11 Successful HR and Work Tech Trends to Adopt

11 Successful HR and Work Tech Trends to Adopt

/, , , , /by

In recent years, we’ve seen an explosion in new and improved digital tools for HR and work activities. But with the landscape changing so rapidly, how can organizations decide which tech trends deserve serious attention and investment?

For useful advice, we asked HR and business leaders these questions:

What emerging HR or work tech trend is making the biggest impact on your organization? Why is this the case?

In response, we received excellent feedback from a variety of business professionals — from HR Directors to CEOs. And I’m sure you’ll agree as you skim this list, their recommendations make sense for employers everywhere:

  • Simplify Your Tech Stack to Enhance the Employee Experience
  • Enhance Recruitment Success With AI-Driven Hiring
  • Propel Real-Time Feedback With AI
  • Leverage People Analytics for Data-Driven HR Decisions
  • Automate Background Checks to Improve DEI
  • Boost Company Image With Employee Advocacy
  • Adopt AI to Transform HR Processes
  • Personalize the Hiring Experience With Video Interviews
  • Improve Compliance and Decision-Making With AI
  • Tap Into a PEO for Sophisticated HR Services
  • Streamline Repetitive HR Tasks With Automation

To learn more about how these tech trends are redefining organizations large and small, check the responses below…

11 Ways to Benefit From Top HR and Work Tech Trends

1. Simplify Your Tech Stack to Enhance the Employee Experience

One trend we’re tackling is the simplification of our tech stack to enable a seamless employee experience. As a result, we’re being more thoughtful about the systems we choose to enable key programs. Our goal is to offer an intuitive, natural employee journey from hire to retire. We also hope to benefit from improved data and integrations.

In conversations with other HR tech leaders, we’re finding many larger, established organizations that are also facing this issue. For some, shifting to a connected set of systems that matches a connected experience will be a multi-year process.

This can feel like fixing an airplane while in flight. Actually, it is. But when this is done in the right way, you’ll feel the net reward through improved employee productivity, reduced HR technology spending, and the opportunity to influence vendor roadmaps.

Tiffani Murray, Director, HR Tech Partners – Global Talent Organization, LinkedIn

2. Enhance Recruitment Success With AI-Driven Hiring

One of the most impactful HR tech trends our organization has adopted is AI-driven talent acquisition. With streamlined candidate screening and predictive analytics, we’ve reduced turnover rates and increased employee satisfaction.

Recently with the help of AI, we identified a top-notch senior developer that we subsequently hired. This led to a 20% increase in project completion rates and stellar client feedback. Going forward, we expect AI in recruitment to continue accelerating our company’s growth and success.

Vikas Kaushik, CEO, TechAhead

3. Propel Real-Time Feedback With AI

One HR tech trend that has made its way into our organization is an AI-backed app for real-time feedback. From helping us interact “anytime, anywhere,” to customized notifications that ensure we never miss feedback requested or received, this app is strengthening our organization’s feedback culture.

Its most powerful feature is an innovative feedback generator with a simple process that helps individuals produce, amend, and share feedback in less than 2 minutes. It also helps senders and receivers schedule and conduct private one-on-one interactions with end-to-end encryption.

We’re seeing numerous positive outcomes. For example, this ensures feedback focuses on competencies that align with our organization’s vision and values. Also, detailed reporting makes it easy for leaders to track team engagement while helping individuals understand how their contributions advance our feedback culture.

Manvika Jhala, Principal Consultant, Projects, NamanHR

4. Leverage People Analytics for Data-Driven HR Decisions

People analytics is a growing tech trend, and it’s making a notable impact on our organization. With timely access to relevant, useful data, we’re able to make better decisions about our employees. We can thoroughly analyze personnel performance from multiple angles, with insights we would have otherwise missed or misinterpreted.

For example, we used people analytics to make sure our pay structure is fair and equitable across various employee groups, regardless of an individual’s personal background. This has had a positive effect on overall employee morale because people feel their contributions are appreciated and compensated fairly.

Michael Alexis, CEO, teambuilding.com

5. Automate Background Checks to Improve DEI

As a company that provides background checks, automation helps us filter for specific candidate criteria, focus on unique company needs, and avoid bias in the process. This has helped us significantly level up our recruiting and hiring game. We now offer these services to companies that are striving to reach ambitious DEI goals.

Max Wesman, Chief Operating Officer, GoodHire

6. Boost Company Image With Employee Advocacy

Our employee advocacy program is making a big difference at our company. When our satisfied workers speak positively about us online, it elevates our company image.

For instance, when we had a job opening, we asked our people to share the job with their friends and colleagues online. This kind of outreach worked really well. As a result, we hired a great candidate who fit in with our company and immediately started contributing in a meaningful way.

This program also helps us get more customers. People looking to buy our products trust what our workers say about us more than what we say about ourselves. So the employee advocacy program isn’t just about hiring. It also helps our business grow in other ways.

Martin Potocki, CEO, Jobera

7. Adopt AI to Transform HR Processes

Although artificial intelligence is one of today’s hottest tech trends, some employers still aren’t sure what their adoption path should be. However, we are integrating artificial intelligence across multiple HR processes, from recruitment to employee engagement.

For instance, we’ve implemented an AI-powered recruitment tool that streamlines the hiring process. It automates tasks like resume screening and interview scheduling, which saves significant time and reduces bias in the candidate selection process.

This has improved our recruitment results and enhanced the candidate experience, as well. Also, in addition to improving HR operations, AI is helping us make better-informed decisions and improve business outcomes.

Madhurima Halder, Content Manager, Recruit CRM

8. Personalize the Hiring Experience With Video Interviews

Video interviewing is one of today’s biggest HR tech trends. It can provide a more personalized hiring experience that improves the applicant experience and helps employers extend their hiring reach in more inclusive ways.

For example, employers can use video tools to conduct non-traditional interviews with applicants who aren’t able to travel, or who speak languages that aren’t common in the employer’s geographic location.

With platforms that make it easier for skilled people to connect with potential employers, this opens up opportunities beyond traditional face-to-face interviews. It also ensures no candidates are left behind because of geographical or physical limitations.

Julia Kelly, Managing Partner, Rigits

9. Improve Compliance and Decision-Making With AI

Recent technological developments have altered nearly every facet of human resources, from sourcing to performance management. Artificial intelligence is now streamlining administrative duties like reviewing applications and setting up interviews. This not only benefits the company financially but also frees up HR personnel for more important, strategic tasks.

Employment law, health and safety regulations, and data privacy are just a few examples of HR’s responsibilities. By providing consistent, accurate record-keeping and reporting, automated HR processes can help ensure compliance with these critical requirements.

Also, with the help of data and analytics tools in automated solutions, HR professionals and business leaders can make better decisions. For instance, AI is helping HR teams more quickly and easily spot issues with employee absences and turnover.

Aleksandar Ginovski, Career Expert, Resume Expert and Product Manager, Enhancv

10. Tap Into a PEO for Sophisticated HR Services

As a startup executive since 2012, I’ve relied on Professional Employer Organizations (PEOs) as a fairly common fixture in my work life. These organizations make it possible for smaller companies to tap into core HR packages that include payroll, benefits negotiation, and a suite of other HR capabilities.

Working with a PEO is an easy decision if you don’t have sufficient resources or admin staff to deal with HR logistics and other technicalities. So, not surprisingly, the number of PEO providers and levels of service have grown significantly over the years.

In our company’s case, the HR apparatus is much more sophisticated than you would typically expect for a company of our size. This makes it possible for us to offer everyone more and better benefits.

Trevor Ewen, COO, QBench

11. Streamline Repetitive HR Tasks With Automation

Artificial intelligence is making a massive impact on the HR function. AI technology is redefining the human resources department, streamlining many of its work processes.

Today, HR leaders apply AI to a wide range of tasks, so they no longer manually manage functions like payroll, recruitment, onboarding, and performance management. It can help employers find the right talent, identify skill gaps, answer employee questions, analyze survey data, and more.

The most positive and profound impact of AI technology is the automation of repetitive, boring tasks. It saves manual HR labor, while simultaneously improving process efficiency and accuracy. This frees HR team members to focus on more strategic, creative tasks.

Although some organizations are quickly embracing HR automation, it may be more beneficial to adopt it incrementally over time, so teams can adjust and adapt to the change.

Saikat Ghosh, Associate Director of HR and Business, Technource

What Can HR Do to Prevent Insider Threats? - TalentCulture

What Can HR Do to Prevent Insider Threats?

/, , , , /by

Every day, businesses contend with all sorts of threats. Like it or not, these risks have become a fact of organizational life in the modern digital world. While some dangers come from external sources — like cybercriminals — insider threats are also surprisingly prevalent. In fact, insiders are the biggest risk some companies face.

Fortunately, many HR teams are stepping up to play a critical role in locating and mitigating these dangers. To learn more about these threats and how HR can help prevent them, read on…

What Are Insider Threats?

Anyone who currently or previously worked for an organization can pose an insider threat. Employees, contractors, business partners, and others can put your company or staff at risk. These instances include intentional and unintentional attacks that are physical or digital in nature (such as cyberattacks).

Organizations are feeling more vulnerable lately, and these concerns are not unfounded. In fact, 60% of companies say they experienced at least one insider threat during the past year.

Why Do Attacks Happen?

Insider threats can develop for various reasons. A member of your workforce may be struggling with a health condition, financial challenges, family issues, or other personal problems. Business changes can also trigger an attack. For instance, organizations are likely to be more exposed during a reorganization, a merger or acquisition, or as the result of staff layoffs.

However, unintentional threats can arise during daily work activities, as well. Often, when people are anxious, fearful, unaware, or distracted, they may not rely on security best practices. This can open the door to phishing attacks or data breaches that inadvertently harm your organization.

For example, in 2019, 885 million personal accounts were compromised when systems at First American Financial Corporation accidentally leaked customer data. Also during that same year, a third-party data breach at WhatsApp exposed 1.5 billion user accounts.

Although insider threats can occur anytime, multiple warning signs usually build up in advance. Behavioral indicators like these deserve attention:

  • Is an individual refusing to participate in mandatory security audits or training activities?
  • Is the individual threatening staff members or your company in social media posts?
  • Do disputes with colleagues and managers occur frequently?
  • Has disciplinary action been required — suspensions, demotions, or removals?
  • Are personal difficulties apparent? (For example, obvious frustration from work stress, financial issues, or other problems.)

Types of Insider Threats

It’s important for HR professionals to know about common types of insider threats. Here are a few scenarios to keep in mind:

  • Workplace Violence
    Any physically aggressive acts or threats that harm on-site employees or company property. This includes intimidation, hazing, assault, or harassment.
  • Property Theft
    When employees or others steal company devices, equipment, data, or materials, especially assets involving proprietary information or national security.
  • Sabotage
    Damaging, destroying, or modifying company property to harm employees, customers, business allies, or the organization overall.
  • Insider Fraud
    When someone changes, removes, or uses company information or systems for self-gain, including insider trading or embezzlement.
  • Accidental Insider Threat
    An unwitting oversight or operational negligence that harms colleagues, customers, or the company. This includes actions that lead to unintended security breaches, phishing attacks, or lost/misplaced confidential information.

5 Ways HR Can Help Prevent Insider Threats

HR can play a key role in preventing these threats throughout every stage in the employee life cycle — including hiring, ongoing performance management, job changes, and offboarding. Here are five ways HR professionals can minimize these issues:

1. Conduct Thorough Background Checks

Smart organizations take every precaution to anticipate and mitigate insider threats from the start. Before extending an offer to any potential employee, conduct an extensive criminal background check and verify the candidate’s resume by calling listed references.

Careful screening can identify past behavior, such as workplace violence, fraud, or criminal actions. If red flags arise, the interview process is a perfect opportunity to clarify and understand the story behind any situation.

2. Implement Mandatory Security Training

Newly hired employees should participate in security training and activities. This helps educate people about cybersecurity risks and gives you a forum to clearly explain company policies and best practices. It’s also an opportunity to reinforce your company’s commitment to security as a top priority.

3. Define a Baseline for Normal Behavior

By working closely with IT leaders to determine standards, you can specify behavior that is normal/acceptable versus abnormal/unacceptable. Establishing this baseline enables your IT teams to monitor network activity, so they can identify potential dangers. When incidents are detected, IT can alert appropriate departments for necessary action.

It’s worth noting that when employees believe policies are overly strict or unfair, they may choose not to comply. This only increases the likelihood of insider threats. To avoid this, be sure you clearly communicate relevant standards and explain why those standards are in place. Also, be transparent about how IT teams monitor behavior, and what kind of actions they consider unacceptable or out-of-the-ordinary.

4. Foster a Supportive Workplace

Employees should feel comfortable and supported at work. A toxic environment where people are regularly embarrassed, belittled, humiliated, or forced to work under excessive rules only increases the potential for insider threats.

Successful workplaces cultivate a culture of trust, respect, and support where employees feel comfortable discussing personal or work issues. In this type of environment, managers and supervisors take discretion seriously.

Employees should know that co-workers with behavioral issues will be helped and not punished. This ensures that everyone will feel more comfortable sharing concerns about others.

For this reason, consider implementing an employee assistance program where anyone who is struggling can receive support and counseling. Make it a priority to help anyone who is at risk, and also address any grievances brought to your attention.

5. Terminate Employees With Respect

When employees depart, it’s vital to make the offboarding process as smooth as possible. Regardless of whether an employee chooses to resign or is terminated, thoughtfully managing the offboarding process can significantly reduce security risks.

If termination is required, proceed with care, so you preserve a sense of dignity. If possible, conduct the termination meeting in a room that lets the employee leave the premises quietly, without public embarrassment or shame.

Also, plan to remove the individual’s access to devices and systems as quickly as possible. In addition, remember to collect all company property and review nondisclosure agreements to avoid any misunderstanding about rules the employee previously agreed to follow.

A Final Word on Avoiding Insider Threats

HR plays a critical role in minimizing exposure to insider threats throughout the lifecycle of every employee. Proper planning, precautions, and proactive communication can make a tremendous difference. Above all, focus on creating and sustaining an environment where employees feel respected, trusted, empowered, and supported.

HR enters the metaverse. What are the pros and cons?

HR Enters the Metaverse. What Are the Pros and Cons?

/, , , , , /by

As technology continues to evolve, so does the way we connect and work with others. One of the newest advances in technology is the metaverse, a virtual world where users can interact with each other and with digital objects in a three-dimensional space. Because this immersive world has tremendous potential to transform the way we work, future-minded HR professionals are actively exploring its potential, and technology companies are helping them understand the possibilities.

Meta, Microsoft, Google, and Apple are just a few well-known innovators that are investing heavily in metaverse technology. Fortunately, these players and others are prioritizing workplace collaboration solutions. For example, Meta Horizon Workrooms and Microsoft Mesh VR technology are both designed to help teams collaborate in the same virtual room, regardless of an individual’s physical location.

The upside is significant for vendors developing business-related metaverse tools and technologies. In fact, the enterprise virtual reality market is expected to grow from $829 million in 2018 to $4.26 billion this year. So, it’s easy to see why Bill Gates says he is confident that work teams will soon shift from Zoom calls to Microsoft’s more advanced 3-D experience.

5 Ways HR Can Leverage the Metaverse

Because the metaverse makes it possible for employees to interact with each other and with digital objects in a virtual environment, the experience is more engaging and immersive than traditional video conferencing or messaging platforms. This offers HR a range of possibilities, from virtual recruitment and onboarding to team-building activities and training sessions. Let’s take a closer look at some of the most promising HR applications…

1. Workforce Inclusion

One of the strongest benefits of the metaverse is its ability to enable a more inclusive work environment. In the virtual world, employees can interact with each other regardless of their physical location. This makes it easier for remote workers to feel included and engaged. This, in turn, opens the door to a much more diverse and inclusive work culture, with better opportunities for collaboration and innovation.

2. Recruitment

Another potential HR application for the metaverse is virtual recruitment. With the ability to create a three-dimensional space, companies can create a virtual office or work environment that helps candidates experience what it’s like to work within their organization. For example, employers can offer virtual tours, interactive experiences, and the ability to interact directly with current employees. This means candidates will discover a more authentic, immersive recruitment process. As a result, employers are likely to attract higher-quality candidates and accelerate the talent acquisition process.

3. Onboarding

HR can also leverage the metaverse for virtual onboarding. Instead of a traditional one-dimensional orientation process, new hires can enter a virtual environment that simulates their new workspace and introduces them to their team and their role. For example, this could include virtual tours and interactive experiences, as well as the ability to ask questions and interact directly with colleagues. Because this onboarding approach is highly engaging and effective, it can help new hires more quickly understand and embrace the work culture, while accelerating time-to-competency and ultimately increasing employee retention.

4. Team-Building

The metaverse can also help transform the way organizations conduct team-building activities. With the ability to create an immersive virtual environment, HR professionals can create a range of interactive experiences that promote trust and teamwork. This can include virtual games, simulations, and challenges that require communication, collaboration, and group problem-solving. By offering far more engaging digital team-building exercises, organizations can continuously develop stronger, more effective teams.

5. Training

Training is another area where the metaverse can make a significant impact. By creating a virtual learning environment, HR professionals can deliver training simulations that develop employee skills and competencies in a more engaging, immersive way. This can include simulations of real-world scenarios that make it possible for employees to practice, test, and build knowledge and skills in a safe, controlled environment. It’s also a more convenient way for distributed employees to access training from a distance, rather than requiring them to travel to a central in-person facility. As a result, this approach can improve training efficiency and cost-effectiveness without compromising learning outcomes.

Concerns About HR in the Metaverse

Although the metaverse presents numerous opportunities, HR professionals must also consider potential challenges. For example:

1. Safety, Privacy, and Data Security

Employers must ensure the privacy and safety of employees who participate in the virtual world. This includes protecting sensitive information and preventing inappropriate behavior and harassment. HR professionals will need to anticipate potential behavioral and data management issues that can arise in a virtual world. They’ll also need to develop relevant procedures, policies, and guidelines to prevent these issues. In addition, they’ll need to provide ongoing communication and training to ensure that employees understand these expectations, as well as the consequences of any harmful actions.

2. Accessibility

Another concern focuses on the need for employers to ensure that virtual environments are accessible to all employees, regardless of their physical abilities. HR professionals will need to consider how virtual environments can be designed, deployed, and maintained to accommodate diverse needs over time. This can ensure that employers remain in compliance with standards that promote equal access and participation in the virtual world.

