Charles Darwin’s statement, ‘it is not the strongest of the species that survive, nor the most intelligent, but the ones most responsive to change’ could not be truer in today’s context. The world of work is in a constant flux and for any business leader or CHRO, sense making might not only be hard, but also extremely time-consuming.
2022 has seen the rise of the employee and whether it is uncovering new requirements or finding innovative solutions, each organisation (large or small) and specifically People Success teams have a lot on their plate.
The ‘C2H2 Conundrum’ as we like to put it, is a handy equation for comprehending the four primary concerns facing CHROs today. This nifty equation expands to Culture, Compensation, Hiring and Health and can mean so much especially to a CHRO trying to navigate the new world and working hard to be employee-first.
Let us decipher what this changing order holds.
Corporate Culture Turns Inside-Out.
In my recent conversation with the CHRO at a leading e-commerce platform, we were discussing how culture is built inside out and for any new-age company today, culture is not just what to expect in the office, but what a remote employee, who has never met any of their colleagues, feels at any point in their journey with the company.
With surveys from Harvard Business School suggesting that 61% would like to work 2-3 days a week from home, workplace flexibility emerges right at the top of the list. Organisations are struggling while integrating a more flexible working model and facing challenges such as the dilution of company culture, bias against remote workers and insufficient information exchange between teams. The success of this implementation will go a long way in shaping any organisation's culture. Gone are the days of rigid workplaces - organisations have to continuously evolve and be relevant to their employees to make their culture count.
Personalised Compensation and Benefits.
The one-size-fits-all strategy on workplace benefits is now obsolete. Employee engagement surveys suggest that almost 50% of employees would leave their job for one with better benefits.
Group health insurance too has tried to keep up with the times by innovating new products such as covers for IVF, LGBTQ and live-in partners, mental health, dependent siblings among others. Companies are also looking at extending covers that were earlier considered status quo. Benefits will now be more personalised.
For example, erstwhile maternity covers of INR 50,000 are now passe.
Performance bonuses, employee recognition, stock options, teleconsultations, state-of-the-art technology and other non-monetary benefits are attractive features, especially for smart and ambitious millennials or GenZ (after all, they do take up almost 35% of the workforce). Perks that encourage personal growth development like free library membership, movie nights and game nights are a few ways to boost employee satisfaction and retention.
Hiring keeps us all awake.
Attrition rates in some Indian industries have reached an all-time high of 25%. A revolving door of talent is not only a tremendous financial drain on the company in terms of hiring and training but is also not the best way to build a successful business.
There's never been a better moment to invest in employee experience. Studies show that for most professionals picking a new job, company culture, work flexibility and health benefits are the top priorities.
The challenge is not only to bring in bright talent but also to preserve it. The traditional ‘money for time’ transactional relationship between enterprises and employees is turning rapidly outdated. There is much to learn from several new-age companies on how they put benefits first.
Health and well-being - should organisations care?
Fostering a culture where employees can put their mental health first and also safely talk about it requires a mindset shift (pun intended). With burnout, anxiety and stress being the biggest contributors to health issues, the new generation entering the workforce is looking for a personalised approach to address them. Gone are the days of taking a group health insurance covering employees and their families and checking off the health OKRs. Companies have to be invested in their employees’ health and wellbeing as much as they are with their productivity.
Over the last two years, the insurance-tech sector has rapidly evolved, bringing technology to the forefront of employees' accessing, understanding and maximising company health and wellness benefits. Mental health covers, digital health interventions, performance coaching and curated live wellness sessions are some benefits that are being used every day. Features like TeleHealth that provide access to a wide range of medical practitioners give employees the freedom to get medical advice remotely and save valuable time.
Workplace culture evolves as employee necessity dictates. The C2H2 formula offers an overview of the importance of employee-centric company culture while adapting to a dynamic environment. Remember, yesterday's solutions don't account for today's demands.