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Can Gamification Help Employees Beat The “Great Gloom”?

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Whoosh! The winds of workforce change continue blowing in every direction. Are you feeling it?

First, the pandemic forced employers to go all-in with remote work. Then by 2021, forward-thinking leaders rolled out hybrid work models, hoping flexibility would keep the “Great Resignation” at bay. No such luck. By last year, turnover reached record highs as employee engagement continued to sink.

What’s next? Well, now, in the face of broader economic troubles, many employees are choosing to stay put. But that doesn’t necessarily mean they’re happy. Not at all. In fact, researchers say the “Great Gloom” is upon us. Oh my. Yet another buzzword. And this one doesn’t sound promising for anyone.

What exactly should we make of this current wave of workforce discontent? It seems we’ve arrived at a sort of no man’s land, where people are neither engaged nor disengaged — just discouraged and disheartened. But that won’t steer anyone in the right direction. So what’s an employer to do?

This brings me to a topic we’ve discussed before — gamification.

Why It’s Time to Get Serious About Gamification

After so much disruption, some employers may welcome this pause as a moment of relief. But no one can afford to get too comfortable. If the past few years taught us anything, we know this isn’t over. Profound shifts will continue, even if we can’t see what’s around the corner. So, how can teams move forward and perform their best, while rolling with more organizational twists and turns?

I think gamification is part of the answer. I’m not just talking about fun and games, here. I’m talking about thoughtful strategies that fit into everyday work culture and tap into innate human traits, like curiosity and the desire to perform at our best.

We know from experience that gamification works for everything from recruiting and onboarding to team building and talent development. And these capabilities are within nearly every employer’s reach. So what are you waiting for?

What’s at Stake

Gallup estimates that employers lose $1 trillion each year to voluntary turnover. A majority of those former employees say their manager or organization could have done something to keep them. But companies aren’t asking, “How could we keep these people onboard?” until they’re already gone.

And now, even though more employees are staying, many are as disengaged and unfulfilled as those who left during better economic times. That’s not a good sign for business.

Success depends on productive teams — and productive teams depend on competent, committed employees. But building a high-performance culture isn’t easy, especially when remote and hybrid work schedules make communication, trust, and teamwork harder to manage. It sounds like a job for gamification.

Tips From a Gamification Expert

This reminds me of a previous #WorkTrends podcast guest who recommends that employers tap into the power of gamification to elevate the employee experience.

Lauren Fitzpatrick Shanks is the Founder of Keep Wondering Out Loud (KeepWOL), a game-centered talent development platform she developed after 14 years in leadership at five Fortune 500 companies. An accomplished, award-winning black entrepreneur and engineer, Lauren is passionate about leveraging gamification to improve performance among individuals, teams, and organizations…


So, what is gamification, and how important is it for companies to gamify their training and engagement initiatives? Lauren explains: 

Defining Gamification

We’ve all played games before. But think of gamification as game elements and mechanics you can add to work situations that aren’t meant to be games.

Think about how games work. They have rules, they have a framework, they have a structure. And these fundamentals apply to everyone.

For example, when you play Monopoly, you can’t just make up your own rules unless other players agree. This means games give everyone an opportunity to start on equal footing, so each of us has an opportunity to win.

Why Gamification Is So Powerful

As humans, we all want to win. Even if we’re not competitive, no one wants to lose or fail. So games hack your brain. They typically require strategic thinking or quick decisions that disarm people and bring them into a competitive mindset. This taps into the brain’s reward center so you tell yourself, “I want to do well. I want to put my best foot forward.”

I think all teams can benefit from gamification. However, the results depend on the types of games or game mechanics you use, and whether it’s done well. There are many possibilities, but it’s important to be mindful about how you implement it.

How Does This Prepare Us For the Future of Work?

Gamification isn’t a new concept. But companies are on a mission to incorporate it into talent development initiatives, so they can bridge the gap between learning and doing.

Deloitte predicts that soft-skill-intensive occupations will represent 2/3 of all jobs by 2030, and demand for those jobs will grow 2.5x faster than for others.

That means companies need to improve soft skills among today’s employees. And these skills are hard to develop. They don’t come intuitively. You have to practice. But games, gamification, and simulations are fun, creative ways for people to learn, practice, and retain information. They help us grow more naturally. So they’re ideal for soft-skills training.

Why Gamification Wins

We’ve worked with teams of all types and sizes — matrix-based teams, C-suite teams, and multidisciplinary teams. People who work remotely, in-person, and a hodgepodge of both.

That’s what’s amazing about games and gamification. It’s more expansive than a ropes course or an escape room or trivia questions. These methods can bring together people from different generations and cultures to build trust, connectedness, and productivity.


My Turn: How Gamification Helps

Is it really worthwhile to integrate gamification into employee engagement initiatives? That’s a fair question. Here’s my perspective. If you look closer, you’ll find multiple reasons to invest. For example, with these techniques, you can:

1. Inspire Individuals to “Level Up”

Modern employees crave personalized feedback and recognition for their contributions. Game-oriented platforms help with real-time performance tracking. This often includes reminders and rewards that motivate people to keep moving forward. It also keeps managers in the loop with alerts and insights that enable them to intervene when coaching is needed or to celebrate achievements when the time is right.

2. Help Teams Run-Up the Score

In this case, “the score” is your organization’s overall success. Adding game-based logic to department or group projects demonstrates how employee contributions translate into measurable business impact. For example, you can drive team performance by awarding points to people who collaborate effectively and share creative ideas. Similarly, you can help people sharpen their skills by integrating game elements into employee training programs.

3. Tap Into Employees’ Competitive Nature

Gamification shapes behavior with incentives that spark friendly competition and help individuals become better versions of themselves. This is where employers must tread lightly to avoid triggering a cutthroat war among staffers. However, team-oriented strategies and meaningful rewards can build confidence, competency, and camaraderie.

4. Avoid “Game Over” Scenarios

HR and business managers can use insights from gamification platforms to understand and respond to employee development needs. Think of this as a form of workforce intelligence gathering, where employee performance metrics reveal red flags, as well as exceptional performance that deserves attention. When you actively support employee career growth, your team members are less likely to leave.

5. Appeal to All Generations

Younger employees tend to care about the purpose behind their role and they want more control over their career destiny. Gamification can provide them with a more satisfying, personalized work experience. For example, Deloitte’s Mass Career Customization program lets employees pick their work preferences. Another company, Valve, uses gamification to help employees choose projects they prefer. Methods like this offer younger employees the kind of instant gratification they crave but often miss in traditional corporate settings.

6. Boost Your Employer Brand

By improving job satisfaction, engagement, and retention, gamification can eventually transform employees into brand ambassadors. This elevates recruitment by demonstrating that your company culture is modern and healthy — and puts employees first.

7. Lighten The Mood

Let’s face it. When thoughtfully implemented, gamification is fun. And don’t we all deserve a little less friction and a little more fun in our lives these days? Positive emotion can help connect us more deeply with our colleagues and with our work. Sounds like a smart “gloom slayer” tactic to me.

Game On! Can Your Culture Outplay The “Great Gloom”?

Gamification isn’t likely to solve all of today’s workplace challenges. But it can give employees something new to be excited about. And when employees are motivated to engage, work together, and accomplish something greater, good things are much more likely to happen.

Honestly, it’s hard to think of any other talent management methods with the power to pull people out of a sense of gloom. You have everything to gain and nothing to lose. So, what are you waiting for? It can be exactly what you need to get your employees more invested in their roles and engaged with your organization. Ultimately, that means you can build a winning culture. So get ready, set, go!

 

EDITOR’S NOTE: For more in-depth information about how to develop and manage successful gamification initiatives, visit the Keep Wondering Out Loud website, where you’ll find helpful resources for employers. And for more #WorkTrends insights, check our growing collection of episodes at Apple or Spotify and subscribe!

 

Toxic Cultures Are Crushing Workforce Wellbeing. What Can Employers Do?

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Toxic cultures are like dark clouds looming over the world of work. Wherever they go, they wreak havoc with employee wellbeing. That’s not an overstatement. For example, consider what one recent technology industry survey revealed:

  • 45% of tech employees said their work environment is so toxic it affects their mental health, while 48% said it takes a toll on their physical health.
  • Among those who work in toxic cultures, 43% use sick days or personal time off to take a break from all the negativity.
  • 45% of employees in these environments say they’ve been pushed into “quiet quitting.”

Statistics like these are alarming, especially for organizations that are struggling to attract and retain qualified talent. To understand the issue better and find out how to create a happier, healthier workplace for all, read on…

How Toxic Cultures Erode Employee Mental Health

Today’s work environment is so fast-paced and demanding that it’s easy to overlook signs of toxicity. But left unchecked, these symptoms can cascade into serious consequences that harm individuals as well as overall workplace wellbeing.

Recognizing key issues is the first step toward developing a healthier culture. Here are four common warning signs you don’t want to ignore:

1. High Stress Levels

Toxic workplaces are a breeding ground for stress. Often, employees find themselves constantly navigating through a minefield of negativity, unrealistic expectations, and hostile interactions.

Stressful environments are more common than you may think. In fact, 79% of U.S. workers struggle with work-related stress, according to the American Psychological Association.

The persistent pressure to meet unattainable goals — coupled with a lack of support or recognition — leaves employees grappling with chronically elevated stress levels. This prolonged exposure to stress not only takes a toll on mental health, but also contributes to physical health issues such as hypertension, insomnia, and intestinal tract disorders.

2. Burnout

A combination of stress, overwork, minimal autonomy, and a lack of appreciation create a perfect storm that fuels employee burnout. Constantly pushing people beyond their limits to meet unreasonable demands can leave them emotionally exhausted, disenchanted, and disengaged from their work.

Because it diminishes mental and physical wellbeing, burnout goes hand in hand with absenteeism and employee turnover. As a result, team productivity and organizational performance also suffer.

3. Poor Work-Life Balance

Toxic work cultures often blur the boundaries between work and personal life. Employees may find themselves constantly tethered to their jobs, with little time or energy for personal life.

A lack of boundaries between work and life plays havoc with mental health. It can compromise an individual’s quality of life and leave them feeling overwhelmed and isolated. This inability to detach from work-related stressors can also contribute to sleep disturbances and anxiety, further intensifying mental health challenges.

4. Low Job Satisfaction

One of the most obvious symptoms of a toxic workplace is low job satisfaction. This usually develops when people don’t feel respected or appreciated, and they aren’t offered opportunities to develop and grow. This means enthusiasm and motivation slide, and engagement follows.

Over time, a lack of job satisfaction can erode employee mental health. When this reaches across a team or an organization, it also puts workplace harmony, productivity, and innovation at risk.

How to Heal Toxic Cultures

Creating a workplace that puts employee wellbeing first is not just a corporate responsibility — it’s a necessity. By fostering a healthy, supportive work environment, companies can safeguard mental health across their teams, which translates into high job satisfaction, productivity, and talent retention.

Here are some strategies and tactics to help develop a work environment that is more respectful, inclusive, and supportive:

1. Promote Open Communication

Encourage employees to speak up when they encounter toxic behaviors or instances of workplace misconduct. Create formal and informal processes and channels where people can openly discuss issues. Also, for situations that require discretion, provide a safe platform where anyone can report a problem and know that leaders will act on their input.

2. Implement Feedback Mechanisms

Establish processes and tools to gather and assess regular feedback. For example, conduct periodic anonymous surveys and informal one-on-one sessions. This gives employees multiple ways to express their thoughts, feelings, and concerns about the work environment. By seeking input on workplace culture, policies, and practices you’ll have a foundation for meaningful change.

3. Prioritize Leadership Training

Invest in leadership and management training programs that underscore the importance of creating a respectful, inclusive work environment. Equip leaders with the skills they need to identify and address toxic behaviors. Also, focus on helping them develop emotional intelligence so they can be role models for a positive workplace.

4. Offer Mental Health Support

Provide resources and programs aimed at supporting employee mental health. Include access to counseling services, stress management workshops, and initiatives that promote work-life balance. By showing a serious commitment to workforce wellbeing, you’ll elevate employee trust and commitment.

5. Emphasize Employee Recognition

Implement employee appreciation programs to acknowledge and reward employees for their efforts and contributions. When executives, managers, and peers express genuine appreciation for hard work, it boosts morale and contributes to a more positive work environment.

6. Provide Professional Development Opportunities

Show you care about the future of your employees. Proactively invest in their skill development and career growth. When people feel that their employer actively supports their aspirations, they’re more likely to remain loyal and view their workplace in a positive light.

7. Offer Flexible Work Arrangements

Open the door to flexible work options, such as remote/hybrid work models or flexible hours. This kind of flexibility can help employees better balance their work and personal lives. As a result, it helps reduce work stress, avoid burnout, and enhance job satisfaction.

8. Don’t Forget Conflict Resolution Processes

Establish clear and fair methods for conflict resolution. This ensures that you can address workplace issues or disputes in a timely, effective way. A structured approach can prevent problems from escalating and negatively affecting the work environment.

