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

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

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

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

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

7 HR Trends That Matter Now

1. Asynchronous Work

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

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

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

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

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

2. Distributed, Remote, and Hybrid Work Models

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

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

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

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

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

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

3. Upskilling and Reskilling

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

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

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

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

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

4. Diversity, Equity, Inclusion, and Belonging

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

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

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

5. People Analytics

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

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

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

6. Employee Experience

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

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

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

7. AI and Automation

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

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

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

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

Final Thoughts on Current HR Trends

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

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

Developing Entry-Level Talent: How to Invest for Success

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Imagine you’re a hard-working entry-level employee who’s been in your current position for less than a year. Your skills are solid, but they don’t help you stand out from other entry-level talent. You know which skills could help you advance, but you’re not sure what resources are available to you or how to get support for a growth plan. You don’t see a pathway to expand your skill set. You just feel stuck.

Sadly, this isn’t unusual. But scenarios like this can have serious consequences for employee morale, mobility, and retention across an organization. For example research says:

It’s no surprise that people look elsewhere when they believe their skills aren’t seen, valued, and nurtured. But this doesn’t need to happen. As an employer, you can avoid losing entry-level employees by investing more effectively in their future with your organization.

Where Employee Development Fits In

A comprehensive professional development program is one way to demonstrate your commitment. Upskilling, reskilling, cross-training and continuous learning practices help employees keep existing skills fresh, develop new capabilities, and expand their career potential over time.

Future-minded employers know that developing entry-level talent is not just good for employee engagement and morale. It’s also a smart business strategy because it builds “bench depth.” By encouraging employees to embrace new responsibilities and growth opportunities, you can create a more diverse internal talent pipeline that will adapt with you as your business needs change.

A commitment to developing entry-level talent also sends a powerful message from the highest levels of your organization. It tells people that every member of your workforce is important, and you’re invested in their future success.

What’s at Stake for Employers

Organizations that invest in entry-level talent realize significant benefits:

1. Higher ROI

When you’re facing workforce skill gaps, recruiting qualified talent may seem like a faster, cheaper, easier solution than employee development. But this is a short-sighted approach that doesn’t necessarily lead to a stronger team. Bringing in new talent requires multiple costly, time-consuming steps, from recruiting to interviewing to hiring. And there’s no guarantee new hires will onboard successfully and become committed contributors.

Why bet on an uncertain outcome, when you already have a team in place that you’ve worked so hard to recruit and onboard? If you spend the same amount of time and money helping existing employees grow, you’re more likely to achieve a higher return on investment.

2. Less Brain Drain

The value of institutional knowledge is also important to consider. The lower your commitment to development, the higher your turnover rate is likely to be. And as employees leave, they’ll take away “insider” intelligence about how your organization gets things done. For example, you’ll lose insight into strategies, tactics and processes that worked, as well as those that didn’t. This kind of information can make or break operational efficiency, effectiveness, cohesion, and more.

By developing entry-level talent, you can equip employees with the skills and knowledge they need to succeed in your environment. Along the way, you’ll build and reinforce institutional knowledge, rather than eroding it as disenchanted employees leave.

3. Stronger Employee Value Proposition

We know people are drawn to employers that emphasize continuous professional development and growth. If your loyal workforce sees you turning to new hires instead of investing in existing employees, what should you expect to happen? Morale will sink, the desire for professional growth will vanish, and skills will stagnate. Eventually, employees will look for growth opportunities outside your organization.

Instead, why not reinvigorate your team through learning? Focus on reskilling, upskilling, and cross-skilling. It’s a more sustainable way to strengthen employee satisfaction, commitment, retention, and performance. To get started with a successful entry-level employee development program, consider these five steps:

5 Ways to Develop Entry-Level Talent

1. Establish a Reasonable Budget

Start by defining the key elements of your employee growth plan. Identify the professional development topics and skills your program should address. Any development model will involve both direct and indirect costs, and these should align with market value.

However, expenses aren’t the only consideration. You’ll also want to estimate the value of potential benefits. For example, you may choose to establish a mentorship program that pairs new hires with veteran employees. This is a relatively low-cost way to support a culture of learning, but it can lead to significant tangible results.

2. Provide Time and Resources for Employee Participation

Simply put, employees need dedicated time and support to engage in professional development. Allocate a specific number of days for this purpose — perhaps even paid time away from the office, if possible.

A little workplace flexibility goes a long way in helping talent feel valued, and giving employees choice in managing their schedules encourages accountability and self-regulation.

3. Tap Into the Power of Work Relationships

Ask entry-level employees what kind of development support they feel would be helpful. Then ask managers to co-create a roadmap with their direct reports, based on the knowledge and skills they want to develop.

