AI in HR - Creating Value With New Technology

AI in HR: Creating Value With New Technology

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As artificial intelligence becomes more deeply embedded in everyday workflows, it is rapidly transforming the way businesses operate. For example, the recent rise of generative AI and data-driven insights provide an exciting glimpse into future possibilities. In fact, McKinsey estimates that AI could contribute an additional $13 trillion to the global economy by 2030. But what does this mean for AI in HR?

Many employers are eagerly embracing new AI-driven capabilities. And as the co-founder of an innovative HR tech platform, I’ve had a front-row seat in witnessing AI’s early impact.

But despite the enthusiasm, a central question remains: While navigating these uncharted waters, how can employers make sure AI has a meaningful, positive impact on their workforce as well as their business results? Here’s my perspective…

Moving From Hype to Measurable Value

In the HR tech sphere, many tools and service providers are racing to integrate AI into their platforms and processes — often to demonstrate tech prowess. But this, alone, doesn’t create business value.

That’s why problem-solving must be a top priority. Especially now, in this early adoption phase, it’s paramount for solutions to address the real needs of HR leaders, practitioners, managers, and employees.

If this is the goal, what truly matters? AI isn’t just about automation — it’s also about helping organizations save time, improve performance, enhance the employee experience, and provide actionable insights when and where they’re useful. In our world, this translates into feedback processes that are more responsive, managers who are more effective at coaching their teams, and employees who are more engaged and empowered to grow and perform their best.

Mapping AI to Employment Cycle Stages

To understand the tangible benefits of AI in HR, it’s helpful to look through the lens of the employee lifecycle. From talent acquisition to performance management, and from training to retention, AI is shaping each step in the employee journey. Let’s examine what that means for each stage:

1. Rethinking Talent Acquisition: Beyond the Resume

As the initial touchpoint in the employment cycle, hiring is pivotal in defining the employee experience. Traditional recruiting methods may be effective, but they often fall short in capturing the intricate nuances that determine a candidate’s fit for a particular role. This is where the transformative power of AI can propel employers beyond the limits of a conventional resume.

An excellent case is HireVue. This platform uses AI-driven predictive analytics to evaluate a candidate’s suitability based on numerous factors, including facial expressions and tone of voice during interviews. These innovative capabilities work hand-in-hand with recruiters to complement and enhance their human observations. This leads to a more comprehensive assessment that looks beyond surface-level qualifications and reduces unconscious bias.

How AI Adds Value

In a world where first impressions and gut feelings tend to drive decisions, AI adds a more objective layer of analysis. Plus, it helps “read between the lines” of a candidate’s responses for a more holistic, data-driven approach to talent acquisition.

As a result, employers can feel more confident they’re hiring people with personal attributes that fit their company culture and long-term objectives, as well as the right skills and experience.

But the true magic of AI lies in its potential to help decision-makers rethink their perceptions of candidates. Suitability indicators shift from qualifications, alone, to a nuanced combination of skills, culture fit, and long-term potential.

Ultimately, this promises to improve employee satisfaction, engagement, and retention by making it easier to find the strongest talent for each role, right from the start. However, AI can’t run on autopilot. For the best outcomes, employers and platform vendors will need to work together so they can avoid bias in AI algorithms while preserving the human touch that elevates the candidate experience.

2. Redefining Performance Metrics: Objective Evaluation

Performance assessment has long been a foundational HR function. But now, AI adds a new dimension to this process, reshaping how we track and evaluate employee contributions.

With AI algorithms, employers can extract insights that were once beyond reach. This means organizations can more quickly and accurately pinpoint high-potential talent, predict employee burnout, create a comprehensive analysis of any individual’s performance, and identify where they’re making the biggest impact.

How AI Adds Value

To illustrate how this works, consider the case of Fractl, a fast-paced digital marketing firm that relies on the WorkStory platform to drive employee pulse surveys, streamline performance reviews, and support continuous development for its fully distributed workforce.

What’s next? According to MIT Sloan, some organizations are taking this a step further by using AI to generate employee key performance indicators. These KPIs are carefully calibrated and dynamically adjusted to consider each employee’s past performance, while also considering their team’s objectives and their organization’s broader mission.

Although momentum is growing for AI-supported employee evaluation, several fundamental challenges remain. Employers need to foster workforce trust by ensuring their process is transparent and free from bias. As success stories become more widespread and best practices emerge, these barriers to adoption should diminish.

The shift to AI-enabled performance evaluation marks a pivotal moment in the evolution of HR practices. By providing more objective, dynamic, data-driven assessments, it’s possible to unlock new levels of employee potential and improve productivity, while significantly enhancing employee engagement and retention.

3. Empowering Growth: Tailored Learning Experiences

Continuous learning is vital in today’s fluid business environment. And AI is already transforming employee development from a formal one-size-fits-all experience to a personalized and highly adaptive journey.

For instance, imagine tailoring training modules and performance support resources to an individual’s organizational role, career aspirations, and learning patterns. With AI-enabled tools like Degreed, Coursera, EdCast, Docebo, and Cornerstone OnDemand, you can easily identify relevant skill gaps and deliver targeted learning, assessments, and coaching.

How AI Adds Value

These AI-powered platforms curate personalized learning paths, recommend relevant courses, and analyze individual learning behaviors, so employees can develop the knowledge and skills they need to thrive in their current roles. At the same time, they can prepare for future opportunities.

Organizations are rapidly embracing AI-based learning strategies because they see tremendous value in helping employees take charge of their professional growth while remaining aligned with existing business goals.

4. Fostering Retention: Finding the Pulse of Employee Engagement

Employee engagement is the lifeblood of every organization. With AI-based analytics tools, employers can gain deeper insight into subtle engagement indicators. By analyzing informal and formal feedback and communication patterns, organizations can better understand the strength and direction of workforce sentiment and proactively work to improve engagement.

How AI Adds Value

Organizations like KPMG are using an internal AI chatbot and predictive analytics to identify employees who are at risk of quitting, so they can intervene. And in 10-20% of cases, these interventions succeeded.

In this context, predictive analytics depends on historical data and AI algorithms to forecast future outcomes. For employee engagement, it can mean predicting which employees are more likely to leave based on their interactions, sentiments, and previous work patterns.

When the system identifies “at risk” employees, HR can take timely action to address underlying issues. For example, to resolve conflicts with a manager, a disaffected employee may respond to job restructuring, reassignment, coaching, or new development opportunities.

This proactive, personalized approach contrasts with traditional talent management methods that rely on periodic pulse surveys and subjective assessments, both of which may miss real-time fluctuations in employee sentiment.

Fusing AI and HR: Beyond Today’s Challenges

Integrating AI with HR is a journey filled with endless possibilities. But despite the benefits and buzz, HR professionals need to recognize the risks and ensure AI tools are used ethically and effectively.

This isn’t just about efficiency. It’s also about building a workplace that is more empathetic, empowered, and engaged.

In a few short years, AI-enabled HR tools will be ubiquitous. The burden of routine, repetitive tasks will fall more heavily on machines. At the same time, information will flow much more freely, giving business and HR professionals the ability to better understand their work environment, anticipate the need to adjust, and prepare for the road ahead.

As Harvard Business Review says, “These new capabilities remove barriers of expertise and time from the process of data preparation, insight discovery, and analysis and make it possible for ‘citizen data analysts’ to create insights and take actions that improve their businesses.”

We will learn and adapt. New jobs and industries will emerge that we haven’t even anticipated yet. In fact, The Institute for the Future predicts that most of the jobs that will exist in 2030 haven’t been invented yet — and many of those jobs will be created as a result of AI.

As employers move toward a world where AI is seamlessly integrated into HR processes, I think one guiding principle will determine the difference between failure and lasting success. When you’re trying to balance tech innovation with the human touch, ask yourself, “Will this truly help members of our workforce feel more connected, valued, and supported in their professional journey?” If so, you’re on the right track.

How to Become a Great Manager (And Why It Matters) - TalentCulture

How to Become a Great Manager (And Why It Matters)

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Sponsored by The Culture Platform

You probably know at least one great manager. Maybe you’ve even worked for that person. If so, I imagine it was a fulfilling experience. How do I know? It’s a safe bet because research tells us just how deeply managers influence our work experience. For instance:

  • Gallup says managers affect employee engagement and performance more than anything else. In fact, 70% of the variance in a team’s engagement is determined solely by its manager.
  • A Stanford study found that productivity increases by as much as 50% when employees move from a manager with “average” capabilities to a high-quality boss. Not surprisingly, retention is also higher among those with better bosses.

Sadly, great managers are a rare breed. But we can change that. First, we need to understand what it takes to be the kind of manager everyone wants to work for. And that’s exactly what we’re exploring with a management development expert on today’s episode of #WorkTrends…

Meet Our Guest: Ron Ricci

This week, I’m thrilled to welcome a long-time friend of TalentCulture, Ron Ricci. Ron is the founder and CEO of The Culture Platform, the foremost data-based system to measure, manage, and magnify organizational culture.

With more than two decades of experience in leading large teams, Ron is an expert voice on management best practices. Previously, he held multiple senior leadership roles at Cisco, where he managed more than 5,000 employees.

Because he is so passionate about helping managers succeed in what he calls the “post-everything” era, I know Ron has a wealth of ideas to share. So let’s get started!

The Anatomy of a Great Manager

Welcome, Ron. What did your successful career at Cisco teach you about being a great manager?

I knew I was only as good as the people on my team — so to attract the best people, I needed to be a great manager. And to be a great manager, I learned that I had to be really good at setting clear expectations for people.

Being a manager is probably the toughest job in any organization. You sit between leadership’s expectations and your people’s expectations. That’s why it’s critical to be a strong expectation-setter.

Factors Affecting Managerial Success

Why do so many people fail in management roles?

I think this happens for two reasons:

First, being a manager is hard because it involves human-to-human communication. It takes a lot of courage to be a great manager. You have to tell people the truth. You have to follow through on your word. You have to hold people accountable.

So folks fail because they don’t understand how hard it is or how to develop an effective communication style.

Also, I think companies contribute because they’re often very inconsistent in how they act and behave. We’ve all seen it. Companies start a project, then stop it. They launch an initiative, then they don’t fund it. They don’t measure things consistently. Or they don’t have a calendared process to hold people accountable.

Managers need to challenge their company to do better. If companies operate more consistently, managers can do a better job of helping people see future opportunities and move in that direction.

Unsung Heroes

I really feel for anyone who is a manager these days. We talk nonstop about employees and leaders, but managers are left behind…

Good point, Meghan. Over the past few decades, organizations have emphasized leadership and over-invested in employee engagement — and it hasn’t gotten us anywhere. Meanwhile, we’ve under-invested in manager training and development.

We have to stop doing something to do something else better. We have to decide that the manager role is more important. We need to help managers improve how they set expectations, so their employees fall in love with their job and kick ass in whatever their role may be.

In my opinion, this is 20 years overdue.

The Manager’s Toolbox

I’m glad you offer a resource called The Manager’s Toolbox. What’s inside?

Rather than over-emphasizing technology, the toolbox focuses on developing the human-to-human communication process every great manager needs. It’s based on three elements:

1) How to align company priorities with a job role.

2) How to measure something people are doing so you can communicate with facts.

3) How to set priorities and make sure you measure things in a consistent way across the organization so there’s no ambiguity.

You can’t really replace this kind of communication with technology. It’s a process.

 

Learn More About How to be a Great Manager

For more insights about developing better managers, listen to this full #WorkTrends episode on Apple Podcasts, on Spotify, or wherever you tune in to podcasts. While you’re there, be sure to subscribe, so you won’t miss future episodes.

To get a copy of The Manager’s Toolbox, send an email request to Ron at TheCulturePlatform@gmail.com. Also, visit The Culture Platform anytime for details about the company or to schedule a demo.

And whenever you want to continue this conversation on social media, follow our #WorkTrends hashtag on Twitter, LinkedIn, and Instagram. Let’s talk!

Overcoming HR Challenges at Tech Startups

How to Overcome Top HR Challenges in Tech Startups

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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.

Leaders Do You Connect Employees With Their Noble Purpose

Leaders: Do You Connect Employees With Their Noble Purpose?