Encourage Self-Care Education

Toxic cultures can be overwhelming in many ways. Although it’s important for organizations to implement employee wellbeing initiatives, it’s equally important for employees to learn how to take care of themselves.

Educating individuals about mental health and wellbeing can empower them to build the resilience they need to more effectively navigate today’s challenging work world. Consider a curriculum that focuses on topics like these:

1. Coping With Stressful Situations

Training sessions that teach employees how to identify stress and cope with it are extremely useful. During training, focus on techniques for managing work stress, such as mindfulness, time management, and brief relaxation exercises. For example, teach people to recognize their own stressors and develop personalized strategies for dealing with them.

2. Prioritizing Self-Care

Educate employees about the importance of self-care and how to incorporate it into their daily routine. Emphasize the value of maintaining a healthy work-life balance, getting adequate sleep, engaging in regular physical activity, and practicing healthy eating habits. Provide resources and tips for self-care practices that improve mental and emotional wellbeing.

3. Resolving Conflict

Be sure to help employees develop effective conflict resolution techniques that emphasize open, respectful communication. This can help participants discover how to identify and address workplace conflicts constructively — whether it involves colleagues, supervisors, or clients. Through your employee training system you can offer guidance on negotiation skills, active listening, and finding common ground during regular 1:1 meetings.

4. Building Mental Health Awareness

Plan workshops or events to raise awareness about mental health issues and reduce the stigma surrounding this topic. Employees need to recognize signs of mental health challenges in themselves, as well as their colleagues. Make sure you provide information about available mental health resources and how to seek help when needed.

5. Boosting Emotional Intelligence

Emotional intelligence training can enhance an employee’s ability to understand and manage their own emotions while affirming others. Effective training often includes strategies for developing adaptability, problem-solving skills, and a growth mindset. All of these contribute to increased resilience while on the job.

6. Setting Goals

Everyone can benefit from learning how to set and achieve personal and professional goals. A great way to do this is by guiding employees through the process of creating actionable plans, tracking progress, and celebrating successes. Ultimately, this fosters a sense of accomplishment and motivates people to dig deeper and aim higher.

It’s Time to Let Go of Toxic Cultures

Bottom line: Workforce wellbeing is the key to a loyal, thriving, high-performing workforce. When you commit to building a positive culture that genuinely cares for team members, you’ll benefit in multiple ways:

  • Happy, healthy, well-supported employees are more content and effective in their roles. They’re also significantly more valuable team players who are willing to embrace business goals.
  • When employees are equipped to face the challenges of modern work life, they engage more fully, work more productively, contribute more creative ideas, and are more eager to share in their organization’s success.

Ultimately, fostering a culture of wellbeing is a win-win proposition. A workforce that is mentally, emotionally, and physically present and engaged will thrive — and will help your business thrive, as well.

Employee Experience: 5 Paths to a More Human Work Culture

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Anyone who says being a leader is easy is simply not being honest. Leadership is hard. Yes, I said it. And that shouldn’t shock anyone. After all, modern managers are expected to be nearly super-human. They’re responsible for inspiring people, bringing out the best in their teams, and getting positive results. And naturally, they play a crucial role in shaping the employee experience.

Effective leaders create a positive work culture that fosters engagement, enhances job satisfaction, and increases productivity. Innovative work processes and technology can help. But the most influential leaders rely on more than KPIs, annual performance reviews, and cool digital tools to shape individual and organizational success.

Instead, these enlightened leaders put wellbeing and productivity at the center of their employee experience strategy. All of this sounds good, doesn’t it? But it is much easier said than done.

This article challenges leaders to focus on five factors that drive employee experience in today’s complex work environment: 

  • Empowerment
  • Purpose
  • Recognition
  • Positivity
  • Growth

To uncover areas for improvement, consider these questions…

1. Do Employees Feel Empowered as Individuals and Part of a Team?

For any organization, balancing individuality and teamwork is a delicate art. Do you provide an environment where employees feel free to express themselves openly and authentically, as members of a cohesive, supportive team?

Aim for a Sense of Belonging

The desire to feel connected with others is part of the human condition. In childhood, we begin to fulfill this need by forging relationships with family members and groups of friends who accept us for who we are.

Similarly, at work, a sense of belonging develops when we feel free to show up and contribute as ourselves. In fact, extensive research reveals a strong relationship between authenticity, psychological safety, trust, and a sense of belonging. By behaving openly and authentically, you give peers and team members unspoken permission to do the same. What’s more, by letting go of unnatural roles, everyone has more energy to focus on what really matters.

Breed Trust Through Authenticity

As a leader, you can set a powerful example for others by sharing your own personal and professional setbacks and successes. This lays the foundation for a more genuine, relatable team atmosphere. Employees who see their leaders as real people with strengths, weaknesses, and a desire to learn, they’re more likely to open up, collaborate, and take calculated risks. Ultimately, this can drive creativity, innovation, and growth.

2. Do People See Purpose in Their Work?

How well do employees understand the significance of their efforts? When people understand how their jobs support an organization’s broader mission, they become more motivated, engaged, and committed to their work.

Connect Tasks With Meaning

We’ve all had moments of reckoning at work when we suddenly wonder, “Why am I doing this? Why does this matter?” Don’t wait for this to happen to your employees.

When assigning projects or responsibilities, you have a unique opportunity to share meaningful context. Don’t hesitate to underscore the impact you believe your team members will have on your department, your organization, your customers, or the community at large.

Frame Work as a Fulfilling Endeavor

We all want our efforts to mean something. In fact, research confirms that when employees understand how their daily efforts fit into the bigger picture, they’re more motivated and fulfilled.

Speaking to the value employees bring to the table can deepen their commitment to their job, their team, and the organization as a whole. So, remember to regularly remind people about their significance and acknowledge their contributions.

3. Do You Make Recognition Integral to Work Life?

Celebrating employee contributions strengthens their connection to the organization. Ultimately, this leads to better performance, higher profits, and stronger retention rates. How well do you respond to this need?

Acknowledge Excellence and Effort

Recognition is a core pillar of employee experience. That’s why you’ll want to acknowledge team members on a regular basis.

We all crave validation, but every situation is unique. So take time to think about the most effective approach. Some public acknowledgments resonate for some people, while others prefer a personal note or private 1-on-1 conversation.

Acknowledging excellence boosts morale, builds engagement, and reinforces a sense of value. So don’t hesitate to share a simple “thank you” or reward people formally through a recognition program, 

Encourage Everyone to Participate

At WorkRamp, we’ve created a #Props Slack dedicated to employee recognition. We encourage all employees to use this space to express gratitude, brag about team members, share accomplishments, and celebrate work wins. It’s one of our most popular Slack channels, and team members of all levels regularly contribute. 

4. Is Your Environment Positive and Inclusive?

Company culture directly affects employee employee wellbeing and productivity. A supportive, collaborative workplace attracts and retains top talent, motivates people to excel, drives job satisfaction, and leads to organizational success. How can you build a better culture?

Cultivate Positivity

A positive culture helps employees feel comfortable and supported, which boosts job satisfaction and wellbeing. As a leader, you can set the tone for this kind of environment. To move the meter, you’ll want to embrace change, champion open communication, and ensure fairness whenever possible.

Promote Work-Life Balance

Work-life balance can be elusive, especially these days, when more employees are working remotely or in a hybrid mode. However, by helping team members balance personal and professional priorities, you can help employees gain a stronger sense of wellbeing. 

There are multiple ways to encourage self-care. For example, you can remind people to take breaks, use their vacation time, and unplug during off hours. By supporting healthier habits, you can help team members become more focused, motivated, engaged, and productive teams.

Prioritize Diversity and Inclusion

Promoting workplace diversity and inclusion is not just a moral imperative — it’s a strategic advantage. Embracing diverse perspectives and backgrounds enhances employee engagement. It also fosters creativity, problem-solving, and innovation, all of which can lead to better business outcomes.

By building a diverse environment where all voices are heard, you can avoid bias and foster a more inclusive workplace where employees feel valued and respected. Organizations that excel at this tend to attract and retain talent much more effectively than their counterparts.

5. Are You Committed to Employee Career Goals?

Do you emphasize employee growth? Research consistently shows that employees prefer to work with employers that invest in their future by offering professional development opportunities. This boosts employee morale and job satisfaction. At the same time, it means employers have a more skilled, motivated workforce, with people who are prepared to contribute to the organization’s future success.

Commit to Ongoing Growth

When you actively help team members work towards their professional goals by providing continuous learning and growth opportunities, you can expect to see improved morale, satisfaction, loyalty, and retention.

These opportunities can take various forms. Initiate regular conversations to understand each team member’s aspirations. Then work with them on an ongoing basis to identify relevant educational paths, stretch assignments, cross-skilling and upskilling opportunities, and mentoring relationships that will enrich their daily work lives and expand their capabilities portfolio.

Employee Experience: A Top-Down Imperative

No doubt about it. Leaders have a direct impact on employee experience — for better or worse.

If you have a leadership role, you can help improve your organization’s culture. It won’t happen overnight. But by focusing on building an environment of authenticity, purpose, recognition, inclusion, and career growth, you can help team members feel more valued, fulfilled, and engaged. And over time, with a consistent commitment to these elements, your organization can improve productivity, retention, and overall organizational success.

It’s not easy. But I assure you, it is worth the effort.

Organizational Transparency is the New Normal: How Open Are You?

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Imagine this: You’re attending one of your company’s senior staff meetings. The CEO nods and smiles when one executive shares a KPI chart with an upward-trending graph. Clearly, the CEO appreciates seeing how performance is improving. It confirms the management team’s commitment to excellence and its ability to deliver. But these results don’t really surprise anyone. That’s because your company embraces organizational transparency.

In today’s complex business landscape, a culture of transparency is not just a nice-to-have option — it’s a strategic necessity. Why? Because open communication is a catalyst for engagement, accountability, and success at all levels of a company.

What Makes Transparency Tick?

CEOs never aim for mediocrity. They want teams that are highly motivated, engaged, and productive. This is why organizational transparency is so powerful.

Leaders who champion open communication ignite employee trust, commitment, and motivation. In transparent cultures, success isn’t just about hitting the numbers. It’s about creating an environment where people are all in — where team members know they matter and their efforts make a valuable difference.

Who’s Responsible for Organizational Transparency?

The answer to this question isn’t always clear. Certainly, openness starts at the top. But kickstarting the process and keeping it moving requires a partnership between senior leaders and People Operations.

C-suite leaders bring the company vision and goals into focus, while People Ops teams conduct daily tasks that turn that vision into a reality. Their responsibilities include onboarding new hires, managing the employee experience, and supporting workforce growth and success — all efforts that strengthen an organization’s backbone.

By working together, executives and People Ops can keep employees in the know, so their mindset and contributions align with the company’s vision, values, and objectives.

3 Ways to Enable Organizational Transparency

Here’s how People Ops can partner effectively with the C-suite to foster a transparent work environment:

1. Give Employees a Voice

A culture that welcomes feedback is a cornerstone of transparency. Employees deserve a say in how their organization operates, and leaders can promote this behavior by proactively seeking input.

Regularly inviting employees to express their insights, ideas, and opinions creates an environment where communication is accepted as a norm. By working hand-in-hand with executives, People Ops can develop, promote, and manage multiple feedback channels — both open and anonymous.

For example, you can conduct periodic focus groups or town hall forums with employees who are willing to participate in an open dialogue. And for those who prefer confidentiality, you can initiate private interviews and 1:1 conversations.

Also, to calibrate broader sentiment, insights, and trends, you can conduct periodic anonymous pulse surveys and employee net promoter score assessments.

When mapping a strategy, it’s worth noting that 47% of employees aren’t totally honest when sharing feedback with HR. But 56% of those employees are more likely to be honest when their anonymity is assured.

Although managing employee feedback channels may seem complicated, it’s worth the effort. For instance, organizations that listen and act on these findings are 3x more likely to reach their financial targets.

In addition, when you’re receptive to feedback, you build a sense of connection and trust across the organization. Ultimately, this can elevate workforce wellbeing by reducing stress, disengagement, and even burnout.

Bottom line — it pays to offer various feedback options and keep employees in the loop about how you’re responding to their concerns.

2. Share Information Quickly and Consistently

It’s essential for leaders and People Ops to agree on how to treat sensitive company information. Striking the right balance between transparency and confidentiality prevents misunderstandings. This is especially important when communicating about decisions or events that directly affect employees — for instance, when you’re dealing with layoffs, salary changes, or restructuring plans.

Leaders who care about transparency insist on timely, accurate communication. This preserves trust and positions your company as a reliable source.

For example, publishing pay scales and compensation guidelines helps avoid ambiguity and clarifies career advancement paths. Actually, pay transparency laws already cover more than 25% of the U.S. workforce — and this figure could soon rise to 50%. But this is just one reason why transparency is essential in the modern workplace.