Managers are likely to know how to leverage connections among team members so they can learn from one another. Research shows that these relationships matter. For example, McKinsey found that 91% of people supported by mentors are satisfied with their jobs. In addition, cohort-based learning enhances workplace communication, overall.

4. Include Team-Building Opportunities

Besides mentorship programs, consider other ways for entry-level employees to learn from teammates. Cross-departmental collaboration, for example, is an underused resource. When employees work with others and learn from one another, they can sharpen both interpersonal and job-related skills. They’re also more likely to understand the company’s inner workings and see the value in individual workplace roles.

5. Showcase Progress

For any program that demands time and energy, employees and employers alike want to see results. To reinforce the benefits of participation, plan to demonstrate how development efforts lead to professional growth, improved performance, and team success. For instance, one study of U.K. reskilling programs resulted in positive economic returns and improved morale. These are the kind of concrete results everyone appreciates.

Summary

These suggestions are intended as launching points to help you make the most of your investment in entry-level talent. With these development factors as a framework, your learning programs can make a measurable and lasting difference in workplace communication, productivity and innovation. Most importantly, this kind of investment can help you build a stronger team that will be invigorated and inspired to move forward together. Everybody wins.

9 Strategic Learning Moves to Prepare for the Future of Work

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In HR circles, we talk a lot about employee development. Often, we focus on its role in improving workforce engagement and retention. But strategic learning is about much more than that.

No question, when employees have an opportunity to add new work skills to their portfolio, they become more motivated and involved in their professional growth. It may well spark a desire to stick around, earn a certificate, and aim for further advancement.

Research certainly supports this assumption. For instance, 76% of employees are more likely to stay with a company that offers continuous training, according to a recent survey by TalentLMS and The Society for Human Resource Management. But these days, we need to recognize the power of learning and development as a strategic business move.

The Value of Strategic Learning

Certainly, employees need the right knowledge and skills to perform well in their current roles. But are you preparing them for tomorrow? Strategic learning looks ahead and introduces new practices, approaches, technologies, and solutions that will drive business success, going forward.

The future of work is unquestionably complex. It will be transformed by automation and furthered by machine learning and AI. If people don’t have the means to evolve and expand their capabilities, we’ll all be held back as the workplace enters uncharted territory.

More Than Just New Skills

Effective learning and development is not just about helping employees acquire new skills. It’s also about embracing learning as a strategic imperative. Over the years, I’ve discussed the importance of this perspective with numerous experts. In particular, one previous conversation stands out.

In 2020, I invited Dickens Aubourg to join me for a #WorkTrends podcast interview. Dickens is a learning and development expert who, at the time, was Director of Client Learning at Paycom:

9 Ways to Elevate Your Learning Agenda

In this interview, we explored Dickens’ perspective on strategic learning — and the 9 points we covered still resonate:

1. Treat employee training as a key business strategy that integrates retraining, reskilling, and upskilling. Ultimately, the goal should be to gain and sustain a competitive advantage through workforce readiness, competence and innovation.

2. In most organizations, learning and development isn’t sufficiently supported. Nor is it defined correctly. Learning isn’t an isolated act of class attendance or content consumption. It’s actually part of the daily employee experience. A mix of ongoing formal and informal learning is essential for effective professional development and performance support — including opportunities for social and collaborative learning.

3. We need to value informal learning for bringing context and relevance to work. It’s a way to improve connection and collaboration within teams and across the workforce, in general.

4. Quantifying and recognizing both formal and informal learning creates experiences that help leaders drive meaningful business impact and results.

5. The shift to remote and hybrid work enables organizations to more easily develop people from within. This is critical in modern work environments.

6. HR products and platforms that focus on learning will be an increasingly important component of the HR tech ecosystem. We won’t be separating learning from other people functions, nor should we.

7. It’s important to remember that, while training is not the only form of learning, it is central to employee development. Training on new tools and processes can be woven into an overall learning program that offers other development opportunities, giving employees a sense of growth and accomplishment, as well as the potential to reach new horizons.

8. Leaders will benefit from a better understanding of upskilling. The best way to do that? Start upskilling high-level managers and others in leadership positions. Ask them to identify gaps in their capabilities and offer pathways for professional growth. Targeting only lower-level employees for upskilling isn’t fair, and it’s actually short-sighted.

9. Continuous learning breeds a more nimble, agile workforce, which is what the new world of work requires. Organizations are constantly incorporating new technology and tools. We saw it during the pandemic, but it’s accelerating now. Individuals and teams must keep pace. A culture of learning supports this.

Top Takeaway: Strategic Learning is About Optimism

Employers can no longer afford to hold back on training, development, educational resources, and a commitment to workforce learning. Not only does strategic learning contribute to HR goals, but it also is essential in helping organizations achieve key business objectives. So, for individuals and employers, alike, this means learning is an act of optimism.