A Final Note on HR in the Metaverse

Clearly, the metaverse has tremendous potential to transform the way we work, connect, and collaborate with others. HR professionals are beginning to explore possible use cases, from virtual recruitment and onboarding to team-building activities and training sessions.

However, there are also potential issues and concerns employers cannot afford to ignore, including privacy and accessibility. These are complex issues that require careful consideration and technical expertise. But with a thoughtful approach, HR professionals can leverage the metaverse to create a more engaging and rewarding work environment that supports employee growth and development for all.

 

Overcoming HR Challenges at Tech Startups

How to Overcome Top HR Challenges in Tech Startups

/, , , , /by

Human resources can be a highly rewarding profession, especially at technology startup companies. In fact, recent research says effective human resources management actually helps drive innovation — and tech companies are all about innovation! Nevertheless, HR challenges can be tough to manage. So, what can you do to help your company deal with difficult HR issues? Let’s take a closer look…

8 HR Challenges Tech Startups Often Face (And How to Overcome Them)

1. Attracting and Retaining Top Talent

The ability to hire qualified people and keep them onboard is vital for every company, particularly in the technology world. But this is no easy task. Because tech hiring is extremely competitive and time is of the essence in a startup, employers must always be on the hunt for the best and brightest.

To build a strong talent pool, you need to be proactive. Job postings on job sites or social media are not enough. You can’t afford to wait for candidates to come to you. Go out and find people with the skills you need.

Applicants with qualifications like a graduate degree in engineering can help your company grow. To find them, focus on target-rich environments. For example:

  • Campus recruiting at a technical college is a good place to start.
  • Outreach among tech conference attendees can build brand awareness and establish valuable relationships.
  • Offering referral incentives to existing employees can leverage your team’s professional networks.

2. Managing Rapid Growth

Startups are unique because, from day one, you must rapidly scale and expand. This is necessary to make your presence known and gain traction in a fluid, highly competitive industry.

However, the pressure on employees is relentless, and HR teams feel the strain. For example, the continuous drive to grow often leads startups to rush the recruitment process. This can test the limits of even the most seasoned human resources professionals, 98% of whom say they’re feeling burned out.

To remain efficient in a fast-paced environment, outsource extra recruiters to help scale and support your workforce. This interim strategy can be highly successful, as long as your recruiting partners are competent and committed. Also, be sure their values align with your company culture, so you can rely on them to represent your brand effectively.

3. Building an Employer Brand

Establishing and defining your employer brand can be one of the biggest HR challenges for any startup. Because you’re unknown in the marketplace, the race is on to make your brand visible and engaging. Your mission is to appeal to the right talent by differentiating your company in ways that clarify your vision, values, and culture.

The Forbes Human Resources Council says your best brand ambassadors are your staff members. This is particularly true for tech startups. A personal, employee-driven strategy is a compelling way to set your brand apart from larger, more established tech giants.

Call a brand launch meeting to help employees get involved in making your company brand more widely known. Establish an internal team dedicated to employer brand advocacy. They can generate ideas and develop content for your website and social media pages. Also, incorporate staff in ongoing marketing and recruiting videos. Include their anecdotes on your website. The possibilities are limited only by your team’s time, budget, and imagination.

4. Navigating Legal and Compliance Issues

The tech industry’s legal landscape is highly complex. Data privacy and intellectual property rights are only two issues that complicate the already massive task of starting a company that complies with government laws and industry standards. To be a viable competitor in the tech industry, no startup can ignore these requirements.

But tech-related laws are not the only regulations. For example, one of the central HR challenges in any startup is to ensure ongoing compliance with labor laws. Do you have effective policies and procedures in place for this and other people-related issues that arise?

For example, are you prepared to manage discrimination and harassment charges against your organization? High-profile companies like Google and Facebook have come under fire for gender discrimination. Even as a small company, you’ll need to communicate expectations for employee conduct and put a disciplinary framework in place. This protects your team members, as well as your company.

The U.S. Equal Employment Opportunity Commission is a great resource for a framework that can help you handle discrimination complaints.

5. Creating an Inclusive, Diverse Workforce

Despite great strides in creating a more inclusive society, many companies still struggle to foster workforce diversity and inclusion. This remains a serious challenge for HR in the tech industry. For example, female representation in key roles continues to lag across the STEM spectrum.

The advantage of a startup is that you don’t have to overhaul existing processes that are archaic and outdated. Instead, from the beginning, develop targeted recruitment campaigns that appeal to a wider pool of talent. And adjust interview procedures so they are sensitive to gender and culture differences. Harvard Business School recommends explicitly stating your commitment to inclusion in job descriptions and removing gendered language from interview questions.

We’ve found that a gender-inclusive workforce brings many benefits to the table, including stronger so-called soft skills like communication, adaptability, problem-solving, and empathy. These skills can be invaluable to tech start-ups that rely on collaboration to innovate. As Marta Jasinska, Chief Technology Officer at Bloom & Wild says, “It’s really hard to scale something if you build it on your own.”

6. Managing Distributed Teams

In the aftermath of the pandemic, remote and hybrid work models are increasingly common. This can cause HR challenges involving communication and collaboration.

The tech industry is not immune to these issues, but we’re often better equipped to handle them. In a remote environment, teamwork and communication rely heavily on technology. And many tech teams are already familiar with software that makes distributed team collaboration possible.

But strong communication tools are only part of the equation. What makes or breaks remote work are the processes and social bonds that help team members work productively together. The challenge for HR is to help remote workers feel heard, included, and connected with broader goals, no matter where or when they are working.

You can make this happen by encouraging regular social interactions and team-building activities. For example, establish online chat channels designed exclusively for team members to share personal news and support. This helps remote workers feel like a part of the team, rather than isolated individual contributors.

7. Supporting Work-Life Integration

In addition to recruitment and payroll, HR is also tasked with performance management. This can be tricky in tech startups, where people are often expected to go above and beyond.

However, remote work options are common in the tech sector. Fortunately, remote work tends to support a healthier work-life balance, which in turn, leads to better performance. But how can HR encourage better work-life integration?

This can be particularly challenging at a tech startup. In a company’s early stages, the pressure to succeed is tremendous. Intense entrepreneurial focus and drive are essential. But long work hours and a high-pressure environment can easily become overwhelming.

HR plays a key role in helping employees avoid burnout. Introduce more work model choices: flexible hours, a hybrid of remote and in-office work. Provide regular opportunities for people to unwind and casually interact. Offer wellness activities as ongoing programs and as performance rewards. And provide mental health support so everyone knows they can manage stress privately with the help of a coach or counselor.

8. Developing and Retaining Leadership Talent

Strong leadership is the key to any successful startup. But one person can’t do it all indefinitely. When should a founder start expanding the leadership team?

Look for missed deadlines. These go hand in hand with missed opportunities. Also, when the stress of scaling a business leads to a drop in your quality of work, it’s time to add leadership bench strength.

This is one of the most critical HR challenges in any startup. You’ll need to spot signs of managerial weakness and counsel the founder when the time is right to find additional executive expertise.

Then it’s up to you to identify, recruit, and select leaders for critical management roles like operations and finance and customer experience leaders. Some candidates may emerge internally as they prove themselves in existing roles. In a startup, it can be easier to pinpoint internal candidates with high potential. Other senior roles are likely to be more difficult to fill, so they may require creative sourcing.

A McKinsey analysis says few founders do what’s necessary to reinvent their organization as they move from development to launch, and then into high-growth mode. Once the pressure of bringing a product or service to market passes, it’s vital to invest in developing and supporting other potential leaders from within. This builds a talent pipeline that can step up when a founder is ready to hand off responsibilities. Ultimately, this makes growing a business much easier.

The best way to do this is by delegating specific assignments to new talent while maintaining structure in senior roles. However, this balance continuously shifts as a company scales. You can act as a mediator, adjusting organizational design to minimize the chaos of too little structure while avoiding the bureaucracy of too much.

A Final Note on HR Challenges in Tech Startups

The tech environment is extraordinarily competitive, and recruiting the best talent can be daunting. But hiring for open positions isn’t the only priority. Tech startups face multiple complex HR challenges.

When navigating these various demands, it’s important to balance the needs of the company with the needs of your staff. Sometimes, you may be the only advocate for staff wellbeing, inclusion, or development. Be prepared.

Also, it may be tempting to react to immediate problems each day. Startup teams do that. But while you’re fighting fires, don’t forget to keep the long game in mind.

Offboarding - How to Give Employees a Fond Farewell

Offboarding: How to Give Employees a Fond Farewell

/, , , /by

One of your employees just handed you a resignation letter. What happens next? Are you prepared to set your company’s offboarding wheels in motion?

Situations like this might keep you up at night, especially when a valued staff member decides to move on. It’s natural to worry about how your team will fill the knowledge gap, and how soon you’ll be able to replace an employee who seems irreplaceable.

But sometimes these concerns create unexpected tension between you and the employee who, until this point, enjoyed working at your company. You may want the exit to go smoothly, but despite your best intentions, this kind of transition can go awry. It may even disrupt your work environment and put unnecessary strain on the rest of your team, which can damage morale and productivity.

No employer wants a team member to leave on a negative note. That’s why it’s useful to develop and implement a well-crafted offboarding plan. But what does that look like? First, let’s look at what this process can help you accomplish.

Why Is Effective Offboarding So Important?

Offboarding is an integral part of the departure process for employees, as well as for your business. The right steps can help you:

  • Manage the practical aspects of shifting the employee’s responsibilities to others
  • Gather work-related feedback, so you can identify key issues and improve
  • Minimize security risks (for example, by removing employee access to company accounts and recovering company assets)
  • Prevent legal issues (such as contract or compensation disputes and wrongful termination)
  • Part ways on the best possible terms

By addressing each of these concerns, you can close the employee’s chapter at your company in good faith.

Is It Really Over?

But what if the story isn’t yet finished? What if a departure could be avoided? Offboarding discussions may expose unresolved issues with an employee’s pay, holiday entitlement, pension contributions, benefits, work schedule, location, and more.

If you discover that someone is disgruntled but not fully committed to leaving, you may have the potential to fix these issues and avoid an unnecessary departure.

The key is to pay close attention. Is unhappiness or dissatisfaction with your company motivating someone to leave? If you identify the root cause and resolve it quickly, will the employee reconsider? Each situation is unique. But you may find it worthwhile to address these issues so you can keep a valued employee onboard.

Managing Employee Exits With Grace

Above all, don’t assume an employee’s departure is a personal rejection of you or your company. Staff members leave for many valid reasons. Another company may have offered an irresistible pay increase, a compelling promotion, or more attractive benefits. Or maybe it’s time for a career change.

By keeping this in mind, you can manage offboarding in a respectful way that motivates a departing employee to cooperate in handing off responsibilities with minimal upheaval.

Always try to keep the situation professional and treat the employee fairly, regardless of the reason for their departure. Helping people maintain a positive relationship with your company is important for multiple reasons. It minimizes negative internal consequences and potentially avoids public discord. Also, it reinforces the integrity of your employer brand and preserves your ability to attract strong talent in the future.

Ultimately, when an employee chooses to resign, you cannot stop them from leaving. And if the relationship turns sour, it is often best to let people go, rather than become upset or try to strike a deal.

Watch for Warning Signs, Even Before Offboarding

Sometimes, the first sign of trouble may come long before an employee actually resigns.

For instance, when you meet with a team member for a casual one-on-one conversation, or to discuss a specific concern or disciplinary measure, what response do you receive? Does the employee arrive late, avoid answering questions, appear disengaged, or show other signs of a negative attitude?

If it’s clear this employee is disgruntled, you’ll want to address the issue immediately, honestly, and with an open mind. Perhaps you’ll find that this person doesn’t feel sufficiently supported or compensated. Their actions could be a form of “quiet quitting,” where they refuse to go above and beyond.

By encouraging clear, honest communication, you may be able to address the individual’s specific concerns in a way that improves the employee experience for others, as well.

On the other hand, if a negative employee has already handed in their notice and isn’t interested in discussing solutions, it’s important to let them go. Invite them to an exit interview and do what you can to encourage them to attend.

Offboarding Checklist

To successfully manage an employee’s exit and avoid costly claims, be sure to take these steps:

  • Always acknowledge the resignation or exit situation with a letter explaining logistical steps. This should include the date an employee’s contract will end, the amount of any remaining annual leave, pay arrangements, and instructions for returning any property or equipment.
  • Remind employees before they leave about any contractual obligations that apply, which may include confidentiality clauses and post-termination restrictions.
  • Revoke the employee’s access to IT and security systems. This protects you from anyone who may try to change or delete information before they leave.
  • Emphasize that they are not permitted to remove or share proprietary data or confidential information. Provide a list of documents and details you need from them before they leave, including passwords and relevant client or customer information.
  • If appropriate, conduct an exit interview to clarify any unresolved issues and gather useful feedback. Venting at this meeting can be a type of therapy for exiting staff and provide valuable insights you may want to act upon.

Top Tips for Handling a Difficult Exit Interview

Instead of treating an employee’s exit interview as the full stop at the end of their time with you — or only an opportunity to uncover issues that may be causing them to leave — use this time to collect actionable data you can share with others in your company who want to improve your work culture and reduce future turnover. These guidelines can help:

1. Think of This as the Opposite of a Recruiting Interview

Instead of asking questions about why an employee wants to join the company, you’re asking why they want to leave. This type of conversation may seem uncomfortable, but it is vital. When someone chooses to leave your company, you’ll want to know why. People rarely leave for trivial reasons, and their feedback could provide insights into your company culture or team dynamics.

2. Schedule Exit Interviews on an Employee’s Last Day or Soon After

Why is the timing important?

  • Any sooner, and they might hesitate to share honest feedback while still onboard.
  • Any later, and they may feel distant and disengaged. When this happens, you run the risk of receiving feedback that isn’t as accurate, specific, or complete.

3. Keep it Casual

For example, if you can meet at a nearby cafe, the conversation will feel more relaxed and less like a formal work session.

The way you handle this interview is also important, particularly if you’re facing a difficult situation with an irate employee. Try to listen more than you talk. Avoid responding to feedback. That’s not the objective of this process. You’re not trying to defend the business. Instead, you want to learn as much as possible about how the departing employee perceives things.

4. Take the High Road

Keep in mind that retaliation of any kind is likely to worsen the situation. Even if you want to match the employee’s behavior, resist the temptation. If it becomes difficult to remain calm, consider pausing or adjourning the interview. If you anticipate a volatile discussion, ask a peer to remain close, and request assistance if needed.

5. Document Everything

Remember that you are responsible for the meeting’s tone and agenda. Try to stay focused on your purpose as a fact-finder. Make a note of any unexpected issues so you can return to them later in the discussion. Or reschedule the meeting for a later date if you need more time to gain closure. Make a note of any physical action such as slamming the table, shouting, or storming out of the meeting, so the minutes and outcome of the meeting can reflect the nature of the discussion. Finally, always follow up in writing to document events and outcomes.

How to Ensure a Smooth Departure

For productive handoffs, many organizations turn to trained HR consultants for assistance. This is especially useful if you’re new to the offboarding process or you don’t have sufficient internal resources available to ensure its success.

Relying on specialists for help is a very effective way to be sure that a departing employee can leave your organization on the best possible terms, and a replacement will be ready to step into their role. In addition, you’ll sleep more soundly, knowing you’re prepared to fill the open position with a suitable candidate as soon as possible.

Where Does Workplace Diversity Belong Now? Meghan M. BIro takes a close look at key trends in diversity, inclusion and belonging since the early days of the pandemic and beyond.

Where Does Workplace Diversity Belong Now?

/, , , , , /by

Are you disturbed by news about organizations backtracking on workplace diversity and inclusion commitments? I certainly am. For example, a recent Wall Street Journal article declared “The Rise and Fall of the Chief Diversity Officer.” Is this just hyperbole, or is it cause for serious concern? Either way, we can’t brush it under the rug.

After all, only 3 years ago, employers were scrambling to advance DEI initiatives. For many, this included new C-level positions with sweeping responsibilities. According to LinkedIn, from 2019-2021, demand for senior workplace diversity executives grew nearly 170%. This easily outpaced hiring for every other C-suite role.

But now, the pendulum is rapidly swinging in the opposite direction, and workplace diversity leaders are taking the hit. In fact, C-level DEI hiring actually shrank last year at a rate of -4.5%. And DEI positions are the only ones moving in a negative direction.

Why such a swift, dramatic shift? Multiple factors are driving these decisions. But sadly, HR is getting caught in the middle. As a former Chief Diversity Officer at a major U.S. hospital system says, the hiring spree now feels like a “knee-jerk reaction” that didn’t create much impact and left both sides feeling disillusioned.

DEI at Work: Two Steps Forward, One Step Back?

So what’s really happening here? Is DEI frozen in time — or worse, losing ground? Here’s another top DEI executive’s opinion:

“Some employers may have neglected or even paused their diversity and inclusion programs. In the short term, this may seem understandable given the extraordinarily challenging circumstances. Long-term, however, it will come back to haunt you when the economy improves and you need to compete for talent again.”

Given current workplace DEI issues, this may seem like a recent statement. But surprise — it’s actually from a July 2020 article by LaFawn Davis of Indeed.

At the time, LaFawn was VP of Diversity, Inclusion and Belonging (DIB), where she led efforts to remove bias and barriers in the company’s products and its work culture. Since then, her role has expanded. She now serves as SVP of Environmental, Social & Governance, and her commitment to DIB is just as resolute.

Timeless Insights From a DEI Leader

With all the mixed news about workplace diversity lately, I decided to revisit a conversation I had with LaFawn late in 2020 on the #WorkTrends podcast. If you want a reality check, I invite you to join me. Despite different circumstances three years on, I think you’ll agree LaFawn’s wisdom still rings true today…

 

Lessons for Today’s Leaders

Here are several takeaways that continue to resonate:

1. DIB Isn’t Just One Standalone Thing

Too many companies attempt to lump diversity, inclusion, and belonging into one category, separate from other business functions. As LaFawn says:

Companies are trying to silo off diversity, inclusion, and belonging. Or they make one of the terms synonymous with the others.

2. How to Unpack DIB

What should we understand about the distinct elements of DIB? According to LaFawn:

Diversity is the belief that teams with different work styles, problem-solving techniques, life experiences, backgrounds, perspectives, and skill sets truly make innovation possible.

Inclusion is about actions and behaviors that create a culture where employees feel valued, trusted, and authentic.

And belonging is a feeling of community. It is the people and our culture that make us feel connected.