3. Make Company Information Accessible

Ready access to information is critical for the kind of awareness and understanding a cohesive culture needs. Partially informed employees can’t be expected to contribute fully to an organization’s success. This is why a variety of communication channels can help you reach team members where they’re at and keep them up-to-date.

Platforms such as town halls, executive “Ask Me Anything” sessions, online chat forums, and email newsletters can play a pivotal role by adding context to announcements about company priorities, programs, and performance. In addition, these channels give employees an opportunity to share direct feedback with decision-makers and discuss their thoughts with peers.

To take full advantage of these channels, you’ll want to provide clear, consistent messaging across the board. Using an integrated People Ops platform, you can gather, track, and analyze internal communications activity data, and map it to broader organizational objectives.

4. Let Go of Lazy Labels

Most employees want to be seen as people. Yet, only 45% actually think their organization views them that way. Transparency can bridge this gap, so you can build a more unified, empowered workforce, where individual strengths and aspirations contribute to a collective success story.

That’s why it’s time to trash stereotypes — especially negative buzzwords. Terms like “lazy girl jobs” and “quiet quitting” aren’t constructive.

This kind of workplace shorthand may seem harmless, but it doesn’t serve anyone well. In fact, it only undermines employees who value work-life balance over work-at-all-cost expectations.

So make no mistake. Transparency isn’t about mindless judgment or brutal honesty. It’s about intentionally creating an environment where people feel like they belong and they can flourish.

This mindset fuels trust, confidence, and commitment through communication that empowers people to contribute their best. Other benefits include:

  • Heightened job satisfaction
  • Enhanced collaboration
  • Increased engagement
  • Strengthened leadership credibility
  • Improved problem-solving

At its best, organizational transparency aligns everyone with shared objectives. From Gen Z to your most seasoned team members, everyone can work more happily and productively when they’re part of a culture based on open communication.

But be prepared. Developing this kind of relationship takes time, consistency, and persistence.

The Case for Transparency

“The Great Resignation” began in 2021, when nearly 48 million people quit their jobs. But experts say the “Real Great Resignation” actually happened last year, when resignations reached nearly 51 million.

What caused so many employees to leave? According to research, 40% of former employees could no longer tolerate a toxic work environment.

Contrast this with people who feel their work culture is transparent. Their job satisfaction rate is 12x greater than others. That’s a key point because satisfied employees are much more likely to stay on board longer.

It’s no secret that employees want to feel supported, respected, and motivated to do their job well. This starts when top-down transparency is baked into your culture. With a genuine, ongoing effort, business leaders and People Ops can cultivate the kind of transparent workplace that attracts great talent, respects them as individuals, and gives them a powerful reason to stay.

What Does the Voice of the Employee Say About Your Culture?

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Sponsored by WorkForce Software

Employers, you know the story. For years, organizations have been struggling to engage and retain employees, yet few have really moved the meter. So, how do the best employers succeed? Some say the answer lies in listening more closely to the voice of the employee. Why?

Here’s what statistics say:

  • 90% of workers told Achievers they’re more likely to stay at a company that seeks feedback and acts on it. Yet 67% rate their organization as only “okay” or even “horrible” at doing this.
  • According to a Gallup survey, 52% of people who resigned say those in charge could have done something to prevent them from quitting. But only a third actually discussed their disenchantment with their manager before they left.

It is time to lean in and listen to the voice of the employee more closely and more continuously. But what should that look like in a modern work environment? This question is super important. And that’s why we’re talking about it today with an expert in the psychology of work…

Meet Our Guest: Angelina Sun

Today, we welcome back Angelina Sun, PhD, WorkForce Management Solutions Director at WorkForce Software. With extensive experience in multiple industries, she is deeply interested in innovative ways to build and sustain healthy organizational cultures.

In her current role, Angelina focuses on helping leaders more effectively manage and communicate with employees – especially deskless workers. Angelina’s finger is clearly on the pulse of modern workforce challenges and opportunities. That’s why I asked her to join us earlier this year to discuss the state of today’s deskless worker experience.

But this topic is much bigger than just one podcast episode. So I invited Angelina to return so we could dig deeper. Here are some highlights from our latest conversation…

Defining the Voice of the Employee

Welcome back, Angelina! What is the voice of the employee, and why is it so valuable in organizations?

People often think of the voice of the employee in terms of responses to staff surveys. But it’s more than that.  It encompasses all their feelings, perceptions, and experiences. And it includes all communication channels.

There are so many ways you can tap into the voice of the employee. For example, you can learn by paying attention to team meetings, one-on-ones with managers, service sentiment, and information sharing at company gatherings, interviews, focus groups — anywhere you gather feedback.

The Need to Feel Heard is Universal
You’re so right, Angelina. This extends far beyond employee surveys…

Everyone wants to be heard and valued. Whether we are office-based, remote, hybrid, frontline hourly workers or shift workers, we all want to feel like we’re doing meaningful, purposeful work.

But for deskless workers, the voice of the employee has a unique operational focus. Because these workers are closest to production or customers, their feedback is crucial. It helps identify what’s really happening in the workplace or with the customer experience, so we can take action and improve.

Technology’s Role

How can technology, especially mobile, help create a more seamless communication flow between employees and employers?

You know, smartphones are an essential tool for managing our day-to-day lives. This is why organizations really should employ these powerful, pocket-sized supercomputers to connect with frontline workers.

In fact, our research reveals that 45% of employees would prefer to receive training and information on their mobile phone. Yet only 20% of them actually have this option.

Improving the Communication Process

What are some of the best ways employers can select a communication vehicle and make it work for everyone?

The biggest obstacle is adoption. Why? Because deskless workers don’t sit or stand in front of a computer all day to check email and respond.

So if you want a successful solution, it must integrate into the technology deskless workers are already using in the field or on the shop floor.

We are not just talking about a simple chat system. It should be workflow-driven. It should help people get their job done and make it easier to manage schedules and work-life balance, while also helping managers have the right conversations with the right people at the right time…

 

Learn More About the Voice of the Employee

For more insights about how your organization can benefit from listening to the voice of the employee, listen to this full #WorkTrends episode on Apple Podcasts, on Spotify, or wherever you tune in to podcasts. And while you’re there, be sure to subscribe, so you won’t miss future episodes.

Also, visit WorkForce Software anytime for details about the company and its modern workforce management suite.

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

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.

Where Does Workplace Diversity Belong Now?

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

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

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

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

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

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

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

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

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

Timeless Insights From a DEI Leader

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

 

Lessons for Today’s Leaders

Here are several takeaways that continue to resonate:

1. DIB Isn’t Just One Standalone Thing

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

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

2. How to Unpack DIB

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

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

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

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

3. An Integrated View

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

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

4. The Pandemic Exposed Many DIB Weaknesses

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

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

The Business Case for Workplace Diversity

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

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

This question should keep every business leader up at night.

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

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

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

Workplace Diversity Belongs With Us All, Especially Now

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

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

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

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

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

DEI Leadership Action Items

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

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

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

1. Create a Common Vision

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

Tips from DEI Leaders:

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

2. Encourage Participation and Collaboration

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

Tips from DEI Leaders:

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

3. Invest in Developing Leadership Skills

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

Tips From DEI Leaders: 

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

4. Emphasize Accountability

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

Tips From DEI Leaders: 

  • Gather input from leaders and regularly follow-up to discuss their accountability and progress.
  • Engage human capital analytics to identify DEI patterns, trends, and impact. (For example, compare promotion and attrition rates across functions and teams.)
  • Periodically assess what is and isn’t working, and provide stakeholders with updates.

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

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

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

Benefits of Pay Transparency

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

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

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

3 Steps for a Strong Internal Communication Plan

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

1. Assess Your Situation

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

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

2. Craft Your Compensation Story

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

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

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

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

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

3. Prepare Leaders and Managers

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

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

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

A Final Note on Pay Transparency

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

Diverse Communication Transforms Work Cultures. How About Yours?

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No question about it. Strong internal communication is critical to a strong business. But it’s not easy — especially when workplace dynamics are constantly fluctuating. For example, not long ago, Covid forced organizations to embrace remote work. Now, return-to-office policies and hybrid schedules are adding new layers of complexity. Change is a universal challenge. Yet, the most successful leaders keep everyone in the loop so their organizations can continue running smoothly. What’s the secret? Diverse communication.

Why Diverse Communication Matters

Every organization strives to build a work culture that attracts and retains top talent. Communication plays a key role in this process by helping employees feel recognized, valued, and supported.

When people feel more deeply connected with their employer, their work, and each other, morale and engagement naturally improve. But some ways of making this happen are more successful than others. This is where diverse communication shines.

At first glance, this strategy seems focused on tools. Certainly, access to useful tools is important. For instance, you’ll want to be sure employees can easily conduct video calls and informal digital conversations through collaboration platforms like Slack or Teams.

But the most powerful solutions reach far beyond tools like these. Diverse communication strategies look more expansively at how information flows within an organization — and what may be inhibiting that flow. For example, you’ll want to understand:

  • Job Roles: How do different functions and roles communicate? What’s the typical frequency and nature of these interactions? Where are the bottlenecks? What are the implications when communication isn’t effective?
  • Individual Styles: You’ll also want to consider various communication modes. Although people may behave similarly when performing similar tasks, each of us brings our own preferences to work.
  • Other Variables: Many other elements come into play. For instance, generational differences, cultural differences, and work environment differences. All these and more can influence the ways coworkers connect, interact, and share information.

Because so many variables are involved, trying to standardize communication is counterproductive. Instead, start by researching various communication needs, preferences, and styles. The more you understand your employees’ unique strengths, behaviors, and traits, the better you can serve them as individuals and teams.

Let’s look closer at several key factors…

What Shapes Diverse Communication?

1. Generational Differences

With four generations actively participating in today’s workforce, managing multigenerational teams is a growing challenge. Each generation comes to work with unique expectations and approaches to communication:

  • Baby Boomers grew up in an analog age, so they’re likely to appreciate direct, face-to-face communication more than virtual interaction.
  • Gen Xers weren’t exposed to digital devices until early adulthood, so their preferences tend toward a Boomer/Millennial blend of informal, flexible communication via phone, email, or text.
  • Millennials have relied on instant messaging and text communication since their teen years, so they tend to appreciate fast digital chat-style communication.
  • Gen Zers are comfortable with digital technology because they’ve been surrounded by it their whole lives. But interestingly, they also crave one-on-one feedback and authentic communication experiences, like those provided in team huddles and video calls.

Does this mean you should standardize communication based on what “most” Baby Boomers, Gen Xers, Millennials, or Gen Zs prefer? No. Age is only one part of the equation.

2. Team Dynamics

Each department in your organization has no doubt established distinct communication patterns and preferences. So, to communicate effectively across the organization, leaders must understand multiple group norms and provide various experiences that accommodate everyone, regardless of their department or location.

But departments can’t work efficiently in isolation. That’s why it’s also important to foster a sense of community and connection that spans groups, functions, and geographic boundaries. You’ll want to understand how individuals from across your organization consume and share information. By leveraging this insight, you can offer customized communications that also reach across differences to build a sense of shared identity and purpose.

3. Individual Work Styles

Which comes first — technology or work preferences? In the digital age, it depends. Sometimes technology leads the way. For example, mobile apps entered the workplace, not because employers drove adoption but because employees everywhere started bringing their smartphones to work.

At the same time, employees introduced another groundbreaking technology shift — the widespread use of social media at work. Now, according to the Pew Research Center, 56% of employees use social media during business hours for work-related purposes, such as connecting with subject matter experts.

Knowing where employees currently spend time communicating is helpful, because you can leverage those channels to improve other types of organizational communication. The more you rely on tools and channels employees already use, the more engaged and satisfied they’re likely to be with your strategy.

4. Technology

Weak communication only increases misunderstandings and unnecessary conflict. This erodes team cohesion and productivity. Ultimately, it jeopardizes company culture and business performance as well. Technology can help avoid these issues by letting people share information faster and more easily. But tools, alone, don’t guarantee successful communication.

For example, it’s possible to misinterpret a face-to-face conversation. But the likelihood of miscommunication increases dramatically when you rely on digital tools to conduct that same conversation. And the problem only multiplies when your entire team works remotely or on a hybrid schedule.

Another potential pitfall involves messaging itself. Although employees need and want timely access to information, it won’t have much impact without meaningful context. Do you explain how a news update is tied to your company’s vision and values? Why is it relevant for employees? What should they expect as a result of this news? Think strategically about how to frame content so it receives the attention and support it deserves.

To ensure company-wide news and information are highly available to all, many organizations provide collaboration tools like Slack and Microsoft Teams. These solutions make communicating with in-office and remote employees quick, easy, and reliable. Without these channels, people are not just less productive. They’re also likely to feel disconnected from colleagues and leaders, as well as company culture and goals.

And for in-office employees, one way to amplify communication is with digital signage displays. Their visual appeal engages people and helps them quickly digest news as they move through company spaces. Plus, you can quickly and easily update screens anytime to personalize the messaging for individuals, groups, or special events. Some companies even use digital signage to streamline their meeting room booking process or provide visual wayfinding cues to enhance the in-office experience.