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TalentCulture Content Impact Award Winner - 2023When employees feel disconnected from their jobs — or their work doesn’t bring a sense of purpose to their lives — they’re more likely to quit. Unfortunately, this is happening all around lately. Troubling signs like productivity theater and resenteeism are flooding the work zone. Clearly, many employees are struggling to connect their organization’s purpose with their own.

According to McKinsey, 70% of employees find a sense of relevance through work. This doesn’t mean people expect their job to define them 100%. But when personal and business purposes align, everyone benefits. Workforce engagement and loyalty tend to improve significantly. As a result, employees become more willing to advocate for their employer and recommend prospective applicants.

Why should leaders care? Because when you create a culture of psychological safety and compassion, you empower people to be authentic at work. This, in turn, drives commitment, satisfaction, and team performance.

Keys to Connect With Employee Purpose

1. Start by Ensuring Psychological Safety

In a world overflowing with toxic workplaces, psychological safety is more important than ever. No one should have to fear humiliation or punishment when they share concerns, ideas, and mistakes. Everyone should feel free to speak up and support one another without rejection or embarrassment.

The definition of psychological safety isn’t everyone being nice to others all the time. Rather, it is a work environment where everyone is welcome to:

  • Share feedback
  • Challenge the status quo, and
  • Work together to resolve disagreements.

But these conditions don’t materialize out of thin air. They depend on supportive top-down leadership.

2. Facilitate Open Communication

Purpose-driven cultures thrive when leaders consistently encourage a free flow of communication. This is possible when everyone feels a shared sense of ownership and trust.

In practice, trust emerges when all team members are willing to offer peers a “soft landing.” In other words, when a teammate is in a vulnerable position, others recognize and respect their situation and honor their point of view.

When teams approach authenticity with grace, it sends a powerful message throughout the organization. But this won’t start until leaders establish ground rules and set a consistent example for others to emulate in day-to-day settings. As team members become more familiar and comfortable with others’ abilities, personalities, and perspectives, respectful collaboration can naturally take hold.

3. Measure What Matters

Finally, companies that recognize people as their most valuable asset apply appropriate metrics to measure engagement, growth, and satisfaction.

Quarterly pulse surveys can include some probing questions to assess employee sentiment about psychological safety and leadership communication. This provides meaningful data you can use to compare results against historical trends and statistical norms.

Benefits of Connecting Purpose and Work

Studies show that people who live their purpose at work are more productive than those who don’t or can’t. They’re also more resilient, healthier, and less likely to leave their company.

Most of us find this kind of culture appealing. In fact, more than 80% of employees want their employer to value them as humans — not just worker bees. Yet, only 45% actually believe they’re seen this way. This gap is important. It means too many of us feel like mere cogs in an endless wheel designed for others’ benefit.

So, where does the concept of engagement fit into this picture? Successful performance doesn’t happen by accident. It comes when organizations tap into employees’ passions and strengths. People who feel engaged, seen, and heard are more likely to contribute their full selves to work whenever they’re working.

Of course, in today’s “work from anywhere” world, leaders often find it difficult to understand what team members feel internally. This uncertainty can cause them to respond in unhelpful ways. No wonder remote and hybrid employees often find it harder to connect with their organization’s purpose!

The best solution is for leaders to reach out proactively to ensure that team members are finding meaningful value in their work. Building and maintaining those connections takes time, space, intention, and investment. But eventually, as you engage in conversations and build camaraderie unrelated to business tasks, trust will develop and the rest will follow.

Compensation and benefit packages matter to employees. But even the best salaries and perks can’t compare to a purpose-driven culture. People need regular reinforcement to confirm that they are contributing in ways that make a meaningful impact. This kind of human connection only comes when leaders take the time to develop genuine relationships with everyone on their team — and encourage others to do the same.

Building a Culture of Authenticity: One Idea That Works

Although connecting with each employee’s purpose may take time, it doesn’t need to be complicated. Start by committing to bring everyone together in person, even if only periodically or on an annual basis. People naturally want to form human connections with team members, and in-person meetings are the best way to promote that kind of relational energy.

At Authenticx, we’ve established a practice that helps. We invite each team member to choose one word as their own personal beacon for the year. The goal is for everyone to select a term that describes how they’re trying to grow as an individual.

Part of living that word comes from the act of sharing the word’s meaning with others and the journey each of us travels with that intention throughout the year. So we all know each other’s words. Each quarter, we schedule word-sharing sessions to discuss where we’re struggling, where we need to be accountable, and where we’re finding success.

Recently, one of our employees shared the word “engagement.” It’s a perfect word for capturing the need to tap into people’s passions and strengths to achieve business success. When people feel seen, heard, and engaged they’re likely to contribute more fully when they’re working.

We’ve found that this practice opens a window into each employee’s mindset and often offers a new insight into their work role and performance. By learning more about what matters to team members, we can spark more useful discussions. And we see this “single word” exercise as a starting point for these conversations.

A Final Note on Purpose at Work

When people feel empowered, respected, trusted, and valued, they’re more likely to challenge themselves, remain committed, and stay on board. These are worthwhile outcomes for any organization, no matter what the mission may be.

This is why purpose-focused leaders don’t hover, but they do pay close attention. They listen to employees’ needs, tap into their passions, and promote connections across teams. As a result, team members can develop a healthy emotional commitment to their work and resilience that keeps them moving forward — even during difficult times.

Employers, Is Your Talent Pipeline Prepared for Turbulent Times? Learn how you can operate with more resilience in this #WorkTrends podcast

Is Your Talent Pipeline Prepared for Turbulent Times?

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Sponsored by Toptal

In today’s fluid business environment, employers are still struggling to find the right kind of talent when they need it. But what does it take to build a truly flexible, modern workforce? It takes a creative strategy and a nimble game plan. For example, a growing number of companies rely on a remote talent pipeline that scales up or down with their organization’s requirements.

In this podcast episode, we explore how employers can improve organizational resilience by tapping into a diverse pool of qualified specialists whenever the need arises…

Meet Our Guest: Vicky Mackie

This week, I’m excited to speak with Vicky Mackie, SVP of Talent Operations at Toptal — the world’s largest fully remote workforce of top talent that enables companies to scale their teams. Vicky plays a central role in matching clients with talent who have specialized expertise, on-demand.

Prior to joining Toptal, Vicky honed her strategic and operational acumen as a management consultant at Bain and Company, where she helped executive teams in multiple industries tackle their most pressing issues.

With her depth of experience, I know Vicky has loads of helpful advice to share about talent strategies that support business agility. So let’s get started!

Why a Flexible Talent Pipeline Is Essential

Welcome, Vicky. The concept of a flexible workforce seems to be gaining even more popularity now. Why do you think this model works so well, especially in an unstable business climate?

When building a talent pipeline, great leaders rely on data. What metrics are we trying to hit? What projects will help us reach those goals? From there, you can build out your recruiting pipeline over the next 6 months, 12 months, 18 months.

But although planning is still very valuable in an unstable environment, you can’t always predict the future. So the option of a flexible workforce helps supplement full-time workforce planning. It also helps fill gaps when things are uncertain or unexpected.

For example, you can flex capacity up and down as needed. Or you can tap into highly qualified talent much more quickly. Or you can find a new type of talent that matches growing demand for emerging technologies, like AI and Generative AI.

Linking Flexible Talent With Remote Work

How do you see talent management evolving with the shift to remote work and the need for flexible talent?

Research by Manpower Group says almost 80% of companies face talent shortages today. And with the pandemic, companies saw firsthand how effective remote work can be, right? Now, more processes and technologies are available than ever to make that experience incredibly smooth.

So, to attract talent that will differentiate your company, you need to leverage remote work. You’ll not only find and attract the best talent, but also retain them.

And because you’re not limiting yourself to a specific geography means you’ll have access to capabilities you may not have had in the past.

Staying Productive Through Change

While building a flexible remote pipeline, how can employers maintain quality and productivity?

First, make sure you rely on a vetted network. By ensuring the people in your talent pool are really experts in their field, you remove the risk of working with contingent talent.

Also, you’ll want to be sure you’re considering the broadest, most diverse pool you can find, so you’re able to choose the best available talent for each role.

Lastly, it’s important to build a culture around outcomes and results. When you’re in the office, you can see people doing the work. A remote environment is different. So focusing on outcomes helps people produce high-quality work without micromanagement.

How Work Culture Fits In

That point about culture is key. It’s important from the outset, right?

That’s right. You want to treat flexible talent as part of your team. They are part of the solution to the problem you want to solve. They’re the experts. And they want to be partners with you.

So you’ll want to be very clear about what success looks like. Investing in that kind of onboarding will improve the experience for everyone.

 

Learn More About Building a Strong Talent Pipeline

For more insights about how your organization can benefit from a flexible talent pipeline, listen to this full podcast episode. And be sure to subscribe to the #WorkTrends Podcast on Apple Podcasts and Spotify.

You’ll also find a wealth of helpful insights and resources for employers on the Toptal Blog.

And anytime you want to continue this conversation on social media, follow our #WorkTrends hashtag on Twitter, LinkedIn, and Instagram. Let’s talk!

Offboarding - How to Give Employees a Fond Farewell

Offboarding: How to Give Employees a Fond Farewell

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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.

Why It Pays to Lead With Purpose - TalentCulture Article

Why It Pays to Lead With Purpose, Especially Now

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These days, any employer that doesn’t lead with purpose is fighting an uphill battle. Why? Take a look at recent headlines. They’re filled with news about troubling workplace trends. Specifics vary, but the coverage points to a common underlying theme — hiring and retaining skilled workers continues to be a monumental challenge.

The problem stems from a confluence of factors. For example:

How can employers turn this situation around? It seems the solution begins when we focus on purpose.

Can Purpose Really Reverse Tough Work Issues?

Although the recent surge in employee resignations has cooled, workforce satisfaction and disengagement remain alarmingly high. As a result, other disturbing trends are emerging — from “quiet quitting” and “bare minimum Mondays” to “resenteeism,” and “rage applying.”

None of this reflects well on the state of today’s workforce. In fact, multiple studies indicate that more than 50% of employees are actively looking for a new position. No wonder employers are still struggling to figure out how to re-engage existing employees, attract qualified new hires, and create a work culture where people flourish and feel a sense of belonging.

To address these challenges, smart leaders are leaning into the power of purpose. This isn’t a quick or easy solution. But when business decisions reflect a genuine desire to lead with purpose, it opens the door to organizational transformation.

Today’s workforce is attracted to companies that genuinely care about tough societal issues and take action to resolve these issues. In other words, employees are interested in organizations with strategies that reach beyond revenue and productivity, alone. They want to work for companies that are committed to more meaningful metrics.

How to Lead With Purpose

What can leaders do to embed purpose into business strategies? For answers, we recently surveyed more than 1000 senior executives from U.S. companies. The findings underscore how purpose is gaining influence in The Future Workplace. Here are four key leadership recommendations:

1. Integrate Purpose With Talent Strategy

Start by prioritizing purpose in the battle for talent. Why? Our survey confirms that sustainability and purpose are top of mind for employees, with 75% of leaders agreeing that a business strategy built on purpose is essential for talent recruitment and retention. In addition, 86% of respondents say this strategy should play a central role when evaluating employee performance.

Younger people are deeply concerned about this. In fact, Deloitte research indicates that 39% of Millennials (born between 1981 and 1996) and 42% of Gen Z employees (born between 1997 and 2012) are prepared to leave their jobs if they aren’t satisfied with their employer’s commitment to sustainability.

To build purpose into workplace culture, it’s important to align your vision and processes with employee and stakeholder feedback, ensuring all voices are heard and everyone has a seat at the table. As a leader, you can do this by consistently focusing on these action items:

  1. Invite employees to regular meetings where business decisions are discussed, and encourage them to share concerns and ideas.
  2. Pay attention to employee feedback. Gather and analyze input from surveys and other internal forums that encourage dialogue.
  3. Develop and implement process and policy improvement plans based on employee concerns and suggestions.
  4. Host regular “town hall” meetings to share information about organizational priorities, goals, and progress, as well as the path forward. This helps ensure that all staff feel welcome to come along on the journey.