I’ve witnessed this firsthand recently at partner companies that are turning to new approaches and processes for growth and improvement. And as a result, they’re thriving.

So here’s the lesson: Tapping into everyone’s potential for growth is not just wishful thinking. It’s an opportunity to strengthen the employee experience and improve performance, while advancing your business agenda. The sum total? We all win.

How to Build a Learning Culture From the Ground Up

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The great resignation, the rise of hybrid work, and the fear of recession are making one thing certain — today’s talent must be agile and adapt quickly. A culture of learning is vital now because it helps organizations thrive when moving through change. But this kind of culture doesn’t happen spontaneously. It requires intentional effort. This article offers guidance for leaders who need to build a culture of learning that will stand the test of time.

What is a Learning Culture?

Culture is the combination of beliefs and values that drive organizational behavior. In other words, “how stuff gets done around here.” When you center beliefs and values on behaviors that encourage continuous growth and development, you can create a foundation for ongoing innovation and improvement.

A strong learning culture encourages and rewards both individual and organizational growth. It takes time and dedication to build a learning culture, but the outcomes can be transformational. What else does this process require? Focus on these factors:

8 Steps to Build a Learning Culture

1. Plan Effectively

Start by assessing your organization’s recruiting and hiring practices to be sure you’re attracting talent with a growth mindset. This should include a careful analysis of your onboarding process. Do you emphasize the importance of learning? Onboarding often focuses on what employees need to learn. But new employees also need to know who they should learn from and with.

Also, examine your approach to upskilling, reskilling, and cross-skilling current employees. This will give you better insight into how prepared your organization is to support future needs. 

Use these findings to plan for retention. Keeping employees onboard is critical now. According to The New York Times, “The rise in turnover since the pandemic started has a cost in productivity: It’s taking longer to get stuff out the door.”

Meanwhile, the talent pool remains limited. Currently, for every person seeking a job, 1.7  positions are available. In today’s competitive environment, employers can’t afford to lose top talent. And one of the most powerful ways to keep people committed is through a culture that supports learning and growth.

In a recent report about what we call Work 3.0, we explain how some talent models are more effective than others at achieving these outcomes. For example, organizations with remote and hybrid work models must be careful to ensure that learning opportunities are inclusive and equitable.

Smart leaders rely on the planning process to guide their decisions about learning priorities. This includes careful data gathering and analysis to verify the organization’s current state, define its future goals, and establish a strategic roadmap to bridge this gap. 

2. Ensure a Receptive Environment

Successful learning cultures begin with psychological safety. In a workplace where this is high, people feel comfortable asking questions, voicing their opinions, and taking responsibility for their mistakes.

In fact, after studying nearly 300 leaders over 2.5 years, we found that teams with high degrees of psychological safety had higher performance outcomes and lower interpersonal conflict. This kind of environment encourages employees to learn more fully from their mistakes and from one another.

3. Align Learning With Business Imperatives

What matters most to your organization? This should inform your culture. The most effective learning strategies align with business priorities. Alignment helps scale learning while keeping it relevant, meaningful, and applicable.

Environments that welcome open, honest discussions (including respectful disagreements) are more likely to align learning with the organization’s vision, mission, and goals.

You’ll want to emphasize opportunities to develop mindsets and behaviors that move your agenda forward. This should include incentives and rewards for employees who embrace desired growth.

4. Model the Change You Want to See

It’s essential to recognize continuous learning as a key to better business results. Because culture is shaped by leadership behavior, it’s critical to exhibit the actions you want to see in others. Leaders who exhibit an interest in learning and in rewarding others for their growth will inspire employees to focus on these activities.

Leaders play a significant role here by communicating expectations and modeling behaviors they want to see. For example, it’s important to regularly express curiosity, offer feedback, admit mistakes, and share knowledge.

Effective communication and storytelling by leaders can also help your workforce understand what’s expected and why it’s important for everyone in your culture. This includes engaging in authentic conversations, sharing personal learning experiences, and proactively seeking feedback.

5. Integrate Accessibility Into the Process

It’s vital to scale development opportunities so learning is accessible to everyone, not just high-potential individuals. This is particularly important in today’s environment, where employees don’t necessarily work onsite in a central location.

To improve accessibility, offer development through a variety of modalities. This can include a mix of formal in-person training, virtual courses, asynchronous informal learning, micro-learning, experiential learning, self-paced e-learning content, as well as social and collaborative learning options.

Offering a library of resources can also help keep workforce knowledge and skills up-to-date. For example, you can provide resources such as books, articles, podcasts, and videos through a central digital repository.

A learning management system (LMS) or learning experience platform (LXP) with enterprise licensing can help you scale this kind of learning content. This also makes it possible to track consumption and tie learning to individual and team performance.