These are just a few examples of endless tools that can enhance workforce communication. The tools you choose should reflect your organization’s unique needs.

Why Diverse Communication Beats Generic Methods

When budgets are tight and businesses are juggling multiple priorities, applying a one-size-fits-all approach to internal communication may seem tempting. But that won’t work. Here are several reasons why:

  • Digital Expectations Have Changed: Outside of work, modern employees are accustomed to receiving personalized content that fits their preferences. This shouldn’t stop when they clock in. Interacting with individuals in ways they prefer will improve engagement. Ultimately, it will improve operational efficiency and effectiveness, as well.
  • Leaders Can’t Afford Blind Spots: Organizations thrive when they include people from various backgrounds, cultures, and points of view. Yet many leaders struggle to accommodate others’ experiences. When communication ignores these unique perspectives, trust, team-building, and collaboration suffer. But a more customized approach can bridge these gaps and bring people closer together (without requiring them to be located in the same place).
  • Too Much is at Stake: Studies show that when employers tailor internal communications, their workforce is more responsive, productive, loyal, and engaged. In a tight talent market, why risk your relationship with employees by choosing not to address their unique perspectives?

Getting Started

A successful communication strategy begins with insights about the people in your organization. Rather than relying on hunches or third-party data about just one dimension of each employee’s identity, take time to gather and analyze intelligence about everyone’s communication preferences. The answers are only a few questions away. All you have to do is ask.

An internal communications survey can help you:

  • Identify and prioritize issues that need improvement
  • Reveal the most effective communication methods for various perspectives
  • Establish benchmarks, so you can measure progress over time

With this first-hand data, you can apply sophisticated targeting techniques to communicate with whole departments, or with individuals who are likely to be more responsive when they receive information packaged in a particular way.

By adopting a strategic approach to diverse communication, you can keep your organization running smoothly while eliminating roadblocks that hinder information access and knowledge sharing. It may take time, but if you commit to continuous improvement, you can create a more successful, inclusive culture that employees will love and others will admire.

 

 

8 Ways Companies Are Becoming More Inclusive This Year

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

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

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

For details about these ideas, read the responses below…

How to Become More Inclusive: 8 Examples

1. Improve Meeting Policies to Support Wellbeing

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

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

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

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

2. Review and Revise Job Listings

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

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

These were our priorities when reviewing and improving job listings:

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

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

3. Establish Employee Resource Groups

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

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

Michael Alexis, CEO, teambuilding.com

4. Share Diverse Employee Experiences

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

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

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

Max Wesman, Chief Operating Officer, GoodHire

5. Shift Pay Structure to Base Salary and Bonus

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

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

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

Anthony Martin, Founder and CEO, Choice Mutual

6. Introduce Mental Health First-Aid Support

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

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

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

Matthew Stibbe, CEO, Articulate Marketing

7. Prioritize Leadership Paths for Women

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

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

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

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

Kathy Bennett, CEO and Founder, Bennett Packaging

8. Intentionally Redesign Teams for Diversity

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

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

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

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

Is Remote Work Failing Generation Z?

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When the pandemic arrived in 2020, everyone’s definition of work changed in a heartbeat. Most people headed home, leaving their offices, cubicles, water coolers, and daily commutes behind. After making it through that massive disruption, employers found an even tougher challenge on the other side. They’ve had to figure out how to sustain a positive, productive work culture outside of a shared space. Even now — more than 3 years later — many HR and business leaders still haven’t filled in the blanks. But the delay isn’t helping anyone, especially Generation Z.

What exactly is happening here? And what are the implications? Let’s take an in-depth look at what employers should consider…

Why Generation Z Matters

It’s not surprising to learn that what we know about Gen Z on the youngest members of our workforce.

Imagine starting your first adult job at home. You have no peer relationships or experience in how to navigate organizational life. Think about how overwhelming it would be to move through each day without knowing how to find context, where to look for the right resources, or who can most easily steer you in the right direction. But this has become a norm for all too many younger workers.

No one recruits people to fail. And despite a shaky economy, talent is increasingly hard to recruit and retain. So employers are understandably concerned about onboarding and upskilling Generation Z staff more effectively in today’s remote work environment.

What’s the Next Step for Employers?

Some organizations already had a head start on this new world order. For example, virtual teams have long been what we know about Gen Z. This company continues to improve remote work processes and systems. And recently, Buffer has focused on preventing issues that keep recent graduates from succeeding as new hires.

Buffer is the exception rather than the rule. Most companies had not considered challenges like these before the pandemic, so they were totally unprepared to support young hires in a remote climate. Now, organizations everywhere are actively seeking insights so they can make it work.

Unfortunately, useful data about key issues and best practices is still limited. But smart employers are thinking ahead, so they can minimize negative consequences. For instance, it’s especially important to consider how remote work potentially limits access to equitable opportunities for career growth and development among younger workers.

Here’s a central question to address: “Compared with recent generations, do our Gen Z employees have what we know about Gen Z and develop in their careers?”

Defining Generation Z

When talking about how young people are affected by remote work, we want to be clear. This group includes working-age people born after 1996. This aligns with Pew Research, which selected 1997 as the starting point. Before then, Gen Z was too young to be affected by political and cultural changes that notably influenced Millennials.

Currently, Gen Z and Millennials are experiencing very different life stages. Therefore, when researching these groups, it’s important to apply different measures of security, financial stability, and so forth.

For example, many Millennials are starting a family, buying a home, and settling down. Meanwhile, Gen Zs are finishing high school or college, moving out of their parent’s home, getting their first job, and becoming more independent.

Gen Zs are the definitive internet generation. All members of this cohort were born after the internet became widely available, and they came of age surrounded by the abundance and complexities of social media. Theoretically, Gen Zs are ready to thrive in a highly connected business world. But are they ready to thrive in a remote-first world? 

Remote Work Benefits for Generation Z

Remote work has created an unprecedented opportunity for people who want more autonomy because they can more directly manage their work schedule, location, office set-up, family time, and more. So understandably, remote work is popular among older workers who want to improve their work-life balance. But what about Gen Z?

Here are some reasons younger workers value remote work:

  • Lower commuting expenses
  • Less commute time (and more time for other priorities)
  • More professional opportunities for people with accessibility needs (when commuting is difficult or impossible)
  • More time/flexibility to pursue further education while earning an income
  • Potential to work for multiple employers at once (increase income and expand skills faster)
  • Likely exposure to a more diverse spectrum of people across roles and geographies (compared with onsite jobs)
  • Reduce the risk of toxic management (because behavior is captured in communication channels such as email, slack, and Zoom calls)
  • Freedom to reduce stress by taking breaks for self-care, or spending time with family/friends
  • Potential to start a family at a younger age (if desired) by leveraging flexible scheduling
  • Ability to take time for caregiving, if older or younger family members are at home

Remote Work Risks for Generation Z

Although Gen Z can benefit from remote work, there are downsides, as well: 

  • More obstacles to informal learning. Fewer chances to overhear and join relevant conversations, discuss questions in the hall and on breaks, or be invited to meetings and activities on-the-fly
  • Fewer 1-on-1 relationship-building opportunities
  • Lack of face-to-face community connections
  • Risk of isolation
  • Missed opportunities for on-the-job learning (skills and institutional knowledge)
  • More difficulty finding support networks and career networks
  • Threats to personal time (Digital days at home may start earlier and end later than normal)
  • Potential for increased stress if micromanaged from a distance
  • Zoom and screen fatigue
  • Pressure to create a proper workspace, even if it’s not affordable for a young person
  • Higher out-of-pocket expenses (equipment/workspace, internet, phones, hardware)
  • Regular remote office distractions that affect focus and concentration (for example, neighborhood construction, power outages, housemates)
  • Greater burnout risk (from a persistent lack of boundaries, unclear scheduling, or unrealistic expectations)

Long-Term Equity Implications 

Some of the problems noted above could have a serious, lasting impact on young workers’ professional and personal lives. For example, without in-office experience, Gen Z staff are more likely to suffer from a lack of mentorship, advancement opportunities, informal learning, and professional community.

In addition, remote and hybrid work models often blur the lines between home and work. If you’re home, you could be working. And if you’re working, you could be doing something else. Distractions are all around. Is this decision fatigue or a lack of discipline? When remote workers don’t separate these roles at the start of their careers, boundary issues can potentially follow them all the way to retirement.

That’s why it’s especially important for business leaders, managers, and older team members to understand why remote Gen Z workers need extra support to establish a foundation for success.

Remote Work FAQs

Why Do Employers Oppose Remote Work?

Some employers don’t support virtual teams because they have multiple business concerns. They may expect the worst: weaker productivity, collaboration, informal learning, and a loss of tribal knowledge. Or they may be concerned about employee wellbeing: increased isolation, stress, and disengagement.

Has Remote Work Decreased Productivity?

Depending on an organization’s workload and scheduling, remote work can lead to a decrease in productivity. Employees may be more distracted when working remotely, or if their workspace is chaotic they struggle to focus.

Many other factors can reduce productivity in a remote or hybrid work setting, so this is an important consideration to discuss openly on an ongoing basis.

Why Is Remote Work So Exhausting?

Remote work can feel exhausting, especially if you haven’t established a clear separation between work space and home space. Juggling these blurred lines can add a psychological load that increases stress and eventually leads to exhaustion.

Setting People Up for Success

Given what what we know about Gen Z and remote work, how can employers create a culture that helps young workers feel comfortable working at your organization? It may seem like in-office work is the best answer for anyone at the start of their career. However, some digital solutions can make remote-first teams feel more connected, supported, and included. For example:

  • Establish consistent office hours
  • Encourage everyone to rely on collaborative communication tools
  • Practice knowledge sharing as a way of working
  • Build and promote remote-first mentorship programs
  • Regularly ask Gen Z workers and managers open-ended questions about what is working (and what is not)
  • Schedule periodic digital water cooler chats and invite everyone to suggest agenda ideas

It’s important for leaders to build on what many of us have learned about remote and hybrid work over the past few years. Challenge yourselves and others to think outside the box. Put yourselves in the shoes of each employee — not just younger people — and think of ways to help everyone feel more connected and included. Experiment. Hold on to what works, and integrate it into your culture.

What’s the Real Cost of DEI?

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

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

The Benefits of DEI

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

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

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

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

The Cost of DEI

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

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

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

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

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

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

Structuring a DEI Budget

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

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

1. Personnel Expenses

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

2. Training and Education

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

3. Recruitment and Branding

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

4. Employee Resource Groups 

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

5. Policy Development and Implementation

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

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

6. Data Collection and Analysis

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

7. Community Partnerships

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

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

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

8. Ongoing Evaluation and Measurement

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

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

The ROI of DEI

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

1. Identify Measurable Objectives

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

2. Determine KPIs

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

3. Establish a Baseline

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

4. Track Progress and Impact

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

5. Assign Monetary Value

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

6. Compare Investments and Returns

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

7. Consider Qualitative Impacts

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

A Final Note on the Cost of DEI

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

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

Belonging: Where Does It Fit Into Your Work Culture?

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We all share a deep desire for belonging. From Abraham Maslow to Brené Brown, experts agree that this “indescribable feeling of being welcomed” is a fundamental need. Even the earliest behavioral scientists recognized that the need to belong is an integral aspect of the human experience. 

Cut to today. The year is 2023, and the state of the global workplace is … confusing. For example, in the United States, people spend a massive portion of each week at work. And increasingly, we’re questioning the way we manage our careers.

All around us, full-time employees are shifting to part-time work, office workers are becoming digital nomads, and teams are dissolving. The apple cart has been tipped. And frankly, no one is really sure where all these changes will lead.

Despite this season of flux and indecision, employers can help people find clarity. By prioritizing an inclusive work environment, leaders can create an authentic culture of belonging that attracts talent from all walks of life.

Belonging is not just a powerful talent acquisition strategy. It’s also an effective way to engage people, whatever their values may be. It appeals to everyone, from full-time employees to contingent workers, no matter whether they work onsite, offsite, or in a hybrid capacity.

How Inclusion Impacts Employee Retention

Workforce inclusion and retention are deeply intertwined. According to a Deloitte survey, 80% of full-time employees consider inclusion an important factor when choosing where to work. It also remains significant throughout the entire employment relationship. In fact, 23% of respondents told Deloitte they’ve quit a job where inclusion was lacking.

These statistics speak not only to inclusion’s influence on recruitment, but retention, as well. When people feel included, they’re naturally more engaged. And although engaged people care more about their work, they’re less likely to suffer from anxiety or burn out.

A genuinely inclusive work environment promotes a sense of belonging. And a sense of belonging lifts team morale. As a result, businesses benefit in multiple ways. For example, inclusive organizations tend to be more productive and more profitable. This means fostering an inclusive work environment is not just a good thing to do. It’s also a good business move.