3. An Integrated View

When these three distinct elements of DIB are combined, we feel valued. LaFawn explains:

It’s not about looking like me or coming from where I come from. It’s about those common threads that pull us together in a broader work context.

4. The Pandemic Exposed Many DIB Weaknesses

Even now, we see Covid fallout that disproportionately affects some members of the workforce. For example, frontline workers endured extraordinary stress during the lockdown. This has led to a severe talent shortage in the services sector that is likely to continue.

But by exposing this and other issues of workplace bias and inequality, the pandemic has underscored fundamental changes organizations must make to ensure that marginalized people feel like they belong.

The Business Case for Workplace Diversity

Of course, business leaders must focus on business performance. So I asked LaFawn to share her thoughts about DIB’s impact on the bottom line. Not surprisingly, she served up some compelling statistics:

Will we be a better company 10 years from now? 15?

This question should keep every business leader up at night.

We know that businesses with a more diverse workforce are 36% more likely to be in the top tier of their industry. We know that firms with greater gender diversity are 25% more likely to be at the top in financial returns, market share, and retention.

So diversity, inclusion, and belonging do affect your bottom line!

That’s not all from LaFawn. For more of her DEI guidance, check this article: “How Belonging Differs From Diversity and Inclusion — and Why It Matters.”

Workplace Diversity Belongs With Us All, Especially Now

Like LaFawn, I believe DEI still belongs, today and in the future of work. And we’re not alone by any means.

Earlier this year, an in-depth Pew Research study of nearly 6,000 U.S. workers revealed some valuable insights about the state of workplace DEI. For example, while only 33% of respondents said their employer has a dedicated DEI leader onboard, 61% feel their organization’s policies ensure fairness in hiring, pay, and promotions.

Workplace diversity progress poll - TalentCulture July 2023That’s encouraging. But it’s not the whole story. Consider this small slice of DEI life from TalentCulture’s world:

Several weeks ago, we asked our community to tell us if their work culture has become more diverse and inclusive since the pandemic. Interestingly, only 37% told us the situation has improved at least somewhat, while 63% said it’s the same or even worse.

Clearly, there’s still work to do. But building a culture around workplace diversity is not about platitudes. That’s not a sustainable strategy. DEI is a process. And that process is not a sprint. It’s a marathon.

DEI Leadership Action Items

If you’re a leader who remains committed to creating a workplace around fairness and opportunity for all, keep moving forward. I’m right there with you. And if you’re uncertain about how to move forward, I suggest revisiting other ideas that have stood the test of time.

For example, consider practical advice DEI leaders shared in 2020 with one of our blog contributors, Laura Sabattini. Laura is another DEI expert on the move. In 2020, she was a Principal Researcher at The Conference Board, and she’s since joined Honeywell as Director of Inclusion and Diversity.

Clearly, Laura isn’t just passing along interesting ideas. She is actually walking the talk every single day. I think you’ll agree, the suggestions she curated are worth another look:

1. Create a Common Vision

Enhance communication and drive consistent messaging across the organization. Focus on helping leaders and colleagues understand how DEI improves the work environment and increases resilience during times of change.

Tips from DEI Leaders:

  • Define DEI in ways that directly align with your organization’s culture and values.
  • Identify measurable behaviors and clear expectations to hold people accountable for those behaviors.

2. Encourage Participation and Collaboration

Leverage trends and events to build awareness among those who haven’t been involved with DEI, to ensure that ownership doesn’t fall solely on underrepresented groups.

Tips from DEI Leaders:

  • Provide resources to help people engage, participate, and take action at work and beyond.
  • Build trust by encouraging dialogue over conflict and giving people latitude to make mistakes.

3. Invest in Developing Leadership Skills

Inclusive cultures don’t just happen by chance. They require intentionality and willingness to improve how we work and interact with others. This may require leaders to “unlearn” some management standards before they embrace new skills. The good news: This can improve leadership effectiveness and business results.

Tips From DEI Leaders: 

  • You don’t need to start from scratch. Leverage existing inclusive leadership models.
  • Work with formal and informal DEI champions to identify meaningful behaviors. Some organizations may focus on decision-making, while others may focus on innovation. The key is to align DEI skills with your business and culture.

4. Emphasize Accountability

To build buy-in, hold people accountable for their role in building a more inclusive culture. This includes specific team or leader behaviors as well as managerial metrics (for priorities such as engagement or representation among teams).

Tips From DEI Leaders: 

  • Gather input from leaders and regularly follow-up to discuss their accountability and progress.
  • Engage human capital analytics to identify DEI patterns, trends, and impact. (For example, compare promotion and attrition rates across functions and teams.)
  • Periodically assess what is and isn’t working, and provide stakeholders with updates.
Pay transparency is here. Are you ready to discuss it? Check this expert advice on how to develop an effective communications plan

Pay Transparency Is Here. Are You Ready To Discuss It?

/, , , , /by

If pay transparency isn’t yet a hot topic in your organization, it soon will be. Recently, several states have passed pay transparency laws, and others are planning similar legislation. These laws require employers to post salary ranges in job listings. As a result, many employers are taking steps to get ahead of these changes — often disclosing pay range information before it’s required by law.

Sharing pay ranges externally has its own challenges. But it’s also likely to mean employees will start evaluating where they fit within the organization. Is their compensation at the top or bottom of the scale? How does their pay compare with others? Is it time to ask for a raise or search elsewhere for a better-paying job?

Benefits of Pay Transparency

For employers, this new focus on pay transparency may seem like a Pandora’s Box. Naturally, this kind of openness can cause some trepidation.

However, this is also a perfect opportunity to refresh how you share pay information with employees. Choosing to be more open about compensation can actually help your organization in multiple ways. For example, with thoughtful communication, you can:

  • Attract top candidates
  • Build internal trust and retain high-performing employees
  • Create a more inclusive culture
  • Support compliance with pay transparency laws

3 Steps for a Strong Internal Communication Plan

Before you jump into tactical action, it’s wise to take some time to be sure you’re thinking about this challenge from an employee’s perspective. Here are three steps to consider as you create your pay transparency communication plan:

1. Assess Your Situation

Compensation can be complicated. Many employees may not have a clear understanding of how pay works at your company. Baseline data about awareness and knowledge across your organization will provide powerful insights as you set objectives and create your internal communications plan. If you don’t have existing research to analyze, here are several suggestions:

  • Conduct a Brief Audit: Review your communication channels to understand how pay and compensation topics are currently communicated. Focus on tone, details, level of transparency, audiences (such as department managers), and frequency. Does information need to be more accessible? More coherent? More consistent? Do people managers have access to resources that can help them answer questions effectively? Use this as a jumping-off point when developing your objectives. This audit will also help you uncover communication priorities. For example, if pay-related information is not communicated regularly, you may need to build foundational knowledge into your plan.
  • Initiate “Reality Check” Interviews: Start with the HR team — your compensation specialists. What are they hoping to accomplish with their policies and programs? What changes are they planning, if any? Next, reach out to a few employees from various areas of your organization and ask high-level questions. Quick, casual interviews like these are an easy way to confirm how your workforce views compensation. You may even uncover issues that aren’t yet on your radar.
  • Research Other Companies: Because pay transparency is a trending topic, it’s easy to find examples of organizations that are effectively tackling the issue. Case studies from other organizations can be a great source of inspiration as you develop communication tactics and messaging.

2. Craft Your Compensation Story

Pay transparency isn’t just about the “what” (actually dollar amounts). It’s also about the “how” and “why” behind those numbers. Therefore it’s essential to help employees understand big-picture ideas about pay at your company. This is where a narrative helps. You’ll want to build a story or a set of key messages that:

  • Clearly explain your organization’s approach to pay — your philosophy and policies
  • Inform and focus communication so employees clearly understand your approach
  • Provide a roadmap for people who are responsible for communication, so they deliver consistent messaging

When creating your organization’s compensation story, start with these three questions:

  • What is our pay philosophy? This should describe your company’s decision framework for compensation. It should outline the pay structure and components, including overall cash compensation, benefits, and rewards. Consider how this approach aligns with company values and articulate the level of transparency you’re committed to when communicating about pay.
  • What are the benefits of pay transparency? Whether it’s attracting quality candidates or driving a more inclusive culture, find a way to weave in your value proposition. This will help stakeholders understand the “why” behind sharing pay information.
  • What actions (if any) do you want people to take? This is where you explain how employees can learn more about compensation, such as process changes, or new ways to access information. Note: Actions may differ by audience (for example, managers versus general employees).

Remember, this isn’t one-and-done. Your compensation story should be an ongoing part of communication about compensation and rewards. Consider embedding messages into onboarding, benefits discussions, performance management processes, and more.

3. Prepare Leaders and Managers

Once you’ve established your pay philosophy and developed a set of key messages, it’s time to put it in the hands of your spokespeople: leaders and managers. Employees often turn to them first with pay-related questions. Tools, resources, and guidance will not only help them deliver the message, but also prepare them to deal with potentially tough conversations.

Set up your leaders and managers for success with the support they need:

  • Provide answers: Everyone who fields questions from employees needs to understand their communication role. They also need to know how compensation works in your company: how base salary is set, how ranges are determined, and other factors that influence these decisions (including location, role, and experience). Create topline messages, FAQs, and detailed guides to provide answers that address a wide range of scenarios and concerns. Also, be prepared to update these resources on an ongoing basis. By empowering leaders and managers to discuss pay confidently with their employees whenever the need arises, you’ll ensure those conversations are informative, accurate, and productive.
  • Provide training: Host a workshop to help leaders and managers understand how to conduct effective compensation conversations. This also provides a forum for leaders and managers to discuss issues with their peers and expand their knowledge about this important topic.

A Final Note on Pay Transparency

Pay transparency is a powerful trend that can lead to a more equitable workplace, overall. But, as new external reporting requirements become a reality, employers should expect to hear many questions and concerns from employees. Organizations that prepare to address pay questions with more open and transparent internal communication are positioning themselves for success. Are you ready?

9 Ways Organizations Can Become More Inclusive This Year - TalentCulture

8 Ways Companies Are Becoming More Inclusive This Year

/, , , /by

Is your organization striving to create a more inclusive work culture? If so, you’re not alone. Many HR and business leaders are committed to improving diversity, equity, and inclusion (DEI). But some strategies are more successful than others. What methods are actually moving the meter these days?

To understand what works in the real world, we asked eight business executives to tell us about effective DEI changes they’ve implemented during the past year. Their collective answers read like a best practices playbook:

  • Improve Meeting Policies to Support Wellbeing
  • Review and Revise Job Offers
  • Establish Employee Resource Groups
  • Share Diverse Employee Experiences
  • Shift Pay Structure to Base Salary and Bonus
  • Introduce Mental Health First-Aid Support
  • Prioritize Leadership Paths for Women
  • Intentionally Redesign Teams for Diversity

For details about these ideas, read the responses below…

How to Become More Inclusive: 8 Examples

1. Improve Meeting Policies to Support Wellbeing

As part of our commitment to workforce wellness, we addressed recent employee feedback about excessive meetings and pandemic-related burnout. Specifically, we emphasized the importance of taking small actions to reduce meeting frequency and duration, so we could ease stress for everyone. For example:

  • We send regular calendar blocks so everyone can conduct brief “meeting audits.” This is when employees use our Meeting Decision Tree tool to review upcoming meetings and determine the necessity.
  • We’ve recommitted to scheduling meetings only within core business hours (9:00 am – 4:00 pm) to promote reasonable work-life balance and family time in the evenings.
  • We’ve designated Friday afternoons as meeting-free time. This enables people to focus on creative assignments, catch up on projects, and prepare for the week ahead.

Our new practices and resources are improving wellbeing. They’re also facilitating better collaboration, problem-solving, productivity, and innovation.

Natasha Miller Williams, VP, Head of Diversity and Inclusion, Ferrara

2. Review and Revise Job Listings

During the past year, we have intentionally revisited the way we write job ads. We’ve always made sure our offers are inviting, clear, concise, and accurate. However, we felt it was time to address other details so we could hopefully increase diversity among candidates.

The results are visible to the naked eye. Now, I am super happy to look at our diverse teams, knowing that our attention to rephrasing may have made it easier for people to join us.

These were our priorities when reviewing and improving job listings:

  1. We used truly gender-neutral language.
  2. We highlighted the importance of skills, so it’s clear that this is the decisive factor in our hiring decisions.
  3. We listed job requirements only if they were absolutely necessary. You never know if needless demands are unintentionally excluding people.
  4. Finally, we reviewed job titles and descriptions to ensure that they are truly inclusive and free of biased language.

Piotrek Sosnowski, Chief People and Culture Officer, Life And My Finances

3. Establish Employee Resource Groups

Our organization has been attempting to improve inclusivity by enhancing our approach to diversity and inclusion training. For example, we have created employee resource groups (ERGs) to provide a safe space for employees based on their identity or shared experiences. 

These ERGs serve as proactive networks that help members build communities, collaborate professionally, and work together on initiatives that promote inclusivity across the organization. They also help our organization understand uncommon experiences and points of view, while ensuring that everyone is respected at all times.

Michael Alexis, CEO, teambuilding.com

4. Share Diverse Employee Experiences

For any organization that wants to build a more welcoming culture where everyone feels they belong, raising awareness about inclusivity is vital. However, it’s not always easy to understand the difficulties that other people face — especially when those difficulties aren’t highly visible. 

This is why we’ve been providing opportunities for employees from across the organization to share their unique stories. Specifically, we invite everyone to discuss the unique difficulties they face, along with advice on how peers and managers can be more helpful. They also answer questions from others in the organization.

By sharing employee experiences, we’re spreading empathy across our organization. This helps team members build stronger bonds and creates a more positive, inclusive work environment.

Max Wesman, Chief Operating Officer, GoodHire

5. Shift Pay Structure to Base Salary and Bonus

Although our industry traditionally pays employees on a commission-only basis, we’ve adopted a compensation package that includes base salary plus a performance bonus. This gives employees better financial security and peace of mind. Also, we feel it helps ensure our clients receive the best impartial advice from every agent.

What’s more, this move promotes more inclusivity. That’s because sponsorship and mentorship are integral aspects of mobility for people of color and other underrepresented employees. But commission-only pay can derail vital team relationships and breed a culture of competition that further divides people.

We encourage our people to collaborate in establishing performance metrics that will promote better team cohesion and move us collectively toward our DEIB goals.

Anthony Martin, Founder and CEO, Choice Mutual

6. Introduce Mental Health First-Aid Support

During the last year, our organization has focused heavily on promoting employee mental health. In particular, we’ve focused on making our workplace safe for people with any kind of neurological difference, such as ADHD, dyslexia, or autism.

As part of this effort, two of our staff members completed mental health first aid training. Now, people across our organization know that if they’re struggling, they have somewhere to go where they will be heard and supported but not judged.

This effort has been very well received. In fact, it’s been so successful, we’ve recently trained two more mental health first-aiders.

Matthew Stibbe, CEO, Articulate Marketing

7. Prioritize Leadership Paths for Women

People expect modern organizations to provide an inclusive work environment. And this responsibility for creating a welcoming work environment for all falls on the management team. This is why we’ve essentially created a women in leadership program designed to help women from all backgrounds achieve their professional aspirations.

Unfortunately, many businesses don’t promote single mothers into leadership. That’s because they assume women won’t have the time or commitment to succeed. But in my experience,  these women tend to be more driven than average.

Long ago, I started my company as a single mother. I understand firsthand just how hard it can be to juggle personal and professional life. But I also know how committed women in this situation are to keeping their promises to customers, employees and family members.

Our organization wants to reward this kind of commitment. That’s why we assist women of all ethnicities and backgrounds as they work towards a degree or a leadership position in our company. We want to help women in our company shoot for the stars and reach them.

Kathy Bennett, CEO and Founder, Bennett Packaging

8. Intentionally Redesign Teams for Diversity

We recognize the value of diverse perspectives and experiences in driving innovation and fostering a more inclusive work environment. So, one action we’ve taken this year to enhance diversity involves remixing our teams.

Specifically, we deliberately redefined the composition of teams across departments and projects. Our goal was to better represent the diversity of our workforce within smaller groups. Therefore, when reassigning team members, we considered factors such as gender, ethnicity, age, and skill sets.

By intentionally rethinking the composition of our teams, we’ve aimed to break down silos, encourage collaboration, and promote the cross-pollination of ideas. By bringing together individuals with different perspectives, expertise, and life experiences, we hope we’re better positioned to harness the collective intelligence and creativity of our workforce.

Kimberley Tyler-Smith, VP of Strategy and Growth, Resume Worded

What's the Real Cost of DEI - TalentCulture

What’s the Real Cost of DEI?

/, /by

In today’s diverse, dynamic work world, employers increasingly recognize the transformative power of diversity, equity, and inclusion. Still, concerns often arise about the cost of DEI initiatives. The best answers consider benefits as well as costs. In other words, if you want to build a compelling case, focus on business value. But what exactly does that look like?

To make sense of it all, let’s dig deeper into DEI’s true value. This article sheds light on the remarkable return on investment you can achieve with a wholehearted commitment to DEI.

The Benefits of DEI

Consultants at McKinsey have conducted extensive research on the impact of gender and ethnic diversity on financial performance. They found that companies with diverse executive teams are 25% more likely to experience above-average profitability. This finding demonstrates a clear link between DEI and financial success.

Another example underscores the impact of diversity on customer experience. Salesforce, a leading customer relationship management platform company, is known for its strong commitment to DEI. But this didn’t happen by accident. In 2020, Salesforce revamped its talent acquisition strategy and training programs to reduce bias and expand minority employment opportunities.

Within a year, the company more than doubled its hiring rate among marginalized communities. In addition, internal research revealed that employees from these diverse groups became more engaged and contributed to higher customer satisfaction ratings.

How much should your organization invest to become more ethical and profitable? Let’s explore….

The Cost of DEI

Diversity budgets come in all shapes and sizes. They range from a modest $10,000 to a mind-boggling $216 million. But the sweet spot lies at a median budget of $1.2 million. 

When allocating funds to increase workforce diversity, you can prioritize specific business activities (training programs, recruitment, recognition) or functions (HR, Marketing, Community Relations). 

For smaller organizations with fewer than 1,000 employees, it is feasible to initiate DEI efforts by assigning specific responsibilities to existing staff members. For example, you could allocate about 50% of an existing employee’s role (such as an HR project manager), to oversight of DEI initiatives. This makes it possible to integrate DEI responsibilities into your workflows without creating a dedicated role or team.

