How are leading companies shifting their focus when it comes to HR and the overall employee experience? Which traditional HR practices are falling by the wayside and what is taking their place?
No matter where your organization or HR department is today, it’s helpful to see where the industry is headed so you can better anticipate the needs of your current and future employees.
A new white paper – 6 Megatrends Changing the Face of HR and Business – gives you that glimpse. Based on insights gathered from Globoforce’s WorkHuman Executive Forums, these megatrends illustrate a shift to more human-centric approaches to work.
In the WorkHuman Radio podcast embedded at the top of this post, Derek Irvine, VP of strategy and consulting at Globoforce, discusses five of the six megatrends. If you prefer to read about the megatrends, I’ve provided a high-level overview below with links to resources where you can learn more.
Continuous Conversations and Feedback
There’s no shortage of press when it comes to the death of the annual performance review. The move away from traditional performance management is generally a win-win for employees who find the process de-motivating and organizations that waste time and resources administering the process. What replaces the annual review? Companies are moving toward continuous conversations and “check-ins” that align employees behind organizational priorities. Feedback becomes the foundation of those conversations – on a three-part scale from consider to continue to celebrate. The heavier concentration for feedback should veer toward the positive, celebratory side of the spectrum, which is the proven way to elevate performance and meet employees’ higher-level needs.
Crowdsourced Reward and Pay
When was the last time your employees – or you – got excited about a 3% base salary increase? What about that one-time, annual bonus that’s deposited in your bank account and goes straight toward paying the bills? To address dissatisfaction with current compensation practices, HR is heading toward a re-architecting of pay. The future is variable pay, where a greater percentage of employees’ compensation is given as micro-pay from peers across the organization through crowdsourced recognition. This real-time model of continuous rewarding leverages the “crowd” to determine where the money flows, matching reward with performance to unify and direct people toward company priorities.
Today’s companies are a series of teams – where the work happens on a daily basis and where the strongest employee connections are built. As such, team engagement is a critical component of the employee experience, higher in importance than company engagement. The working team is the focus (not the hierarchal chart). By uncovering and recognizing individual strengths, the team is more empowered and efficient as people are able to thrive with their personal skills, abilities, and social connection with each other.
Each employee is at the center of their journey with the company. New technologies are enabling HR processes and functions to be centered around each individual employee. These personalized apps can create an experience that focuses on an employee’s own cycles, projects, and milestones/service anniversaries with the company. This brings an employee’s uniqueness and needs to the forefront, using technology to create a better human connection and relevance to the employee experience.
The New Role of a Coach
In order for the first megatrend of continuous conversations and feedback to work, the role of the manager needs to change. Our people managers need to inspire and empower as opposed to command and control. Decades of research have long proven the need for managers and leaders to provide higher levels of empathy toward employees – with the aim to develop and grow their skills and strengths. It’s a shift toward a more human approach where managers become mentors to their people and teams – to coach, teach, and guide. It empowers people to become less dependent on their manager and aspire to develop new skills.
HR as Culture Facilitator
The megatrends re-shaping business and management puts HR in the position as coach to the entire organization. HR as the facilitator of the culture becomes the enabler to drive a more human workplace and positive employee experience, breaking down past bureaucracies. These shifts can only be successful with widespread adoption and a philosophical shift within an organization.
Top 6 Megatrends Changing the Face of HR and Business
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How are you seeing these megatrends play out in your organization? Are there specific areas you’re working on this year? Share your thoughts with us in the comments.