The outbreak of Covid-19 brought a seismic change to the job market. People have started re-evaluating their priorities, when, where and even why they work. The ‘Great Re-evaluation’ is among the biggest challenges for HR leaders today, finds a study.
Changing preferences of employees have also altered the priority of CHROs. As people re-evaluate their priorities, keeping employees satisfied is the top priority for CHROs globally.
According to the findings of the ‘The Global CHRO of the Future research’, launched by a new Executive Networks survey of CHROs employed at Global 1000 organisations, talent retention and attraction are their key priorities.
The top factors CHROs attributed to higher levels of voluntary turnover include stress and employee burnout, lack of visibility into career advancement and development, dealing with work-life balance issues, and requests for increased compensation.
Three-quarters of CHROs indicated that talent retention and attraction are their key priorities. Eight in 10 global organisations (83%) are facing a significant talent retention problem and 50% of those respondents said their retention problems are limited to high-demand roles.
Three in 10 respondents (28%) expect their budget for employee well-being programmes to increase by 10 – 19% over the next 12 months, indicating an awareness that reducing stress, burnout and work-life balance issues can make a difference in rising turnover rates.
Creating internal talent marketplaces, increasing employee referral bonuses, removing barriers to entry, and launching in-house staffing agencies are additional methods that CHROs are using to address high turnover rates.
Among those surveyed, 73% of them admitted that they have internal talent marketplaces but 32% of those are limited in scope. The report also revealed that increasing employee referral bonuses can be a cost-effective way to tap into a large, qualified labour pool of passive job seekers.
Mastercard launched an employee referral program with a cash reward that was double to triple what was offered previously, resulting in a four-fold increase in applications through referrals. To remove barriers to entry, IBM created structured apprenticeship programs and an internal learning platform, which are especially beneficial for those without a college degree.
Launching in-house staffing agencies helped employers become both the vendor and the employer, eliminating the middleman and sourcing talent in a cost-effective way.
The report revealed that budget is another recurring issue for CHROs, which is under constant pressure. Over the next 12 months, four in 10 CHROs (41%) expect their budgets to increase by up to 9%. A quarter (24%) expect their budget to stay the same and 17% expect an increase of 10 – 19%.
CHROs who participated in the survey said that if they could double their budget for 2023, it would be for improving employee experience (15%) followed by leadership development for next-generation leaders (14%), investing in new HR technologies (13%), upskilling and reskilling employees (12%) and improving employee well-being (11%).
“HR leaders are under pressure to stem the tide of resignations and help companies re-think what will make employees want to stay,” said Jeanne Meister, Executive Vice President, Executive Networks. “Recruiting new talent isn’t the only answer. In many cases, employees are re-evaluating their priorities and purpose and employers need to better understand how to provide employees with success by staying put.”
“Employers need to define flexible work practices inclusive for all employees and re-imagine the new role of the office, as it will encourage in-person collaboration and create a vibrant community in the office,” added Jeanne.