However, in larger organizations, it’s crucial to establish clear ownership of DEI with a dedicated role or team. This ensures that DEI efforts receive the necessary focus and resources to drive meaningful change.

At the average Fortune 1000 company — with a workforce of 34,000 people and revenue of $15 billion — the DEI budget is significantly larger than other companies require. For a smaller organization — with 2,ooo-10,000 employees — a reasonable estimated budget for establishing a DEI program is likely to range from $50,000 to $300,000.

But no matter what your company size or DEI budget, the key is to spend that budget effectively. How should you allocate available funds? Let’s look closer…

Structuring a DEI Budget

The range of DEI expenses varies, depending on numerous factors, such as an organization’s size, industry, geographic location, and scope of DEI initiatives. It’s important to note that there is no fixed or universal standard for DEI budgeting. Each firm faces unique financial realities and priorities.

Now, let’s break down ways to distribute your budget across key areas:

1. Personnel Expenses

This includes any costs associated with hiring and maintaining a dedicated diversity and inclusion team. It may include salaries and benefits for DEI professionals to develop your strategy, implement initiatives, offer guidance, and provide support.

2. Training and Education

This covers expenses for design, development, and delivery of diversity and inclusion training programs, workshops, and seminars. It can include the cost of external trainers, development of training materials, e-learning platforms, or subscription fees for diversity and inclusion training resources. Investment in engaging, transformative training programs varies widely, from $30,000-$150,000.

3. Recruitment and Branding

To promote diversity and inclusion, budgeting for recruitment and hiring initiatives is essential. This may include expenses for advertising on diverse job boards, attending job fairs that target underrepresented groups, engaging with recruitment agencies that specialize in diverse talent, or implementing software and tools that help reduce bias in the hiring process. Companies usually set aside $10,000-$30,000 for DEI-focused recruiting and branding initiatives.

4. Employee Resource Groups 

Employee resource groups can foster a sense of belonging and provide a platform for underrepresented employees. But you’ll need a budget to establish and sustain these groups. This can include funding for ERG events, activities, resources, and initiatives that promote DEI within your organization. Employers often allocate $10,000-$30,000 for this line item.

5. Policy Development and Implementation

This ensures that your organization’s policies align with DEI principles. It may involve expenses for external experts, legal consults, or HR DEI specialists to review, update, and create relevant policies. However, you can manage this process without extra expenses. These tips can help:

  • Review your existing policies and practices to identify potential biases or barriers. 
  • Make necessary adjustments to ensure inclusivity across various functions and responsibilities, such as hiring, promotion, and performance evaluation. 
  • Encourage transparency and accountability in decision-making to prevent bias and discrimination.

6. Data Collection and Analysis

Investing in data collection and analysis tools enables organizations to track DEI progress effectively. Budgeting for these resources may include expenses related to software, surveys, and data analysis tools. It may also include the cost of consultants to conduct audits and assessments.

7. Community Partnerships

To build external relationships and demonstrate a commitment to DEI beyond the workplace, employers often allocate a portion of their budget to community engagement and partnership programs. These are common steps:

  • Look for external organizations or community groups that align with your DEI goals.
  • Consider how these efforts can open doors for additional expertise, resources, and networking opportunities.
  • Collaborate with appropriate groups to define joint initiatives, such as workshops, panel discussions, or mentoring programs. 

A budget of $5,000-$50,000 can help drive effective partnerships or sponsorships.

8. Ongoing Evaluation and Measurement

Budgeting for ongoing evaluation and measurement is crucial because it ensures that you can determine the impact of DEI initiatives. This may include funds to conduct surveys, audits, or focus groups. It may also include the cost of hiring external consultants to evaluate your company’s progress.

Meanwhile, you can save money on evaluation activities by regularly measuring DEI ROI.

The ROI of DEI

To showcase the value of your DEI efforts, you’ll want to estimate ROI. Follow these steps:

1. Identify Measurable Objectives

Start by defining clear objectives for your DEI initiatives. These objectives should align with your organization’s overall goals and values. For example, you may aim to increase employee retention, enhance innovation through diverse perspectives, or improve customer satisfaction and loyalty.

2. Determine KPIs

Select specific key performance indicators (KPIs) that align with your objectives. These metrics should be quantifiable and trackable over time. For instance, you could measure employee satisfaction and engagement, diversity representation at various levels of the organization, or customer feedback related to diversity and inclusion.

3. Establish a Baseline

Before implementing DEI initiatives, establish a baseline measurement for each selected KPI. This provides a starting point, so you can measure subsequent progress. The easiest way to do this is to gather and analyze available data from existing HR and business systems and programs. You may also want to collect and analyze relevant data by conducting preliminary surveys, assessments and interviews.

4. Track Progress and Impact

As you implement DEI initiatives, regularly monitor and track the selected KPIs. They may include minority hiring rates, promotion rates, turnover rates, employee satisfaction scores, customer satisfaction scores, or other relevant metrics. As you measure change in each metric over time, you can follow your organization’s overall DEI progress. This trend analysis will also help you quickly identify unexpected issues that should be researched and resolved. 

5. Assign Monetary Value

By assigning a value to improvements in selected KPIs, you’re taking a vital step forward in justifying the cost of DEI initiatives. This step can be challenging, but it will help you demonstrate the tangible benefits of your efforts. For example, you could estimate the cost savings associated with reduced turnover, or the potential increase in revenue resulting from improved customer satisfaction and loyalty.

6. Compare Investments and Returns

Next, estimate ROI by comparing tangible DEI costs (financial resources, time, and effort) with the monetary value you’ve assigned to improvements you’ve observed. In other words, subtract actual costs from tangible benefits. Ideally, the result of this calculation will be a positive value (benefits – costs = net benefit).

7. Consider Qualitative Impacts

While ROI calculations often focus on quantifiable metrics, it’s also vital to consider qualitative outcomes. In other words, for some business endeavors, the overall positive impact can far exceed the result of a straight cost/benefit equation. Look beyond the numbers to consider the importance of qualitative benefits such as a more vibrant work culture, improved employee morale, enhanced brand reputation, and stronger relationships with diverse communities. Goodwill may be intangible, but it is a powerful business asset.

A Final Note on the Cost of DEI

Some companies have struggled to demonstrate the value of their DEI initiatives. However, with thoughtful planning and an ongoing commitment, it is possible to develop an effective working budget and successfully demonstrate ROI.

Although the upfront cost of DEI initiatives may seem steep, organizations can experience tangible benefits in the long run. But the true value of diversity, equity, and inclusion actually goes beyond financial success. DEI has the potential to elevate your work culture, customer relationships, and brand position in ways that can transform your organization for the better.

How to Bridge Hiring and Wage Gaps with DEI Analytics - TalentCulture

How to Bridge Hiring and Wage Gaps with DEI Analytics

/, , , , /by

In recent years, diversity, equity, and inclusion (DEI) has become a red-hot topic among employers and human resources professionals who plan and manage these initiatives. The tumultuous past few years have reshaped perceptions about when, where and how we work. Meanwhile, ongoing social unrest is challenging organizations everywhere to more deeply consider how their policies, practices, values and norms affect people from all walks of life. As a result, interest in DEI analytics is skyrocketing.

With diversity initiatives on the rise, employers recognize they must have the ability to measure progress. Currently, DEI programs are underway at an estimated 80% of U.S. companies. And although the business world is seeing some improvement, there’s still a long way to go.

For instance, organizations that don’t prioritize a culture of inclusion continue to put their brand at risk. Some have already faced serious public backlash — not to mention costly legal ramifications from discriminatory hiring, compensation, and management practices. In short, no matter where your organization is on the DEI investment spectrum, access to relevant analytics is essential.

Defining DEI Analytics

Every organization can benefit from knowing if employees are experiencing unfair or inequitable treatment. DEI analytics tools and processes add value by converting HR data into actionable insights about related issues. For example, these tools can help you:

  • Develop metrics to detect decision-making bias, unequal access, unfair treatment, and discrimination based on gender, race, disability, religion and/or sexual orientation.
  • Analyze data patterns to discover where employees face opportunity barriers. In other words, you can compare staff development and mobility statistics across groups with different traits and compensation levels, independent of individual performance or other factors.
  • Track and compare key DEI indicators to determine if your workforce is representative of the labor market in your industry.

Together, these capabilities make it possible to identify and resolve specific DEI issues and also evaluate your organization’s performance over time.

The Value of DEI Analytics

As Jeff Higgins, CEO of HCMI says, “Leveraging diversity data to empower decisions or action is perennially easy to say but hard to do.” True. Developing a coherent, reliable dashboard can be a complex process. But organizations can no longer afford to get by with hunches or incomplete data. Too much is at stake.

There are many other reasons to embrace DEI analytics. Here are three examples:

  • Data-based analytics reports make it possible to enforce discrimination laws in Title VII of the U.S. Civil Rights Act. By protecting fundamental civil rights, employers play a vital role in preserving our society.
  • For organizations that want a talent acquisition edge, DEI intelligence is highly beneficial. Younger generations expect workplace equality. And inclusive cultures attract top talent. If candidates think your employee base lacks diversity or your track record in advancing underrepresented groups is weak, they might conclude that you’re out of touch. But data that highlights DEI strength can prove that you stand by your values.
  • Improving diversity policies and practices can directly boost your bottom line. In today’s business world, investors see greater value in companies with strong environmental, social, and corporate governance propositions. And the most effective, efficient way to benchmark these policies and track improvement over time is with DEI analytics.

How DEI Misconceptions Hinder Analytics

Several fallacies in the HR community sometimes keep businesses from implementing DEI analytics initiatives. The primary misunderstanding is that DEI policies enforce “hiring quotas” and place a premium on race or gender, rather than candidate quality.

On the contrary — proper diversity plans ensure that hiring and advancement opportunities for underrepresented groups are proportionate to the pool of available candidates. Combined with appropriate employee selection and promotion assessments, organizations can have confidence that they’re making these decisions with a high degree of fairness and equity.

Bottom-Line DEI Statistics

For employers who want to measure DEI performance, countless metrics are available. For example, “pulse” surveys are a popular way to calibrate employee sentiment about belonging and inclusion. What matters most when choosing baseline metrics is that they accurately reflect the state of equity and inclusion across your workforce.

Below are three measures that can help ensure that you are prioritizing DEI in an effective and legally compliant way. Once these metrics confirm that you’ve reached parity with comparable organizations, you can move on to more advanced and nuanced options such as pulse surveys.

1. Recruitment

When setting DEI goals, it’s important to consider representation in your talent pipeline, relative to the labor market at-large. A great way to apply DEI analytics in recruitment is to measure whether your efforts actually reflect the qualified labor market in your area.

For example, if 20% of your local population includes qualified African-American candidates, then you would expect about 20% of your company’s candidates to be African American. However, if you’re hiring for remote roles, your labor market could be nationwide or even global.

2. Hiring and Promotion

Simply hiring diverse candidates is not enough. To truly address diversity representation, you’ll want to ensure that women and people of color are distributed throughout all levels of your workforce.

A common mistake employers make when trying to boost diversity representation is to ignore where women and people of color are located in their organizational structure. It might be easier to achieve broad representation goals when women and people of color dominate your lowest ranks. But for DEI success, all tiers of your organizational structure should reflect the available labor market.

3. Compensation and Pay Equity

It’s also important to know if employees in similar roles are being compensated equally, after considering relevant factors such as time on the job and overall performance. For example, in the U.S., women earn about 20% less than men, on average. But employers are increasingly addressing disparities like this with pay equity initiatives. In other words, all employees performing the same type of work at the same level in an organization receive the same compensation, after relevant pay practice factors are considered.

The right metrics can help you ensure that all employees are paid fairly. While discrimination in the workplace continues to remain a significant issue, today’s biases are largely unintentional. If you don’t track DEI metrics properly, you may not even be aware that implicit discrimination like unequal pay is an ongoing issue.

A Final Note on DEI Analytics

Advancing DEI initiatives is simply the right thing to do. But organizations can no longer leave inclusion to chance. The best way to ensure that you’re on track is to make decisions based on hard data and accurate analysis. As the old adage goes, you can’t improve what you don’t measure.

By including DEI metrics in recruiting and compensation discussions, your company can maintain modern business standards while gradually becoming more diverse and inclusive. Along the way, you can make better-informed decisions that will keep existing employees happy, engaged, and committed to fairness and inclusion.

People-First DEI is High-Impact DEI. Why? A diversity expert shares her perspective

People-First DEI is High-Impact DEI. What’s the Secret?

/, , , /by

Diversity, Equity, and Inclusion (DEI) is by definition a people-centered business endeavor. So at first glance, the phrase “people-first DEI” may seem redundant. But that’s not always the case. Numerous factors shape DEI initiatives. But not all of these factors are beneficial. In fact, some even derail DEI progress. Why is this happening?

In recent years, many organizations have invested heavily in DEI endeavors, primarily in response to growing societal pressure, evolving customer expectations, and increasing competition for qualified talent. However, research reveals mixed results.

For instance, according to Deloitte, 86% of business leaders think embedding DEI into their work culture is very important. Yet only 25% say their organization is ready to move the needle. And only 30% link inclusion with business outcomes like productivity or profitability.

In this environment, it’s easy to find employers that are struggling to succeed at DEI. Plenty of programs land flat or wind up amplifying the issues they’re trying to solve. So, how can employers fix this?

Where DEI Goes Wrong

Inclusion challenges clearly are people-driven issues. But often (and ironically) organizations view DEI through a technical or data-focused lens. For example:

  • Many organizations see DEI as a layer of additional commitments and activities, rather than a comprehensive transformation that starts with embedding people and culture into business strategy and objectives. As long as a specific “target” percentage of employees are from underrepresented populations, leaders see DEI as a success.
  • Well-meaning executives invite inspirational DEI speakers to deliver presentations once a year at company meetings. They believe these stories will make a lasting impact on employees. Then they’re surprised when it doesn’t happen.
  • Similarly, some organizations hire a specialist to spearhead their DEI efforts. But if that position is a title in name only, and lacks appropriate responsibility, authority, and budget, nothing changes.

Although choices like this can contribute to stronger DEI outcomes, they won’t make a difference without employee buy-in. That’s where people-first strategies make all the difference.

Marissa Andrada, a self-described culture master and kindness catalyst, counsels companies on DEI. As a chief people leader and board director, she’s found that integrating people-centered DEI strategies with business strategy unlocks opportunities for growth in individual performance, corporate performance, and beyond.

Andrada says, “Diversity is rooted in the practice of inspiring people to feel confident in bringing exactly who they are to the table, which is unique for every individual. Overlooking the potential and value of individual talents defeats the purpose of building a company culture with diversity at its core.”

She adds that leaders who develop emotional connections with staff are better able to hear their voices and “grow the company through growing people.”

Of course, the road to embedding deeper people connections into your DEI program requires deliberate, thoughtful action. Try the following steps to make sure your efforts are designed and delivered with true human needs in mind…

3 Keys to People-First DEI

1. Close Gaps in Career Opportunities and Pay Practices

Many companies still struggle with pay gaps among people from different gender and race populations. In fact, Pew Research over the past two decades reveals that women still don’t earn equal pay for equal work. And SHRM says race-based salary inequities are just as disappointing.

It’s very difficult for employees to believe your company cares about DEI if you ignore existing pay gaps. Staff members won’t get behind internal DEI efforts if they’re being discriminated against in their paychecks. On the other hand, if you identify and close discriminatory pay gaps, you’ll open the door to DEI program acceptance and momentum.

Don’t forget that opportunity gaps and pay gaps are closely related. Equal pay is not enough. Your job is to also remove barriers to advancement and professional development across the board. By leveling the financial and opportunity playing field, you’ll speak volumes about DEI. Plus, you’ll get more people excited about diversity and inclusion as a broader work culture concept.

2. Ask Employees to Share Meaningful Changes They Want

Rather than play a guesswork game with DEI, go right to the source. Survey employees to determine what matters most to them. Where do they see openings for DEI to help make your workplace more inclusive? What do they want the DEI team to do for them and their colleagues? I guarantee the answers will be both eye-opening and informative.

For example, you may discover that employees want your organization to invest in employee resource groups (ERGs). Company-supported ERGs give people common ground and a chance to feel more “at home” on the job. Healthy ERGs are naturally inclusive and open to all members, including those who want to be better allies.

Another DEI program your people might appreciate is formal mentoring. Many up-and-coming workers from underrepresented groups feel isolated. They may want to climb the corporate ladder but have few (or no) internal role models to follow. Mentorships can be a way for them to grow within a supportive system. They can also attract talent from diverse candidate sources. That’s yet another reason to get staff members involved in developing your DEI strategies.

3. Keep Updating Your DEI Vision, Mission, and Approach

DEI doesn’t work as a standalone “set it and forget it” campaign. It’s not an automatic process. It’s a moving target that requires fine-tuning every step of the way. As your culture changes and becomes more inclusive and diverse, your people’s needs will change, too.

If you’re a leader, this means you’ll also want to take a flexible stance toward DEI. For instance, instead of building a formal, structured 12-month, 3- or 5-year DEI plan, consider taking a page from the agile playbook.

On a quarterly or semi-annual basis, evaluate what’s happening across your company related to DEI. Are things working well, or are tweaks in order? What’s missing? What’s no longer needed?

It’s best to assign a committee of employees to own this responsibility. Just be certain you empower them to conduct regular reviews and recommend appropriate adjustments.

By constantly refining and retooling your DEI efforts, your organization will stay ahead of the curve on DEI, in general. The field has experienced significant transformation — particularly since 2020 — with increased social injustice awareness. If your DEI is stuck in a pre-Covid era, you’re probably not connecting with your current employees’ needs and expectations. A refresh can resolve this issue and help you get back on track.

Final Thoughts on People-First DEI

When handled well, a commitment to DEI can be a huge asset for any company. It builds a sense of camaraderie that improves a brand’s reputation and appeal, while enhancing a company’s value in the marketplace.

But lasting change doesn’t happen unless employers design, implement, and manage DEI efforts around what truly matters to their people, rather than trying to force everyone into a one-size-fits-all mold. For successful results, start by connecting with your people, reassessing your culture, and moving forward from there.

Hiring Outsourced Labor? Here's How to Maximize ROI

Hiring Outsourced Labor? Here’s How to Maximize ROI

/, , , /by

In a world filled with uncertainty, one thing is certain. “Business as usual” is no longer a realistic strategy. So, during unusual times like this, is it wise for companies to continue hiring? Many employers say yes. But others are turning to creative alternatives like outsourced labor. Here’s why:

Despite lower inflation and a temporary pause in lending rate hikes, the U.S. economy remains shaky. Some experts still say a recession is likely. Yet even though job growth has recently gained some steam, layoffs continue to spook employees — especially in the tech sector. And who can blame them? After all, technology companies have laid off nearly 211,000 people this year. At the same time, the number of open tech jobs has plunged from a high of 477,000 last August to only 168,000 this month. Chilling.

