in place a Workplace Flexibility HR leader to lead those initiatives.
A positive perception of your own worth comes from feeling like you make valuable contributions to a greater goal. One way to reinforce this dynamic among employees, both in the workplace and working from home, is for managers to keep the focus on near-term work and immediate goal success. Continue to recognize employees on the heels of any successes, rather than simply waiting for the annual performance review to come around. This type of recognition is essential to keeping employees engaged as they navigate the current environment.
Companies will continue to offer flexible schedules and see which options work best when planning for the long-term.
Companies will additionally need a comprehensive recruitment strategy. Time to fill is decreasing due to market conditions with more available candidates. Automated search strings, AI and candidate matching technology helps filter through resumes and bring top candidates to the top of the funnel. But human interaction is still needed to give candidates a good experience. Process optimization and evaluating the full candidate workflow is critical when preparing for the “new norm” and anticipating a remote workforce.
Employees are likely to now have elevated expectations for the virtual experience. Consider implementing technology to support key talent processes that will need to remain mobile or virtual, such as on-boarding, performance check-ins and training.
Being Agile
HR agility is the capability of the HR function to respond quickly and effectively to changing employee expectations, workplace changes, and business needs. 2021 will continue to be a year that will motivate and challenge HR leaders to utilize agile processes. Employees want the tools to do their best work. HR leaders should encourage employees to provide real time feedback on processes.
Whether navigating to the return to work with furloughed employees, overall retention efforts or unemployment benefits and the CARES Act impact, agility is key, as is understanding state by state differences and geographic implications.
However, do not miss out on the right talent while trying to be agile. Culture is important.When companies fill entry-level roles with workers who want temporary jobs, they might be missing the opportunity to hire people who want to go “all-in” with their employer. Really think about the bigger impact you can have with your recruiting strategy.
According to Gartner, 19% of HR leaders report that their companies can quickly respond to changing needs. Companies will need to focus on work design that reduces rigid structures, workflows and networks that do not meet today’s need for workplace flexibility. To drive true transformation, businesses will focus in on their people and access to technology.
Diversity Still Matters
The business case for building diversity, equity and inclusion (DEI) is stronger than ever. McKinsey’s 2019 analysis found that companies in the top quartile for gender diversity on executive teams were 25 percent more likely to have above-average profitability than companies in the fourth quartile—up from 21 percent in 2017 and 15 percent in 2014.
With greater data transparency comes accountability. DiversityInc has seen an uptick in the number of businesses seeking partners to close the gaps in their workforce. There has been a noted increase in requests for DEI consulting, content support and training support.
Companies will continue to design and develop their DEI strategy with a greater focus on equity. In a SHRM article, women are at a higher risk of seeing greater earnings penalties as a result of the COVID-19 pandemic. Solutions that can help close pay gaps for groups comprised of gender, race, and ethnicity, such as ADP’s pay equity tool, can provide greater transparency into an organization’s data and enable action. Employees want to work for companies that are truly inclusive and fair, and demonstrate a commitment to equal pay for equal work.
Employees are ready for positivity in the new year. They are looking for companies that can provide workplace flexibility, agility, and commitment to an inclusive culture.
ADP
Vice President
Strategic Advisory Services