All of this ties back to people who feel included and engaged. So the message is clear: If your culture is inclusive, people will feel more connected to your organization and invested in your success throughout their relationship with you.

How to Foster an Inclusive Work Environment

What strategies and practices help build a culture of inclusion and belonging? Focus on these fundamentals:

1. Educate Around Diversity

Diversity and inclusion are closely linked. But diversity alone is not enough to move the needle. After all, what’s the point of creating an inclusive environment only for one kind of person?

Instead, ensure every member of your workforce is welcome to bring their authentic selves to work. This starts by consistently communicating your commitment to diversity, and illustrating that commitment with action. In other words, look for ways to openly support and celebrate different skill sets and abilities, backgrounds, accessibility needs, gender identities, and ethnicities.

Leaders can also educate employees by raising awareness and encouraging people to interact in appropriate ways with co-workers. For example, neurodiverse team members may need noise-canceling headphones to stay focused and productive at work. Or on Zoom calls, hearing impaired participants may need to rely on captioning. Educating teams about these adaptations and how to apply them will help everyone feel more receptive and comfortable.

2. Prioritize Inclusion, Even in Stormy Weather

In this time of reshufflings and resignations, your commitment will be tested. Maintaining a culture of inclusion and belonging is essential, even when your business is facing a downturn.

In times of crisis, many leaders may default to outdated practices, especially when managing reductions in force and communicating about these decisions. But remaining open and intentional about layoff practices can help you keep your inclusivity promises.

Above all, insist upon treating all employees with an equal level of respect and appreciation throughout disruptive organizational changes. This tells everyone that the way you let go of team members is just as important as how you hire and retain them.

3. Offer an Environment of Care

Inclusion not only means people feel welcomed at work, but also that your organization cares about the quality of their employee experience. Demonstrating care can take numerous forms. For example, you could:

  • Reserve time each day for wellbeing check-ins or social activities that promote team care and bonding.
  • Reward employees for inclusive, caring actions toward others.
  • Ensure that everyone receives training on how to develop emotional intelligence skills and put them into practice at work.

The possibilities are limitless. But whatever mix you choose for your organization, keep in mind that creating an environment of care reinforces a sense of belonging. So the sooner you craft this agenda, the better. Also, the sooner employees experience a sense of caring, the better.

Start with the onboarding stage, or even earlier. Think about how you can help applicants and news hires understand how much your company values and prioritizes inclusion. Then consider how you can keep checking in periodically to ensure employees’ needs are being met and they’re actually developing a sense of belonging.

A Final Note on Inclusion, Belonging and Employee Retention

For better or worse, the nature of your work environment directly influences workforce recruiting and retention. If you learn how to foster a culture of belonging, you’ll attract, engage and retain people who appreciate sharing their talent with an organization that makes them feel wanted.

Making a meaningful impact on your culture may require you to invest more time, attention and funding to inclusion. But, as many employers have discovered, it is well worth the effort.

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.

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

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

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

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

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

Where DEI Goes Wrong

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

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

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

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

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

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

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

3 Keys to People-First DEI

1. Close Gaps in Career Opportunities and Pay Practices

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

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

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

2. Ask Employees to Share Meaningful Changes They Want

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

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

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

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

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

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

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

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

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

Final Thoughts on People-First DEI

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

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

How to Design Internal Communications for Remote Teams

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A strong internal communications function is essential for every company, both culturally and operationally. It helps keep employees aware of relevant news and updates, excited about how they contribute to the organization’s mission and success, and committed to continued progress.

Keeping everyone on the same page is tough enough when employees work at the same location. But now with the rise of remote work, internal communications is even tougher to manage. Distributed teams must remain connected, informed, and engaged. But how can you ensure that people are aligned and productive when they’re located in different cities, regions, countries, and time zones?

Avoid the Easy Solution

Many companies have adopted a “lift and shift” approach to internal communications. However, this is risky. You can’t assume whatever works in a physical office location will make sense in a virtual environment. For successful results, carefully consider your organization’s unique situation, issues, and needs.

As the manager of internal communications and events at a remote-first company, I understand how challenging it is to keep employees in 70+ countries connected and in the loop. Here’s what I’ve learned about leveraging internal communications to take far-flung teams to the next level of engagement, effectiveness, and wellbeing.

The Power of a Smart Internal Communications Strategy

My daily activities focus on coordinating events and communications that showcase company news, updates, and policy changes. But at a more fundamental level, I’m responsible for developing strong connections and community within the organization.

Why is this so important? According to Gallup research, 85% of the global workforce is either not engaged or is actively disengaged at work. This gap translates into a sobering $7 trillion of lost productivity.

The good news is that an effective internal communications strategy can move the meter on engagement and productivity. This is especially important in a remote or hybrid work environment, where you can’t rely on casual office interactions to facilitate social connection and cohesion. With a viable approach you can:

1. Unlock Valuable Insights

From an operations perspective, improving information flow between departments and functions breaks down information silos. This gives people clearer visibility into work priorities and progress across the organization. It also means people can work together more efficiently and productively without needless duplication of effort.

2. Separate Signal From Noise

Solid internal communications also cuts through organizational noise. This gives employees better access to essential company information. It also clears the path to resources people need to perform their job, so they aren’t overwhelmed by Slack messages and email threads. Ideally, it helps everyone feel more supported and empowered to succeed in their work.

3. Connect Critical Dots

From a culture and engagement perspective, internal communications is uniquely positioned to foster connection and community in multiple ways, by:

  1. Facilitating connections between employees, so people develop a sense of community and belonging.
  2. Linking people with work that is happening across the company. This helps them understand the organization’s collective progress and impact.
  3. Connecting people with the company’s mission and vision, so they feel they’re contributing to something meaningful and purposeful. That’s the ultimate goal — to give people a sense of belonging and purpose through their work.

Designing Internal Communications for Virtual Teams

When remote-first companies rethink internal communications with inclusion in mind, employee wellbeing and engagement follow. But what does it mean to be intentional and inclusive? Here’s an example:

Imagine you’re launching a new company-wide program. You’ll want to think carefully about the purpose behind your communications. What outcome are you seeking? What kind of response do you anticipate? What’s the ideal timing and structure for your message? Putting intention behind your plan helps you determine the who, how, when, where and why of information you’ll need to share.

Also, where does inclusion fit in? It ensures everyone has equal access to the information you share and equal opportunity to participate in events. For example, you could launch your new company-wide program by announcing it at an all-hands meeting. Then you could follow-up by sharing a video recording and a written summary. This reinforces the message for attendees, while helping those who couldn’t attend come up to speed.

After the initial announcement, people are likely to have additional concerns and questions. So you may want to set up a dedicated Slack channel where employees can ask questions openly or anonymously.

These are just a few ideas to illustrate how multiple communication tools and channels can help people quickly find, consume, and respond to new information at their convenience. It gives individuals more choice and autonomy. And because they’re in control of when and how they engage, it supports workforce wellbeing. In short, it shows that your organization cares about employees.

Building a Sense of Community and Belonging

Increasingly, we hear about an “epidemic of loneliness” that is eroding workforce health and wellbeing. The impact on organizations is steep. Related absenteeism costs employers $154 billion a year, not to mention the cost of poorer job performance.

Employers can’t afford to ignore this issue any longer. Investment in promoting deeper workplace social connections makes sense, especially for remote team members who don’t see colleagues face-to-face each day.

Virtual organizations can reimagine communications and events in ways that enhance a sense of community. This contributes to a stronger, more unified company culture that spans locations, language differences, and time zones.

Paradoxically, it may actually be easier for remote-first organizations to foster social connections than their traditional in-office counterparts. That’s because working on a distributed basis levels the playing field, bringing everyone together on the same virtual terms.

For instance, think about your regular all-hands meeting format. Is it a one-way broadcast where leaders outline business updates? How could you transform this forum into a fun, engaging event people actually want to attend?

What if you set a lively, upbeat mood by playing music while people join the call? How about weaving interactive elements into the agenda, like polls or game-based challenges? Or you could ask employees to suggest topics prior to each meeting. Then you could develop content and programming based on their interests.

Imagine an all-hands that’s not just about business, but about coming together as a team to celebrate the people who make your business special. What would that look like? Intentionally redesign that event. Then start experimenting so your vision becomes reality.

Virtual community building can also happen through online spaces focused on common interests, values, or identities. For instance, you could offer informal social Slack channels where people can discuss pets, parenting, travel, mental health, and so on. When people get to know each other based on personal interests that cut across departments and geographical boundaries, it builds familiarity and trust. Ultimately, this leads to stronger, more productive work relationships.

3 Tips to Optimize Internal Communications

Essentially, internal communications professionals are marketers, responsible for keeping employees aware, interested, involved and enthusiastic about all the meaningful work happening across an organization. With that in mind, here are three tips for optimizing remote team  communications and events:

1. Be Intentional

Think about the purpose of each communication campaign, event, or experience, so you’ll use employee time and attention efficiently and effectively. Keep inclusion top of mind, so people can engage and consume information when it’s best for them.

2. Build for Your People

Design and create with your audience in mind. Proactively listen and work with stakeholders to develop content and programming that resonates and enhances the employee experience.

3. Focus on Your Company’s Specific Needs

Every organization is different. What works for one won’t necessarily work for another. Consider your unique challenges, goals, and context. Then design custom solutions that are purpose-built for your organization and your people.

Internal Communications: Looking Ahead

Remote work may not be for everyone, but it is here to stay. In this new environment, organizations can elevate the employee experience by reimagining internal communications. If we do this well, employees will connect around a common purpose, regardless of their work location. And because they’re more informed, engaged and excited about work, they’ll hopefully be happier to show up and contribute each day. Now that’s something worth striving for!

Practical Actions to Foster Psychological Safety in Your Team

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Why Focus on Psychological Safety?

Successful organizations create conditions that help team members perform effectively, solve complex problems in innovative ways, and feel a sense of inclusion and belonging among their colleagues. This requires leaders to foster a high level of psychological safety.

Psychological safety is “a belief that one will not be punished or humiliated for speaking up with ideas, questions, concerns, or mistakes, and that the team is safe for interpersonal risk-taking.” This definition comes from Amy C. Edmondson, Novartis Professor of Leadership and Management at the Harvard Business School, who has been researching psychological safety for decades. 

While there is an abundance of research and literature on why it’s important to foster psychological safety, we want to explore the how. What exactly can leaders do to foster psychological safety among team members? 

5 Leadership Behaviors that Foster Psychological Safety

Adopting any of these 5 behaviors can have a huge impact on your team’s psychological safety:

1. Welcome Other Viewpoints: “What am I missing?”

As a leader, one of the most powerful things you can do is ask, “What am I missing?” When you ask this simple question, you signal that you are open to looking at things from different angles, and even being challenged.

A leader who regularly asks for other perspectives sets an important tone by signaling that no one has all the answers, and everyone on the team has a valuable perspective worth sharing.

2. Listen to Understand: Develop the Discipline of Not Preparing a Response

When someone speaks, make it a priority to truly understand what they’re trying to communicate. As they talk, don’t think about whether they’re wrong or how you want to respond. Instead, listen with the sole intent of fully understanding their idea or point of view.

Don’t worry — the mere act of understanding someone else’s perspective doesn’t require you to give up your own opinion. Understanding is not agreeing! It’s about letting go of your need to be right and engaging in a battle of arguments. Once you fully understand another person, you can have more productive conversations and deepen the connection.

3. Hit the Pause Button: Model Non-defensive Reactions

In professional settings, it is common to become defensive. We feel attacked, so our brains tend to react as if we’re in physical danger. The fight-flight-freeze reaction takes over, and we may behave in ways that have a negative impact on psychological safety.

During intense moments, notice what you’re feeling and pause. Taking a deep breath can give you time to consider the context and respond in a constructive way. For example, when you feel challenged, ask a curious follow-up question rather than lashing out. 

4. Normalize Failure: “This Is New to Us, So We Will Make Mistakes”

Innovation and success cannot happen without failure along the way. That’s why we need to destigmatize failure. Failure is not unacceptable and it doesn’t need to be avoided. It’s a necessary by-product of innovation.

As a leader, make it explicit that the goal is not to prevent or cast blame for failure, but to learn from it. When your team tries something new, emphasize that you expect failure. Say, “This is new, so we won’t get it right the first time.” Or, “Let’s share and learn from our failures.” Team members will feel invited to take risks, try new things, and discuss what they learn. This accelerates innovation.

5. Upgrade Your Meetings: Appoint an Inclusion Booster

Often in professional meetings, only a small percentage of participants feel comfortable contributing. But this means teams are missing out on valuable, diverse viewpoints.

A great way to increase psychological safety in meetings is to appoint someone to play the role of an “Inclusion Booster.” The Inclusion Booster’s job is to invite everyone to participate, make it safe for all to speak up, and ensure dissenting ideas are acknowledged. This person also makes sure that meeting attendees follow the team’s ground rules. These can include, for example, minimizing interruptions and ensuring equal speaking time.