6. Invest in the Right Tools and Support

A strong learning culture naturally emerges when development becomes integrated into daily work habits. Leaders can play an important role here, by regularly encouraging staff to devote sufficient time to absorb, practice, share, and apply whatever they learn.

One standard is based on the 70-20-10 rule: This approach suggests that 70% of learning comes from working through challenging assignments and experiences, while 20% comes from developmental relationships, and 10% from formal training and coursework. The process is reinforced when employees take time to reflect on their learning endeavors. You can support this reinforcement phase through mentoring as well as “reverse mentoring.”

7. Customize Appropriately

Today’s employees — especially those in remote and hybrid work settings — prefer development opportunities tailored to their needs. When considering how to elevate your learning culture, be sure to ask employees what they want to learn and how they prefer to engage in learning. Then consider how to provide “core” learning opportunities for all, combined with various options that any individual can pursue. 

Ideally, a customized approach delivers learning experiences that address each employee’s unique needs and interests over time. Research shows that offering various delivery methods tends to boost learner engagement and knowledge retention. Ultimately, that can improve job performance, satisfaction, and commitment.

8. Measure Effectively

Finally, plan to measure your progress and use that intelligence to improve on a continuous basis. 

Formal evaluations can help you track trends, learn from the data, and adjust accordingly. Less formal options, such as the agile review methodology of, “Liked, Lacked, Learned, Longed For” can give you immediate feedback while also changing mindsets.

Strive to make after-action reviews a natural part of work routines. Regularly ask for feedback and use pulse surveys. Also, don’t forget to establish metrics that help you determine how well leaders are advancing the overall learning agenda.

Conclusion

When you build a learning culture, you’ll see how all of these elements are interconnected. If the atmosphere is hostile or complacent, or if content isn’t accessible to all, your mission is likely to fail. If you don’t understand your objectives, measuring progress will be impossible.

Recognize that changing any aspect of an organization’s culture is easier said than done. Progress takes time, patience, support, and persistence — especially from leaders and managers. To secure buy-in, tie improvement metrics to each leader’s performance objectives. Also, to keep learning top-of-mind, publicly celebrate early wins, and keep the cadence rolling.

Eventually, any organization can lead with learning. But it won’t happen until you invest in thoughtful planning and consistent implementation. Remember, it’s a process.

Should You Cut Your Learning Budget in a Downturn?

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At some point, every organization will face an economic downturn. It could be a global recession or a serious slump in one of the industries you serve. Regardless, too many organizations jump to the wrong conclusions too quickly. They slash investment in employee development to save on variable expenses. But cutting a learning budget in haste can lead to much more severe business damage over time.

That’s why smart leaders embrace a long-term growth mindset before, during, and after a downturn. It’s why they double down on developing their people, even when times are tough. And as a result, these organizations don’t just survive. They thrive.

Learning: Strength in a Downturn

Wondering how some businesses actually flourish during difficult economic times? Take a look at the research. During the recessions of 1980, 1990, and 2000, a small minority of companies (9%) showed strong performance. In fact, they outperformed competitors by at least 10% in sales and profit growth.

What was their secret? In part, they invested in helping employees make better-informed decisions, improve their responsiveness, and adapt more quickly. What was the common denominator beneath these improvements? Learning. People needed the right knowledge and skills to pursue new roles, embrace new tasks, work more resourcefully, and make more effective decisions.

That’s why organizational learning is critical during a downturn. Yet ironically, L&D is often among the first departments that suffer when budgets are cut. It’s time for learning leaders to challenge this practice. Because employee development is not just a nice-to-have option when times are good. It is actually a powerful way to increase productivity, retention, and competitiveness — especially during uncertain economic times.

Flip Your Perspective

A downturn often brings uncertainty and fear. But seeing it instead as an opportunity for growth and differentiation can help your organization position itself as a market leader when recovery eventually comes. Preserving your learning investment can help your people do exactly that. If you cut back your learning budget now, you will hinder your future success.

I might be preaching to the L&D choir. But this is a vital message to spread far and wide across your senior stakeholders. Why? Chances are, the learning budget has already been slashed in each of your competitors’ organizations. If so, you can plant seeds now that can eventually grow into a competitive advantage.

Build the Case for a Sustained Learning Budget

To communicate effectively with executive stakeholders and colleagues, focus on understanding their unique priorities, fears, and challenges. For example, issues that matter to your CFO won’t necessarily be what keeps your CHRO up at night.

Department heads can be a goldmine of insight into high-priority projects, as well as the skills needed for successful outcomes. Partnering with these leaders increases buy-in. And with more voices supporting you, the less likely your learning budget will be cut.

Internal partners can also help you define learning programs that will have a deeper impact on your business. For example, when Capital One implemented a new cloud-based digital transformation, senior learning leadership worked closely with the CIO to define and develop required skills, assignments, and content.