Even so, employers continue to grapple with the country’s ongoing labor shortage. In May, the unemployment rate remained low at 3.7% (about 6 million people), while job openings inched up to 10.1 million. In other words, many more jobs are available than today’s unemployed Americans can fill.

All these variables are making workforce planning especially difficult. So, rather than debating whether to downsize or expand your workforce — why not consider doing both? This strategy may seem counterintuitive. But it actually lets you retain valued employees while hiring talented candidates who want more work stability.

Of course, for this to succeed, your company’s reputation, benefits, and culture must be top-notch. U.S. employees are interested in organizations with a vibrant work culture backed by strong core values. In fact, 75% of employees say it’s “very important” to work for a company with well-defined values. And almost 20% of employees consider it the most important factor for job satisfaction.

If your company neglects these things, you could lose current employees. What’s more, attracting strong new talent will be much more difficult. For ideas about how to make the most of this strategy, keep reading…

How to Hire Quality Talent Amid Labor Shortages

When hiring, prioritize quality over quantity. The importance of hiring the right people can’t be overstated. It may feel good to receive hundreds of applications for an open position, but it won’t necessarily make things easier. If only a few applicants are qualified, you’ll need to spend many more hours of review and deliberation to find them. This unnecessary effort only makes your hiring process less efficient. 

If you choose to hire full-time employees, seek out candidates who have worked at startups or other scrappy environments. This kind of work experience suggests that a candidate is resilient, resourceful, and comfortable wearing multiple hats. 

Alternatively, consider hiring contingent workers. Because outsourced labor is ubiquitous and inexpensive, this is an attractive solution during talent shortages. Outsourced workers can focus on repetitive, easy-to-learn tasks so your full-time, in-house employees can spend their time on more strategic activities. This increases organizational efficiency and effectiveness. It also enhances the employee experience, which should improve workforce retention.

It’s also worth keeping in mind that the current labor shortage is expected to persist. If so, employee hiring and retention challenges are likely to continue. As a result, many companies could turn to outsourced staffing as a long-term solution. That’s a compelling reason to put successful outsourcing practices in place from the start.

5 Ways to Boost Workforce Performance With Outsourced Labor

Keep in mind that managing outsourced labor differs from managing in-house staff. To make the most of your outsourced workforce, try these tactics:

1. Invest in Structure and Quality Control

Designate one or several points of contact to manage outsourced labor roles, responsibilities, check-ins, and quality standards. This creates structure, which in turn prevents confusion, missteps, and other problems. It ensures that your contingent team members are aligned with your organization’s objectives and functional needs. Plus, it encourages two-way communication that helps minimize disengagement, quiet quitting, and excessive turnover.

2. Schedule Regular Check-Ins

Touching base with outsourced staff and outsourcing partners helps maintain accountability, transparency, and trust. By conducting weekly or biweekly check-ins, you can identify and address issues more quickly and keep the relationship moving forward smoothly.

I’ve seen several clients hire and onboard outsourced staff, and then treat it as a “set and forget” business arrangement. Soon, expectations became unclear, and clients didn’t get what they needed. Keeping in touch with contingent employees is vital to be sure everyone stays on the same page.

3. Don’t Overlook Onboarding and Training

An effective onboarding and training plan sets up outsourced workers for success. By providing the information, resources, guidance, and support needed to perform well alongside in-house employees, you can optimize the business value of contingent staff.

Unfortunately at many companies, onboarding is lackluster — even for in-house hires. In fact, according to Gallup, only 12% of employees think their organization does a great job of onboarding new people. With so much room for improvement, effective onboarding is likely to become a key trend in the future of outsourcing.

In my experience, new hires don’t start strong without complete information and training. They’re less likely to understand their role, and often they’re unsure where to go for answers when questions arise. This can lead to unnecessary mistakes.

However, when organizations plan and deliver thoughtful onboarding, they’re rewarded with motivated people who feel empowered to hit the ground running. So taking time to onboard both in-house and outsourced staff can quickly boost your team’s overall efficiency, productivity, and effectiveness.

4. Watch for Hidden Costs

An outsourced labor strategy is often a budget-friendly move. However, hidden costs can potentially erode any financial advantages. For example, you’ll want to pay close attention to the cost of communication and coordination with outsourced workers, as well as the cost of compliance with local labor laws and regulations.

When selecting an outsourcing provider, choose one that is transparent about prices. Also, look for a provider that adds value with payroll, human resources, and compliance services. This reduces management complexity for your organization and minimizes unexpected additional expenses.

5. Protect Against Security Risks

Unfortunately, data security risks are a modern business reality — especially when you rely on outsourced labor. Of course, some security breaches are unintentional. This is where proper upfront training can build awareness and help staff protect sensitive data and systems.

Regardless, intentional threats still exist. Although your trust in contingent staff will naturally increase over time, proactively protecting your business is mission critical. Some of my clients have experienced security breaches because they shared a little too much data and information before new hires settled into their roles. You don’t want that to happen.

To minimize exposure, carefully review outsourcing provider agreements for indemnification clauses that protect you in the event of a security breach. Also, your organization should use password-sharing tools that make it easy to detect and lock out workers who pose a threat.

A Final Note on Outsourced Labor

For most organizations, business uncertainty and talent shortages continue to play havoc with workforce planning. In this environment, it’s critical to determine how your organization can operate effectively and efficiently, no matter what. Hiring the right people is essential. But if you’re reducing headcount or slowing your hiring rate, outsourced labor is an attractive alternative. Relying on contingent staff to augment your in-house team can help you cut expenses and improve business efficiency without compromising core functions. And when managed well, this solution can help your organization effectively weather today’s economic challenges.

Rightsizing Your Workforce In the Face of Economic Change - TalentCulture

Rightsizing Your Workforce in the Face of Economic Change

/, , , , , /by

Businesses everywhere are still grappling with tremendous change, as pandemic aftershocks continue to roll through the global economy. Although most Covid-era restrictions are behind us, organizations large and small are still dealing with significant people-related issues. Workforce capacity planning is just one piece of this complex, multi-faceted puzzle. But if you’re an employer, rightsizing your workforce has likely become one of your top priorities during these turbulent times.

One of the most serious repercussions of the pandemic involves talent — or the lack thereof. Companies aren’t able to hire enough skilled workers to meet their operational needs. This inability to attract and retain qualified talent — coupled with inflation — is driving compensation higher. In fact, according to the March 2023 U.S. employment cost index, civilian wages continue to increase, up 5.0% over the past year. And depending on the industry, some workers are asking for even more.

This means employers are having to get creative when attracting and sourcing talent. For example, some are focused on rightsizing their workforce to maintain operational efficiency while qualified workers are in short supply. And many companies are downsizing and upsizing simultaneously, as they adjust to continuously changing industry challenges and trends.

Effective Workforce Rightsizing Isn’t Only About Efficiency

For numerous organizations, workforce rightsizing involves reliance on contingent workers. This can be a smart choice. Contractors and temporary workers often provide the flexibility needed to operate efficiently and effectively, even when market demand shifts or business priorities change. This strategy is also attractive because it helps protect internal employees and their core responsibilities.

Even so, a flexible workforce might not be enough to weather a negative business cycle. It may also be necessary to make the difficult decision to lay off existing employees. Obviously, the most challenging aspect of downsizing is deciding which employees to lay off.

Is it best to make these decisions based on individual performance? What role should seniority play? And how can you be sure your remaining team will have the skills, knowledge, experience and motivation to sustain your business through tough times and support future growth?

If layoffs are followed by a hiring freeze, there’s the additional question of how to retain remaining employees. What will you do if critical contributors decide to resign? The last thing you want to do during a business downturn is jeopardize a product launch, revenue goals, or customer experience.

It’s important to recognize that drastic workforce adjustments can trigger problems with stress, morale, and engagement. Naturally, staff members who aren’t laid off are likely to soon wonder, “Is more bad news on the way?” or “Am I next?”

Even in an era known for record levels of voluntary resignations, job loss is foremost on employees’ minds. In fact, it is the top concern among 85% of people, according to the Edelman 2022 Trust Barometer. Concerns like this can prompt even the most loyal team members to start hunting for a new job. And without proactive intervention from leaders, this kind of “flight” response can spread and upend your organization’s efforts to regain stability.

Rightsizing Your Workforce: 4 Key Strategies

When rightsizing your staff, finding the right balance isn’t easy. It’s even more difficult when you need to downsize one department while upsizing another.

You can certainly be upfront about your intentions — and you should be. Transparency and clear communication are essential when managing change. However, you can’t afford to lose sight of the fundamental challenge every organization must face. You must determine the best way to anticipate and respond to potential business fluctuations. Here are a few ideas that can help:

1. Include Contingent Workers in Your Plan

By definition, contingent workers serve as supplements to your core employee base. They generally work on a project-by-project basis. As such, adding contingent workers to your plan offers significant flexibility when rightsizing your team becomes necessary.

In fact, 63% of organizations told SAP Fieldglass that contingent workers enable greater organizational agility. What’s more, 62% believe contingent workers are essential for filling key IT and digital skills gaps. For example, when companies experience a sudden influx of work, they can call on this scalable talent pool for quick access to the right capabilities.

2. Be Strategic About Any Hiring Freeze

When initiating a hiring freeze, one of the biggest mistakes companies make is to halt all recruitment activities and contingencies, entirely. It’s important to continue hiring-related processes. This way, when the need for additional help arises, you can more easily pick up where you left off and maintain operational continuity.

Even if incremental roles are temporary, you’ll be better able to tap into the skills needed to support critical business objectives. In fact, 61% of companies told SAP Fieldglass that contingent workers help accelerate their speed to market. In other words, relying on flexible staffing can actually help you continue to scale during a hiring freeze.

3. Treat Skills Development as a Long-Term Investment

Don’t be shortsighted about talent recruitment or development. Focusing only on the skills you need now can leave you scrambling to fill critical roles down the line. In addition to the skills and competencies you need today, emphasize what will be essential for your business in the next few years.

Investing in professional development also gives you a chance to leverage learning and growth opportunities in your recruitment efforts. It can help your job openings stand out in today’s environment, where jobseekers value employers that emphasize learning and career advancement.

4. Leverage a Talent Marketplace

Essentially, a talent marketplace is a system that helps employers align talent with open roles. It can work one of two ways:

  • Internally, you can use this kind of system to facilitate employee mobility, helping individuals pursue different roles based on their skillset. Or you can redefine and reorganize an employee’s existing role so it better aligns with your organization’s changing needs. This process can be especially helpful during a hiring freeze.
  • Externally, a talent marketplace can help organizations open the door to freelance, temporary, or gig workers who are qualified for hard-to-fill roles. Think of it as creating a larger, more agile talent pool that lets you secure the right skills at the right time, while saving costs typically associated with recruiting and hiring internal employees.

Final Notes on Rightsizing Your Workforce

Pandemic aftershocks are still reverberating through the business world — and organizations will continue to be disrupted by unexpected external factors. As a result, smart employers are staying open to more agile workforce planning and management strategies.

Today’s successful employers are already rethinking the way they recruit, hire, manage, lead, compensate, and redeploy talent. Rightsizing your workforce is just one piece of this larger puzzle, but it can make a significant impact on your organization’s long-term success.

Which HR trends matter most in 2023 and beyond? Check this list from an industry insider

HR Trends That Matter in 2023: An Insider’s Guide

/, , , , , /by

People often ask me which HR trends should be on their radar. It’s a fair question, because I organize two of the HR profession’s most popular conferences, UNLEASH America and UNLEASH World. During the programming process, I work closely with hundreds of human resources leaders and industry influencers, as well as HR technology and services providers. Spotting key trends is easy, because patterns appear as I reflect on the topics speakers pitch, along with themes that emerge among exhibitors, attendees, and startup competitions.

This year, 7 closely related HR issues and opportunities are trending:

  1. Asynchronous work
  2. Distributed, remote and hybrid work
  3. Upskilling and reskilling
  4. Diversity, equity, inclusion, and belonging
  5. People analytics
  6. Employee experience
  7. AI and automation

These HR trends probably sound familiar, but they continue to define the future of work. That’s why they’ll take center stage at our conferences in the year ahead. For details on what I’m seeing and hearing about these hot topics, read on…

7 HR Trends That Matter Now

1. Asynchronous Work

Asynchronous work is the future of work. It’s an environment where people collaborate and complete tasks without real-time presence or communication.

Some industries have relied on asynchronous work for decades. For example, in the software sector, developers often work from wherever it’s convenient. They rely on a blend of standards, practices, and tools that support distributed project management, team problem solving, and interactions. This improves productivity in various ways — especially by reducing interruptions when people want to focus on their primary tasks.

Asynchronous work also improves the accuracy of strategic planning and decision making. Without accuracy, running a business is very difficult.

Many companies are still striving to enable asynchronous work. This includes connecting systems of record so relevant data is secure but also highly available. The goal is to ensure that information isn’t scattered, so people don’t need to call or message others whenever a question arises. Speed bumps like these can create huge volumes of reactive work.

An asynchronous work infrastructure is the foundation of another key HR trend: distributed, remote and hybrid work…

2. Distributed, Remote, and Hybrid Work Models

The pandemic was like a time machine. It instantly catapulted much of the world into a variety of work models that many of us discussed for decades, but hadn’t implemented. Now, these work models are here to stay.

For example, consider one of our biggest clients. At the start of 2020, this company was planning an 18-month global roll out of Microsoft Teams. But when the pandemic struck, they actually rolled-out Teams within only a few days!

This wasn’t an isolated incident. Organizations of all types suddenly had to embrace flexible work  arrangements. Now, although some teams are returning to the office, remote work structures remain. This is driving demand for hybrid work, where people can engage remotely at least one day a week.

Another HR trend emerging from the pandemic is the four-day work week. Previously, this was also widely discussed but not widely implemented. Then, during quarantine, flexible work arrangements became a necessity. This paved the way for ongoing adoption of the four-day work week and other innovative scheduling models.

Pandemic-era flexible work arrangements also helped many employees improve work/life balance. This is yet another HR trend that received attention in the past, but was rarely achieved.

Flexible work models aren’t perfect. But I doubt we’ll ever return to a world where people go to the office and work from 9-5 all week. We’ve seen flexible work succeed, even under the most difficult circumstances. We now know it doesn’t make sense to endure long, expensive commutes and childcare struggles. And why limit creativity and productivity to a prescribed time and place?

3. Upskilling and Reskilling

Although tech industry layoffs are rampant and a recession is looming, the war for talent continues to escalate. But this isn’t really news. It’s been building for years. So, what is the HR trend to watch here?

Many workers who perform repetitive tasks increasingly feel frustrated by a lack of career growth. For decades, we’ve discussed the gap between these jobs and knowledge work. But now, the gap is growing even wider, as technology continues to advance and employers invest more heavily in upskilling and reskilling knowledge workers.

To keep top talent onboard, employers are making learning and development a priority. Professional development is also a powerful way to attract new talent in an increasingly competitive hiring climate. But what does this mean for people with jobs that are likely to become obsolete or automated soon?

Professional growth is increasingly important to people in every line of work. So employers are investing in learning programs to help attract and retain a future-ready workforce. HR departments are finding that implementing and maintaining effective learning programs is much faster, cheaper, and easier now. That’s because learning systems are adding innovative tech like AI-driven capabilities, interactive video, and augmented reality to improve learning experiences. They also offer APIs to connect learning platforms with other HR and business systems, so employers can more easily assess employee skills, track development progress, and measure learning outcomes.

Ultimately, this means employers are becoming better-equipped to help individuals grow in their careers, while helping their organizations succeed.

4. Diversity, Equity, Inclusion, and Belonging

Another key HR trend focuses on workforce diversity, equity, inclusion, and belonging (DEIB). This isn’t just lip service. It has been a serious priority for years, and the commitment continues. Here’s why:

Studies show that diverse companies outperform others. That’s partially because they can tap into a broader range of employee perspectives — spanning age, race, gender, religion, sexual orientation, ethnicity, and more.

In healthy cultures, all employees are paid equally for similar roles. But that’s not the only requirement. People also need to feel welcome, respected and included in relevant meetings and decisions. These pillars of DEIB are more important than ever in today’s dynamic work world, and they’re becoming even more integral to the fabric of vibrant organizations.

5. People Analytics

For decades, data analytics has played a central role across business disciplines — finance, logistics, e-commerce, sales, marketing, and information technology. Now it is becoming common for HR applications such as learning, recruitment, performance management, and employee experience platforms.

Going forward, HR teams will increasingly rely on people-oriented analytics systems to make evidence-based decisions. For example, when relocating an office, decision makers will want to assess talent, performance, and many other data points to determine who should staff that office.

Also, look for AI to play an increasingly important role in people analytics applications, so organizations can improve decision support, performance analysis, and predictive processes.

6. Employee Experience

Now more than ever, organizations are emphasizing employee experience — including onboarding, workflow, culture, career development, and other aspects of work life. This is because a positive work experience correlates with higher engagement, productivity, satisfaction, commitment, and retention.

Also, employee experience is gaining traction because analytics systems are becoming more prevalent. This means more organizations have the capacity to evaluate the impact of employee-focused initiatives. Measurement typically focuses on onboarding, training, and other career experiences such as project assignments and promotions.

Employee experience is derived from customer experience and personalization initiatives used in marketing to assess customer preferences and develop relationships based on those interests. Similarly, the more an HR organization learns about employees and their preferences, the more effectively it can design custom work experiences with a more positive impact on engagement, performance, morale, and commitment.

7. AI and Automation

I’ve mentioned AI previously, but AI and automation deserve a separate discussion. That’s because both are transforming HR processes by dramatically streamlining tasks and enabling HR teams to focus more on strategic priorities.

AI and automation are critical to people analytics and employee experience initiatives. For instance, they can help detect when an employee is unhappy and at risk of resigning. Then, they can recommend ways to correct the issue before it’s too late.

In addition, these tools can alert HR and business managers when employees aren’t receiving appropriate onboarding or learning support. They can also assess and recommend an employee’s unique training path based on the market’s changing demands and the organization’s talent realities.