2. Put Purpose at the Heart of Value Creation

Beyond improving talent recruiting and retention, what else can you do to lead with purpose? Consider everything you do to create business value.

58% of our survey respondents say it’s essential for companies to create value in ways that benefit all stakeholders — employees, partners, customers, and communities, as well as shareholders. This extends to “earning profits in a sustainable way,” which includes minimizing any harm the business may cause to society.

Another 17% said organizations should “contribute to solutions for challenges confronting people and society as a means of earning profits and generating long-term stakeholder value.”

It should be easy for anyone to see how your business creates value and ensures sustainability across its extended ecosystem. Operational efforts that support sustainability should be clear and transparent. This includes everything from budgeting and office design to workplace culture and how you champion change.

To prioritize value creation and sustainability efforts, generate an open dialogue about how your organization can embrace a mission that puts people and the planet first. As you move forward, invite employees to assess their own societal and environmental impact. Also, be sure to ask employees and other constituents for feedback on an ongoing basis.

3. Openly Define Your Purpose

Transparency is also essential in how any organization defines and demonstrates purpose. Creating a purpose statement combines two key elements: setting goals and identifying intentions. This helps leaders and employees accomplish short-term tangible goals, while they simultaneously consider long-term aspirations and potential actions that can more broadly impact society.

Interestingly, 80% of our survey respondents say their company already has a formal statement of purpose that is “well-established and integrated with our strategies,” or they recently developed this kind of statement and they intend to use it as a guide for future culture change.

Only 1% do not have a statement of purpose beyond generating shareholder value, and they don’t expect the status quo to change.

It is also worth noting that business leaders assign real value to these statements. In fact, more than 75% told us they “strongly agree” that a statement of purpose is an effective guidepost. What’s more, a majority also strongly agree that a defined purpose is central to their business success.

4. Weave Purpose Into Your Employee Experience

Effective leaders recognize the connection between purpose and workplace dynamics. This includes supporting individuals who want to work remotely at least part of the time. After all, the future of work is not about working from home or in the office, per se. It’s about having the flexibility to work effectively wherever, whenever and however you choose.

Clearly, if employers want to remain competitive in the future, they need to offer flexible work options that align workforce preferences with business realities. Research indicates that this is especially true for employers in the tech, retail, telecom, manufacturing, and energy sectors.

That said, smart employers are moving beyond strict RTO mandates that force people to work on-site. Instead, they’re proactively making their office environment more inviting and productive. For example, 98% of our survey respondents are taking steps to improve the in-office experience. This includes adding direct rewards and benefits for on-site work, training managers in “soft skills” such as emotional intelligence, or investing in workplace diversity and inclusion initiatives.

Purpose Leads to Lasting Business Benefits

Businesses can no longer afford to discount or ignore changing workforce dynamics. As you navigate these changes, be sure to remember the increasingly pivotal role purpose plays in your company’s ability to recruit and retain talent. This includes new ways to attract and engage job candidates, as well as ways to develop and motivate people once they’re onboard.

Ultimately, this approach can create broader opportunities to strengthen and advance your organization’s position in the global marketplace. Companies that do this effectively are rewarded with improved productivity, profitability, and a brand that represents an enduring sense of purpose.

So, if you want to stay ahead of the pack in the years to come, start answering this question today: “How will we lead with purpose in the new workplace?”

How do you remove politics from the talent calibration process? Follow this data-driven process

Talent Calibration Can Rise Above Politics. But How?

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Are you involved in your organization’s talent calibration process? Think back to the last session you attended with executives. Did they mostly stay quiet? Perhaps experience taught them that opening up about employees exposes them to career-damaging shoot-from-the-hip criticism. Or they may think it reflects poorly on them as leaders if staff members’ ratings are less than stellar.

Unfortunately, this is a common situation. And too often, it leads to needless bias in talent ratings. Hyperbolic statements like “She’s fantastic!” or “He’s a superstar!” don’t help. Actually, leaders’ talent calibration input can be distorted by many factors — territorial issues, inflated egos, unconscious bias, a lack of exposure to employees, and more.

How can you minimize the impact of these variables? After working with many senior leadership teams who’ve faced these challenges, we’ve developed an approach that removes politics from the equation. It’s a two-step process:

  1. Capture leadership behaviors on a scorecard.
  2. Rely on data-based decision-making to drive calibration.

Here’s how it works…

The Behavior Scorecard: Measuring Means and Ends

Some executives are wildly successful, yet they’re notorious for leaving a “trail of bodies” behind them. When the end always justifies the means, it sends a negative message that can seriously damage your organization’s culture.

Before executives calibrate talent, they need a way to manage “ends” and “means” that avoids in-the-moment bias. The answer? Emphasize observable behaviors that reflect your cultural mindset and values. Rather than relying on a standard off-the-shelf competency model, focus on real behaviors that are valued in your organization.

Partnering an in-house team with an external challenger can provide a more balanced perspective. Also, expand your interviews beyond top executives. Perspectives from across the organization help create a realistic and authentic framework. Use focus groups, surveys, and other instruments to help illuminate the nature of leadership at all levels of the organization.

Most companies have already performed much of this work, and the evidence is located in multiple places. Start by analyzing verbatim comments from engagement surveys. Review consultant reports based on employee interviews. Interview people at all levels to understand what is valued currently, and what will help the organization advance. Using this data, you can construct a simple set of leadership priorities, including specific behaviors that can shape assessments and learning opportunities.

Assessments based on these behaviors can be one data point in an executive leadership scorecard. Others might include mobility, diversity goals, engagement survey data, ethical conduct, and participation in employee resource groups. Clearly define measures of leadership behavior that will move your organization in the right direction.

Data-Based Decision-Making: 4 Steps

We suggest a simple 4-step, data-driven decision methodology. We call it the “STAR” process — survey, talent card, assessment, and review. This encourages ongoing conversations about executive talent between peers. It also ensures visibility of organizational talent and breaks down silos to increase mobility, career development and advancement.

1. Survey

Understand a leader’s ‘brand’ before calibration.

Conduct a survey based on the potential and visibility of the “brand” each executive has developed with their peers. To promote a robust discussion, compare each executive’s pre-calibration response with responses from peers. This exercise can be especially helpful for succession planning and development.

2. Talent Card

Show a full view of the leader and their organization.

Use this card to aggregate data about leaders and how they manage their teams. Ideally, it features scorecard data, performance data, risk data, and ethical data. It can also include other relevant organizational data such as spans, layers, diversity, and profit and loss responsibility. To offer a broader perspective, you may also want to add responses from employee surveys.

3. Assess

Weight each item to determine a starting score.

For all talent card data, assign a relative weighting based on importance. This creates a set of “scores” based solely on data. These scores are your calibration starting point. Stack rank the list of leaders by score to identify top, middle, and bottom ranges. A leader’s manager can keep the ranking, or challenge it and add commentary. This balances manager reviews and data-based reviews of executive talent.

4. Review

Prep for calibration.

A review period gives executives a starting point to calibrate talent based on available data. Differences between ratings reveal where the “heat” of conversations should focus during a calibration meeting. This review cycle encourages dialogue about gaps before a calibration session. Encourage participants to stay curious and check their biases. Also, prompt them to ask questions that will deepen their understanding, rather than to explain or defend.

The Calibration Session

After completing the pre-work, you can focus on the gaps between data and manager review as a starting point for talent discussions. It also creates opportunities to ask useful probative questions about each leader. For example:

  • Were appropriate goals established?
  • Is this a “how” or “what” issue?
  • Are they seen as a “blocker” for other talent?
  • How do they interact with peers?
  • Are they visible enough?
  • Do they need to move on to a new role?

The calibration team does more than simply determine an appropriate rating. It also makes data-driven decisions around talent actions. Next steps and plans for both struggling and high-potential talent can be recorded during the session.

Benefits of a Better Talent Calibration Process

We’ve worked with many senior leadership teams who’ve faced serious talent calibration challenges. When one firm used this process to deepen their talent discussion, it helped them create more effective development plans and design more confident action plans during the calibration session.

This planning process enabled executives to conduct more fruitful conversations with their most talented leaders. And these conversations about strengths, opportunities, and career paths within the company resulted in increased mobility through promotions, retirements, and resignations. As a result, the company made way for new talent, while increasing the visibility and mobility of diverse talent.

By relying on available data and linking evaluations to transparent behaviors, you too can reduce bias and improve the conversation about enterprise executive talent. Ultimately, you can minimize the unwanted influence of politics in discussions and decisions about your organization’s most precious resource — talent.

 

EDITOR’S NOTE: In developing this article, Jennifer Tice collaborated with Andy Atkins, VP, Executive and Team Performance Practice at BTS, a global consultancy. For more than three decades, BTS has been designing powerful experiences that have a profound and lasting impact on businesses and their people.

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

How to Bridge Hiring and Wage Gaps with DEI Analytics

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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.

Hiring Outsourced Labor? Here's How to Maximize ROI

Hiring Outsourced Labor? Here’s How to Maximize ROI

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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.

Does your HR strategy leverage organizational competencies? Find out why it pays to link link company strengths with human resources efforts - and how to get started

Does Your HR Strategy Leverage Organizational Competencies?

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In today’s ever-shifting talent landscape, companies large and small are searching for more effective ways to attract, recognize, and retain their workforce. These opportunities come in various forms — new or improved systems, strategies, platforms, and processes. But one smart move is to double down on organizational competencies. In other words, it’s worthwhile for companies to identify, prioritize, develop, and more fully leverage their unique strengths.

What Are Core Competencies and Why Should We Care?

Organizational competencies are a combination of the essential capabilities, knowledge, and skills that create value and fuel a company’s success. They define “how” an organization accomplishes its goals.

Although core competencies are deeply rooted in an organization’s DNA, they don’t materialize on their own. Instead, they’re established and reinforced through years of business experience and cumulative institutional knowledge, along with ongoing training and development. And although competencies are fundamental, they aren’t necessarily rigid and fixed. Just as any business grows and evolves, core competencies can shift over time.

Examples of organizational competencies include:

  • Customer focus
  • Innovation
  • Integrity
  • Partnering
  • Quality
  • Resilience
  • Resourcefulness/problem-solving
  • Teamwork/collaboration

By investing in their core competencies, businesses can improve performance in ways that create and sustain a competitive advantage. In fact, recent McKinsey research concluded, “Companies that focus on their unique strengths and leverage them across the organization are more likely to outperform their peers.”

Linking Organizational Competencies With HR

The concept of leveraging core strengths is not new. However, it’s gaining renewed attention, as employers struggle to address the challenge of attracting and retaining talent in today’s post-pandemic world. In this increasingly complex, fluid global business environment, employers must find ways to differentiate themselves.

One approach is to recognize and support the symbiotic relationship between business strengths and HR. In other words, it pays to ensure that organizational competencies are an integral dimension of HR strategies and operations. For instance, a company could emphasize the importance of improving HR’s ability to:

  1. Build and expand the workforce by attracting and retaining exceptional talent
  2. Identify and address workforce challenges and opportunities
  3. Empower leaders to measure, communicate, and proactively improve staff performance
  4. Better understand, measure, and coach people based on their functional role, team mission, and broader organizational needs

By strengthening these competencies, employers can expect to see improvement in workforce performance as well as overall business outcomes. Why? Here’s what experts say…

4 Ways Organizational Competencies Elevate HR Results

1. Recruitment and Talent Attraction

One way organizations can improve HR outcomes by leading with strengths is through recruitment. Employers that clearly articulate their core competencies and differentiate themselves from competitors are better positioned to attract top talent.

According to LinkedIn CEO, Jeff Weiner, “When companies focus on their unique strengths, they are able to attract talent that is aligned with their values and culture.” In fact, research indicates alignment with culture is one of the most powerful ways to drive retention.

2. Employee Learning

Training and development is another area where organizational competencies can help HR make a significant business impact. Companies that create a culture of continuous learning and improvement are directly shaping organizational competencies.

This kind of investment not only addresses an organization’s existing knowledge and skills gaps, but also demonstrates a long-term commitment that resonates with staff. As John Doerr, author of Measure What Matters, says, “Companies that invest in employee development are more likely to retain top talent and see a positive impact on their bottom line.”