Align Learning With Business Success Metrics

During a downturn, leaders are laser-focused on return on investment (ROI). To avoid seeing your budget hit the cutting room floor, L&D should focus on business metrics that show how learning contributes to the top and bottom line. When you show evidence that learning boosts performance, productivity, and operational efficiency, your C-Suite will think twice about trimming your funding.

Again, partnering with other departments can help uncover relevant data that may not be available in your learning system. For instance, you could link learning behavior with business data such as sales leads, onboarding time, or customer satisfaction scores.

The more directly you tie learning content and consumption patterns with business readiness and productivity metrics, the better. It’s even better if you can prove your learning strategy delivers a tangible business impact at a lower cost than a legacy learning system or process.

Make Every Dollar Count

Ericsson is a good example of this strategy in action. When investing in a new online learning system, the L&D team found that course completions rose by 62%, while the cost of operating the learning technology ecosystem fell by half.

At the same time, business units saw a 41% increase in ethical practices, with 97% of employees completing new anti-corruption training within two months of launch. This was a month faster than previous campaigns with higher completion rates.

In addition, the L&D team discovered that the number of workers who learned Ericsson’s five company-critical skills (5G, artificial intelligence and machine learning, collaboration, sales, and automation) increased by 14%.

Address Employee Uncertainty

A final point you can make to your C-Suite involves the human aspect of thriving in a recession. Make no mistake, your people are feeling very vulnerable right now. If they think their jobs and livelihoods are at risk, they cannot do their best work.

People may need to expand their workload in the wake of hiring freezes or layoffs. They may need to switch to another role, team, or project to keep your business operating smoothly. Or, they may have extra capacity when a project is canceled or delayed.

All of these situations affect employee wellbeing and performance, especially if people don’t feel equipped to perform well. In fact, nearly 60% of workers say a lack of confidence in their skills makes their job more stressful, and nearly 40% believe their mental health suffers as a result.

Offering a tailored learning plan with clear career growth opportunities that extend beyond the immediate downturn can have a huge influence on an employee’s perception of job security.

The Marketplace Values Skilled People

Companies that treat their people well during a downturn are building lasting loyalty and a strong employer brand that can pay off over time. For L&D, actions you take now to preserve your learning budget can directly influence your organization’s ability to attract and retain talent in the future.

This is also a strong confidence signal to those outside of your company. It shows prospective customers, analysts, influencers, and investors that you understand this is just a moment in your business lifecycle, and that you’re preparing your workforce for the inevitable upturn.

After all, if your people aren’t prepared with the right skills when the opportunity arises, your business won’t be able to seize the day. In fact, if you wait to upskill your people when a recovery begins, you’ll be too late. Others who invested in learning during the downturn will lead.

Grow Now, Lead Later

Historically, some of the most innovative and inspiring businesses continued to grow during downturns because their leaders understood that opportunities don’t necessarily come during good times. Tough times present challenges that can force you to rethink processes, reskill your people, and develop a competitive edge while other companies may pause.

Learning is crucial in all economic climates, but especially in uncertainty. Skills are the building blocks for your future. You don’t want to cut back on them and find yourself without a springboard to success when the going gets better. For the kind of business impact that will stand the test of time, resist the temptation to cut your learning budget. Instead, double down — the sooner the better.

Transforming Talent Decisions With Ethical AI

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Sponsored by Reejig

Countless HR tools, applications, and platforms now rely on artificial intelligence in some form. Users may not even notice that AI is operating in the background — but it can fundamentally change the way we work, think, and make talent decisions.

This raises several big questions. What should we really expect from AI? And is this kind of innovation moving us in the right direction?

For example, what role should AI play in skills-related talent acquisition and workforce mobility practices? With stellar talent in short supply these days, this topic has never been more important for employers to consider. So join me as I look closer at key issues surrounding ethical AI in HR tech on this #WorkTrends podcast episode.

Meet Our Guest:  Jonathan Reyes

Today, I’m excited to talk with Jonathan Reyes, a talent advisor and futurist who has been helping technology and banking industry companies navigate hypergrowth for nearly two decades. Now, as VP of North America for Reejig, he’s on a mission to build a world with zero wasted human potential.

Defining “Zero Waste” in Humans

Jonathan, I love the phrase “zero wasted potential.” What exactly does Reejig mean by this?

We envision a world where every person has access to meaningful work — no matter their background or circumstance. In this world, employers can tap into the right skills for the right roles, whenever needed. And at the same time, society can reap the benefits of access to diverse ideas through fair and equitable work opportunity.

The concept of sustainability is emerging in every industry. Now, sustainable human capital is becoming part of that conversation, and this is our way of expressing it.