AI and automation will increasingly permeate HR, reduce the burden of administrative tasks, and offer invaluable insights regarding employee growth, performance, engagement, satisfaction, and commitment.

Final Thoughts on Current HR Trends

The pandemic unleashed work changes no employer could predict. But that’s only the beginning. Now, changes that started several years ago are leading to even more challenges and opportunities ahead.

In today’s volatile talent market, workers continue to place new demands on employers. Meanwhile, HR tech innovation continues to accelerate, giving organizations even more powerful and effective tools to improve all facets of work. As employers rapidly adopt new tools and techniques to improve organizational impact, the future looks bright across the HR landscape.

How can employers avoid employee survey fatigue? Check these expert tips - including an idea you probably haven't thought about

Avoiding Survey Fatigue: 4 Tips and a Breakthrough

/, , , , , /by

Without a doubt, employee surveys are the most widely used employee engagement tool. Surveys make it possible for employers to gather workforce feedback quickly and easily in a form that’s convenient and comfortable for participants. They are often easier to set up and manage than other feedback mechanisms. Plus, acceptance rates show that employees prefer surveys over other tools. However, you can have too much of a good thing. In fact, research indicates that a constant flow of surveys can be costly and self-defeating. That’s because it leads to survey fatigue.

What is Survey Fatigue?

Survey fatigue is a common issue that HR and business leaders should keep in mind when seeking employee feedback. On one hand, people tend to appreciate being asked for input. On the other hand, surveys can reach a point of diminishing returns when employees become emotionally tired and disengage from the process. This happens for multiple reasons:

  1. When people receive too many survey requests within a short timeframe,
  2. When survey logic, structure, or content is overly complex,
  3. When surveys are unnecessarily long or repetitive,
  4. When people feel their feedback isn’t seriously received.

Survey fatigue decreases participation rates. This, in turn, can reduce data accuracy and understanding of employee community sentiment.

How Does Survey Fatigue Affect Employee Satisfaction Programs?

The goal of a good survey is to obtain the most reliable insights from a representative cross-section of your employee base. The higher the participation rate, the more accurate your response data is likely to be.

Survey fatigue can translate into lower overall response rates that jeopardize data quality. This seriously threatens your ability to gather valuable information about workforce satisfaction, morale, cultural health, and overall employee experience.

Can you conduct an effective survey with a low response rate, if the data is representative of your overall employee community? Yes. But only if you are very sure that the lower number of respondents is actually statistically representative of the larger group. And that is difficult to accomplish.

Here’s one reason why: People with strong opinions or extreme positions aren’t affected by survey fatigue, so they’re more likely to respond. That’s because they’re highly motivated to make their voice heard.

As a result, the survey data will reflect only the most extreme views. It won’t accurately represent the majority view because survey fatigue caused other employees to abandon the feedback process. This is a type of survey bias called non-response bias.

How to Avoid Survey Fatigue

It’s important to understand the most frequent causes of survey fatigue, as well as best practices to avoid it. While there’s no single way to prevent fatigue in employee surveys, combining multiple methods can help you develop engaging, accurate surveys that yield high response and completion rates.

Here are 5 strategies to try (including one you’ve probably haven’t yet considered):

1. Limit Survey Frequency

One of the most important ways to avoid survey fatigue is to carefully time the cadence. Some organizations assume “more is better,” so they send multiple surveys every month. But that kind of pace can overwhelm employees, and may overwhelm your staff, as well. Instead, step back and consider your goals. Then develop fewer surveys, each with a specific objective. For example, you can use pulse surveys to get a quick snapshot of employee sentiment about key topics of interest. On the other hand, a full-scale engagement survey is more appropriate for measuring overall employee satisfaction and commitment.

2. Keep Surveys Concise

Long, complex surveys can be overwhelming. They’re likely to discourage employees from participating. It’s important to keep every survey targeted, concise, and to-the-point.

3. State Your Purpose Every Time

You’ll want to be sure employees understand each survey’s objectives and importance. When people know how their participation can affect their work life, they’re likely to take the time to share their opinions. For example, let’s say you want to know how employees feel about your return-to-work policy before you adjust it. Tell them upfront you’re gathering feedback about this because you’re planning to implement changes next quarter.

4. Remember, Timing Is Everything

Survey timing can have a significant impact on response. For instance, surveying employees during busy or stressful timeframes may produce inaccurate results, because people may not have the time or energy to respond as fully or thoughtfully as they normally would. Instead, distribute the survey when employees are likely to provide meaningful feedback. And be sure to keep the response window open long enough to collect data from those who want to participate.

5. Tap Into the Power of Passive Listening

Here is one feedback strategy you probably haven’t considered yet — passive listening. Thanks to new technology, these capabilities are revolutionizing the traditional survey process. By leveraging AI technology, passive listening can improve your understanding of employee morale, work culture, and trending topics in work conversations. All of this intelligence is gathered automatically in real time, and is continuously available for deeper analysis and action.

By working in the background, passive listening gives HR teams a wealth of employee sentiment insights without forcing people to respond directly to a survey. In addition, passive listening helps HR and business leaders make future surveys even better by providing a head start in understanding what employees already think about key issues.

Final Notes

Survey fatigue can harm your organization’s efforts to gather valuable information about retention, satisfaction, morale, cultural health, and the overall employee experience. But you can avoid fatigue by reducing the frequency of feedback requests, keeping surveys concise, clarifying your purpose, carefully scheduling delivery timeframes, and relying on passive listening tools to gather helpful intelligence without having to develop and distribute surveys.

By following these guidelines, you can increase overall feedback and improve data accuracy, while gathering more valuable workforce insights.

WOTC Prescreening Employer Tax Credit Compliance

The WOTC and Prescreening: How Employers Can Stay in Compliance and Reap the Benefits

/, , , , , /by

Sponsored by ADP

The WOTC (Work Opportunity Tax Credit) offers businesses a tremendous opportunity for tax credits based on hiring. But for organizations to participate and leverage the advantages of this federal program, they have to be in compliance. That means prescreening applicants. Given the recent update released by the IRS that clarifies the need to prescreen, the time is now to learn more.

As with so many complex tax credits and other regulations today, successfully navigating them requires not only understanding how to stay within the bounds, but then how to create a process to make it part of your hiring system.

A Tax Credit and a Boost

The Work Opportunity Tax Credit (WOTC) was first introduced in 1996. Since then it’s gone through a number of changes and extensions, including incorporating a credit for long-term welfare recipients in 2006. It’s authorized to stay in effect until December 31, 2025, so it’s anything but a flash in the pan: it’s a well-institutionalized regulation.

It’s designed to be both a tax credit for employers and a boost for employees, a combination of business advantage and social good. Companies who hire those American job seekers who consistently face barriers to employment can see up to $9,600 per employee — depending on a number of factors. In turn, qualifying new hires get the chance to break free from depending on government assistance and become self-supporting, steady earners and contributing taxpayers.

Leveraging the WOTC means respecting it: in its intent, the WOTC is designed to lift the barriers to employment among specific groups, and that’s why it includes specific criteria for compliance. It’s also opening up wider talent pools for employers at a time when hiring is tight, to say the least — and this should be seen as an added opportunity.

For larger companies that hire in numbers, it could be a windfall if done right. For smaller businesses it can make a tangible difference in a hiring budget: for every 4 or 5 new hires who fit within the target group, you may have the means to hire another employee as well.

Who Qualifies

Employees need to belong to a list of targeted groups, as specified by the IRS, and jobs must entail a minimum of working hours. Pay attention to the descriptions as well as the durations specified in each (adapted here):

 

Qualified IV-A Recipient:

  • A member of a family that receives state assistance under IV-A of the Social Security Act providing Temporary Assistance for Needy Families (TANF)
  • Assistance must be received for any 9 months during the 18-month period, ending on the hiring date.

Qualified Veteran: 

  • A member of a family that receives assistance under the Supplemental Nutrition Assistance Program (SNAP) (food stamps) for at least a 3-month period during the 15-month period, ending on the hiring date, or
  • Unemployed for a total of at least 4 weeks (consecutive or not), but less than 6 months in the 1-year period, ending on the hiring date, or
  • Unemployed for a total of at least 6 months (consecutive or not) in the 1-year period ending on the hiring date, or
  • Entitled to compensation for a service-connected disability and hired not more than 1 year after being discharged or released from active duty in the U.S. Armed Forces, or
  • Entitled to compensation for a service-connected disability and unemployed for at least 6 months (consecutive or not) in the 1-year period ending on the hiring date.

Qualified Ex-Felon:

  • Hired within a year of either being convicted of a felony, or
  • Released from prison for the felony.

Designated Community Resident (DCR): 

  • At least 18 and under 40 years of age, with a principal residence either in an Empowerment Zone (EZ) or
  • A Rural Renewal County (RRC).
  • The WOTC credit doesn’t cover wages paid or incurred for services performed while the person lived outside of an EZ or RRC. (You can find the latest list of EZ and RRC designations here.)

Vocational Rehabilitation Referral: 

  • Has a physical or mental disability and was referred to the employer while receiving or upon completion of rehabilitative services under:
  • A state plan approved under the Rehabilitation Act of 1973, or
  • An Employment Network Plan under the Ticket to Work program, or
  • A Department of Veteran Affairs program.

Qualified Summer Youth Employee:  

  • At least 16 but under 18 years of age on the hiring date or on May 1 (whichever is later), and
  • Only working for the employer between May 1 and September 15 (not employed prior to May 1) and
  • Lives in an Empowerment Zone (EZ).

Qualified Supplemental Nutrition Assistance Program (SNAP) Benefits Recipient:

  • At least 18 but under 40 on the date of hire, and
  • A member of a family that received SNAP benefits for either the last 6  months or at least 3 of the last 5 months.

Qualified Supplemental Security Income (SSI) Recipient:

  • Received SSI benefits for any month ending within the 60-day period that ends on the hire date.

Long-Term Family Assistance Recipient: 

  • At the time of hiring, is a member of a family that meets one of the following conditions:
  • Received assistance under an IV-A program for a minimum of the prior 18 consecutive months, or
  • Received assistance under an IV-A program for a minimum 18-month period beginning after 8/5/1997, and it has not been more than 2 years since the end of the earliest of such 18-month period, or
  • Ceased to be eligible for assistance under an IV-A program up to but no more than 2 years before because a federal or state law limited the maximum time those assistance payments could be made.

Qualified Long-Term Unemployment Recipient: 

  • Unemployed for not less than 27 consecutive weeks at the time of hiring
  • Received unemployment compensation during some or all of the unemployment period.

How to Certify

Eligibility for WOTC is not as simple as just hiring a member of one of these underrepresented talent pools and receiving a credit. As with many federal programs, the devil is in the details — and you can’t certify after the fact.

The IRS recently published additional guidance that clarifies the need to prescreen, and how to do it. As the update notes, “​​To satisfy the requirement to pre-screen a job applicant, on or before the day a job offer is made, a pre-screening notice (Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit) must be completed by the job applicant and the employer.

To reiterate, both employer and job applicant need to complete Form 8850 in advance. Certification has to happen before you can claim this tax credit, which means establishing that the employee you hired is indeed a member of one of the targeted groups on the list.

And there’s more: employees in the targeted list qualify as long as they work at least 120 hours — any less, and the hire isn’t in compliance. Employers also can’t claim the tax credit for rehired employees (it’s not that much of a stretch to imagine that some employers might think they could rehire an employee in order to certify them for the WOTC).

While the maximum credit is $9600 for an eligible employee, the amount of credit an employer receives depends on the WOTC target group identified, as well as how many hours the employee works:

  • If the employee works at least 400 hours during the first year of employment, the tax credit equals 40% of the employee’s qualified wages.
  • If the employee works less than 400 hours but at least 120 hours, the credit equals 25% of the employee’s qualified wages.
  • Eligible employees MUST work a minimum of 120 hours to qualify.

Reading Between the Lines

It means something that the IRS releases an update clarifying its rules on prescreening. Clearly, there were issues being found in terms of when employers were screening: noncompliance was on the radar. Compound that with wanting to increase participation in the program, and likely a decision was made that it was time to set the record straight. Again, complying with the WOTC could mean a major windfall for a larger employer and a key difference in the budget for a smaller one.

But many employers may have been caught in a blind spot. Some have been customarily conducting certain screening processes post-hire, considering the practice a viable shortcut. The intention may be to assume the new employee qualifies, since there has been some due diligence on the part of the employer already. Another assumption may be that by certifying after the hire is complete, the credits will come sooner. But both approaches are wrong.

For one thing, Form 8850 covers specific information in a specific way in order to certify a hire — and as such, is far more effective in terms of fact-finding for WOTC compliance. From an HR standpoint, since both employer and job applicant need to fill out the form, there may be more incentive for the applicant to get all the information right if it helps boost their getting hired. And minor missteps can really add up, putting companies at greater risk, and great costs stemming from an accumulation of noncompliant hires.

Getting the Process Right

Simply making the shift to when an employer conducts screening and sends in their certification request, and then keeping clear and adequate records to stay in compliance would make all the difference. Here’s what you need to know:

Recruit potentially eligible candidates through the state workforce agency (SWA) or the local employment office. Then, screen them: the applicants need to answer the questions on page 1 of IRS Form 8850 on or before the job offer date. 

If the applicant is eligible (they qualify for one of the WOTC target groups), the next step is up to the employer. Employers must sign and submit the IRS Form 8850 — as well as Department of Labor (DOL) ETA Form 9061 or 9062 to the state workforce agency (SWA) within 28 calendar days of the new hire’s start date. 

Keep careful records of hours worked and qualified wages paid. Remember: WOTC-certified employees need to work at least 120 hours in the first year of hire.

Claim the tax credit using IRS Form 5884, and make sure you have not only accurate records but copies of all the forms and supporting documents submitted to the SWA. Keep tracking your employee’s hours in case the IRS wants to conduct an audit.

Better Practices, Better Results

Remember: audits potentially contributed to the IRS’ decision to publish an update with clarifying language on the need to prescreen. It’s clear some employers weren’t being compliant. The line in the sand has already been drawn. But it’s also possible that not all employers are aware of the ramifications of being out of compliance with the WOTC.

Not only does post-screening forfeit initial benefits, but there’s an overall risk of having the WOTC credit revoked if an employer is found to have systematically not complied with prescreening requirements. In a big company that is always hiring, that could be a disaster.

The solution isn’t to hope for the best here. It’s to lean on solutions that help you make the shift without adding complexity. An integrated solution can make it far easier to change a long-held process consistently across the board. But given the historic lack of clarity on compliance and why shortcuts won’t work, this may be the time to look for better guidance.

The Benefits of an Outside Provider

Consider partnering with an outsourced solution provider who has experience with prescreening. A solution provider who has a solid track record with successful prescreening will be able to create a better process that’s streamlined and efficient. They can help get your organization over the common hurdles and build better ways to ease the pain points.

Given the pressures organizations are under — from intensely competitive hiring to a need to scale and adapt within shorter windows than ever — being able to leverage the advantage of the WOTC could be a key differentiator.

Minimizing your organizational exposure to risk is never a bad idea. But having a well-run, successful, WOTC-compliant hiring program may do even more. It’s a huge boost to its employer reputation that could pay off in a steady talent pool and a great workforce.

EDITOR’S NOTE: ADP has developed additional information about the WOTC and how employers can apply it. Learn more here

Can Commuter Benefits Help People Return to the Office

Can Commuter Benefits Help People Return to the Office?

/, , , , , , , /by

The pandemic changed how we live and work in so many ways — not the least of which was the daily commute. But now, after years of working remotely, many employees are returning to the office at least a few days each week. That’s why employer-sponsored commuter benefits are on the rise again.

No matter what an employee’s work schedule may be, this kind of support eases the transition to onsite and hybrid work. It gives employees the flexibility to choose the transportation options they prefer. And by demonstrating a commitment to employee wellbeing, this kind of program also contributes to workforce recruiting and retention. 

What Are Commuter Benefits?

Daily travel to and from the office can be a significant source of stress. Commuting can be time-consuming and expensive, especially if you drive your own car. Gas prices are hovering at an all-time high, and the cost of maintaining a vehicle adds up over time. 

Commuter benefits are designed to help ease this financial burden. Plans typically include funds to cover public transportation costs and parking fees. These are pre-tax dollars employees can set aside to pay commuting costs, up to $300 a month in 2023.

Employers assign this money to a specific account for employee mass transit or parking expenses. And employees can contribute additional funds to both accounts if they elect to do so. Any unused funds carry forward from one month to the next, and employees can adjust or stop their elections anytime.

Why Offer Commuter Benefits?

There are many reasons to offer this kind of program. Let’s take a closer look:

1. It’s a Great Way to Attract and Retain Top Talent

In today’s competitive job market, employees prefer working for companies with comprehensive benefits packages. Flexible commuting plans can help improve the employee experience by demonstrating that you care about workforce wellbeing, no matter where people need to work or when they need to travel.

2. It Helps the Environment

This kind of program is ideal if your organization is committed to sustainability or formal ESG goals. Here’s why:

The Environmental Protection Agency (EPA) estimates that gas-powered transportation causes 28% of U.S. greenhouse gas emissions. Encouraging less fuel-intensive commuting methods can help you reduce the number of cars on the road as well as the level of emissions they produce.

You can provide incentives for employees who choose public transportation, such as transit pass subsidies or reduced parking fees. In addition, you can promote ride-sharing options, such as carpooling or vanpooling programs. And with the rise of lightweight electric scooters, bicycles, and mopeds, you can offer post-tax reimbursement for these alternatives, as well.

Ultimately, these efforts can help your company reduce its carbon footprint.

3. It’s a Smart Business Move

Commuter benefits help reduce your payroll taxes because your employees are saving money tax-free to cover their commuting costs. On average, these programs can save employers about $40 per person, per month. For a business with 50 employees enrolled in the program, that translates into savings of $24,000 a year.

Why Employees Love Commuter Benefits

There are several reasons employees also love this kind of program. For instance:

  • They gain better access to transportation options they prefer.
  • They can improve their local community and the global environment. Choosing mass transit — including ridesharing and cycling options — helps reduce traffic congestion and pollution.
  • It helps them save money. This is especially true for pre-tax commuter benefits because employees can set aside money before taxes are applied.
  • Participation is easy. Commuter benefit plan funds accrue monthly. Any unused balance automatically rolls forward. And there’s no year-end “use-it-or-lose-it” penalty. In addition, enrollment choices automatically renew each year until an employee requests a change.
  • With custom plans, employees can enjoy additional travel perks that typically aren’t included in standard commuter programs.