3. Performance Management

Organizational competencies can also play an integral role in performance management. By clearly defining strengths and expectations, employers can provide people with a roadmap for success.

This also helps managers provide targeted feedback and coaching to support employees as they strive to define and achieve their goals. According to Kim Scott, author of Radical Candor, “When managers are able to clearly define expectations and provide feedback that is both kind and direct, they can help employees develop their competencies and reach their full potential.”

4. Performance Support and Coaching

Finally, organizational competencies can help HR teams more effectively identify and support high performers, while also coaching up people who are not performing at their best. By relying on clearly defined competencies, HR practitioners can more confidently create a framework to evaluate performance and identify areas for improvement.

This can also help managers provide targeted coaching and support to help employees develop additional competencies and reach their full potential. As Marcus Buckingham notes in his book, First, Break All the Rules, “Companies that focus on developing employees’ strengths are more likely to see improvements in performance and engagement.”

Final Notes on Core Competencies and HR

In today’s challenging business environment, sources of competitive advantage are hard to find. This is why more employers are leveraging organizational competencies to inform and improve their strategic HR efforts. By linking their unique strengths to talent acquisition and retention, employee learning, performance management, and coaching capabilities, they’re seeing improved workforce metrics. What’s more, they’re seeing better business results, as well.

Rightsizing Your Workforce In the Face of Economic Change - TalentCulture

Rightsizing Your Workforce in the Face of Economic Change

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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.

Why and how to help employees through lateral moves

How to Help Employees Step Up to Lateral Moves

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When you think about your future within your organization, what do you envision? Do you anticipate moving up through the ranks into a managerial or executive position? Or if you’re a specialist, do you look forward to taking on successive roles with increased responsibility? What about lateral moves? Do they even cross your mind?

In my opinion, lateral moves get a bad rap. Naturally, when people consider how to advance their career within a company, they think first about promotions. Lateral moves tend to be discounted because they don’t signify a “step up.” But that’s an overly simplistic way to look at career paths.

Here’s the truth: Some people aren’t cut out to manage others. Some don’t dream of running a department or a business. This doesn’t mean they aren’t talented employees. Nor does it mean they should be stifled professionally.

On the contrary. The best way to support these employees is through opportunities to move across the organization, rather than encouraging them to take a step “up.” When strong employees move sideways, you can fill their vacated roles with other internal talent, recruit new hires or look into business process outsourcing services.

Why Lateral Moves Make Sense

There are multiple reasons to transform your corporate “ladder” into a “lattice” that supports lateral moves. For instance, with this approach you can expect to:

1. Invigorate Professional Development

When you recognize that talented employees aren’t suited for managerial roles, it’s important to find other ways to encourage continued growth. Carefully chosen lateral moves can further develop employee strengths, expand their skill sets, and help them contribute more fully to your organization’s goals.

2. Improve Workforce Engagement

One of the most critical reasons to support lateral moves is the fact that it boosts engagement. When people are encouraged to use their skills more fully, they feel more connected with their work. For example, imagine a promising member of the finance team shows interest in marketing.

A transfer to the marketing group can mean this employee will work harder and be happier. This is beneficial for the employee, personally and professionally. And improved productivity improves the company’s bottom line, as well.

3. Promote Cross-Functional Collaboration

Lateral moves can also improve communication between departments. Better communication can improve collaboration and remove cross-functional barriers that may have slowed innovation in the past. Plus, when employees share knowledge and expertise gained from other teams, that fresh perspective can help their new teams find better solutions to business challenges.

4. Increase Employee Retention

By enabling people to explore different roles through lateral moves, you create new reasons to keep top talent onboard. Ideally, all team members can find attractive opportunities in departments that align with their professional interests and goals. In the near-term, job satisfaction should increase. While over time, you can expect to see retention increase as costly turnover decreases.

2 Ways to Support Lateral Moves

Did you recently realize one of your team members would be happier or more effective working in a different department? There are a few ways you can prepare them for a smooth transition. For example:

1. Develop a Transition-Specific Training Plan

When employees first joined your company, a training plan probably answered their questions and helped them get accustomed to their role. Although a lateral mover is no longer new to the company, a team-specific training plan could help them step into their new responsibilities more quickly and easily.

A transitioning employee may feel intimidated by the possibility of working with a new team or other changes on the horizon. Partner with the other team’s leader to ensure a warm welcome. Share your insights about the employee with this leader, and encourage them to discuss the new team’s habits and cadence of work.

The sooner an individual understands the lay of the land in a new internal role, the sooner they can contribute and help move the team’s agenda forward. By developing strong training and actively taking a part in the move, you can help transitioning employees reach their potential as soon as possible.

2. Keep Your Door Open

You may have initially been surprised or hurt to hear that a team member would prefer to work in a different department. However, it’s best to support their lateral move. Often, an employee’s desire to transfer isn’t a negative reflection on their current manager’s performance. It may just mean they want to learn more about another part of the business or their career goals are leading them in a different direction.

So keep the door open. In the near term, this employee will need your support as well as the support of their new manager. Major career transitions often come with growing pains. Even if an employee has been with the company for several years, they may not understand much about their new role or the team dynamic. Reassuring this individual that you are available to answer any questions will ease their professional transition.

Final Thoughts

When helping employees with their careers, it’s important to assist those who are strong candidates for lateral moves, as well as those who are moving upward. This is a great opportunity to show employees you care about their professional development and trajectory, even if they aren’t aiming toward a traditional managerial position.

When conducting performance evaluations, think about which employees are well-positioned for this kind of transition. Talk with them about their interests and goals. And if they want to pursue a lateral move, follow these tips to support them.

Are you ready to lead your business through uncertain times? Check this #WorkTrends podcast for insights from tech CEO and Founder Ronni Zehavi as he talks with host Meghan M. Biro

Are You Ready to Lead Through Uncertainty?

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Sponsored by HiBob

As 2023 begins, the world of work is bracing for a rough ride. For more than a year, inflation has gripped the economy. Previously unstoppable tech companies are reeling from recent layoffs. And other industries are tightening their belts, as a recession now seems unavoidable. What will it take to lead through uncertainty?

Strategies that helped organizations thrive under different circumstances are no longer relevant. But during lean times, how can you preserve what’s valuable and unique about your organization? This question is top-of-mind for leaders everywhere. So let’s get advice from someone who understands the factors driving today’s business climate:

Meet Our Guest:  Ronni Zehavi

Today, I’m thrilled to welcome Ronni Zehavi, Co-Founder and CEO of modern HR platform provider, HiBob. After more than 25 years of experience in launching and leading successful technology companies, Ronni knows first-hand how to guide organizations through volatile, uncertain circumstances. Now he’s sharing his unique perspective and expertise to help others lead through uncertainty.

Managing Multiple Unknowns

Welcome, Ronni. Let’s dive right in. How can organizations navigate through uncertain times?

It’s a bit like driving a car. In 2021, driving fast may have been easier because the road was clear. But today it’s bumpy and cloudy. No one knows when it will end, so you need to slow down.

2023 is going to be challenging. First, read the map and then adjust your plan. How long is your runway? Do you have enough cash? Do you have enough funds to weather the coming storm?

Then look realistically at the environment. A slowdown will have an impact on your customers as well as your organization. Will you be able to generate the revenues you expect?

The Long Game

The economy will eventually bounce back. How can we prepare for that now?

It starts with your people. Invest in them. Make sure you can retain all of them. Or, if not all of them, focus on your most important people. Because you’ll want them to be with you when the tailwind comes.

And more than anything else, think positive. What goes down comes back up. So optimism is critical.

How to lead through uncertainty

JOIN US ON TWITTER!

What About Layoffs?

Is there a right way to reduce headcount? How can leaders avoid damaging their company culture?

Layoffs are only one option in a CEO’s toolbox when adjusting to a difficult environment. First, you may decide to slow down hiring. If a slow down isn’t enough, then you may need to freeze hiring or freeze salary increases, or both. And if needed, the next option could be salary cuts or layoffs. One or both.

But it is important to think about the people who stay as well as those who are laid off. Retention can be affected when those who remain are expected to do the job of two people or even more.

Communication and transparency are critical to preserve your culture.

Can Flexible Work Help?

Do you think economic changes will influence where we work? 

I don’t think so. I think hybrid work is here to stay. Flexibility was a nice-to-have perk a few years ago. But the pandemic proved that organizations can deal with it.

The ultimate combination is two or three days at the office or two or three days remote. It offers flexibility, but it keeps engagement and collaboration among people.

How to Support Hybrid Work

I like the idea of finding a balance between onsite and remote work. But how can leaders accomplish this? 

It’s a journey. It will take time until we get there as a standard. But flexibility is all about what we call internally, The Three T’s:  Trust. Transparency. Teamwork.

If your organization follows these values, it will help you create a flexible work culture.

 

For more insights from Ronni about how to lead through uncertainty, listen to this full podcast episode. And be sure to subscribe to the #WorkTrends Podcast on Apple Podcasts or Stitcher.

In addition, we invite you to join our live Twitter chat about this topic on Wednesday, January 25th at 1:30pmET/10:30amPT. Follow @TalentCulture for questions and be sure to add the #WorkTrends hashtag to your tweets, so others in the community can easily find your comments and interact with you!

Also, to continue this conversation on social media anytime, follow our #WorkTrends hashtag on Twitter, LinkedIn, and Instagram.

Why Build Your Own Freelance Talent Network

Why Build Your Own Freelance Talent Network?

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Sponsored by: Worksuite

The case for building a flexible talent network has never been more compelling. During the “Great Resignation” of 2021, 47 million U.S. employees voluntarily left their jobs. And in 2022, a wave of disengagement took hold among remaining workers, giving birth to the term “quiet quitting.” Now as 2023 begins, the global talent shortage continues to play havoc with hiring strategies.

Access to skilled people who can keep your business moving forward is no longer a sure thing. That’s why smart employers are investing in freelance talent options. But what’s the best way to find and manage a qualified pool of on-demand talent?

When building a contingent talent network, you may be tempted to source contractors from public marketplaces. This seems easy enough, but it can be a frustrating and time-consuming option. On the other hand, if you run an established business, you could grow your own talent pool by leveraging your brand presence, network connections and internal resources.

This do-it-yourself approach means you don’t need to rely on potentially low-quality, unknown talent from a third-party network. However, it does require some careful planning. So to help you achieve better results, here are our best tips for sourcing, hiring and retaining top freelance talent.

Why Avoid Public Talent Marketplaces?

Marketplaces like Fiverr and Upwork are often an easy and popular first stop for employers seeking on-demand talent. And they can be useful if you need support in a pinch. Whether you’re looking for developers, designers, writers, or photographers, these platforms let you choose from hundreds of eager freelancers — often at bargain prices. 

But with so many potential candidates for every opportunity, finding a freelancer who meets your specific requirements can take longer than you’d like. And these marketplaces tend to produce hit-or-miss results. Here’s why:

1. Barriers to Entry are Low

It’s possible to find some fantastic people on these platforms. But sourcing them can be time consuming for your managers and teams. That’s because it’s so easy for anyone to join these public marketplaces. No experience or qualifications are necessary. All it takes is an account and a profile that attracts clients.

Literally anyone can promote their freelance services on these sites, whether they’re capable and qualified, or not. You never know exactly what you’re getting until you actually work with a contractor.

2. Faking Performance Rankings is Easy

You might think it’s a safe bet to hire a freelancer with hundreds of glowing five-star customer reviews. But don’t be fooled. Social proof can be easily bought.

Positive reviews are essential to get found and hired from among the hundreds of other marketplace hopefuls. So naturally, freelancers want to look as good as possible, as fast as possible. But accumulating strong legitimate reviews for freelance services takes a lot of time and effort.

Artificially enhancing your marketplace ranking is illegal. Nevertheless, this has spawned an underground network of people who buy, sell, and exchange reviews so they can get ahead.

These false ranking services aren’t visible on public freelancer marketplaces. But a Google search quickly reveals plenty of opportunities to buy or swap reviews in places like these:

Some websites even blatantly offer to help freelancers falsify their marketplace rankings. Well-known options include ReviewXchange and Fiverr 5 Stars. 