So, with zero wasted potential, decisions aren’t based on a zero-sum game. When employers make human capital choices, individuals or society shouldn’t suffer. Instead, by focusing on talent mobility through upskilling and reskilling, we can create a new currency of work.

Workforce Intelligence Makes a Difference

Why do you feel workforce intelligence is essential for employers as they make talent decisions?

Organizations have so much human capital data. With all the workforce intelligence available, there’s no reason to hire and fire talent en masse — and then rehire many of the same individuals just months later.

Obviously, that’s an emotional and human experience for employees. But also, organizations are spending unnecessary money to find people and let them go, only to invest again in rehiring them.

Focusing instead on internal mobility is far more cost-effective.

Where Ethical AI Fits In

Many companies are unsure about AI in talent acquisition and management. What’s your take on this?

There are no universally accepted standards for ethical AI. This means vendors across industries can say technology is “ethical” based on self-assessment, without input from legal, ethical, or global experts.

But we’ve developed the world’s first independently audited, ethical talent AI. In fact, the World Economic Forum has recognized us for setting a benchmark in ethical AI.

The Impact on Internal Mobility

How do businesses benefit from shifting to a zero-wasted potential talent strategy? 

When companies manage internal mobility well, they extend employee tenure by 2x. And we know that people who stay and continue growing and developing are much more engaged.

This can create a significant downstream benefit. It’s one of the biggest reasons to invest in this kind of talent management capability.

 

For more great advice from Jonathan about why and how organizations are leveraging AI to make better talent decisions, listen to this full episode. Also, be sure to subscribe to the #WorkTrends Podcast on Apple Podcasts or Stitcher. And to continue this conversation on social media, follow our #WorkTrends hashtag on Twitter, LinkedIn, and Instagram.

Skillability: Will It Solve the Talent Crunch?

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

A New Business Necessity: Skillability

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

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

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

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

The Power of Skillability

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

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

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

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

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

Building Skillability Within Your Organization

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

1) Consider Candidates Who May Not Fit the Mold

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

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

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

2) Build Achievable Benchmarks Into Training

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

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

3) Break Employees Out of Their Comfort Zones

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

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

4) Establish a Supportive Environment

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

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

Final Thoughts

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

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

Internal Mobility, The Talent Marketplace, and Why to Embrace It

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The world of work is rapidly evolving, and so are the career aspirations of the people. Compared to what we saw decades ago, people don’t want to embrace the same position for years till they retire. Instead, they are looking for opportunities to try new duties, get new skills, and stay flexible and agile.

On the flip side, today’s labor market is highly competitive, and there is a scarcity of skilled workforce. The PwC CEO survey reveals that a whopping 74 percent of CEOs are concerned about the shortage of critical skills and talent.

As a response to those challenges and today’s look at the future of work, internal mobility comes into play very actively.

The ‘secret sauce’ of internal mobility

The modern internal mobility concept evolved as the next logical step after the traditional career management model. The problem with career management was the idea of “waiting until someone is ready.” This resulted in losing top talent who took career opportunities elsewhere. Even if mobility was facilitated—or rather forced by management—it looked more like “assigning” new roles to employees.

Internal mobility today is agility built into the company’s talent processes. This model allows companies to get the most out of the talent and skills their employees obtain. Employees, in turn, get multiple opportunities like taking new and adjacent roles, upskilling, and keeping up with the company without having to leave it.

Internal talent evolution, however, wouldn’t be possible without technology. Today, the HR tech landscape contributes to internal mobility by providing what are called talent marketplace solutions. Simply put, a talent marketplace is a platform that connects employees with career opportunities inside the organization.

From recruiting to employee upskilling: What the talent marketplace brings in

The talent marketplace helps companies improve their employee engagement, development, and retention. Other challenges the talent marketplace helps address are:

  • Accelerating time-to-hire and optimizing hiring costs: Many organizations still pay big bucks to recruit people from outside. With a talent marketplace platform and insights into the company’s skills and talents, organizations can save recruiting expenses and instead connect their internal employees with the internal job openings.
  • Improving productivity of new hires: Employees who joined a new project or stepped into a new area of responsibilities within the company demonstrate better productivity. The reason follows. Internal talents have already spent some time with the company and can bring their valuable insights and skills to the new role. Besides, the opportunity to shift to a new role within a company contributes to employee motivation, engagement, and development.
  • Addressing skill gaps and future-proofing: The talent marketplace also helps the company coordinate all its available talents and see if they match current and future job roles. This way, companies can spot the skill gaps and align their employee development activities with their strategy and market trends.
  • Building a more agile workforce: In the long run, by embracing internal mobility powered by technology, companies can foster transition to a more agile workforce.