Beyond Covid: Supporting a Better Work Commute

Over the course of the pandemic, many members of the workforce grew accustomed to working from home. And before the virus threat faded, most people feared returning to an office environment, let alone commuting on public transit.

But now, for employers who are ready to move forward with a successful mix of onsite and remote work, this is the ideal time to rethink the transportation benefits you offer. A creative mix of pre-tax and post-tax options can help get employees back on the road and back to work whenever they need to be onsite.

Not only does this help ease the financial burden of commuting for existing employees, but it also shows prospective employees that your company is committed to the “greater good” by making work-related travel as environmentally responsible as possible.

Final Note

Providing a thoughtful commuter benefits plan is a win-win for both employers and employees, alike. Your employees save on transportation expenses, while your organization reaps the rewards of improved productivity and morale.

No doubt, investment in offering stronger commuter benefits is a wise strategy for any employer that wants to address the near-term interests of employees who need to return to the office. But ultimately, it’s an investment that can pay off over the long term with improved workforce productivity and engagement.

Work Tech Predictions That May Surprise You in 2023 - by Cisco EVP Jeetu Patel

4 Work Tech Predictions That May Surprise You

/, , , , , /by

Predicting the unexpected is a tricky process — especially in the world of digital innovation, where change and disruption are a way of life. But that won’t prevent me from sharing my point of view about what’s ahead for work tech and the digital employee experience.

Challenging conventional wisdom is always an uphill climb. Nevertheless, organizations depend on big-picture thinking and agility to survive and thrive. So as the year begins, I’d like to outline four trends that will shape business in 2023 and beyond.

This forecast may surprise you. But don’t be blindsided. Prepare now to seize the day as these four work tech predictions play out over the coming months…

Are These Work Tech Trends on Your Radar?

1. Beyond Malware: We’ll Move From Detection to Prediction 

Digital threat actors are becoming bolder and more sophisticated than ever. Hacker “toolkits” are rapidly maturing to include modular malware that lowers the level of skills required to pull off an attack.

Many of these advanced tools and tricks focus on individual workers, rather than organizational systems. These tactics are designed to manipulate employees and contractors into unknowingly letting hackers sidestep effective security defenses like two-factor authentication. With so many people operating in remote and hybrid work tech environments, the potential downside risk is massive.

This is why I believe we will move beyond the age of malware in 2023. Simply detecting malicious code will no longer be enough to protect an organization’s data and technology ecosystem.

The next level of IT security will focus on sensing anomalies and behavior patterns. Systematic analysis of these indicators will predict breaches before they can happen. Advances in AI and machine learning will make it possible to develop and manage these predictive capabilities. Smart organizations will get ahead of this trend, so they can prevent attacks, rather than waiting to react and recover after the fact.

2. The Next Key Tech Purchasing Influencer: Human Resources

Hybrid work has significantly changed the dynamics of our lives – both personally and professionally. This includes organizational software buying patterns.

Traditionally, human resources teams focused solely on purchasing core HR software platforms like Workday, Paycor, or BambooHR. Decisions for other software were typically driven by Chief Information Officers, IT departments, and other functional executives.

But in recent years, flexible work models have become integral to workforce satisfaction and productivity. As a result, HR leaders are more deeply involved in selecting a broader spectrum of digital tools and technology. In many cases, this means HR is more heavily influencing the purchase of hybrid work tech.

This year, look for technology to accelerate its profound impact on culture and employee experience. And look for HR teams to expand their knowledge and influence regarding the selection of all kinds of work-related tools and software.

3. How We Work: Choice Will Matter More Than Mandates

We’ve seen the headlines in recent years. Countless remote and hybrid work employees have resisted a return to rigid, in-office work schedules. Some organizations may choose to double down on return-to-office mandates in 2023, but they will lose in the end.

Smart companies will create a flexible, secure hybrid-work experience and a great physical workspace — one that people will want to visit, but only when they choose to be onsite or their work calls for it.

These organizations will ultimately win on talent quality, agility, sustainability, and worker satisfaction. And eventually, other employers will follow, because they’ll recognize that this strategy leads to long-term organizational strength and business success.

4. Transformative AI: Look for an Uptick in Tech and Ethical Dilemmas

Despite years of promises straight out of sci-fi movies, artificial intelligence and machine learning have mostly stuck to somewhat rote (but helpful!) tasks. Lately, however, some mind-blowing capabilities are emerging. One example is DALL-E, with its ability to create sophisticated art from a verbal description.

The question isn’t, “What will AI disrupt?” The more relevant question is, “What won’t AI disrupt?” (Hint: Not much won’t be disrupted.) 

Here’s my perspective. No doubt, even more truly transformative AI use cases will emerge this year. AI engines will be used to develop creative content, write code, drive advanced robotics, detect behavioral anomalies to prevent critical IT infrastructure failures, and so much more.  

This next level of AI, and the use cases it inspires, will make a massive impact in 2023 and beyond. And its implications will be both good and bad.

On the downside, as AI takes on more tasks, it can be skewed by harmful programming bias. Potentially, this can affect decisions that impact our lives in fundamental ways, like who is admitted to a leading university, who receives a coveted job offer, or whose mortgage application is approved.

In addition, broader AI use will open the door to even more advanced scams, increased identity theft, and so on. Despite the positive potential impact AI can have on organizations and the world at large, it’s imperative for industry professionals to establish responsible, ethical usage guidelines. And when appropriate, restrictions must be the rule.

With AI, one thing is for sure: Companies that don’t embrace it will become irrelevant much faster than we currently think. Regardless, all of us who embrace AI must ensure its ethical and responsible use to mitigate potential harm. Otherwise, we’ll all suffer the consequences.

Final Thoughts on What’s Ahead for Work Tech

As we see the next wave of work tech unfold this year, I expect that innovators and their innovations will take momentous steps forward when it comes to security, hybrid work, and AI. The winners will be companies that put their people first and understand the technology they need to make the world of work a better place.

This is a time for purposeful innovation and thoughtful investment. And more of the responsibility will rest with HR leaders and practitioners, who will take on more decision-making power than ever.

But the future depends on more than HR, alone. It means diverse business functions, technology vendors and competitors will need to work together across IT ecosystems. With purpose and persistence, I believe that by this time next year, we’ll see real progress in these areas.

Of course, I’m not the only Cisco executive who is thinking about technology and the future of work. To read insights from others, I invite you to visit the Cisco blog.

Movember Celebrating Men's Health at Work

Celebrating Movember: Men’s Health at Work

/, , , , , , /by

EDITOR’S NOTE: At TalentCulture, we recognize a healthy workforce is a more engaged and productive workforce. That’s why we’re spreading the word about the importance of “Movember” men’s health awareness in this article.

The holiday season is upon us! As the days get shorter and colder, schedules are getting busier and more packed with activities. It’s common for us to let some things slide — including taking care of our health and wellbeing. We’ve all been there. But health should never take the backburner. That’s why we’d like to talk about the Movember movement.

What exactly is Movember? What does it mean for men’s health? And more specifically, how can employers leverage this opportunity to encourage discussions around important workplace health issues? We’ll even touch on how you can start a Movember event with friends and coworkers. 

What Is Movember? 

Two friends kickstarted Movember as a grassroots effort to promote men’s health in Australia. It began in 2003, at a time when the mustache had all but disappeared from popular culture.

That’s when Travis Garone and Luke Slattery first convinced 30 friends to take up the challenge of growing out their facial hair in solidarity with men’s health issues during the month of November.

This simple challenge grew faster than anyone imagined. In fact, by the time it reached the U.S, in 2008, the Movember charity had raised more than $46 million, in partnership with global charities dedicated to raising awareness around important men’s health issues.

Over the years, this movement has continued to gain traction across the globe. Now, nearly 7 million men and women contribute to the cause by funding more than 1200 men’s health projects. The Movember project and its enthusiastic supporters (known as “Mo bros” and “Mo sisters”) have addressed many worthy health causes around the world. 

Why Movember Matters

The importance of raising awareness and encouraging communication around men’s health can’t be overstated. Unfortunately, men are still statistically far less likely to take care of their health. That’s not an opinion, but a well-documented fact.

For instance, a 2021 study found that less than half of men (47%) had a routine medical checkup in the previous 12 months. Embarrassment and perceived stigmas are the primary reasons.

Our culture of stoicism means that when men experience pain, many feel societal pressure to simply push through it. And although women tend to become familiar with healthcare from a young age — seeing gynecologists and being encouraged to schedule annual checkups — men generally don’t develop the same kind of connection.

Simply put, conversations about men’s health aren’t common. In fact, they’re often stigmatized. Ultimately, this leads to poorer health outcomes. 

The Movember Mission

The Movember movement celebrates men’s health in all its forms, but emphasizes mental health and cancer prevention, in particular. Here’s why:

1. Preventing Cancer

For men, two key health concerns are prostate and testicular cancer. Prostate cancer is the second most common cause of cancer death in men. Fortunately, testicular cancer is less frequent. However, it still affects about 7 out of every 100 men.

Both cancers are considered highly treatable if caught early. However, when left untreated, they can be very difficult to cure, and the statistics are less promising.

Most experts recommend starting prostate exams around the age of 45 and getting an exam every 3-5 years. Doctors often perform what’s called a PSA test. A PSA is a reliable metric that helps determine the risk of prostate cancer.

Similarly, to help detect testicular cancer, men should perform self-exams, looking for signs like lumps, swelling, or dull aching pain. Anyone who experiences any of these symptoms needs to see a doctor immediately.

Bottom line: Routine checkups are crucial for effective cancer prevention, detection, and treatment. That’s one of the most important messages behind the Movember movement.  

2. Communicating About Mental Health

Although mental health is extremely important, it is also perhaps the most stigmatized men’s health issue. Statistics show that although mental health challenges are relatively common among men, less than half will seek treatment.

This problem is especially important to recognize in the workplace, where burnout and stress are common. People often don’t realize how stressed they are until the symptoms become unavoidable.

Left unchecked, stress or burnout can not only affect your mental and emotional wellbeing but also wreak havoc on your body. Fatigue, anxiety, and depressed mood — even changes in weight and thinning hair — all can occur.

Of course, it’s important to see your doctor to make sure you’re not dealing with underlying medical issues like hypothyroidism or male pattern balding. But these symptoms can also be a response to physiological changes caused by stress.

How Employers Can Get Involved

Encouraging your workforce to be part of the Movember trend can be an excellent way to raise awareness around these important men’s health issues. For example, you can set up a Movember fundraiser, either in person or virtually. This can foster teamwork and solidarity in the workplace, while also encouraging people to take charge of their health. 

If you decide to start a Movember campaign, you don’t have to focus on only one topic. It’s an opportunity to help men feel more comfortable talking about a variety of issues that affect their health.

Conversation Starters:

  • Are you getting enough exercise? 
  • Are you sleeping well?
  • Do you feel overloaded with work lately?
  • How healthy is your diet?
  • Do you schedule regular check-ups? 
  • Have you talked to your doctor about things like prostate screening? 

Talk to your coworkers, talk to your friends, and bring the Movember movement to your professional and social circles. It’s not just for men either. It’s for anyone with a man in their life they care about — a significant other, a family member, or a friend. Every man matters. Encourage open conversations, show your support, and get involved!

Key Design Decisions for 360 Feedback Success

Key Design Decisions for 360 Feedback Success

/, , , , , , /by

Many managers and HR practitioners are familiar with 360 feedback as a leadership development practice. However, no two 360 feedback experiences look alike.

That is actually a good thing. Most successful 360 feedback drives behavior change both for individual leaders and their employers because the process is tailored to the organization’s unique culture as well as the intended purpose of the exercise.

On the other hand, this need for customization means practitioners face an overwhelming number of decisions when designing a new 360 feedback assessment. For example:

  • Who should participate?
  • How many survey questions should we include?
  • Who should receive the report?
  • What kind of follow-up support should we offer?
  • Who should choose the raters?
  • What role should HR play in the process?

Fortunately, some 360 feedback implementation practices have become ubiquitous. That means some guesswork, research and debate aren’t necessary. For example, below are five must-haves for strong engagement and outcomes.

Five Design Factors for 360 Feedback:

1) Which groups should participate in ratings?

Anyone who has observed a leader’s on-the-job behavior can provide useful rating input. This could include the leader who is being assessed, as well as a combination of direct supervisors, secondary managers, peers, direct reports, customers, board of directors representatives, donors and even skip reports.

In some situations, it is helpful to include other groups to meet specific requirements. For example, if a leader is actively involved with strategic partners or other third-party groups, their voices could add useful context. 

While there is flexibility to customize the participant mix, 360 feedback assessments typically include these four core rater groups as a baseline:  self, peers, direct reports, and direct managers. In fact, according to soon-to-be-released research from our firm, 88% of organizations include these four core groups.

2) Who will select and approve raters?

Among 360 feedback experts, there is some debate about the best way to choose raters. Should assessment recipients choose their participants? Those who favor this approach say it ensures a sense of ownership and buy-in. Others say a third party (a manager or HR representative) should choose raters. This ensures that feedback is well-balanced and avoids a “friends and family” bias.

Most 360 feedback process owners agree leaders should choose their own raters to build trust and establish assessment process buy-in. On the other hand, 70% of organizations tell us they review and approve final rater lists.

We agree that manager involvement is a wise practice, and a leader’s direct manager should approve the final list. Over the last 20 years, we’ve found that this is the most common approach. And according to our new benchmarking analysis, 48% of companies continue to use this method.

3) How will we score surveys and generate reports?

As with many HR processes, technology has also transformed 360 feedback implementation practices. Now, most HR practitioners rely heavily on online tools so they can collect, organize, analyze and share useful feedback faster and easier.

In 2009, spreadsheets and even paper surveys were still popular ways to collect and report 360 feedback data. Today, those methods are all but obsolete. In fact, 91% of organizations now use a web-based reporting tool to manage surveys and generate reports.

Many practitioners are also choosing to outsource this task to specialized service providers. In fact, our recent research shows that 80% of employers rely on an external vendor or consultant to handle this aspect of the process. 

4) How can we assure rater anonymity? 

To encourage honest responses, employers must ensure that feedback sources remain anonymous. Therefore, it’s not surprising that 81% of employers tell us rater anonymity is essential to the success of their 360 feedback endeavors.

A common way to ensure anonymity is by requiring a minimum number of survey responses for any group specified in the report. For example, peer scores are displayed separately only if at least 3 peers respond. If fewer peers respond, then that data is included only in overall average ratings.

Most often, organizations require a minimum of three raters in a category. In fact, 83% of companies use this three-rater threshold rule. Very few skip this requirement altogether (3% require no minimum responses). And on the other end of the spectrum, very few require more than three responses.

5) How will we help leaders translate the report into action?

For best results, talent management experts agree that personal follow-up is essential. To optimize ROI, employers should avoid the “desk drop” follow-up, where leaders receive a 360 feedback report, but no direct support to discuss results, implications, or next steps.

Follow-up can include any number of supportive actions, such as:  Adding development suggestions to the report, offering action planning guidance, providing individualized 1-on-1 coaching, assigning in-person or online workshops, referring leaders to specialized resource libraries, and more.

The most common step is also what talent management professionals feel is most critical for 360 assessment success:  Provide a one-on-one meeting with a trained 360 feedback coach who can facilitate action planning based on the results.

Historically, these sessions were conducted in person. However, in recent years, video meetings have become the dominant format. Also, reliance upon external coaches (rather than in-house staff) has become more popular.

Fortunately, 88% of organizations say they provide debrief sessions and one-on-one coaching, so feedback recipients can interpret insights and chart a relevant path forward.

Final Thoughts

Good leaders thrive on feedback. But for 360 feedback assessments to be effective, it’s important for leaders to understand the results and commit to improvement.

This means employers must take care to design and implement a valid, well-informed process from end to end. By addressing key design elements at the outset and by investing in ongoing leadership guidance, organizations can dramatically increase the likelihood of success.

 

EDITOR’S NOTE:
Want to learn more about the decisions talent managers make when designing and implementing 360 feedback assessments? Replay this recorded webinar, where the 3D Group unveils findings from its latest benchmarking study, Current Practices in 360 Feedback, 7th Edition. This analysis includes 20 years of data from more than 600 companies.

Employers - Are you being ghosted by job candidates? Try thi advice from a recruiting industry executive

Are Job Candidates Ghosting You? Try This Recruiter’s Advice

/, , , /by

Spooky season is upon us! People are carving pumpkins, dressing in crazy costumes, and swapping scary stories. So, in the spirit of Halloween, we’re taking on a truly horrifying subject. This is so frightening it can make a hiring manager’s hair stand on end at the very mention. That’s right. We’re talking about candidate ghosting. Beware!

Is Ghosting For Real?

Oxford Languages defines ghosting as “the practice of ending a personal relationship with someone by suddenly and without explanation withdrawing from all communication.”

When somebody ghosts you, they stop replying to your messages, they don’t answer calls, they stop all forms of communication. There’s never any explanation—they simply disappear without a trace.

Originally a dating term, ghosting is becoming increasingly common in business, especially in the context of recruiting. For example, a 2021 survey by Indeed found that 28% of job applicants had an employer—10% more than in 2019. And today’s reality seems much worse. In fact, a U.K. poll earlier this year found that more than 75% of job hunters admit to ghosting in the past year. Scary statistics, to be sure!

Why Do People Act So Creepy?

There’s no single reason why candidates ghost potential employers. But ghosting clearly seems more common when job vacancies are prevalent in a particular sector. 

When more opportunities are available, applicants have less incentive to keep in touch. They will often receive viable offers more quickly, so when they do, they’ll accept the most attractive option and move on.

However, ghosting also happens when vacancies are few and far between. We’ve seen it up close at our own recruiting agency, even in niche roles where very few opportunities exist. 

In a discussion with our team, one brave team member confessed to ghosting a prospective employer in the past. She explained, “I was pretty far into the interview process when a few issues raised concerns for me. These were mainly about time off, travel expenses—things that probably should have been resolved up front.”

The truth is, we can make some educated guesses about a candidate’s motivations, they can ghost us for any reason. Without an explanation from the candidate, you’ll never know for sure what happened—and that’s what makes it so frustrating.

The Business Impact of Ghosting

Probably the worst impact of ghosting is that it wastes time. You could spend months sourcing credible talent and conducting interviews. You may even get to the stage where you’re negotiating a package. And then without warning—poof!—that top candidate goes silent. 