Diving Deeper: What Actions Foster Psychological Safety?

Each of the 5 behaviors we’ve outlined has complexity and nuance. Let’s look deeper into how two of these behaviors can be managed in common workplace situations:

How To Welcome Other Viewpoints

  1. Declare your interest in feedback
    When giving a presentation, rolling out a strategy, proposing an action plan, or floating an idea, explain your reasoning. But make it clear that you are truly interested in feedback from others. 
  2. Set expectations
    Tell people explicitly that you do not expect everyone to agree with everything you say. Emphasize that you want to avoid false harmony and groupthink.
  3. Create space for dialogue
    Periodically ask, “What am I missing?” Then wait until others respond.
  4. Keep the door open
    If no one shares feedback, let them know you’re sure you haven’t thought of every angle and you would value their thoughts. You may even want to delay a decision until you hear other perspectives. You’ll need to balance opportunities for gathering input with timely decision-making. But keep in mind that you can do both. 
  5. Express gratitude
    When others speak up, openly thank them. For example, say, “I truly appreciate your honest opinion and your willingness to share it. I know it’s not always easy to be a dissenting voice.”

How To Upgrade Your Meetings by Appointing an Inclusion Booster

  1. Establish ground rules
    Communicate meeting guidelines in advance and remind participants about these rules at the start of each session.
  2. Monitor speaking time and interruptions
    If someone is talking too much, politely thank them for their ideas and invite others to contribute. If someone interrupts another participant, you can say something like, “Maria hasn’t finished her thought. Let’s let her finish.”
  3. Help clarify thoughts that may be unclear
    For example, ask people to define acronyms or new terminology so everyone has the same level of understanding.
  4. Be aware of people who look as if they want to contribute
    If someone seems to have trouble jumping in, invite them to speak.
  5. Ask for alternative points of view
    Especially if the group quickly focuses on one line of thinking, intentionally ask participants to suggest and discuss other ideas.
  6. Be respectful and assertive
    If you are the Inclusion Booster, you are the one person who can interrupt when someone else monopolizes the meeting or dismisses another person. Use this power judiciously.

Final Notes on Psychological Safety In Practice

Declaring your workplace “a safe space” doesn’t make it so. Creating and sustaining a psychologically safe work environment is a continuous journey that requires a leader’s time, attention and commitment. It happens over time, through consistent behavior — one conversation and one team meeting at a time. 

We encourage you to try even one of the five ideas we’ve shared here. We’re confident that you’ll agree small actions can have a big impact. And small actions repeated over time can have a beautifully positive ripple effect on your team and your organization. Take that first step in your next conversation or your next meeting, and you’ll be moving in the right direction!

 

EDITOR’S NOTE: In developing this article, Minette Norman collaborated with Dr. Karolin Helbig, a former McKinsey consultant. Together, they also co-authored the recently published book The Psychological Safety Playbook: Lead More Powerfully by Being More Human.

Simple Ways to Help Remote Employees Feel Connected

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TalentCulture Content Impact Award Winner - 2023Sponsored by Social Flowers

What a difference three years can make! I’m sure that’s what many remote employees are thinking these days. Before the pandemic, only 6% of people worked remotely in the U.S. Now, after peaking at 60% during the height of the pandemic, that number has leveled off to about 30%. But we’re all still learning how to navigate this new work-from-wherever terrain without leaving anyone behind.

Why Remote Work is Here to Stay

I understand why people want to continue enjoying the flexibility of working from a distance — even for a few days a week. Remote work remains popular because it offers advantages to employees and employers alike. For example:

BENEFITS FOR REMOTE EMPLOYEES:

  • Less commute time
  • Higher productivity (90% say they’re more productive)
  • Better mental health (74%)
  • Increased happiness with work (In fact, 61% would accept a pay cut to continue)

BENEFITS FOR BUSINESS:

  • Lower overhead costs from less office space
  • Increased work output (4% more hours each week, on average)
  • Lower absenteeism (52% are less likely to take extra time off)
  • Potential savings in employee pay (People value working from home as much as a 5-7% pay increase)

Remote Employees Face Real Challenges

Despite the flexibility and freedom of working from anywhere, working at a distance also has its drawbacks. For instance, research says many remote employees struggle with social isolation and disengagement. Specifically:

To ensure remote work strategies succeed in the long term, leaders need to help people feel more connected. But that’s not always easy to accomplish from a distance.

Helping Remote Employees Feel Connected From Afar

It’s natural for remote employees to feel disconnected and lonely sometimes. After all, work relationships play a vital role in keeping employees happy, healthy, and productive. So, how can leaders bridge that gap? Start with stronger support and communication. For example:

1. Clarify Remote Work Expectations

McKinsey says remote employees who receive detailed information are 5x more productive and 3x less likely to experience burnout. That’s a good reason to articulate your vision, policies, and practices so people understand how they fit into your overall work structure and strategy. Be sure to capture this information in documents, videos, and other reference materials that are regularly updated and available to all.

2. Think Outside the Virtual Meeting Box

Many employers have learned the hard way that online meetings aren’t the only remote work solution. In fact, 56% of employees say these sessions are too frequent or too long, and 42% say they feel Zoom fatigue. Avoid overload by promoting the use of asynchronous chat and collaboration tools like Slack. Also, let people choose when and how they want to conduct team meetings or 1-on-1 conversations.

3. Leave Room for Face-to-Face Communication

There is no substitute for in-person meetings. They are the fastest, most effective way to build trust and strengthen relationships. Even if you can bring people together only for an occasional planning, training, or team-building event, you’ll find it’s worth the investment.

4. Support Social Interaction

Connections won’t flourish with all work and no play. Encourage your entire staff to develop relationships by organizing online lunches, coffee breaks, and fun online events. Offer digital community tools and resources so everyone can casually exchange information and ideas.

5. Double Down on Appreciation

When organizations celebrate together, employees are 20x more likely to feel connected and want to stay on board. That’s an impressive reason to acknowledge personal and professional milestones. Set up a channel on Slack or Microsoft Teams for managers and peers to honor individual and team achievements, as well as birthdays and other life moments. Also, if you’re a manager, lead by example. Take time to acknowledge individuals, personally.

A Powerful Way to Connect: Send Flowers

I’ve discovered sending flowers is one of the simplest but most effective ways to help remote employees feel connected. Research says all humans have a basic need to be recognized. And the most successful kinds of recognition are timely, genuine, personal, and meaningful. Receiving flowers ticks all of those boxes.

How Flowers Made a Difference in My Life

As a flower delivery business owner, I’ve seen first-hand how flowers can play a key role during life’s most important moments. But I didn’t truly understand how much they mean until my father passed away.

My immediate family had ordered arrangements for the casket and the funeral service. But I was really touched when extended family and friends also sent flowers.

Initially, I was surprised. But upon reflection, I was grateful so many people wanted to express how much my dad meant to them by sending gorgeous arrangements. Through their efforts to honor his life with the beauty of flowers, I felt a deep emotional connection that remains with me to this day.

Social Flowers: An Easier Way to Connect With Remote Employees

I created Social Flowers so others could feel this same kind of connection. The idea is simple. We make it easy to send flowers to anyone, anywhere, anytime — even if you don’t know where they’re located.

When ordering, you simply enter the recipient’s email address or mobile number. They receive a link to choose where and when they want to receive their flowers, which a local florist delivers.

You can send flowers to celebrate a birthday, a work achievement, or just to brighten someone’s day. This service ensures that you can be present for all the important moments in a remote employee’s life.

How Social Flowers Works

How to send flowers to remote employees - an easier wayAs we’ve developed our business, I’ve relied upon Social Flowers, myself, to solve logistical problems that can make it difficult to send flowers.

In one case, I knew my friend Nancy was having surgery. I didn’t know the exact date of her procedure, or if she was staying at the hospital overnight, and I didn’t want to bother her. I knew where she lived, but I hadn’t been to her home in years and I couldn’t find her address. Fortunately, I did have her mobile number, so I used that to send an arrangement through Social Flowers.

After I placed the order, Nancy accepted the text notice and chose to receive the delivery at her house. Soon afterward, I received a “Thank you!” text from her. It’s gratifying to see first-hand how this modern tool makes it so much easier to keep in touch and support others when they need it most.

Closing Note

Helping remote employees feel connected doesn’t need to be complicated. Even small gestures can make a big difference — whether people are face-to-face in an office, or are working together from a distance.

It’s the same lesson I learned from my father’s funeral. With sincere intent and just a bit of thoughtful effort, you can lift anyone’s spirits anytime. Chances are, that gesture will bring you closer together in a way neither of you will forget.

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

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Sponsored by ADP

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

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

A Tax Credit and a Boost

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

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

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

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

Who Qualifies

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

 

Qualified IV-A Recipient:

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

Qualified Veteran: 

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

Qualified Ex-Felon:

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

Designated Community Resident (DCR): 

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

Vocational Rehabilitation Referral: 

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

Qualified Summer Youth Employee:  

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

Qualified Supplemental Nutrition Assistance Program (SNAP) Benefits Recipient:

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

Qualified Supplemental Security Income (SSI) Recipient:

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

Long-Term Family Assistance Recipient: 

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

Qualified Long-Term Unemployment Recipient: 

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

How to Certify

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

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

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

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

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

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

Reading Between the Lines

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

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

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

Getting the Process Right

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

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

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

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

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

Better Practices, Better Results

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

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

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

The Benefits of an Outside Provider

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

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

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

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

How Can You Build an International Workforce? Tips for Success

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In the past, many employers dismissed the idea of building an international workforce. Those who could attract local talent considered it unnecessary. Others didn’t have the resources to support remote teams. No more. Why? The market for talent is vastly different today than when the pandemic began three years ago.

Welcome to a New World of Work

Even if you’ve only glanced at business news recently, you’ve seen the signs. Several rapidly changing trends are rewriting work-related behaviors, norms, and expectations in significant ways.

Employees are working from home in unprecedented numbers. And they’re quitting their jobs at higher rates, despite inflation and other economic warning signs. In fact, people are more mobile than ever.

What’s more, these trends aren’t limited to a few isolated professional groups or locations. Now, you can see evidence of these changes in every corner of the world. So, what’s the key takeaway from all of this upheaval? In my opinion, it all points in one direction — to the rise of a truly international workforce.

Why Choose an International Workforce?

According to government statistics, roughly 75% of global purchasing power lies outside the United States. And across that global landscape, an international workforce has sprung up, filled with talented, driven people who are eager for employment.

Fortunately, many crucial technologies are now available to help employers find and hire an international workforce. For example, these tools are designed to assist with everything from identifying the right candidates and onboarding new hires to ensuring that payroll complies with regulations in an employee’s home country.

Employers with a modern, cloud-based HR technology ecosystem can integrate these tools into their existing tech stack with relatively little disruption. But whatever applications you choose should be based on a holistic talent strategy. In other words, you’ll want to develop a plan that considers all the issues and benefits associated with international expansion.

But for many organizations, the reasons for going global are compelling. Competition for qualified talent remains intense. And now that flexible work models are becoming a standard, the reasons for U.S. companies to go global are clear. It has never been easier to attract and retain the talent you need by expanding your geographical footprint. But employers who want to succeed should focus on these key steps…

How to Hire a Truly International Workforce

1. Uplevel Your Talent Acquisition Efforts

Many employers continue to act as if their sourcing efforts are still limited to a specific geography. But that’s no longer the case. Today’s qualified talent pool is global. So, if you make the most of this competitive opportunity, in no time you can expand your applicant pool.

The U.S. doesn’t have a monopoly on exceptional workers with specialized knowledge and experience. Not even close. By limiting yourself to domestic workers, you also limit your company’s potential.

Obviously, a major advantage of global hiring is the ability to quickly fill high-priority roles. But there are other valuable benefits, as well.

For instance, if diversity is important to your organization, an international workforce opens the door to fresh perspectives. Embracing people with various points of view brings the kinds of insights that help businesses grow and thrive. In fact, diverse teams are 1.8 times more likely to be prepared for change and 1.7 times more likely to lead market innovation, according to Deloitte.

This also sends a powerful message to potential hires and customers about your commitment to diversity and inclusion. For example, having an internationally diverse workforce is a strong selling point for 67% of candidates looking for a new job.

2. Find Local Partners You Trust

Thus far, we’ve discussed one type of remote hiring — accepting applications for remote roles from people around the world. But there’s another type of remote hiring with massive implications. It’s when companies want to rapidly enter a new geographic market.

In the past, businesses breaking into a new country like Thailand might have acquired a Thai company to absorb its workforce. This can be slow, time-consuming, and costly. And it may even be a cultural mismatch.

Now, this process is no longer necessary. Today, through remote recruiting, businesses can simply hire the remote workers they need in Thailand, and work with them to implement a rollout in that country.

This raises a related question: How can you trust a remotely-hired partner to build your business in another part of the world? Ultimately, the answer is the same as it would be for a domestic candidate.