Talent insights as a fuel for internal mobility

One more component that makes internal mobility sufficient is data. The lion’s share of it, apparently, comes from within the company. Employee CVs, job profiles, training programs, and other assets containing information about skills are filling the internal mobility machine. Data about internal skills loaded into the talent marketplace platform transform into insights. Some of them allow companies to:

  • Basically, match employees to existing job openings, projects, and tasks
  • Personalize reskilling and upskilling journeys to help employees grow into new roles
  • Benchmarks future skills and future jobs

Another source of insights fueling internal mobility is the external market. Market trends that have run through the talent marketplace provide companies with insights into emerging roles, skill developments, and future business trends awaiting the particular industry.

With intelligence like this, companies can fill existing job openings with existing employees and take internal mobility to a whole strategic level. Specifically, they can make skills in their company transparent. Also, they can know what skills are still missing in their company, and plan strategies to address these deficits. They can plan, personalize, and predict the effort of employee development initiatives aimed to fill in the skill gaps.

Of course, embracing internal mobility doesn’t happen overnight. It takes time, investment, data, and the right technology. But most importantly, it requires the right future-oriented mindset. American Express, IBM, Nestle, P&G, Unilever, and Google are just a few examples of brilliantly performed internal mobility strategies set on the future and employees’ development. Hopefully, more prominent companies will join these ranks.

Immersive Training Solutions for a Hybrid Work World

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Remote workforce training has come of age. Forced to get creative during lockdowns, many companies moved beyond their traditional learning and development initiatives, exploring other education options. Those that reported excellent results usually had one thing in common: They embraced immersive technologies.

What does immersive technology look like? Think virtual reality or augmented reality. Both VR and AR training options allow people to feel like they’re in the midst of a situation without physically being in the room. And these educational experiences are not as untested as you might assume.

Though COVID ramped up the reliance on immersive education, immersive VR and AR solutions didn’t start in early 2020. They’ve evolved over the past decade. That’s why Mercedes-Benz began using Microsoft’s HoloLens to scale up widespread corporate training a few years ago, following in the footsteps of competitors like Ford and Volvo.

Advantages to VR and AR Training Solutions

You don’t have to be in the automotive field to get the benefits of immersive technologies to train your personnel, though. VR and AR training can be useful for organizations across a wide range of sectors, from engineering to oil to industrial operations.

For instance, some businesses opt for immersive training to help their employees understand how to approach complex situations. Others use immersive modalities for self-driven “practice,” as workers can run through scenarios countless times to perfect their abilities. But corporations don’t have to limit AR and VR to “hard skills.” Leadership, problem-solving, and other soft skills can come to life in a virtual format, too.

That doesn’t mean that you want to just jump into immersive training without a plan. It’s important to be prepared so you can successfully upskill a cross-section of your team cost-effectively and reliably. With those considerations in mind, you can move forward by paying attention to the following strategies:

1. Budget correctly for your immersive training program.

One of the biggest obstacles leaders face when trying to get executives to champion VR or AR training is the perceived costs. As with most technologies, the direct cost for software, equipment, and setup of VR and AR training has dropped over the years. Even VR headsets have become surprisingly affordable, not to mention much more comfortable than before. Nevertheless, the upfront price might seem too high—at first. However, you have to factor in all the ways that AR and VR can cut down on traditional expenses associated with training.

For instance, immersive training allows you to give the same message to all your people without transporting them anywhere. You don’t have to rent a conference room or pay for travel. Instead, you can put all your dollars toward scaling your training solution in a reliable, consistent way where efficiency nets greater ROI.

2. Take your immersive training on test runs.

During the pandemic, countless companies embraced immersive training out of necessity. Unless you’re under a time constraint, you can likely start smaller. Invest in some AR and VR technology programs, but don’t change everything you do regarding onboarding, upskilling, or reskilling.

What’s the simplest way to begin in a limited way? Find a partner who works in the immersive technology industry. Most providers will be able to help you develop VR and AR simulations that you can test on specific teams or employees. That way, you’ll be able to see how immersive technologies can be used across the rest of your business. You’ll also have an easier time getting higher-level champions to support more comprehensive VR and AR training due to your proof-of-concept information.

3. Collect data from every immersive training.

A huge boon to VR and AR training is the ability to collect scores of data. You can use the information you gather to better measure and even monetize your training sessions. An example might be to collect information on how many times your newest employees need to run through a certain simulation. If you notice that one simulation seems more challenging and takes longer to learn than others, you might want to consider ways to break it down into bite-size parts.

The more data you bring into the fold, the better you can make your VR and AR modules. This will help improve the learning across your workforce no matter where your employees plug in. And when you test different modules, you can see how they’re affecting other ones by examining the data.