Bottom line: When hiring from public freelance marketplaces, “buyer beware” is a smart strategy. But if you can achieve better results in other ways, why take unnecessary chances and spend limited time and resources on public marketplaces?

Are Any Public Talent Marketplaces Credible? 

If your only option is hiring from a third-party marketplace, we recommend considering a handful of “focused talent service platforms” (FTSPs). Freelancers accepted by these platforms have been rigorously screened to ensure they are qualified for positions they’re pursuing. This reduces your risk as a hiring organization and makes it easier for you to conduct a talent search with confidence.

Below are four viable FTSPs that offer fully vetted, high-quality talent:

  • MarketerHire — Provides access to qualified marketing specialists
  • IndieList — Offers carefully-screened freelancers, contractors, and consultants from Ireland 
  • BetterUp — Connects businesses with expert coaches
  • Springboard — Provides access to fully trained, vetted professionals in cybersecurity, software engineering, design, data science and tech sales

Harnessing the Power of a DIY Talent Network 

Generally, businesses recognize it’s cheaper and easier to retain existing customers rather than continuously hunting for new prospects. The same principle applies to talent acquisition. An internal talent pool offers multiple benefits:

1. Speed to Hire 

Sourcing new talent often requires substantial time from your team. But by tapping into an existing talent pool, the process can be as fast as running an advanced search in your freelancer management system database to find the best fit among available people.

A good platform can provide granular details about anyone in your talent pool. For example, you should quickly be able to find someone in your extended organization who has demonstrated the skills you need on another project. You may also see a note or ranking about this person’s contributions, so with only a few clicks you can determine the strength of the individual’s qualifications.

2. No Training Downtime 

Your existing talent is already familiar with your organization, its operations, and its work practices. This means you don’t need to spend extra time continually onboarding and training new people.

3. Leverage Talent Across Your Business 

By extending access to existing talent across your organization, you can improve cross-functional business performance and reduce overall hiring spend.

4. Grow Your Internal Talent Pool 

Freelancers don’t exist in a vacuum. They all are connected with other skilled people. You can expand your internal talent pool by tapping into these networks. It’s as easy as sending emails requesting referrals.

Experienced freelancers won’t refer you to people they don’t trust because they know it could damage their own reputation. But many will happily refer viable colleagues.

You may decide to incentivize referrals – or not. Either way, existing contractors can be a highly effective and efficient source of network growth.

For example, with an internal talent network platform like Worksuite, you can use the Marketplace module to post and share opportunities for upcoming work. You can also vet new candidates, assign work opportunities to individuals, and invite them to submit RFI-style proposals for upcoming projects. In addition, you can maximize your reach by sharing new opportunities with both internal and external sources.

Where to Look for Contingent Talent

Freelance marketplaces and job boards aren’t the only way to find great contingent talent. Consider these alternatives: 

  • Social Media — Outreach on platforms like Twitter and Facebook can attract candidates from members of your global brand community.
  • LinkedIn — You can search and contact freelancers directly or spread the word more broadly with posts on your LinkedIn company page or in specialized groups.
  • Referral Campaigns — Offering “finders fees” for referrals from employees and contractors can generate significant interest.
  • Alumni Talent Pools — Adding former employees and contractors to your database of on-demand resources is an easy way to maintain ties with qualified people.
  • Networking at Industry Events — Gathering profile data from participants at key professional conferences and other events can help you easily develop an extensive pipeline over time.

Developing Talent Network Trust and Loyalty

Sourcing is vital when building a high-quality freelance talent network. But that’s only the beginning. It’s also vital to keep people onboard and engaged with your organization.

Freelancers (especially in the Gen Z age bracket) know many opportunities are always available online. All it might take to land the next assignment is a single email or application. To keep potential candidates connected with your company, you’ll want to develop trusted relationships with valued contractors.

For example, these tactics are often effective:

  • Assign a steady, interesting flow of work opportunities
  • Communicate regularly and directly with active members
  • Gather ongoing feedback with periodic surveys 
  • Offer new assignments that expand on relevant skill sets
  • Provide loyalty incentives
  • Host annual awards to recognize excellent performers 
  • Increase pay rates to ensure top members are appropriately compensated

 

Worksuite: A Talent Network Solution

If you want to develop and manage your own talent pool, a specialized solution like Worksuite can make the process much easier. This platform includes essential features and metrics employers need to build and maintain a compliance administration and quickly identify top candidates whenever contractors are needed. Here’s how customers use Worksuite to support freelance talent strategies: 

1. Customize Onboarding Workflows

Worksuite partners with you to create an onboarding process that meets your exact needs. This includes capturing all the contracts, documents, tax information, and banking details needed before new freelancers are assigned to any project.

2. Add and Invite Freelancers to the Platform

Use sourcing and onboarding tools to reach out to prospective talent, and add qualified individuals to your detailed, searchable internal talent pool hub.

3. Ensure Contractor Compliance

Before assigning work to a freelancer, you must ensure they’ve received proper background checks and are compliant. This prevents costly legal problems down the road, especially when hiring global talent.

With Worksuite, background checks are managed through our partner, Checkr. This saves time for you as a hiring company while giving you peace of mind that every contractor you hire is legitimate. Worksuite also coordinates compliance administration. So, whether you’re working with 10 freelancers or 10,000, you know all NDAs, contracts and tax documents are in place to meet local and international regulatory requirements.

4. Publish a Searchable Talent Directory

Posting profiles of everyone in your talent pool gives your team a highly accessible overview of every contractor in your database. You can dive in deeper to see more details for any individual. Also, freelancers can access and edit their own profiles to be sure their information is always up to date.

5. Assign Groups, Tags and Rankings 

In addition to using the platform’s overview capabilities, you can easily organize freelancers in your dashboard. This gives HR and hiring managers full transparency into a member’s work history, background information, experience, skills, and abilities. 

You can also segment members into custom groups that make sense for your business, so you can easily search and select ideal candidates for any assignment at a granular level.

6. Rank, Rate, and Review Freelancers 

Talent rankings, ratings, reviews, and internal notes help your hiring team easily find any freelancer’s performance record at a glance. This helps you quickly decide who should be assigned to an opportunity (and who would not be an ideal candidate).

7. Track Key Metrics 

With Worksuite, you can set up metrics that reflect the quality and quality of deliverables your contractors produce. Here are some examples of metrics that help customers identify attractive candidates: 

  • Highest-rated members
  • Most engaged members
  • Talent active on multiple assignments (vs. only one assignment)
  • Percentage of assignments canceled prior to the start date 
  • Percentage of assignments rejected by members
  • Average number of assignments per member
  • Individuals who have not been assigned to any projects within the last 12 months 

8. Communicate Regularly With Network Members

You can manage all communication with network members directly from the Worksuite platform. Also, you can send personalized bulk messages using your organization’s filters. This helps freelancers stay engaged with your business, and keeps them up-to-date with your news and job opportunities.

9. Archive Talent Records

With Worksuite’s archive feature, you can remove access to the platform for freelancers who haven’t worked with you in more than 12 months. This helps keep your talent database current, so you know who’s still interested and available to work with your organization.

 

EDITOR’S NOTE:
To learn more about how Worksuite tools and services can help you start or grow a high-quality freelance talent network, contact Worksuite directly.

How can your organization use OKR methods to improve performance? Learn from OKR expert Matt Roberts

Using OKR Methods To Lift Business Performance

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As 2022 draws to a close, most organizations are deeply involved in planning, budgeting and forecasting for the coming year. To complete this rigorous process, leaders often invest significant time, attention and energy for weeks or even months. Yet research says more than 90% of those strategies will never be executed. How can you develop an operational plan you’ll actually use?

Today’s uncertain economic environment is prompting leaders to seek out more flexible, reliable planning tools. But there’s no need to reinvent the wheel. For decades, some organizations have relied on highly effective, affordable practices and tools based on Objectives and Key Results (OKRs).

Understanding OKRs

The OKR framework is favored by fast-growing tech giants like Google, LinkedIn, and Spotify, as well as start-ups that hope to follow in their footsteps.

OKRs are a way of setting strategic goals, first at the company level. Then departments, teams and individuals align their goals with the organization in a systematic way. But this framework is much more than a simple goal format. It comes with multiple step-by-step execution best practices.

For example, consider the “check-in” step, which is usually conducted on a weekly basis. This lightweight update process keeps everyone on your team focused, informed and on-track throughout an OKR cycle. Regular check-ins also help leaders avoid becoming consumed in reactive firefighting, which is often why strategies never see daylight.

Specialized software can help make steps like check-ins faster and easier to manage. For example, with OKR tools like ZOKRI, the check-in process takes only minutes to complete.

Unlocking The Full Benefits of OKR

OKR Snakes and Ladders - Best Practices and Mistakes to AvoidThe OKR process seems simple enough. However, making the most of OKRs requires nuance. Understanding how to navigate these nuances can help you quickly move from an OKR novice to a highly skilled OKR-driven organization.

Some important nuances are outlined below and are illustrated in this OKR “Snakes and Ladders” infographic:

7 OKR Ladders (Top Tips)

To help you succeed at OKRs, here are 7 top tips from organizations that have relied on them for years to drive performance and growth:

  • Use OKR as a focal point for debating issues and opportunities that, if solved, can move the needle. You could also consider them a blueprint for team “therapy” that creates engagement and excitement.
  • Identify meaningful, measurable outcomes (“key results”) to be sure you define success effectively. Discourage vanity metrics and “to-do list” outcomes.
  • Use KPIs to measure business-as-usual performance. Reserve OKRs for more valuable performance metrics, focused on strategic initiatives.
  • Establish aspirational goals selectively to improve focus and unlock innovative ways of thinking. OKRs let you set stretch goals without creating unnecessary stress among stakeholders.
  • Keep in mind that OKRs do not have to follow your organization chart. For example, they can be used effectively with cross-functional team initiatives.
  • Use operational processes built into OKRs to ensure that information is flowing as needed and your organization develops an executional rhythm.
  • Leverage retrospectives at the end of OKR cycles by creating positive shared learning experiences that inform future plans.

7 OKR Snakes (Pitfalls)

Perhaps the greatest strength of the OKR framework is its popularity. The biggest obstacles and mistakes have already been solved many times before, so common issues like these are easy to spot and avoid:

  • Sometimes, executive teams are not prepared to lead by example. Instead, they expect others to set and update goals, but they don’t manage their own. You don’t want to be one of these leaders.
  • Goals assigned to you aren’t as effective as goals you help create. To unlock stronger performance gains, get more people involved in the process. Discover together what needs improvement and support others in achieving their goals.
  • Similarly, avoid developing team OKRs in a silo. Team OKRs are much more powerful when they’re the product of cross-team discussions.
  • Too many team or individual OKRs dilute your focus. Instead, set fewer goals, each with high potential business impact.
  • Don’t treat OKR steps as optional actions. Without mandatory check-ins, you lose a single point-of-truth and people stop taking reports and updates seriously.
  • When the risks and consequences of not achieving OKRs are perceived as high you might be tempted to low-ball, but that can undermine the process. Grading OKRs and retrospectives helps you avoid this issue.
  • Setting and forgetting OKRs opens the door for business-as-usual firefighting to take over your agenda. Clearly, this jeopardizes overall performance outcomes. It’s important to commit to the OKR cycle and not skip updates or OKR meetings.

Summary

OKR is a proven goal setting framework. It can help you structure, share and execute organizational strategy, while making it easy for individuals and teams to support those goals.

Businesses that rely on OKRs typically are high-performers with traditional organization charts and cross-functional teams. But as everyone works toward aligned goals, people are more likely to identify and solve problems. And they learn from each other faster than those without OKRs.

Adopting OKRs is more than adopting a new goal format. It means you’re embracing a new way of talking about challenges and opportunities, and tracking progress towards goals and learning from experience. The know-how and tools to implement OKRs are within reach – even for organizations with a limited budget and management resources.

Empathy works in leadership. Hello, Elon Musk, are you listening?

