The CEO Guide to Rethinking Your HR Strategy
The role of HR has significantly changed over the past few years as issues such as recruiting, retention, and employee engagement are growing in significance. Terms like company culture and employee happiness have risen to the top of the wish lists of employees all over the country, changing the way organizations approach their HR decisions.
A recent study released by Fidelity Investments revealed that, on-average, millennials are willing to take a $7,600 a year pay cut in exchange for a better “quality of work life.” Studies like this prove that employees these days can no longer be bought with high salaries and attractive compensation packages, and are willing to sacrifice their salaries to enjoy a more satisfying employee experience. To stay up to date with the latest human resources trends, CEOs must go back to the drawing board and rethink their HR strategy.
Rethinking an HR strategy is no walk in the park, and requires a lot of hard work and collaboration among executives. In many cases, executives need to transition their Human Resources department to focus more on strategic planning and less on administrative tasks. To successfully transform an HR strategy, there are a few key areas to focus on.
Employees these days want to work at an organization that cares about their overall happiness. They want to feel a sense of excitement and joy on their daily commute to the office. According to the Bureau of Labor Statistics, the average full-time employee spends roughly 8.8 hours a business day at work or on work related activities. With employees dedicating over a third of their day to their employer, it’s no surprise they want a work environment that lifts their moods.
Fortunately, it appears most CEOs are prepared to address their employees’ satisfaction levels. According to the DATIS Workforce Management Trends Survey, employee satisfaction was a top priority for CEOs in 2017. Of those CEOs, 92% said they are “Moderately Aware” to “Extremely Aware” of their employees’ satisfaction levels. However, it is important to note that being “aware” of satisfaction levels is not enough, as CEOs must determine ways to improve these satisfaction levels to attract and retain quality employees.
According to the Pew Research Center, millennials are currently the largest generation in the U.S labor force. Yet, for some reason, organizations are still using the same recruiting, retention, and career development strategies they had in place for previous generations. Executives need to focus on the needs and wants of millennials to find HR success in today’s ever-evolving environment.
There is no denying that CEOs understand the impact millennials are having on their organizations. The DATIS survey revealed that 88% of CEOs believed millennials entering the workforce have had a “Moderate” to “Major” effect on their organizations. As millennials continue to pour into the labor force at record rates, it’s important to keep their priorities and needs top of mind.
CEOs must come to terms with the fact that technology is constantly becoming outdated and replaced by something new. Most of the tools that worked fine 10 years ago are deemed prehistoric in today’s technology world. There are HR software solutions available to CEOs these days that have completely revolutionized and simplified the way HR is performed by possessing recruiting, onboarding, talent management, payroll, and compliance capabilities. Unlike manual HR processes, HR software can be regularly upgraded to keep up with today’s changing times.
When it comes to digital HR strategies, CEOs are ready to commit. A total of 97% of CEOs that participated in the DATIS survey reported that they expect their organization to invest in digital strategies within the next 12 months. While investing in digital technologies is a step in the right direction, CEOs must do some serious research when choosing the digital tools right for their organization.
As the priorities of employees continue to evolve, so do their expectations of their employers. While overhauling current HR strategies sounds like an intimidating and daunting process, CEOs must collaborate with their fellow executives and rethink their current HR strategies so that they don’t get left behind. Including representatives of their organization’s HR department when making strategic decisions is a great start. In order to be successful when rethinking their HR strategy, CEOs must encourage innovation and maintain a forward-thinking mindset.