Immersive training is set to become a norm at many firms and organizations, particularly with the uptick in telecommuting. Even if you’ve never considered adding VR or AR technology to your learning and development initiatives, take a second look at the possibilities. Classic in-person and e-learning models work, but they have limitations. Immersive training solutions can optimize education for all employees and corporate goals, making them excellent companions to your current lineup of training.

Photo by Viesinsh

Conquer the Skills Gap: How to Quickly Upgrade Your Reskilling Strategy

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The pandemic has only accelerated our ever-growing skills gap. However, there’s a silver lining to the chaos we’ve experienced this year. People have proved to be remarkably resilient. People are still the best resources to take on the disruption and close the skills gap. This is especially true when you consider the volatility of the external talent pool.

Yes, technology is outpacing human skills. Simultaneously, educational systems struggle to keep up with the urgency of new skills needed. Higher education is both too slow and too costly for reskilling to be effective in the near term. That said, if history has taught us anything, it’s that technology adoption may cause short-term labor displacement – but in the long run.

To effectively reskill in this rapidly changing environment, organizations must harness their greatest resource for skills potential by looking internally. The challenge then becomes how companies approach a reskilling strategy. We often see a top-down process, where leaders throw content or training at employees and expect them to get to work. This approach to talent development has never been effective. Even worse, it will undoubtedly fail when applied to the unique circumstances employees face today.

Instead, talent leaders need to design a holistic people development strategy. One that utilizes integrated technology to find the delicate balance between fulfilling the needs of their employees personally while giving them the tools to be successful at an organizational level. Only then will employees truly be enabled to reskill effectively and execute the business strategy.

Anticipate Skills Needs

In a recent study, McKinsey states that 87% of companies say they are experiencing a skills gap – or will in the next few years. Of those respondents, only a few have an understanding of how to prepare for the skills they’ll need most in the future.

As we can tell from this data point, companies are well aware of the looming skills gap issue. But they are lost at sea when it comes to understanding what to do about it. From that same study, 3 in 10 respondents say at least one-quarter of their organization’s roles are at risk of disruption in the next five years by these trends.

If you don’t know how to meet the skills needed, your first reaction will be to look outside the organization. But that’s a concern when you consider the cost of hiring. According to a  SHRM article, research suggests that a new hire can cost as much as 50% to 60% of an employee’s annual salary, with total costs associated with turnover ranging from 90% to 200% of annual salary. Further, finding new talent that fits into your culture is a feat in itself. Efficiency is what matters most now. So what companies need to do is rally around upskilling their current employees.

Leaders must tap into their own network to understand industry trends. They must decipher the needs required now (or those that will be soon) to develop their staff. To gain insight into the skills employees currently have and the skills required to do their job, start with a skills gap analysis. From there, providing performance management technology and tools that integrate to support holistic employee development is key.

Integrate Effectively

Companies are working hard to accommodate dispersed employees by keeping them connected and collaborating. Rather than adding an assortment of tools that don’t talk to each other, organizations must create a comprehensive strategy that includes mentoring, engagement, learning, and performance.

Mentoring

Most companies have created or adopted some kind of mentorship program to improve job satisfaction, provide personal and professional development, and retain their top employees. However, most of these mentorship programs have become stale and bureaucratic. As many organizations have learned, these programs aren’t a one-size-fits-all solution. Access to coaching and mentorship should be a continuous process and suited to an employee’s personal needs.

Engagement

The pandemic shook up our work-life balance, and the flexible work environment took its toll on engagement. Finding a tool that provides constant communication to employees and leadership is critical — especially for those working remotely. Continuous engagement shouldn’t mean micromanaging, however. Instead, support the employee’s personal needs and provide them with a positive work experience.

Learning

After leaders have identified all essential skills, leaders can provide the resources and content that cater to individual needs. An integrated Learning Module System (LMS) can equip employees with a database of information that promotes a culture of knowledge and learning.

Performance

In a survey, Forrester reports 74% of firms say they want to be “data-driven,” but only 29% are successful at connecting analytics to action. For an organization and its leaders to see the big picture, performance management technology must have detailed analytics. After all, reskilling efforts wouldn’t be relevant if you couldn’t track back to the original development strategy. Only then can you ensure each individual has made progress.

Technology shouldn’t be a hindrance to employees wanting to upskill. By consolidating tools, you’re saving time from going back and forth between systems, simplifying the work for managers, and allowing quicker decision-making.

Assess and Invest in Your People

Not everyone is facing the same challenges right now, but managers are responsible for providing the tools and resources for each employee that enable them to be efficient and productive. Moreover, LinkedIn’s 2019 Workplace Learning Report shows that 94% of employees say that they would stay at a company longer if it simply invested in helping them learn.

Closing the skills gap is an unmistakable need right now. Clearing the obstacles for employees to fill those gaps is an action that leaders must take. Finding the right fit with an integrated performance management solution can enable employees to reskill effectively and efficiently.