Leadership Done Right: Yes Elon, Empathy Works

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Some conversations stay with me. It could be something about the subject, the wisdom of the person I’m talking to, or the timeliness of the discussion. And sometimes, a random event triggers my recall. Case in point: The world recently watched a sad spectacle, as half of Twitter’s 7,500 employees lost their jobs when new owner Elon Musk stepped into his CEO role and promptly went on a firing spree. Apparently, he hadn’t received the memo from other successful executives that empathy works as a leadership style.

Twitter is obviously grappling with numerous business issues. But it’s stunning to think this company’s future depends on a singular person in a position of great power who simply decided to slice the workforce in half. And that was only his first week on the job.

Why Empathy Works

This behavior reminds me of a #WorkTrends podcast discussion I had with Gary DePaul, a brilliant leadership consultant, researcher, and author. We spoke in June 2021 — more than a year into the pandemic — when everyone was grappling with workplace challenges. The Great Resignation was gaining steam, and leaders were scrambling to redefine work life and organizational culture in ways that would keep talent onboard.

Over the course of our conversation, Gary explained what makes leaders effective in the long run. Among the qualities that give leaders staying power is (you guessed it) empathy. Seems like the opposite of Elon Musk’s approach, doesn’t it?

Whatever you think of his business acumen, Elon has never been an empathetic leader. It doesn’t seem to be one of his goals, to put it mildly.

This posture is already damaging his relationships with employees. And it doesn’t seem to be garnering trust among Twitter’s business partners, either.

Days into this acquisition, major advertisers like GM decided to put their Twitter budgets on hold and marketing strategists began advising clients to spend elsewhere. It seems Elon’s lack of empathy is already costing him dearly.

Empathy Works Because it Builds Common Ground

Will an empathy void ultimately matter to the success of this $44 billion deal? It probably depends on your view of the people/profits equation.

In our podcast interview, Gary made it clear where he stands, and I’m inclined to agree. Empathy is absolutely crucial for leadership. It’s also a necessary through-line for every organizational tier. Whatever your title, you won’t win the hearts, minds, or cooperation of your team members unless you make a genuine effort to connect with them on a human level.

Gary said that openly acknowledging your weaknesses as well as your strengths is a powerful way to break the ice. It doesn’t need to be complicated. For instance, at your next Zoom meeting, when you ask everyone to introduce themselves by sharing a bit of personal information, don’t skip yourself.

Empathy Also Builds Alignment

Self-awareness leads to humility, which in turn, leads to empathy. When you honor others’ right to be at the table, you can expect a better response from them. That’s the reason why empathy works.

Think about it. When you make an effort to connect with others, pay attention to them, and factor their input into your decisions, others will be drawn toward you.

But when your actions make it clear that your business revolves around you, why would your team sign-up for that? When you send a message that says you make decisions in a unilateral, top-down way, you inhibit the free exchange of ideas where engagement and innovation thrive.

No wonder we see phenomena like “quiet quitting” eroding modern work cultures. When people feel like it’s not worth the effort to work hard or go the extra mile, why should employers expect that kind of commitment?

The Elon Musk Twitter story still needs to unfold. But I think we’re already learning some valuable lessons. I believe Gary DePaul would agree.

Authority is best served with warmth. In other words, leaders should be willing to admit they’re going to make mistakes. They should also be willing to admit they’re on a learning curve — particularly when they’ve just taken over a company.

Anyone in charge of a team can and should work on their leadership style and recognize the importance of communicating with different types of people on their terms. (Hint: Maybe email isn’t the best way to deliver life-altering news.)

A Key Takeaway from Gary DePaul

Studying leadership is Gary DePaul’s career passion. When we spoke, his latest book was What the Heck Is Leadership and Why Should I Care?  It speaks to these core questions:

  • What does it really mean to lead?
  • What does this job really require?

Gary’s bottom line:  Leadership is a continuous, ongoing vocation. So if you’re heading into the corner office (metaphorically or not), don’t assume you’ve arrived. You’re just getting started.

 

EDITOR’S NOTE:

For more insights on leadership and other work-related topics, explore our #WorkTrends podcast archives. You’ll find a treasure trove of great guests and ideas.

Also, be sure to subscribe to Meghan M. Biro’s LinkedIn newsletter,  The Buzz On Work, her personal take on what’s happening at the intersection of people, tech, HR, and work culture.

Key Design Decisions for 360 Feedback Success

Key Design Decisions for 360 Feedback Success

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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.

What is skillability - and why is it so important for future-minded organizations?

Skillability: Will It Solve the Talent Crunch?

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The current talent market poses numerous challenges for leaders and employees, alike. Perhaps the most disruptive force redefining the post-pandemic business landscape is persistently high employee turnover. This “Great Reshuffle” demonstrates just how quickly teams can change—even beyond the pandemic shift to remote work.

A New Business Necessity: Skillability

This fluid employment environment brings good news and bad. Employees are welcoming it as an opportunity to advance their careers. But among employers, it has given rise to the practice of talent poaching. Global companies are proactively pursuing candidates from all over the world, culling the best talent away from other, smaller businesses.

And on top of this highly competitive talent market, employers are now struggling with the effects of inflation. As the cost of living continues to increase, so do demands for higher wages. And candidates are willing to hold out when employers don’t meet their salary expectations. These dynamics can make it tough to fill openings, even for high-paying, highly-skilled roles.

At the same time, employees face a volatile economic landscape that is sending conflicting messages about how to weigh the stability of an existing job against other attractive options. Today’s sky-high inflation hasn’t done employees any favors, either. Even though individuals have more bargaining power, inflation quickly eats into any wage increases gained from a job switch. As a result, economics plays a much more active role in career choices these days.

But despite all of these issues, both employers and employees can rely on one shared secret weapon. It’s something I call skillability.

The Power of Skillability

A skill is an individual’s capacity to perform a job task or function, based on existing knowledge, ability and competence. Skillability, in contrast, is an individual’s capacity to develop proficiency in an unfamiliar skill.

The faster and more efficiently someone can develop a skill, the better. So, skillability can be measured by determining the time an employee needs to develop new skills, along with the investment needed to build those skills.

Training, alone, is not enough to improve skillability. It also requires a supportive, learning-forward work environment. Together, they can nurture professional growth and create a win-win for individuals and their employers.

It’s essential for leaders to develop key workforce skills internally. This gives them new ways to support employees in their current roles, while helping them prepare for future growth within the organization. At the same time, by proactively encouraging team skillability, leaders can uncover new growth opportunities for themselves.

For example, consider technology advancements. While new technologies may promise greater operational efficiency and profitability, they also require specific skills that existing employees may lack. Employees with a high level of skillability can help companies hedge against the uncertainty of changing technology by being adaptable and agile in the face of change.

Building Skillability Within Your Organization

Skillability may sound like a trait, but the ability to develop new skills can actually be learned. It’s all in your approach to training, development, and talent acquisition. Here are just a few ideas to help your organization move forward with this strategy:

1) Consider Candidates Who May Not Fit the Mold

Candidates who lack one or more “required” proficiencies can bring a background or experience that enables them to quickly pick up new skills, duties, and responsibilities. Don’t screen out these individuals.

This approach offers several advantages. First, it opens your organization to new, often untapped talent pools. Also, it encourages the development of existing internal talent, which can drive retention and avoid the consequences of unwanted turnover.

Think about it. If you hire new employees for skillability and their desire to learn, you’re not just investing in their future, but in your organization’s future competitiveness, as well.

2) Build Achievable Benchmarks Into Training

Benchmarking is nothing new. Business leaders use it to determine the highest standards of performance. However, it can also be used for training and onboarding. Benchmarks and timelines can spur self-driven learning over a defined period.

Industrial technology provider, Emerson, relies on a powerful version of this model. It instills lifelong learning “DNA” in new employees to ensure that they will be skillable throughout their employee journey. This kind of approach indicates early on whether employees are likely to grow continually and take on new challenges as they arise. It also encourages the most enterprising employees to quickly distinguish themselves and demonstrate their skillability.

3) Break Employees Out of Their Comfort Zones

Sometimes, the most effective way to cultivate skillability is to nudge employees toward learning opportunities that push their existing boundaries and routines. This strategy is inspired by the fact that people learn more effectively when they’re somewhat uncomfortable as they explore new ways of thinking and doing things. 

Effective learning disrupts the status quo, so to speak. And overcoming these challenges has a way of encouraging people to continue pursuing learning opportunities for themselves. This means you’ll want to put employees in new situations that force them to challenge their thinking, expand their knowledge, test their abilities, and ignite their desire to grow and evolve in their careers. 

4) Establish a Supportive Environment

The climate you establish for new and existing employees is paramount to skillability’s success. It’s important to create a setting where fear is seen as an invitation to grow, rather than a signal to hold back.

Often, leaders inadvertently discourage growth in others because they fear negative consequences or they’re anxious about their own ability to grow. This can intimidate others and put a damper on skillability. One way to avoid this is for senior leaders to consistently and openly encourage all team members to develop skillability, and for the organization to reward people at all levels who step up to the challenge.

Final Thoughts

Employers can become so invested in hiring for a specific skill set that they fail to consider a candidate’s skillability. When you hire people, you’re already planning to involve them in training. So, why not broaden your talent options to include those with a stronger likelihood to learn much-needed skills in the future?

Even if you look within your ranks for employees with motivation and a commitment to continuous learning, you’re likely to find viable job candidates you might not have otherwise considered. It may only take a gentle push in the right direction and an environment that gives them the support they need to grow and succeed.

performance evaluations

How to Motivate People With Better Performance Evaluations

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When someone says it’s time for performance evaluations, what happens? You can almost hear a collective groan ripple across an organization. Reactions run the gamut, from indifference to full-on dread. 

It’s not just the idea of a performance review that makes people so uneasy—it’s also how the process is handled. Although employees tend to agree that performance evaluations are beneficial, too often, the way employers conduct and use reviews leaves a lot to be desired. 

We’d like to dig deeper into why performance evaluations stir up so many less-than-positive reactions. But first, let’s look briefly at how they became a standard business practice…

A Short History of Performance Evaluations

Appraisals were first developed during World War I. Back then, they had little to do with helping people improve and move forward in their careers. Instead, military leaders used appraisals to determine which personnel had the skills to qualify for a promotion when openings became available. They also used appraisals to identify and dismiss underperformers, so they could protect their ranks from harm or inefficiency.

The practice of workplace performance evaluations didn’t gain a firm foothold until the 1960s. But since then, reviews evolved in two sometimes conflicting directions. One rationale focuses on assessing current talent. The other emphasizes talent development for the future. However, as employee reviews have become more widespread, so have their scope and complexity. No wonder this topic makes so many people groan.

Why Employee Reviews Are Often Loathed

Today, many executives, managers, and employees agree that the traditional performance review system is no longer practical or effective. This is primarily because reviews are usually conducted on an annual basis.

Experts agree that an annual review cycle isn’t frequent enough to change behavior. Instead, managers should ideally offer feedback or guidance soon after an issue arises, not months after the fact.

Also, with a year’s worth of activity to evaluate, an appraisal can become an intense, high-pressure process, charged with the fear of being reprimanded or fired. In addition, an annual cadence tends to put an organization’s interests first, while undervaluing the employee experience.

Even so, most companies haven’t figured out how to replace or adapt that traditional review process with something better. How can we redesign performance evaluations to more closely meet the needs of employees, managers, and the organization? Let’s start by clarifying those needs.

The Benefits of a Better Review Process

For employers, a strong review process helps people apply their skills and experience to support organizational objectives. Clearer priorities, fewer mistakes, improved performance, and a more united team all contribute to a more profitable and sustainable business.

For managers and other leaders, a strong review process is efficient and effective. It provides timely direction, re-energizes people who have been disengaged, and makes the whole team more eager to deliver high-quality results.

For employees, a strong review process provides a clear picture of their current skills and proficiencies, while offering useful guidance on how to improve. It makes people feel more connected with their role in the organization and more supported in their specific work goals.

What’s at Stake

By relying on these various interests as a blueprint for improving the review process, organizations can achieve measurable gains. For example, a more productive, supportive form of evaluation can be a highly motivating process. Ideally, it creates an opportunity for meaningful dialogue that builds people up, rather than tearing them down. That can make all the difference for organizations that recognize the business value of employee retention.

