9 minute read
Thriving in the face of challenges
According to HRNZ’s latest Member Voice Survey, the biggest challenges for 2023, as told by HRNZ members, are recruitment and retention. Vicky Yeo, Partner, and Millie Gracie, Senior Consultant in Organisation Transformation at Deloitte, and Human Resources editor Kathy Catton look at what people professionals can do to make a difference in these areas.
We’ve heard it from all directions: The labour market is tight, employee turnover is rising and staff shortages are commonplace within HR and the wider workforce. So it’s no surprise we’re facing increased pressure from a resourcing, wellbeing and cost perspective. And all this is in the context of the rising cost of living, rising interest rates and uncertainty over global events.
Continued leadership and influence and finding innovative solutions will be crucial for success for HR professionals, regardless of their role or sector. Let’s break it down.
What can we do to improve employee retention?
Employee retention starts at the recruitment stage, so this may be a time to review all life-cycle processes, programmes and strategies to ensure they are relevant and fit for purpose.
Vicky suggests the following strategies to improve employee retention and contribute to the organisation’s employee value proposition (EVP):
• create a sense of purpose and meaning in the work employees do
• create a positive and supportive work environment that values and respects employees, establishes trust in leadership, and builds a positive corporate culture that aligns with the organisation’s values
• co-design your employee talent experience: listen to people and understand what the employee experience is like and where there are opportunities to improve, by encouraging open communication and providing opportunities for employees to give feedback
• provide opportunities for professional development and
career advancement by providing regular performance evaluations and coaching to help employees improve and grow
• recognise and reward employees for their contributions and work
• offer and maintain competitive salaries and benefits packages
• provide work–life balance through flexible scheduling and remote work options
• invest in employee wellbeing and offer employee assistance programmes. Having employees at the centre of any listening strategy is crucial. This includes then taking action based on the feedback received. People are savvy and have access to multiple media to voice their concerns. Be honest and remember that inaction will create distrust and fatigue. Waiting until an employee’s exit interview to find out why they’re moving on is too little, too late.
How critical is employee engagement during a recession?
According to Vicky, organisations need to understand and prioritise employee engagement during a recession.
“We know when employees are engaged, they are more motivated, productive, and committed to their work and success of the organisation. This not only ensures organisations continue to operate smoothly and adapt to the tough economic conditions, but it also means employees are more likely to stay with the organisation, reducing potential turnover, costs associated with recruitment and onboarding new employees, and retaining institutional knowledge.”
“Having an engaged workforce also contributes to a positive organisational culture, which is important to maintain high morale and attract and retain top talent in an impacted market,” says Vicky.
What can organisations offer in the way of learning and development during economic hard times?
As an organisation looks to make changes to its strategy and how it may operate differently during a recession, work should be carried out to identify what future capabilities will be required to be successful. Therefore, investment in those capabilities should be prioritised (eg, customer centricity, adaptability, innovation), says Vicky.
“Organisations should also consider offering job-specific training programmes, such as on-the-job training, mentoring and coaching. This can help employees build specific skills and knowledge they need to succeed in their roles and to take on new responsibilities as the organisation adapts to changing market conditions.
“It is even more important that people are cross-skilling. Where roles and responsibilities may overlap across the organisation, or where there is opportunity to do so, building additional skills to support crossskilling will be beneficial.”
According to Deloitte’s 2023 Global Human Capital Trends report, which surveyed 10,000 business and HR leaders across 105 countries, leaders today can be anyone who mobilises workers to get work done, and is no longer contingent on position, hierarchy or the number of direct reports. This is an opportunity for HR to reframe roles in a future space that may lack the boundaries of job titles.
And what about optimising the human–technology mix?
Optimising the human–technology mix involves finding the right balance between using technology to automate tasks for efficiency and using human resources to perform tasks that require and benefit from creativity, critical thinking and problem solving.
Vicky suggests that the ways and considerations to optimise the human–technology mix might include:
• understanding the capabilities and limitations of technology
• identifying areas where automation can improve efficiency
• using technology to augment human capabilities
• empowering employees with the necessary tools and training
• continuously evaluating and adapting the human–technology mix
• creating a culture that encourages and supports technology adoption.
It’s important to understand what tasks technology can perform efficiently and what requires human intervention. Automating repetitive tasks can free up human resources to focus on more complex tasks that require critical thinking and problem solving. Technologies such as AI, machine learning and data analytics can be used to augment human capabilities, allowing them to make better decisions and work more efficiently. However, it is important to consider the ethics around this technology use.
What are some of the main skills HR professionals need during this time?
HR professionals play a critical role in helping organisations navigate a recession. During a downturn, HR professionals need to be able
to draw on specific skills to help the organisation survive and even emerge stronger. Millie outlines her thoughts on what skills HR professionals will need during a recession.
• Strategic thinking: HR professionals need to be able to think strategically about how to potentially reduce costs while minimising the impact on the workforce.
• Data analytics and reporting: HR professionals need to be able to gather, analyse and draw key insights to help the organisation make informed decisions.
• Talent management: HR professionals need to be able to identify and retain key talent during a recession. They should also look for creative ways to manage and curate the workforce (eg, consider other forms of using human capital, such as outsourcing and engaging contractors and specialists, fixedterm arrangements and so on).
• Change management and organisation design: HR professionals need to be able to lead organisation design processes and change management efforts while also helping the organisation and its employees adjust to potential new roles, responsibilities and ways of working.
• Legal and compliance: HR professionals need to be familiar with employment laws and regulations and able to navigate legal processes and compliance scenarios that may arise during a recession.
• Employee engagement: HR professionals need to be able to actively support employee engagement and help keep motivation up during a difficult time.
• Communication and conflict resolution: HR professionals need to communicate effectively with employees and other stakeholders about the organisation’s situation and strategies and be equipped to effectively manage and resolve conflicts that may arise during a recession.
“HR professionals should be empowered to act as key business partners and trusted advisors, giving them the autonomy and resources to take ownership of the people strategy to help drive business outcomes,” says Millie. “Encouraging them to not only focus on people-related matters but also to add value by participating in cross-functional teams, providing data-driven insights, and being a strategic thought leader in the organisation is crucial. This will enable them to better understand the organisation and provide more holistic and effective solutions to the organisation’s challenges.”
Amid economic adversity and technological and environmental disruption, new “social contracts” at work are taking shape where employees are wanting more autonomy and flexibility. To compete in this space, people professionals need to rethink their approach to engaging and retaining talent. In the words of a recent Deloitte report, “companies should proactively create an irresistible experience – a magnetic organisation that empowered, free-agent people can’t help but want to join”.
Millie Gracie is an experienced Senior Consultant with broad expertise in consulting and in-house HR roles in both the New Zealand private and public sectors, and abroad in the United Kingdom. Millie has experience in change management, OD, talent management, and ER, bringing her unique skillset to a wide range of projects across various industries. Millie is passionate about enhancing the value and impact of HR practices within organisations, including uplifting capability and leveraging data-driven insights to elevate the role of HR and demonstrate the significant benefits it can bring to organisations.
Vicky Yeo is an Organisation Transformation Partner at Deloitte who is passionate about helping her clients navigate the complexity of change and working with them to translate their future state vision into a clear roadmap for change. Vicky has led change teams on business transformations in New Zealand and Asia Pacific. She has worked with clients to redesign their organisation in response to both strategic and cost drivers and supported organisations to develop internal change capability. Other areas of focus include culture change, developing leaders, talent strategies and high impact HR operating models.