Ghosting is not only time-consuming—it is expensive as well. Consider this:

The average U.S. cost per hire is $4,700 for a non-executive role and $14,936 for an executive, according to Zippia. Most roles are filled within roughly 42 days, but it can take much longer when ghosting comes into play.

And it’s not just about the extra cost of a delayed hiring process. It’s also important to take into account the business cost of an unfilled role, which can cost employers dearly in terms of lower business productivity, quality, and responsiveness.

How Can You Combat Ghosting?

Although it’s impossible to shut down ghosting altogether, we’ve learned some techniques to help employers prevent candidates from vanishing into thin air.

1) Invest in the Relationship

Put yourself in a candidate’s shoes. As one recruitment specialist told the BBC earlier this year, “Candidates are being approached all the time with an abundance of jobs to choose from […] if they have multiple applications on the go, it can be easier to simply ignore one of them.”

If a candidate is in contact with multiple recruiters or hiring managers, it’s easy for several to fall off of the radar. But if you develop a working relationship with candidates, you’ll remain top-of-mind. Just as you would with a friend or colleague, make sure you stay in regular contact with candidates. Show that you care by touching base when you say you will and by keeping them updated throughout the hiring process.

2) Be Transparent From the Start

Before you move forward, strive to clarify what a candidate is seeking in a role, and reflect on whether your offer will meet those expectations.

People may feel uncomfortable telling you they’re unhappy or unsure about an aspect of a role. Instead, they may find it easier to simply move on. So be sure you understand their job requirements from the start of your working relationship.

In particular, don’t keep the details of an offer secret. For example, if a candidate is interested only in working remotely, an in-office location will likely be a dealbreaker. It’s best to be upfront about every aspect of the role before you make an offer. This saves time for both you and the candidate.

3) Establish a Long-Term Connection

Smart hiring managers and recruitment specialists help candidates recognize the value of maintaining a relationship throughout their careers. Rather than just completing an immediate transaction, recruiters can introduce candidates to influential people within their industry and help build their professional network over time.

Ghosting can cause unintended reputational damage. So, if you help candidates see the long game, they’ll be less likely to abruptly end your communication. 

4) Respond Kindly to a Rejection

We’ve seen employers lash out at candidates who decline an offer. This is a surefire way to encourage more ghosting! If a candidate rejects a job application, remember they’re doing you a favor by responding at all.

Keep responses polite and professional. Thank the candidate for their transparency, wish them well, and keep the door open for the future. It’s a surprisingly small and very well-connected world. So think about how much goodwill a gracious response can help your organization, in the long run.

5) Ask People Not to Ghost

Sometimes the best way to encourage candidates not to ghost you is just to…ask! Tell people upfront that if they change their mind about the opportunity at any point, you would really appreciate a heads-up.

This approach has often worked for our team. It lets us be more proactive in filling roles for our clients. Because we have spent time nurturing trust with our candidates, they tend to be candid in sharing their thoughts.

Of course, this may not work every time, but it can’t hurt to try.

6) Recognise When You’re Being Ghosted

…and move on. Don’t assume that a candidate will eventually get back in touch with you to seal the deal. If a candidate is wasting your time, then your energy is better spent on finding a more suitable applicant elsewhere.

Similarly, you should never put all your recruiting eggs in one candidate basket. With ghosting on the rise, it’s crucial to have at least one active candidate at any given time. But ideally, you should keep two or three more high-quality candidates in the running for an open position, as well.

7) Don’t Ghost

You may have been ghosted, but there’s never a reason for an employer to be a ghost. Employers who blow off applicants can quickly develop a bad reputation for ghosting and wasting candidates’ time, too. 

If we expect candidates not to ghost, we must treat them the way we would like to be treated. Recognizing the time and effort unsuccessful candidates have put into their applications is a must.

Employers should keep all candidates informed of the outcome of their application, whether it is positive or negative. Otherwise, that negative candidate experience may come back to haunt your organization in the future.

All this Ghosting Talk Is Kind of Scary!

But don’t worry, you made it to the end. And now you’re much better equipped to avoid those wicked ghosts. Poof!

How can organizations measure the digital employee experience? Find out on this #WorkTrends podcast episode

How Do You Measure the Digital Employee Experience?

/, , , , , , , , , , , /by
Sponsored by:  Ivanti

We don’t need a crystal ball to see that the future of work will be more connected, more digital and more flexible. The pandemic brought us a preview of this more adaptable world of work—and many of us want more. But what’s the next step? How can organizations make “anywhere” work a sustainable daily reality?

Smart employers are already digging deep to pave the way forward. But how will they know when their transformation process is working? How will they see results? This is why it’s vital to measure the digital employee experience, early and often.

Organizations that get this right will attract and retain the best talent. So I invite you to learn more about it with me on this #WorkTrends podcast episode.

Meet Our Guest:  Dennis Kozak

Today, I’m speaking with Dennis Kozak, COO of Ivanti, a leading information technology software provider that is on a mission to make the everywhere workplace possible for all of us. Because Dennis has a front-row seat at the table where key digital work decisions are made every day, he is an excellent source of insight for HR and business leaders.

Why Measure the Digital Employee Experience?

Welcome, Dennis! Tell us, why should we connect the dots between employee satisfaction and digital experience?

Typically, HR is very focused on measuring employee engagement, while IT is very focused on providing infrastructure and security. But very seldom do we actually marry those to focus on how IT improves or hinders an employee’s experience.

Timing Is Everything

Tell us about how to measure the digital employee experience. What does this look like?

Well, this is something people don’t think about much until they have a problem.

Your team’s digital environment may work well—until an employee gets a new laptop or a new mobile device and they try to reconnect to the company ecosystem. They’re either successful or they’re not.

So through automation you can always be checking all of the measurement points to ensure that you’re providing a consistent level of service.

Always Be Measuring

Why is it so important to continuously measure the employee digital experience?

IT is continuously changing. There are always new applications, new tools, new devices, new forms of data in an organization. So the environment is never static. And because it’s always changing, you have to continually measure.

If people don’t feel productive and IT becomes a barrier, then clearly job satisfaction will suffer and people will be more likely to leave. Turnover is difficult, not only for an employee, but for an employer, as well. We can help avoid that.

Where IT Can Add Value

How can the IT team work with HR to ensure everyone has access to the tools they need to do their jobs, no matter where they are?

Our research says 26% of employees have considered quitting their jobs because they lack suitable technology. And 42% of employees have spent their own personal money to buy technology so they can work more effectively.

In other words, people don’t necessarily want to wait for their company to help. But these statistics indicate where both functions can improve.

Start by including IT at the table when designing your employee engagement survey. IT and HR rarely work together beyond onboarding and de-provisioning. But IT can show that the innovation and intuitiveness they bring in enabling digital work can be a deciding factor in employee productivity, satisfaction and retention.

 

For more insights from Dennis, listen to this full episode. Also, read the article he recently contributed to our blog: “Digital Employee Experience: Do You Measure What Matters?”

In addition, be sure to subscribe to the #WorkTrends Podcast on Apple Podcasts or Stitcher. And to continue this conversation on social media, follow our #WorkTrends hashtag on Twitter, LinkedIn, and Instagram.

social background checks

How Social Background Checks Preserve Work Culture

/, , , , , , , , , , /by

Sponsored by: Fama.io

Every employer wants to provide a safe, supportive environment where people can do their best work. That’s a key reason why social background checks have become so popular. But many organizations don’t talk openly about how they make this happen.

I get it. This can be tricky to manage. But workforce wellbeing and your brand reputation are on the line. So, it’s wise to include a strong social media screening solution in your HR toolkit.

What kind of services are leading the way? And what should you consider when seeking a provider you can trust? Join me as I explore these questions on the latest #WorkTrends podcast episode.

 

Meet Our Guest:  Ben Mones

Today, I’m speaking with Ben Mones, Founder and CEO of Fama.io, the world’s largest provider of social background checks, and a leader in applying artificial intelligence technology in workforce screening services. As an expert in this process, Ben is an excellent source of advice for HR practitioners and business leaders.

Linking Culture With Social Background Checks

Ben, welcome! Let’s dive right in. How do you see social background checks tying into the employee experience?

Too often, employers don’t talk about background screening because they think it’s a “dirty” job at the front of the candidate funnel or during the onboarding process.

But that’s not what we do. We look at publicly available online records to detect behavioral patterns associated with intolerance or harassment. We look at things that, if left unchecked, could find their way into a company culture and create some damage.

Remote Work Raises the Stakes

Many of us work virtually now, so the stakes are higher. I mean, how are we getting to know people?

Agree. We often meet our coworkers by friending them on Facebook, following them on Twitter, or exchanging DMs on Instagram. So, if we’re interacting in these digital spaces, the importance of digital identity naturally follows.

Digital Screening Adoption Rate

How many companies are screening candidates or employees?

CareerBuilder and SHRM say 70% of employers perform some sort of social media or online profile check before bringing people on board. For example, they may be Googling someone before hiring them.

Risks of Social Background Checks

Compliance is a big concern with this process. What are the risks?

I think the risks of doing it yourself scare people away.

For example, you could be exposed to things you shouldn’t see. If a recruiter does this internally, they’ll see a person’s gender, ethnicity, pregnancy. You’ll see all these protected classes.

EEO says you can’t unring that bell. You can’t unsee that information. So because bias naturally occurs within all of us, you consider these sorts of things in your hiring process.

Avoiding Compliance Pitfalls

How can employers deal with these risks?

Managing the process through a third party helps squash those risks because you can configure the solution to filter only for job-relevant information.

This means you’re blind to all the protected class information you’d see if you were conducting social background checks on your own.

Key Screening Factors

What core behaviors do you look for in social screening? 

Here’s what we don’t do. We don’t do a yes/no recommendation on a person. Instead, think of flags for things like intolerance, threats, harassment, violence, crime and drugs.

 

For more advice from Ben, listen to the full podcast. And for detailed information about how your organization can benefit from social background screening, visit the Fama.io website, where you’ll find benchmarking reports and other resources for employers.

Also, be sure to subscribe to the #WorkTrends Podcast on Apple Podcasts or Stitcher. And to continue this conversation on social media, follow our #WorkTrends hashtag on Twitter, LinkedIn, and Instagram.

make change

Want to Make Change Stick? Rethink Work Meetings

/, , , , , , , , , /by

Change. For better or worse, it’s a constant in today’s workplace. And in an uncertain future, it will remain a strategic priority for organizational success. But encouraging people to change is also one of the biggest challenges leaders face.

How can we leverage internal communications to make change initiatives work? Could we find the answer in something as simple as everyday meetings? Join me as I explore this question in depth on the latest #WorkTrends podcast episode.

 

Meet Our Guest:  Lindsey Caplan

Today, I’m excited to speak with Lindsey Caplan, organizational psychologist, communication strategist and founder of The Gathering Effect. By blending her experience in education, entertainment and business, Lindsey offers practical tools to help drive lasting workplace change. Here are highlights from our conversation:

Keyword: Gathering

Welcome, Lindsey! I’m looking forward to talking with you about how organizations can drive more lasting change today. Let’s start with the concept of “gathering.” Tell us, what does this term mean to you?

I define gathering as bringing people together to match a message with a moment for a specific effect. Those of us in HR are very familiar with gatherings. They’re happening all the time, whether they’re virtual or in-person or hybrid.

They come in many forms: town halls, all-hands meetings, off-sites, retreats, conferences, classes, and new hire orientations. These are all tools we can use to communicate about change and help employees do things differently.

Connecting People with Change

Why do gatherings play such a central role in the change process?

Just like a hammer, we can use gatherings for different purposes. There are four different effects that gatherings can produce, depending on the choices we make. The key is to start with the effect you want, rather than the content you want to share.

Know Your Objective

So you’re saying we should begin at the end? Interesting…

That approach may feel a little different, but it really is a significant strategic difference that determines how gatherings can make change stick. So I teach people to diagnose and define the effect they want to achieve, and then adjust their gatherings to align with the effect they want.

What Matters When We Gather

What should we consider as we plan gatherings designed to drive lasting change?

We need to look at multiple factors. Do we know the needs of people that will attend? Do we know what they care about? What’s at stake for them? Often, as leaders, we probably know. But maybe we don’t have a sense of what employees really care about.

How Culture Fits In

You say gatherings are “culture on display.” I think that’s so powerful, Lindsey. But can you explain what you mean by that?

Especially in a remote or hybrid environment, logging into a company-wide meeting, town hall or training class is rare. Right? These are high stakes moments. Often they’re important points in an employee’s journey when everyone is  together. People are listening. They’re paying attention to what leaders say and how they’re saying it. So these are excellent moments to reinforce and build your culture.

What’s Ahead

As we look ahead to the post-pandemic era, what do you see next for work gatherings, communication, and change?

I hope the pandemic workplace has given us awareness about the opportunity to do better. And I think it has revealed what we’re really gathering for—which is not information, it’s connection.

Brilliant! Yes, it’s about becoming more human, collectively. It’s about simplifying. And it’s about being mindful of what’s at stake when we make choices about when, where, how, and why we show up and communicate with others.

 

I love Lindsey’s perspective and her practical how-to advice, don’t you? I hope you’ll find this #WorkTrends episode useful as you plan change-related communications in your organization. It’s always here as a resource if you want to replay it again in the future.

In addition, you can learn more about how to leverage gatherings to drive lasting change by visiting Lindsey’s website, TheGatheringEffect.com.

For more advice from other world-of-work experts, don’t forget to subscribe to the #WorkTrends Podcast on Apple Podcasts or Stitcher. Also, to continue this conversation anytime on social media, follow our #WorkTrends hashtag on Twitter, LinkedIn, and Instagram.

Why is it so important to measure the digital employee experience? Learn what's at stake and how to proceed in this article...

Digital Employee Experience: Do You Measure What Matters?

/, , , , , /by

impact awardSponsored by: Ivanti

You’ve heard the adage “measure twice, cut once.” It’s good advice from the sewing world. The idea is to encourage people who want to achieve an excellent outcome to be precise and cautious before they act. If we’re supposed to be that conscientious about measuring a piece of fabric for a sewing project, why would we be cavalier about measuring something as critical as the digital employee experience?

Nevertheless, that’s what countless IT and business leaders around the world are doing by default. They’re implementing employee engagement programs based on what sounds right or feels right. They’re not relying on data-driven intelligence to make decisions about these programs. And they don’t know in advance if these programs will actually produce the outcomes they want.

Here’s the truth: If you don’t carefully measure and re-measure your digital employee experience, people will cut themselves right out of your organization. Even if you’ve been using classic employee experience measurement tools—such as an annual survey—that’s no longer enough. Today’s organizations require more complete insights focused on the digital employee experience.

Why Is This Digital Shift So Vital?

The remote and hybrid work landscape (what we call the “Everywhere Workplace”) has forever transformed work life and organizational culture. Now, a vibrant work experience is no longer about departmental happy hours, unlimited free soda, pizza Fridays, or a ping pong table in the employee lounge.

Instead, it’s about what happens in the flow of work. It’s about communicating and collaborating through tools that are smarter, easier, and more effective. It’s about seamless accessibility, usability, security, connectivity, and the ability to do your job without navigating frustrating obstacles or jumping through endless hoops.

Of course, HR teams still focus on employee experience. But now, IT professionals are just as deeply focused on this, as well. Why? The traditional employee engagement survey—once conducted and managed by your HR department—isn’t designed to capture the nuances and critical insights associated with hybrid work environments. If you want to gain useful intelligence, you’ll want to get IT specialists involved—and the sooner the better.

It’s no longer enough to assume people have what they need to be connected, productive and comfortable as they navigate the Everywhere Workplace. You need to know where the connections are working (or not). That means you need to measure what’s happening. Not just once, but over and over again.

After all, if you don’t know where you stand, it is impossible to move forward. Both HR and IT leaders need real, meaningful, actionable insights into the digital employee experience as a process. It deserves a commitment to continuous improvement. And that means you need to understand where it stands now, and how it is evolving over time.

Criteria For a Digital Employee Experience Survey

What should you include in a digital employee experience survey? To glean useful insights, you’ll need to go far beyond limited indicators like post-ticket surveys. To measure and improve the digital employee experience, you’ll need a holistic picture. For instance, consider the value of knowing answers to questions like these:

  • How are people accessing information?
  • What do they think about that process?
  • How many steps must they move through to accomplish these tasks?
  • How often do they run into trouble?
  • How much time do they spend trying to securely access information, tools, and resources they need to do their jobs well?
  • Do they even have access to the right information, tools, and resources?
  • Are they able to connect and engage with colleagues?
  • How effective are these communication channels, in their view?

Post-ticket surveys don’t capture any of these things. And yet, these factors can make or break a digital employee experience. They can spell the difference between an employee who is highly productive, happy, loyal, and engaged—versus one who is forced to waste time on logistics and is likely to be frustrated. Perhaps even frustrated enough to leave.

How to Measure Digital Employee Experience

If you think this isn’t an issue for most employers, consider this statistic:

30% of IT leaders currently have no process or metrics in place to evaluate the digital employee experience. And among the 70% who do, few have established the kind of robust metrics and evaluation strategy today’s Everywhere Workplace demands.

Clearly, the stakes are high. Many organizations assume that measuring digital employee experience in a holistic way is expensive, overwhelming, and resource-intensive. Sometimes it is. But it doesn’t have to be that way.

What’s the secret? Automation.

By automating digital employee experience measurement, leaders can laser-focus on KPIs that matter most to the organization, without bandwidth and expertise from HR or IT—and without badgering employees for manual reports.

In other words, you can automate the collection and reporting of data about issues that commonly impact productivity, especially issues that traditional reports don’t easily track. For example, automation can help you monitor, quantify and evaluate slow devices, outages in network connectivity, where and when apps crash, and other problems that are difficult to capture accurately in a survey.

Of course, it’s important to gauge employee-generated insights as well. But automated, granular, data-based insights can round out the picture with a comprehensive view of what’s happening with digital workflows and how they impact engagement and productivity. Plus, with automated data collection and reporting, continuing to measure key factors over time is much easier. That’s essential to understanding your organization’s progress and how it maps to employee feedback.

Final Thoughts

“Measure twice, cut once” works well for sewing. But it’s not the answer for a modern enterprise that embraces the Everywhere Workplace. Instead, think about measuring once, and then measuring again and again. That’s how you can gain valuable insight into experience indicators and trends that will help you develop and sustain a happy, loyal, engaged, productive workforce.

 

EDITOR’S NOTE: What’s the current state of digital employee experience in organizations around the world? Find out now >> Download the 2022 Ivanti Digital Employee Experience Report.