On the other hand, choosing not to invest in an effective evaluation process brings significant downside risks. For example, people tend to become disenchanted and disengaged when they’re expected to work without constructive feedback, clear goals, or meaningful career paths.

In fact, one survey indicates that 85 percent of employees would consider quitting if they felt they received an unfair performance review. Imagine the impact if that happened in your organization!

Designing Better Reviews

The key to designing effective performance reviews is to recognize that this is a process, not an event. So many of our negative impressions of performance evaluations come from worrying about a single, looming “judgment day” when we wonder if we’ll be praised, criticized, or perhaps even fired.

For a better experience all around, try these approaches:

1) Start with a Different Mindset

The point of a performance review is to measure performance. However, evaluations don’t need to be limited to numbers and volume metrics.

This is an opportunity to think holistically about an employee’s overall connection with their team, and with your company’s culture and values. It’s also a chance to consider qualitative factors that affect an individual’s mental and social well-being.

2) Co-Create the Review

Gone are the days of top-down leadership and authoritarian work atmospheres. A performance evaluation should be a two-way experience.

It’s helpful for managers to work with employees upfront to co-create the goals that will frame their performance evaluation. Goals that align with key business objectives will serve the organization’s interests while giving an employee a sense of autonomy, purpose, and direction.

3) Increase Evaluation Frequency

You may think fewer evaluations are better. But a once-a-year trial builds unnecessary pressure. Distributing all of that annual review energy across more frequent cycles is a much smarter option.

In fact, according to Gallup, employees who receive daily feedback from managers are three times more likely to be engaged than those on an annual review schedule. To encourage professional growth, consider adding monthly progress checks or weekly one-on-one meetings, focused on development.

4) Lead with Recognition

Motivating employees is not always complicated, and we don’t always need expensive perks to do it. Simply acknowledging someone’s work and effort can go a long way to making them feel engaged and connected to their goals.

A whopping 69% of employees say they would work harder if they felt recognized. Let that insight inform your review structure. By leading with acknowledgment—communicating first and foremost what an individual has done successfully—you lay a foundation of trust and validation that can lead to further dialogue.

5) Communicate Changes Clearly

Many performance evaluations focus on a salary increase or a title promotion. But even long-awaited good news needs to be delivered in a way that’s clear and motivating.

For example, with a salary change, what new responsibilities are expected? What new objectives come with this role? Use these shifts in position as an opportunity to have an open conversation about career growth and planning for future skills development and upward mobility.

Final Thoughts

It’s no secret—performance evaluations are a challenge to manage. And improving your existing methods may seem like a thankless task. But many employers are discovering that it’s well worth taking the time and effort to ensure that your process is truly effective.

Any investment you make to improve feedback and communication has the potential to strengthen the sense of connection people feel with their job, their team, and your organization. Ultimately, those kinds of benefits can lead to a significant impact on your ability to retain talent, enhance work quality and improve your bottom line.

 

Matt Romond is an HR business partner at Jotform. He’s passionate about collaborating with teams to help them do their best work. Outside of work, Matt loves spending time with his family and adventuring in the mountains.

Alexis Russell is the U.S. HR business partner at Jotform. Based in San Francisco, she is the point of contact for all things HR and recruitment at Jotform.

Internal mobility programs

Internal Mobility Programs: The Key to Retention?

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In response to the Great Resignation, employers everywhere are reevaluating their talent strategies. As part of this process, they’re seeking cost-effective ways to retain employees who are craving growth opportunities in today’s uncertain economy. That is why internal mobility programs are gaining momentum.

This article looks at why internal mobility is a smart talent strategy. Through the experience of several HR professionals who have launched and led internal mobility programs, we focus on how to develop a successful initiative while avoiding mistakes along the way.

The Benefits of Internal Talent Mobility

Why prioritize mobility—especially during a recession, when budget and resources are often more limited? There are multiple reasons. For example, these programs can help you:

1) Demonstrate Commitment to Your Workforce

Ginny Clarke is the Founder and CEO of Ginny Clarke, LLC. She previously worked at Google as Director of Leadership Internal Mobility. Clarke says internal mobility programs are a highly effective way to show you care and are invested in developing your organization’s top talent.

“This directly correlates with the level of employee engagement and willingness to stay and perform well,” Clarke notes. “It is also a way to give people valuable tools they can take wherever they go.” As a result, this kind of effort can build your brand, even after employees leave the company.

2) Upskill With the Future in Mind

LaRae James, Director of Human Resources for the City of Pearland, Texas, says that as roles evolve, organizations must upskill employees so they’re prepared for future opportunities. This is particularly important in a strong labor market. As LaRae notes, “Finding good talent is a challenge, so retention is vital for a sustainable workforce.”

She adds, “Developing employees results in a higher-performing organization and builds bench strength for internal mobility and succession planning.” In other words, your organization can never be too prepared for economic uncertainty.

3) Support Your Retention Goals

Angela-Cheng-Cimini, Senior Vice President of Talent and Chief Human Resources Officer at Harvard Business Publishing (HBP), emphasizes that “Career mobility is no longer in a black box. It is based on known expectations.” This kind of clarity means employees and managers can more confidently identify growth opportunities and work together toward the future.

City of Pearland’s James agrees. She says many organizations are creative about how they attract candidates, yet they don’t put the same kind of effort into retaining existing employees. This is why she recommends considering what the employee experience would look like if your organization approached its overall people strategy more creatively.

Building an Internal Mobility Program

To develop a recession-proof talent strategy, James says it is important to understand what motivates people to stay on board. Direct feedback tools help.

For example, her organization recently learned that when employees want to advance their careers, they tend to think of leaving, rather than exploring internal mobility options. The team used this insight to implement a series of events that help employees learn about various roles across the organization. They also provided career development and interview preparation courses.

Other organizations also use employee feedback to inform mobility program development. For example, HBP recently launched a robust career pathing framework. This is a response to exit interviews that revealed a lack of career advancement was the most common reason employees sought outside opportunities. HPB’s frameworks are designed to establish universal criteria for movement across the organization. “The system is grounded in core, leadership, and technical competencies,” Cheng-Cimini says.

Today, HPB offers more than 20 ladders. This provides full visibility into the skills employees need for success. It also lets them design their own paths based on their interests and strengths. As a result, “employees can now see beyond the role they currently occupy. Also, with their manager, they can plan for the experiences and skills they want to build.”

But what if your organization is just starting to build a program? Clarke thinks it’s wise to start small, even with only one business unit or with your most senior employees. She recommends focusing first on helping participants assess their capabilities and competencies. Then help them build a narrative that transcends past roles and responsibilities. She suggests that some of these steps can be scaled through online instruction, rather than relying solely on one-on-one coaching.

Internal Mobility Mistakes to Avoid

What missteps should you avoid when building and managing an internal mobility program?

1) Don’t give employees false hope

When sharing open roles, it is important not to misrepresent these opportunities. Clarke cautions, “There are no guarantees participants will get roles they are considered for.” Be intentional and transparent in how you market the program. For example, be sure to make employees aware that external candidates are also likely to be considered for opportunities. This context can help soften the disappointment employees feel if they are bypassed for desired assignments.

2) Avoid playing favorites

Internal mobility shouldn’t be a popularity contest. Clarke says it’s particularly important not to favor any particular type of person. Instead, she recommends a three-point strategy:

  • Take time to review those identified as ‘top talent’ to ensure broad representation.
  • Triangulate these recommendations with performance reviews, 360-degree feedback, and other endorsements.
  • Incentivize leaders to perform thoughtful talent reviews so you can identify top talent continuously and confidently.

3) Let go of seriously weak links

Don’t keep talent for the sake of ease. Clarke advises employers to proactively question the rationale for retaining some people. “If they are toxic or otherwise don’t represent company values, don’t fall into the trap of wanting to retain their intellectual capital, domain expertise, or a brand name at the expense of poor morale with the rest of their team.”

4) Don’t bite off more than you can chew

On a final note, you may be tempted to overthink this challenge. Although it makes sense to tailor mobility to your organization’s talent strategy, infrastructure, and employee needs, getting started is key. If necessary, focus first on small, achievable steps. Then build on those early wins.

Hiring

Traditional Hiring Practices Are Inefficient for Hiring Leaders

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There hasn’t been a time in recent history when the development and application of smart hiring practices has been more important. Companies are struggling to hire the best and the brightest while facing a unique set of challenges. We’ll explore if we are meeting this inflection point effectively — and what companies can do to improve their response.

Our Guest: Lou Adler

On the last Worktrends Podcast, I spoke with Lou Adler. We discussed hiring practices and how businesses can take it to the next level.

‎Lou Adler is a well-known hiring expert, who turned the recruitment industry on its head through his performance-based recruiting model. With over 40 years in the recruiting industry, Lou’s company, the Adler Group has trained over 40,000 hiring managers and placed 1500 executives for many of the fastest-growing companies.

He is a top LinkedIn influencer and author, known for The Essential Guide for Hiring and Getting Hired and the Amazon top 10 best seller Hire With Your Head, Using Performance-Based Hiring to Build Great Teams, translated into multiple languages.

Hiring Decisions: Are We Making Progress?

You contend that hiring results haven’t improved much in the past 25 years. What is the basis for this claim after tens of billions have been spent on new HR tech?

Well, the biggest claim is… I look at the Gallup satisfaction report, which comes out monthly and it hovers around 30 to 33% of people who are actually satisfied with their jobs. And that number hasn’t changed in 25 years since they started taking it.

So as far as I’m concerned, things have not only not gotten better, they have gotten worse. And I contend, I know the reasons why, but that’s least sufficient proof to say, “Hey, maybe we do have a problem.”

The Great Resignation & Job Satisfaction

Let’s talk about the great resignation. In all of the implications, what are you seeing here? And do you have suggestions for companies, recruiters, and job seekers around this?

To me, and it goes back to the underlying problem of why people are dissatisfied and it really comes down to the point that people take jobs and they don’t really know what the work is. And they don’t know what the style of the manager is, they don’t know the quality of the team, and they’re not a hundred percent sure of what the expectations are.

The satisfaction is driven by the work itself, the people, the company, the manager, the projects, the impact they’re making, and people give that to a shrift. They focus too much on the start date, not enough on the actual work they’re doing.

So to me, that’s the underlying problem of dissatisfaction. And it’s gotten worse because people are now trying to hire faster for more money. So now you have the great resignation, et cetera, et cetera, et cetera.

The Solution: Recruiters Need to Understand the Roles

Recruiting, with no understanding of the role, won’t help us recruit and retain the contributors. It’s time to change the mindset about how we approach discussions with candidates. Quick hiring, without deep consideration of the roles, is fueling negative outcomes. 

I have the knowledge that I believe is correct, but I think you have HR leaders and companies that have a strategy designed, “Hey, let’s fill jobs as fast as we can.”

And yet I believe the process of making that decision, “Should I hire this candidate?” And from the candidate’s perspective, “Should I take this job?” That is a much more detailed, thorough evaluation. That’s an investment on the company’s standpoint in hiring this person and an investment on the candidate, “Hey, should I invest my time in this company?”

And I don’t think the tools that both sides use to make that decision are evaluated properly. I think people have competency models. They’ve got behavioral interviewing. I think that’s a band-aid solution, and I don’t think they’ve really addressed the core problem.

The Solution: Take the Time to Define the Work

There are steps to improving hiring. However, more time on the front end of the process is necessary. This requires a close look at critical performance objectives — and incorporating these into a method, a “scorecard”, that can direct the entire recruiting process.

If you want to implement performance-based hiring, you have to only do two things. Number one is you don’t take a requisition filled with skills, experience and competencies. Instead, you take a requisition that lists the five or six key performance objectives the person taking that job needs to do over the course of the year to be considered successful.

We call that a win-win hiring outcome. Meaning the candidate says, “I’m so glad I had this job over the year and I’m enjoying this work.” And hiring manager says, “I’m so glad I hired that person.” So, defining the work is that core thing.

