This article has been somewhat inspired by the 2020 book by noted forecaster and bestselling author George Friedman who examined the cycles through which the United States has developed, upheaved, matured, and solidified, and how for the first time, these cycles have reached a simultaneous crescendo causing significant turbulence.
Throw in a pandemic, increasing global conflict, significant geo-political restructuring, an economic downturn, an barrage of climate disasters, and a re-evaluation of what it means to be human, and it’s fair to say, life currently feels like a never-ending rollercoaster. Many of us are starting to feel a bit disorientated, scared, and/or overwhelmed. Naturally, this has a downstream impact on businesses and HR teams are often bearing the brunt of the storm.
As I reflect on 2023, I think it is fair to say that it has been a turbulent year for most organizations, especially in reference to people and culture in which we’ve witnessed somewhat of a ‘revolution’. This article aims to summarize those challenges, provide some advice on how to overcome them, and provide some hope that there are calmer seas on their way, if we make way for them. Hopefully, this all proves helpful for your 2024 planning.
I am personally of the belief that the external turbulence we are facing is unlikely to ease significantly for a while yet. Therefore, to survive, we must strengthen our organizations from the inside, and that means a greater and more intentional focus on building the resilience, innovation, engagement, and wellbeing of our greatest asset – our employees.
The Storm: Current Employee Challenges
In the ever-evolving landscape of business, Human Resources (HR) professionals find themselves navigating through a storm of employee challenges. As businesses grapple with unprecedented changes, from remote work transitions to shifting employee expectations, HR leaders are at the forefront of ensuring organizational resilience.
Remote Work Transition Fatigue
A survey by McKinsey & Company found that 41% of employees reported feeling burnt out during the pandemic, with blurred work-life boundaries cited as a significant factor.
The sudden shift to remote work brought about by the global pandemic has left employees grappling with challenges such as blurred work-life boundaries, isolation, and burnout. Maintaining a sense of connection and productivity in this new normal poses a considerable challenge for HR departments.
Employee Wellbeing Concerns
A study published in the Journal of Applied Psychology highlights the rising importance of employee wellbeing, linking it to job performance and organizational commitment.
The pandemic has heightened awareness of mental health and wellbeing. Employees are struggling with anxiety, stress, and feelings of isolation, making it imperative for HR to prioritize wellbeing initiatives and create a supportive work environment. This is now a strategic necessity, for which few have the necessary experience or knowledge to implement effectively.
Talent Retention Struggles
According to a report by the Society for Human Resource Management (SHRM), 31% of employees are likely to leave their current employer within the next year.
As the job market becomes increasingly competitive, retaining top talent is a significant concern for businesses. HR faces the challenge of identifying and addressing factors that contribute to employee turnover, such as lack of growth opportunities, inadequate recognition, and ineffective communication.
Strategies to Overcome the Storm
Flexible Work Policies
A study by FlexJobs revealed that 65% of employees consider flexible work arrangements crucial for their job satisfaction.
To address remote work transition fatigue, HR should embrace and refine flexible work policies. This includes implementing hybrid work models, providing resources for remote employees, and fostering a culture that values results over rigid schedules.
A comprehensive and strategic approach to wellbeing
The World Economic Forum emphasizes the importance of well-being in driving productivity and organizational success.
Prioritizing employee wellbeing requires more than occasional webinars, free fruit, and a mental-health app – this is what we at WellWise call the ‘yoghurt and yoga’ approach and it relies too heavily on self-management. It is now essential that organizations take a data-led, and best-practise approach which means moving beyond tactics and towards a strategically integrated, measurable, approach that can demonstrate ongoing impact to employees and organizational performance. Taking a look back over previous WiseTalk newsletters is a great way to understand this better, but if you feel your organization would benefit from some additional support, please reach out to me directly.
Personalized Employee Development
A Gallup report found that employees who believe their employer is invested in their development are 27% more likely to stay.
To retain top talent, HR should focus on personalized employee development plans. This involves identifying individual career goals, offering relevant training and mentorship, and creating a culture that encourages continuous learning. All of this requires the upskilling of managers and leaders, as well as ensuring that alongside their job, employees are provided with adequate time to commit to their ongoing development.
Transparent Communication
A Harvard Business Review study found that companies with effective communication are 50% more likely to have lower employee turnover.
Effective communication is crucial during turbulent times. HR must ensure transparent communication channels, keeping employees informed about organizational changes, goals, and initiatives. Open dialogue fosters trust and reduces uncertainty among the workforces. Human nature means that we tend to fill gaps with negativity and incorrect assumptions can spread like wildfire. Ensuring our internal communications leave no room for uncertainty, and build clarity, and confidence is always important, but is essential as we navigate through the storm. This may include admitting that we aren’t 100% clear on certain things, and a recruitment drive to engage a range of employees with helping us to solve challenges.
The Calm: Looking Forward to a Brighter Future
Enhanced Employee Engagement
Gallup continues to show that engaged employees are more likely to invest discretionary effort, leading to increased productivity and a positive work environment.
Whilst I strongly caution against the over-use of engagement as the dominant measure of employee satisfaction, it is important that we include it as part of a rich a varied set of indicators. As HR successfully navigates through current challenges, organizations can expect enhanced employee engagement. Employees who feel supported, valued, and heard are more likely to contribute positively to the workplace, leading to increased productivity and a positive company culture. Get the employee experience right, and engagement will naturally follow.
Resilient Organizational Culture
A report by Deloitte emphasizes the role of culture in organizational resilience, stating that companies with strong cultures are better equipped to handle change.
Adapting to current challenges requires organizations to build resilience into their culture. HR’s efforts in fostering flexibility, wellbeing, and transparent communication contribute to a resilient organizational culture that can weather future storms with greater ease and less collateral damage. However, much like engagement, resilience is created through a series of factors, and these are not consistent across different demographic groups. Be cautious not to aim to build resilience in isolation.
Attraction of Top Talent
A LinkedIn survey found that 94% of employees would stay at a company longer if it invested in their career development.
By addressing talent retention struggles, HR positions organizations as attractive employers. A workplace that invests in employee development, prioritizes wellbeing, and communicates effectively is more likely to attract top talent, giving the company a competitive edge in the market. However, all these things must be strategic, long-term, and thoughtfully crafted to deliver the results we are hopeful for. Inconvenient though this may be, there are no quick-fixes, silver-bullets, or one-size-fits all solutions.
Summary
The storm currently faced by HR is a formidable one, but it presents an opportunity for organizations to evolve, adapt, and emerge stronger. How soon and to what degree the storm subsides, is in our hands to a large degree. Humans, and thus employees, are built for change, adaptability, and growth through adversity. They are not built for a continuous and heightened level of stress that keeps them in a constant state of flight or fight. This is where many have been for some time, and the reason that things feel so turbulent. With a strategic and empathetic approach, HR is not merely weathering the storm but paving the way for a brighter, more sustainable future for organizations and their workforce.