This means you’ll want to complete the same type of due diligence. Ask for references. Conduct multiple rounds of interviews. If possible, begin with a probationary trial period, so you can clarify each candidate’s skills and culture fit. Although hiring an international partner might seem like a bigger decision than hiring a domestic candidate, the same basic rules apply.

3. Leverage New Technology to Drive Global Growth

Certainly, global hiring isn’t simple. Setting up operations in a new work environment — with its own distinct customs and employment laws — requires specialized knowledge that isn’t readily available in most organizations.

What are the local laws around hiring and firing? What kinds of expectations do employees bring to their day-to-day work lives? What are the labor laws? How are things like cross-border compliance monitored? These are essential questions when hiring globally, and it’s imperative that businesses build their knowledge base so answers are available when they inevitably arise.

Fortunately, in recent years, many technology solutions have emerged to help businesses deal with issues like these. AI-powered platforms can readily streamline the process, integrating team members from across the globe while staying on top of compliance. In fact, platforms like these can transform the entire process, allowing companies to quickly expand into new markets and establish a local presence anywhere in the world.

Final Thoughts

At this point, the barriers to forming a truly international workforce are almost purely psychological. There is no shortage of skilled workers across the globe who are eager to make an impact at U.S.-based companies. And there is no shortage of technology-based solutions that can make it as easy to hire those workers as it is to hire someone down the street.

What corporate America does need is a psychological shift. Employers need to be willing to think beyond borders, get creative with hiring, and tap into the power that an international workforce can offer. The rewards are clear and abundant. All we need is the will.

Are You Cultivating a “Culture-Add” Talent Strategy?

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In recent years, I’ve been encouraged by a groundswell of employers that are choosing to embrace “culture-add” people practices. In fact, several months ago, I wrote about it in a Sage Masterclass article.

Because this concept is central to the future of work, I’ve continued to ponder, read and discuss culture-add issues with others. Now I’m convinced this topic deserves much more than just one blog post. So let’s explore it further here. I hope this underscores the need for a shift to a culture-add recruitment and retention mindset. But more importantly, I hope it inspires constructive change.

What Does “Culture-Add” Mean?

The term “culture-add” speaks to a paradigm shift beyond traditional “culture-fit” talent strategies. On the surface, the culture-fit approach seems appealing. However, it ultimately leads to one-dimensional groups, teams, and organizations. And history tells us homogeneity can have dangerous consequences:  blind spots, groupthink, and poor decision-making.

In contrast, a “culture-add” approach actively seeks people with diverse perspectives that enhance teams and organizations. As we learn more about the significant benefits of a diverse workforce, culture-add hiring is emerging as an important way to strive for differences that make a positive impact.

As I noted in my previous article:

Most of us know that employees who align with a company’s values and fit into the culture generally have higher job satisfaction, improved job performance, and frankly, stick around longer. However, we are resting on our laurels if we use this as our rationale for continuing to use the culture-fit model.”

Embracing Organizational Change

We all know humans tend to resist change. In fact, the old adage, “If it ain’t broke, don’t fix it,” was suitable for a long time. It still holds some merit, so let’s not dismiss it completely. Tried-and-true processes can potentially save us from all kinds of turmoil — emotional, logistical, financial, and more.

However, if we want to innovate and grow, we must also be able to adapt. No doubt, changing an organization’s cultural fabric can be daunting. But it is necessary for long-term viability.

As Stephanie Burns says in a 2021 Forbes column, Why Evolving Your Business Right Now Is Critical:

Anyone who has wanted to cling to how things were will be in for a surprise this year, as COVID-19 entirely shifted the original paradigm. However, it’s also presented an opportunity for businesses and individuals to evolve into new ways of being.

COVID hasn’t just turned the world on its head, it’s accelerated trends that were already happening, such as the shift to remote work and the collective desire for more convenience…

Still, some founders don’t want much change. This could be due to fear of the unknown or fear that leaving their old business model, which had worked so well for so long, could be catastrophic. However, we’re reaching a critical impasse where businesses that don’t evolve may very well fade out of the picture. Evolution is a natural part of all of our lives, and our businesses are no exception.”

Leaders would be wise to heed this important advice, even if it seems overwhelming. It’s time to change. Our work cultures are constantly shifting. We, too, should remain prepared to embrace new ideas, processes, and people who can make us better.

Culture-add hiring can support this process by inviting more diverse minds and voices to the table as we dream up fresh ideas and orchestrate change. This reminds me of a related term — new blood. We need new blood to thrive.

Connecting Culture-Add and Diversity

This conversation leads us directly to the benefits of diversity. There’s an excellent article on the NeuroLeadership Institute blog, Your Brain at Work: Why Diverse Teams Outperform Homogeneous Teams. The entire piece is worth reading, but here’s a noteworthy excerpt:

Diverse teams are particularly good at exposing and correcting faulty thinking, generating fresh and novel ideas, and accounting for a wider array of variables in planning.

Part of the reason this happens is due to what scientists call cognitive elaboration — the process of sharing, challenging, and expanding our thinking. In essence, diverse teams compel each other to think more deeply about their reasoning and interrogate the facts more objectively.

They share counterfactuals as they go, they don’t take things for granted, and there is minimal ‘social loafing’ — or just accepting things at face value. In short, diverse teams tend to come to better conclusions because those conclusions have been road-tested more thoroughly.”

The science of diversity in teams is truly fascinating. It tells us that recruiting and hiring leaders can help by feeding teams with talented people who can accentuate the benefits of diversity.

Of course, diversity and inclusion don’t end with hiring. The next step is fostering a workplace that makes a wide variety of people feel valued. This is not an easy task. However, it is essential. So let’s look closer at what to consider…

Tips For Building a Culture-Add Mentality

1. Actively weave a sense of belonging into your workforce

As you build a more diverse organization through culture-add hiring, don’t be surprised if cliques and segmentation develop based on geographical, cultural, and other distinctions. That’s natural! But challenge your people to also learn and share what they have in common with others. Allow space for these common interests and goals to surface.

The Why Diverse Teams Outperform Homogeneous Teams article offers a compelling reason to make this a priority:

The benefits of diversity aren’t likely to accrue if we simply put together a team of diverse individuals and assign them a task. The environment in which they’re working should be inclusive — one in which all members feel valued and as if they have a voice.

In that inclusive environment, the benefits of diversity are far more likely to materialize. If not, employees will leave the organization, or worse, stay but not contribute. Diversity without inclusion only creates a revolving door of talent.”

Vigorously work on building a sense of belonging so people of different ages, backgrounds, and lifestyles feel celebrated for their differences. After all, you’ve brought them in to add to your culture, so allow them to shine.

2. Prepare to fully retrain your recruiting and hiring staff

This tip could stand alone as an article, white paper, or college thesis. But to be brief, let’s use an example to illustrate how deeply culture-add hiring upends the traditional approach:

Previously, when Bob hired someone at XYZ insurance company, he considered a candidate like Stan an excellent fit. That’s because Stan lived in a similar neighborhood, was married to a well-liked woman, and had kids who were high achievers. If Stan also golfed on the weekends and enjoyed a steak dinner, even better! He’d fit right into XYZ Insurance and would have a fulfilling career.

As mentioned previously, this model once made a lot of sense. Cultural similarities and a genuine “he’s one of us” mentality created a comfortable atmosphere where longevity was often the result. Unfortunately, homogeneous organizations were also the result.

Today’s businesses face new challenges that require a different approach. Your talent acquisition team can start by taking the initiative to reassess the criteria they use to find people (where, how). Then you can reframe the recruitment conversation from end to end.

Instead of looking for people to fit a standard outdated profile, allow questions and conversations to emphasize and embrace differences in candidates. What can they add versus how do they fit?

Begin by asking yourself and others in your organization to talk openly about how hiring is being handled, and what kind of outcomes this approach is creating — for better or worse.

If a culture-fit model still drives your talent decisions, don’t be ashamed to admit it. But if that’s the case, you’ll want to start making changes soon. Because I assure you, your competitors are already moving toward culture-add for the win.

Why Empathy is the New Brand of Leadership

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Sponsored by: Dell Technologies

When it comes to the people who work for your company, is there anything more important than understanding them and their needs? For leaders, this means seeing things from their perspective. We call this Empathetic Leadership. 

Empathetic leaders can create a space where employees feel heard, valued, and understood – and when employees feel like this, guess what happens? They’re more engaged and productive at work, making them more committed to their work and your organization. 

A recent Dell Technologies Study found that creating an empathetic culture helps companies succeed in today’s do-anything-from-anywhere economy. Leaders need to put people front and center and equip them with the right technology to innovate.

Our Guest: Jennifer Saavedra

On our latest #WorkTrends Podcast, I spoke with Jennifer Saavedra, Chief Human Resources Officer at Dell Technologies. She leads the company’s Global Human Resources and Facilities through the dynamic lens of culture and, most importantly, people. She has a doctorate in Industrial and Organizational Behavior from Tulane University. Jennifer has also served on the executive boards for many of Dell Technologies’ employee resource groups and is currently the executive sponsor for the Black Networking Alliance. 

Her work helps us understand the psychology of human behavior so that individuals and organizations alike can be their best. 

Jennifer says the last two years have redefined work:

One of the things at Dell Technologies that we’re really focused on is defining work as an outcome, not as a specific time and place. We know that employees value freedom and flexibility, and it’s really about helping everybody make an impact.” She says, “not every individual has the same way they work or the same needs. And we have a history of doing this. At Dell, we’ve been doing this for over ten years.

Flexibility is Key

Everybody wants to know what the “new normal” will look like. After two years of the global pandemic, Jennifer says Dell polled their team members on the company’s practice of hybrid work. A notable 86% of their team members said they feel Dell is leading the way. The current world of work is an opportunity to make things more inclusive.

It’s a great equalizer. We have learned a lot about how to be inclusive and make things more accessible to people. And keeping an eye on the partnership between human resources, the business needs, our team members, facilities, and IT, I think these are things that give us a lot of hope and a lot of promise.

What the Data Says

Success is a goal shared by all, from employees to executive leadership. Employees need their companies to be there and support them. While the future of work develops and takes form, it needs to be understood that agility will play a key factor. As new ideas and possibilities for work come to light, they should be carefully considered. An astounding 91% of Dell’s team members reported that they could easily adapt to the work preferences of others, whether it’s timezone, means of communication, or other.

As other companies are thinking about building their strategy, it’s really important to look at the business needs. How does the work need to get done, and how can you consider personal choice? I think you need to assess roles. Some roles need to be done in certain locations or co-located. Once you know that, you can then support your team members by understanding what works best for them.

I hope you found this episode of #WorkTrends helpful and inspirational. Learn more about leadership and putting people front and center with Dell’s Breakthrough Study.

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!

Image by Roman Samborskyi

Moving Beyond the Pandemic: The 3 Highest Priorities for Hiring Managers

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One year after the onset of the global pandemic, there is light at the end of the tunnel. Economies are opening back up, the vaccine rollout is underway, and companies are finally ready to ramp up hiring again. During the pandemic, hiring managers transformed their processes in surprisingly more efficient ways while providing an improved experience for hiring teams and candidates alike. These leaders are now in a unique position: 

They must plan for the future while also embracing what worked during the year that changed it all. 

We wanted to dive into these leaders’ minds to understand better the changes and challenges hiring teams have experienced over the past year. So our company, HireVue, surveyed over 1,100 hiring managers across the United States, Australia and the UK. The result? Yes, the pandemic’s impact on the global workforce was severe. However, it also provided valuable learnings and opportunities for hiring teams and job seekers alike. More importantly, we learned the three key priorities hiring managers must keep in mind as they move forward.

Hiring Managers: Embracing Technology’s Rapidly Expanding Role

2020 forced organizations to turn to technology to execute most, if not all, day-to-day operations, from hiring to remote onboarding. Our survey showed that HR tech didn’t just get the job done — it actually improved the hiring experience:

  • More than half of respondents (54%) noted that shifting to virtual interviews unexpectedly resulted in a speedier recruitment process
  • 41% say it helped them identify the best candidates
  • 37% of respondents experienced cost savings when incorporating more technology into their hiring practices
  • 36% noticed an increase in the diversity of candidates
  • And 35% were able to increase time spent on candidate engagement

The survey also showed that nearly half of the organizations moved solely to virtual interviewing in response to the pandemic. However, looking ahead, 41% of respondents plan to use a combination of in-person and virtual interviews — an additional 23% plan to move solely to video or virtual interviewing. Finally, 14% of hiring companies plan to automate much of the hiring process with AI, chatbots, and text. 

The pandemic showed us that the acceleration of technology isn’t slowing down. To thrive, companies must be strategic in their tech implementation. Every aspect of people’s lives has moved either completely digital or to a hybrid model. This means the average candidate has greater expectations around their experience. It’s becoming clear that virtual interviews and new candidate engagement methods like text are here to stay as recruiters implement a digital-first hiring process moving forward.