The other bookend is, don’t accept or don’t hire anybody unless they meet the standards on a tool. We call it the Quality of Hire Talent Scorecard, which determines the 10 best predictors of on the job success. If you just put those two bookends in, don’t hire anybody who doesn’t meet these performance requirements and define those performance requirements up front, you’ll figure out what you’ve got to do in the middle to get there.

In Summary: When Hiring, Emphasize Key Performance Indicators & Consistently Apply That Strategy

Overall, we cannot hope to improve hiring decisions without taking the time to understand the specifics of the role. The ensuing process should not be a race to hire, but a race to capture the important aspects of the role and communicate this effectively to candidates.

The issue to get to that though, requires a lot more work. It’s not just, “Will you take this offer at this point in time?” I have to understand the job, I have to understand the environment, the candidate has to understand, “Is this the right career move? Is it work that I’m intrinsically motivated to do? Can I work with this team? And can I work with a manager’s style?”

I hope you found this episode of #WorkTrends helpful. I know that I found the discussion fascinating.

Subscribe to the #WorkTrends podcast on Apple Podcasts or Stitcher. Also, for more great conversations, be sure to follow #WorkTrends on LinkedIn, Twitter and Instagram!

Agility

Want to Fuel Agility? Understand Employee Skills

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Sponsored by: Empath

In today’s world of work— agility matters — and how we enable our own employees to meet our company goals, is vital. This isn’t possible without a mechanism to understand the held skill & experiences among our own contributors. In today’s world, seeking talent externally could be considered an outdated and ineffective response to fulfilling talent needs. 

The future of work demands that we explore the weaknesses of this strategy.

Our Guest: Carlos Gutierrez

On the latest Worktrends podcast, I spoke with Carlos Gutierrez, the co-founder, and CEO of Empath, a SaaS technology platform that uses machine learning to transform the way talent is managed and grown internally. Previously, he served as chair of Albright Stonebridge Group, a global strategic advisory firm. Carlos spent nearly 30 years with Kellogg, a global manufacturer of well-known food brands.

Let’s open the conversation about the relationship between agility and skills. First, there is no doubt that organizations need to embrace agility. However, if a foundational strategy isn’t in place to respond to rapidly changing internal and external environments, achieving agility will remain elusive.

Agility Requires a Different Mindset

…The thing about agility is that it’s sort of the opposite of the way companies used to run where you develop a plan and you stick to the plan. Agile, an agile methodology or agility, is just the opposite. You don’t stick to a plan because you know that your environment will be changing very rapidly. And what we can do is change departments, change teams, move around, redeploy people and do that very quickly if you have a skills inventory of all your employees. So you can do an agile methodology even quicker than it would if you weren’t able to measure skills.

Powering Agility & Upskilling

As the saying goes: Information is power. To manage & deploy the skills to carry out vital initiatives, organizations must know what skills are actually present and those that are missing:

…So you need to have the information of the employee skills, proficiency levels, and the skills required to go to other jobs. And that’s where you get the gap that you need to fill, the upskilling gap. And we do that for every employee in a company.

A Solution: An AI-Powered Internal Skill Library

Capturing existing skills within your organization is critical. People evolve much more quickly than their resumes — and so do the roles they hold. A more sensitive, dynamic mechanism to capture this is required. Applying cutting-edge technology simply makes sense. Moreover, companies that fail to take people skills into consideration when projecting future business needs will inevitably fall short. 

Companies can create more accurate plans if they understand the skills they seek could already exist internally.

…What we tell companies and what companies have found who use skills, who have accurate skills inventories, that the person they’re looking for is already inside the company. They just don’t know it because they don’t have visibility into, say, 20,000 people.

The Wave of the Future: Machine Learning to Establish Skills

Resumes simply aren’t enough to help organizations understand skills and become agile. The language is much more complex than we realize. We need to be less subjective and listen with more powerful tools.

…I hear sometimes about, well, are you going to have machine learning and AI determine the skills of a person or infer? I can assure you that we will be more accurate in companies in this business than the subjectivity of human nature. So our algorithm, our machine learning algorithm captures signals…The machine can infer what the skills are. It’s actually a very complex technology, but you will never notice it. It’s like picking up a phone and calling, you don’t know what’s behind the call.

I hope you found this episode of #WorkTrends helpful. I know that I found the discussion fascinating.

Subscribe to the #WorkTrends podcast on Apple Podcasts or Stitcher. Also, for more great conversations, be sure to follow #WorkTrends on LinkedIn, Twitter and Instagram!

recruiting challenges

Recruiting Challenges for Fast Growing Startups and How to Overcome Them

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Sponsored by: RocketReach

Recruiting challenges face every organization — one that is particularly daunting for smaller companies and fast-growing startups. As agility is often a make-or-break for these organizations, sourcing high-quality candidates quickly is vital.  

Yet, connecting with the right candidates with the right skill sets, at the right time is often elusive.  

Recruiters have the very difficult task of finding these candidates, while simultaneously verifying that they possess the right skills to fulfill the role and its responsibilities. Ensuring this is often key to an organization’s ability to grow, develop and scale. 

A less than “good fit” hire — can disrupt workflow, damage an organization’s work culture, and waste valuable resources.

Our Guest:  Julia Kimmel

On this latest episode of #WorkTrends, I spoke with Julia Kimmel from RocketReach. For her entire career, Julia has embraced the fast-paced and multi-faceted environment of the startup world. Managing people and processes and helping companies and teams grow across organizations. Since last year, she has overseen the growth of RocketReach from 15 people to over 100. And sorry, no, she’s not related to Jimmy Kimmel. 

Let’s talk about recruiting work-from-home talent for fast-growing startups, the challenges, and how to overcome them.

Startups need to work hard to avoid costly mistakes. Julia:

…it’s hard for startups to plan far in advance. Things change constantly. And if you asked anyone planning to scale a startup and asked them what you could plan for even a year in advance, it’s tough to make those types of decisions. Often I think one of the things that startups have a tough time with is that there isn’t a great hiring strategy, and a lot of startups hire way too quickly.

Overcoming Recruitment Challenges

It’s no mystery why sourcing top talent is an obstacle for many businesses. There is a ton of competition, and getting to know a candidate is a skill of its own. In job interviews, you want candidates who are passionate about curiosity, creative problem solving, and communication. But the true key to finding talented people? Putting in the work.

I think ultimately no one wants to hear it, but it really comes down to sourcing. It’s how you initially get strategic about where you’re looking for people. What are the cues that are constantly going off for the recruiting team to go after certain areas of the market or certain industries? Certain companies are an easy one, but I think you really need to fine-tune and get your team into a place where they feel empowered about sourcing.

Startups vs. Large Companies

There are obvious perks of working for a large, established brand. Many people are drawn to work for large companies because they feel more secure regarding hiring freezes or layoffs. While working at a big brand has its perks, startups can offer more autonomy and hands-on experience.

…one of the things that really stands out to me is that startups really can dig into more and actually market a little bit more – at large companies, you typically work on a very small piece of a project, and your work sometimes goes unnoticed. It’s unclear if what you’re doing is really making a difference, and many people at those companies are doing exactly the same role as you. I think small companies need to sell how much ownership and impact people get to have on the business.

The Future of Startups and Talent

From an HR perspective, will startups and young companies gain a hiring advantage over large companies in the next decade?

Large companies come with a lot of policies, protocols, and regulations. The world is changing, and people want to have more flexibility. I think startups will be popular because there is just a ton of flexibility. If the startup is running the right way, you get to structure your schedule, your day, and your work in a way that makes sense for you. There’s a lot more autonomy, and people are looking for ways to grow, learn, and be challenged. A smaller company can provide this easier than a large company.

I hope you found this episode of #WorkTrends helpful. To learn more about recruiting based on data, visit https://rocketreach.co/. 

Subscribe to the #WorkTrends podcast on Apple Podcasts or Stitcher. Be sure to follow our #WorkTrends hashtag on LinkedIn and Facebook, too, for more great conversations!

Employer Brand

5 Strategies for Defining Your Employer Brand

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Vanilla is one of the most popular flavors in the world. Just ensure it doesn’t become how people describe your employer brand.

Today’s job candidates and workers are often compelled to stay with one company versus another because of the company’s purpose and value. In other words, companies need a strong, direct, authentic employer brand that keeps employees from quitting and joining the Great Resignation. In most cases, a vanilla employee experience won’t cut it anymore.

A Modern Employer Brand

Instead of a basic, old-school employer brand, you need one that’s modern. You need a brand that reflects what your organization stands for and what talent can expect, even if it turns some applicants away.

Companies with substantive employer branding often embrace not being a good fit for everyone. Their employee value proposition statements illustrate their workplace’s true “give and get” nature. With this model, when a team member is willing to “give” in one area, they can expect to “get” something in return. It’s a reciprocal relationship that’s offered up plainly and unabashedly.

If this sounds unusual, it’s because only now are organizations strategically revising and advertising their employer brands more deeply. As employees become more critical of their work environments, many leave their longstanding positions to find companies that align with their values and goals. Especially in the ever-changing workforce, it’s important to learn from others’ mistakes so your company prospers rather than plummets.

Communicate a Meaningful Change

Even massive employer branding face-lifts, like Facebook’s rebranding to Meta, are not enough. Such a change can be perceived as surface-level and doesn’t create or communicate any meaningful change. And because in recent years, candidates have begun conducting employer brand research and digging deeper, transparency and authentic connection are key. Candidates and employees want sincerity. Candidates want to know what your company stands for to decide if it aligns with their passions and purpose. In other words, they want you to lay everything on the table as part of your employer branding.

Where, then, do you start? Below are five employer brand research tactics that will help you define and establish a genuinely distinct employer brand that reflects not only where your company is today but also where it will be tomorrow.

1. Assign a range of leaders to an employer branding committee.

As with any initiative, your employer branding efforts require commitment. An employer branding committee will help construct your employer brand from the ground up and serve as a strategic resource moving ahead.

To get the most out of your committee, including team members from across departments and verticals such as talent acquisition, marketing, diversity and inclusion, and sales will ensure that you aren’t overlooking any key issues as you flesh out what your employer brand means.

2. Host an employer branding kickoff meeting.

After inviting critical players to the table, hold a workshop to allow everyone to get on the same page regarding your employer branding goals. Hold this workshop in person, online, or both. After all, quality employer branding should be geographically agnostic.

During the event, review your employer branding elements. Try to get a handle on how all departments and groups see your organization. Are there disconnects, such as between your mission statement and the experience of workers as measured by employee insights like exit interviews? These are the areas to start cementing your preferred employer brand.

3. Conduct interviews with members of your leadership team.

A huge reason for misalignments between the employer brand you want and the employer brand you have is that leaders’ aspirations don’t always match up to your employer branding expectations.

As part of your conversations, find out what your company leaders demand and admire about their employees. Attempt to get a sense of what working for them looks like so you can revise your employer brand accordingly. Remember that you want your employer brand to be transparent when presenting your organizational work life.

4. Complete focus groups with a cross-section of employees.

Now that you’ve heard from the people steering the ship do a little research to learn more about the daily experiences of employees. Hold about a half-dozen two-hour sessions with up to 10 workers in each session. Use these focus group sessions to find out why the employees chose your organization and what motivates them most — and least. Try to understand the “give and get” exchanges happening. Don’t be surprised if you realize that your employer brand is more complicated than you might have thought.

5. Gauge the market’s view on your employer brand.

At this point, you should start to have a fleshed-out idea of your employer brand. How does it match up to your competition? Ideally, you want your employer brand to gain attention because it’s compelling or engaging. Therefore, spend time investigating the employer brands of your talent competitors.

Check out Glassdoor ratings, social media posts, and other markers of general brand sentiment. Be sure to check out job descriptions, too. Everything you learn can be folded back into maturing and solidifying your employer brand.

Final Words

Years ago, employer branding seemed easy: Pop a ping-pong table in the breakroom, offer beer on tap, and you were done. In 2022, high performers are looking for something deeper and more substantial out of their employee experiences. They’re looking for companies with employer brands that are straightforward and real and that offer workers a chance to be a part of a company they know they can trust and believe in. Developing a research strategy and research infrastructure for employer branding enables you to be that for them.