Which brings us to the top three post-pandemic priorities for hiring managers…

Prioritizing Diversity, Equity and Inclusion

Building a more diverse, inclusive and equitable workforce was brought to the forefront in 2020, so it’s no shock that 100% of respondents listed the topic of DEI as “extremely” or “very relevant” to them, with one-third ranking it as a top and immediate priority. What’s interesting is that 35% of respondents found diversity to be a benefit of virtual interviewing.

Because of safety concerns around COVID-19, businesses turned to virtual technology to vet and interview candidates. Simultaneously, global office closures forced them to expand their searches to include remote workers in a more permanent capacity. These circumstances led to more diverse hiring decisions and a broader candidate pool. But when COVID-19 is in the rearview mirror, HR leaders will need to consider how technology can continue to be used to build a diverse workforce. They’ll need to continue to learn how best to meet candidates where they are — when they’re available — will be critical. In fact, more than half of interviews through HireVue now occur outside of regular business hours, proving just how limited the candidate pool is when you rely on a strict Monday to Friday, 9 to 5 window. 

Using Standardized Assessments to Reduce Bias

Another way to mitigate bias is by using standardized assessments that focus on competencies rather than subjective indicators like resumes. In addition to assessments, chatbots and text capabilities work to remove structural barriers and create channels of communication that are more equitable and engaging for candidates.

Of the respondents with plans to take action on their DEI goals:

  • 62% plan to expand their recruiting network by seeking out candidates from nontraditional places
  • 55% will partner with organizations that connect underrepresented professionals with internships and jobs
  • 53% will recruit from universities with diverse student bodies
  • And 30% plan to use structured interviews to minimize unconscious biases within the hiring process

One of the biggest challenges of recruiting for DEI is the need for a quicker recruitment process. Organizations need to be deliberate and diligent in achieving these specific outcomes, which often takes time. With video-based interviewing technology, the process can achieve efficiency while simultaneously mitigating human bias. Just as important, the technology enables the vetting of candidates at a higher volume.

Pivoting Toward Process Efficiencies

COVID-19 has created a unique opportunity and demand for hiring leaders to innovate and rethink the way they hire. Moving forward, they want to automate administrative tasks — like reviewing stacks of resumes, scheduling interviews, and sharing feedback with their colleagues — so they can spend more time engaging with candidates and improving the hiring experience. In addition to trusting technology to help them streamline and simplify their own workload, 96% believe virtual interviews improve the recruitment experience for candidates. 

Another area we’ll see continue to evolve on the video front is the use of on-demand video interviews in place of real-time conversations. After all, hiring managers and HR professionals spend so much time scheduling and rescheduling interviews — and on-demand interviews free up time and offer more flexibility to both the candidate and hiring team to complete the interview process on their own time. This opens up the pool of candidates even more by not limiting it to those who can interview in the middle of a Wednesday afternoon. The on-demand approach also solves many other issues that come with live, human-led interviews, such as unconscious biases, leading to a more fair and equitable process.

The role of hiring leaders as strategic business partners was front and center in 2020. During that time, the business case for implementing technology that enables greater focus on candidate engagement instead of rote tasks practically wrote itself. Like many other hiring leaders, I believe the future holds less of a return to normal. Instead, I see an opportunity to make business operations more tech-driven, inclusive, and efficient than ever.

 

Image from Atstock Productions

DEI Efforts that Matter: How to Drive Real Change in Your Organization

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COVID-19 inevitably uprooted the way our society works. Due to the pandemic, organizations have uncovered cracks in their foundations that shed light on long-standing social justice and equality issues. At many businesses, DEI efforts are now igniting discussions designed to drive real change.

After the events of the last year or so, corporate leaders – including HR professionals – are now prioritizing these initiatives in innovative ways. Those leaders are determined to build stronger foundations among what seems like crumbling – and unhealthy – precedent. However, this transformation sits in contrast to the alarming number of organizations that remain stagnant in an era screaming for change.

Corporate America Steps Up

Many major corporations are acting fast. For example, Netflix created the “Netflix Fund for Creative Equity.” This fund dedicates $100 million over the next five years to support organizations that connect underrepresented communities with jobs in the television and film industries. These efforts are much appreciated – and much needed. After all, according to Gartner, only 40% of employees believe their supervisors foster a workplace that is equitable and inclusive.

This chasm between workers seeking an environment with meaningful DE&I policies and leaders crafting and adopting such procedures underscores why organizations must make these changes. In particular, data shows:

  • Companies hire lack employees into entry-level roles, but representation figures sharply decline in upper management and senior positions.
  • In 2019, white men comprised 63% of C-level jobs while women of color only accounted for 4%.
  • Hispanic individuals are forecasted to represent one out of every two new workers entering the workforce by 2025. However, the Economic Policy Institute reported that they were “least likely to be able to work from home and most likely to have lost their job during the COVID-19 recession.”

The importance of DE&I in the workplace is simple: we must create fair, safe environments for all workers, from recruitment to retention.

As HR professionals, we are responsible for the well-being of our employees and the organization overall. This means, more than any other industry, HR is in the best possible position to enact real change.

DEI Efforts that Matter: Where to Start

Be realistic about the planning and execution of your DE&I efforts.

Integrating DE&I procedures won’t occur within a few hours or even a couple of weeks. After all, real change involves thoughtful, careful planning that will benefit your organization’s health and longevity. Notably, policies created without meaningful purpose can cause confusion and disarray within a company. In the end, those policies are not likely to be successfully applied in your office.

Another major factor in the planning and implementation of DEI efforts is the expansion of different voices at the table. When an organization has an abundance of experience, backgrounds and perspectives amid the development stages, it ensures a greater scope of representation and more thoughtful, creative solutions. Aside from providing a rich, inclusive corporate culture, a benefit of including many different perspectives is to ensure that a company does not overlook challenges one group faces versus another. Without understanding these individual hardships from the onset, your DE&I programming will not be as effective as it could be.

Lululemon, an athletic apparel company, is a strong example of this as it made many commitments to its DE&I efforts in 2020. In particular, one focused on increasing diverse representation among its employees. A vital element of this effort: Enabling an employee-led dialogue between underrepresented members and the senior leadership team.

Invest in the Day-to-Day

Workplace DE&I policies are ineffective if companies don’t invest in change focused on their employees’ day-to-day lives. While the bigger picture sets the stage for the overarching framework, you must delve into your colleagues’ daily routine. By understanding their “day in the life,” you will learn how your DE&I initiatives impact them. And you’ll come to know what improvements you must still make.

This engaging approach is imperative as the daily realities of the office – and the behaviors of those people in the office –  should mirror the overall DE&I vision. When you invoke this strategy, the workplace will reflect – on micro and macro levels – the results of successful DE&I efforts.

Examine Every Stage of the Employment Cycle

Companies should also ensure they implement their DE&I vision and strategy at each stage of the employment process. To aid in this effort, below are questions to consider when interviewing applicants. Also included: questions that enable connection with new, current and former employees.

  • Applicants: Who do you want to target during recruitment? How can your company scout prospective employees in a more inclusive manner?
  • New employees: During a team member’s onboarding, how will you educate them on DE&I policies and corporate culture? What level of education on the subject is currently in place, and – if need be – how could that be improved?
  • Current employees: Have you implemented diversity within your teams and projects to produce results that account for varying perspectives? Are opportunities for advancement fairly reachable to all employees? During interactive internal meetings and annual reviews, what questions will highlight issues or perceptions that may arise and affect your colleagues?
  • Former employees: During the exit interview process, how is your team handling the identification of trends and implementing professional actions?

Track Your Impact

To understand a plan’s efficacy, you must measure and report improvement and progress along the way. This part of the process is imperative. After all, if companies do not track their development, they will not be aware of areas that are working – and others that may need further support.

In addition to setting out a plan to track your goals, create an easily accessible dashboard that reports progress against the company vision. And based on the data gathered and reported, frequently analyze ways the organization can advance and modify your DE&I strategy.

Listen and Learn

There is no perfectly written handbook that explains the exact way your office should prepare and plan its DE&I policies. However, there is one constant: You must listen to your employees throughout the process.

Ignoring feedback from your colleagues will hamper your organization’s DEI efforts and, eventually, its path to success. As you check your progress throughout the year, make sure you establish a channel to receive a consistent cadence of feedback. For example, use survey tools and focus groups to better grasp how your employees perceive the company’s efforts and measure results. This crucial data will also help you pivot, if needed, and identify different ways the company can improve.

Don’t Stand Still, Evolve

Our society continues to experience profound change. So it is essential to revise and reshape the workplace appropriately – and in real-time.

As a workforce, we will continue to receive and provide education on how we can mold corporate practices to be more inclusive and available for many employees in the future. As a profession that thrives on those we serve perceiving us as understanding, we must continue to hear what others have to say. To quickly make changes that positively impact every employee, we must remain agile.

This is how we ensure our DEI efforts matter. This is you drive real change – in your organization and throughout society.

 

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60 Percent of U.S. Companies Still Don’t Offer Paid Paternity Leave

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A recent study revealed that roughly 40% of U.S. companies offer paid parental leave for both parents. Many publications, including the survey itself, highlighted this figure as a positive, citing lower numbers in the past. While any improvement is welcome, these results imply that 60% of organizations in the nation still don’t offer paid paternity leave.

The lack of paid leave for both fathers and mothers can intensify workplace inequality and damage businesses. Here’s a closer look.

Why Companies Don’t Offer Paid Paternity Leave

To understand this issue fully, it helps to look at why so many companies don’t offer paid leave. Perhaps the most significant factor behind this choice is that it’s not a requirement. There is no national legislation that says businesses have to offer paid leave to either parent, much less both.

There are, however, paid parental leave requirements in five states and Washington, D.C., with varying provisions. At least five other states are currently considering paid leave laws, but that leaves most of the U.S. with no such legislation. When businesses don’t have to offer these benefits, many won’t — primarily because of the expense.

At first, paying an employee while they aren’t adding value to the company can seem like a financial risk. While it may seem that not offering paid leave can save a company money, it’s destructive in the long run — both employees and the companies they work for suffer.

How These Policies Impact Different Demographics

Although 40% of U.S. companies offer paid leave to both parents, that doesn’t mean 40% of workers experience those benefits. The businesses that provide these programs don’t employ a proportional amount of the workforce, so surveys show that just 20% of private-sector employees had access to such benefits in 2020.

There is a sharp economic divide between workers who do and do not receive paid parental leave, too. Only 8% of workers in the bottom wage quartile have access to these programs. Low-wage workers, who would suffer tremendously from weeks of unpaid leave, are far less likely to get paid leave.

Years of racial bias and oppression in America mean this divide is a racial one, too. Black and Hispanic workers, coming from historically disenfranchised families and neighborhoods, are less likely to receive paid leave for either parent.

How Businesses Benefit from Paid Paternity Leave

These disparities in paid parental leave programs worsen the economic and racial divides that already plague the nation. The impacts of a lack of paid leave don’t end with creating more division, though; they have economic effects as well. And yet, when businesses offer paid leave for both parents, they often see positive productivity gains.

Caring for a newborn child is stressful, and having to do so without a reliable income exacerbates that stress. Studies show that unexpected absenteeism, which can cost companies $3.5 million a year, is more often than not the result of stress. After all, stressed employees are far more likely to miss work and be less productive in the workplace.

Offering paid leave to only one parent fails to mitigate these issues effectively. The parent at home may feel more stressed from shouldering the burden of childcare alone, potentially harming their productivity when they return. The parent at work may have trouble focusing from spending time away from their newborn, impacting their productivity as well.

Providing both paternity and maternity leave ensures both parents can raise their newborn without economic difficulty. In return, their morale will improve, leading to less stress and higher productivity when they return.

How Paid Paternity Leave Supports Women in the Workforce

It’s impossible to discuss the impacts of parental leave without mentioning gender inequality in the workplace. Lack of paid parental leave for women doesn’t just widen the gender wage gap; it drives women out of the workforce. While it may not seem unrelated at first, paternity leave also impacts women’s work experiences.

When fathers can take time off as well as mothers, it reduces the stress of childcare. Fathers can take over raising children for a time, giving mothers a chance to get back to work. Paid paternity leave means women don’t have to bear the entire burden of raising a newborn, helping them retain their vital place in the workforce.

Past studies have indicated that paid paternity leave also reduces absenteeism among mothers, helping keep women satisfactorily employed. Similarly, countries with mandated paternity leave show higher rates of female employment in private companies. The bottom line: Paid paternity leave improves equality at home, and leads to more equity in the workplace.

Gender Equality: U.S. Companies Still Have a Way to Go

This Women’s History Month, companies should consider how their policies affect their female workers. Even paternity leave can impact women’s involvement in the workplace. Businesses that don’t provide equitable policies hinder gender equality among their employees and in their communities.

For years, women have had to bear most of the burden of child-rearing, limiting their professional careers. Equitable policies like paid leave for all parents lighten this burden, enabling women to achieve their full professional potential. The U.S. has made some tremendous strides in the pursuit of workplace gender equality, but there’s still a lot of room for improvement.