HRC – H. Pierson

With 2022 underway, employers of all kinds are reckoning with a challenging Human Resources landscape. Increased competition for skilled workers, constantly changing COVID safety protocols, hybrid and remote workplace hurdles, and a competitive hiring space where top talent is setting their own terms have all added a new complexity to hiring and retaining workers. If that wasn’t enough, increased turnover and still-high levels of resignations have countless HR departments scrambling. And that’s true of both public and private sector employers, experts said.

“Like their counterparts in the private sector, [public sector organizations] are facing staff shortages, unmet customer demands, employee stress and burnout, increased resignations — including a higher than typical number of age- or retirement-related resignations — [difficulty] retaining talented staff, and competition for new hires,” said Jack Wiley, Chief Scientific Officer at management consulting firm Engage2Excel and author of The Employee-Centric Manager: 8 Keys to People-Management Effectiveness.

Disproportionately impacted by furloughs, budget cuts, and service stoppages for health-related safety reasons, public sector employers have lagged in relation to the private sector in recovering from pandemic job losses, according to public policy nonprofit Pew Charitable Trusts. And that slower recovery is magnified given the immense impact the public sector has on day-to-day life, as well as the significant size of the sector. Public sector employees include federal, state, and local government employees; public transit and public education workers; law enforcement officers; and more. According to October 2021 data from the US Bureau of Labor Statistics (BLS), government workers alone make up 21.9 million employees, or 14.8% of the non-farm workforce in the United States.

But while the challenges are real, experts say there are concrete steps public sector HR professionals can take to tackle the most pressing public sector HR issues head on — and to position their organizations for growth and increased employee engagement going forward. Here’s what they recommend.

The Challenges

Finding, hiring, and retaining qualified candidates for open positions is at the core of Human Resources, but for public sector employers, making sure jobs are filled takes on an additional urgency.

“When there are vacancies within public sector positions, it has a direct impact on the communities those agencies serve,” said Greg Preece, principal and senior consultant at Human Resources consultancy FireHR and a former firefighter and paramedic. “This ranges from solid waste collection and police, fire, and EMS responders, to Head Start [program] delivery, street repairs, 911 call takers, and beyond.”

“The mission of [these] agencies is literally…critical,” agreed Gary Leikin, CEO of government workflow automation platform SimpliGov. “Administration of health and human services, particularly for displaced populations; child support applications; emergency rental assistance; and related safety-net type of services is of utmost importance. It’s not like a glitch in a streaming service where you can’t download the next episode of a series — life literally depends on it.”

With stakes this high, confronting and overcoming pressing challenges is essential. These are the issues experts say Human Resources teams should be prioritizing.

4 Public Sector Issues HR Teams Need to Prioritize

1. The Bureaucracy Bind

Experts said that the stereotypes about government bureaucracy don’t necessarily come from nowhere; there’s a grain of truth to them in that many public sector and government jobs have more layers to navigate than comparable private sector positions. And when it comes to hiring, that can cause problems, they cautioned.

Hard-to-find job listings, difficult-to-parse job titles, and cumbersome application processes can weed out promising candidates before they even complete their applications, and slow response times can mean the candidates that do apply can be snapped up by faster-moving firms before they’ve even been offered a first interview.

The solution? Public sector firms that want to compete for and keep sought-after candidates need to make applying easier — immediately, experts said.

“The public sector needs to make it easy to apply for roles and make opportunities visible to citizens [of the community],” Leikin said. “It’s also important to ensure the application and candidate review process is efficient and timely [so] candidates [aren’t] hired by other organizations or companies [first]. The government is often competing with the private sector for the same candidates and needs to move at the same speed to hire the best [people].”

“With the job market as competitive as it is, applicants have little patience for overly burdensome and lengthy hiring processes,” Preece agreed. “Public sector employers should review their hiring processes and work with all stakeholders to make reforms that will allow for more efficiency and streamlining.”

2. On-the-Job Opportunities

Similarly, the same issues — which can manifest as frustratingly rigid job parameters, hidebound work processes, and constrained opportunities for promotion or increased compensation — can show up as challenges in the retention of employees, too. “One of the biggest issues that HR departments face in the public sector is that there is a lack of engagement due to the bureaucratic systems and budgetary constraints that many organizations have in place,” said Paola Accettola, principal and CEO of HR services firm True North HR.

While some elements aren’t changing anytime soon (overhauling pay scales and job classifications may not be within HR’s mandate), forward-thinking Human Resources departments can work with management to increase job satisfaction where they can. A major factor in the satisfaction employees feel in their day-to-day jobs and careers overall is how much opportunity they’re being offered for training and development and learning new skills.

“In the context of the current war for talent, an organization must make an appealing statement about what it has to offer a new hire in terms of experiences and rewards in exchange for what the prospective employee brings in talent and commitment,” Wiley said.

3. More Visibility

A rigid, unchanging hiring process can go hand in hand with insularity in some public sector positions, which keeps potential hires from even knowing a job (or an employer) exists. To maximize the chances of finding the best possible candidates, governmental organizations and public enterprises need to make sure they’re meeting job seekers where they are, with a special focus on outreach to younger workers.

“Public agencies must do a better job of getting into the community and in front of high school and college students and other community organizations to tout the benefits of working in the public sector and the ability it provides to serve the common good,” said Preece.

4. Communicating the Benefits

A continual problem, experts said, is the perception that public sector jobs underpay relative to the private sector. And while it’s not always the case that public sector employers pay less than their private sector counterparts, there are fields and positions where public sector employers simply can’t match the compensation and benefits packages that for-profit firms offer. In the current race to win over top talent, even highly motivated public departments may find that they can’t move as nimbly to adjust salary offerings, or be as flexible with other benefits, as less constrained private firms can.

So what can public sector HR departments do? Preece said the key is to play up the benefits they do offer. “While the public sector may not be able to compete with some of the compensation and perks of the private sector, it is imperative to communicate the benefits they do provide, such as a defined pension and deferred compensation plans, and the sense of service [that] working within the community provides.”

In fact, it’s that last element — the appeal to a sense of service and of working within a community — that can be a uniquely compelling selling point for public sector positions. The work of the public sector is crucial, and the pandemic only highlighted for many job seekers just how vital the roles that local government employees, public safety officers, healthcare workers, and social service providers are in supporting our collective well-being.

“At the top of the list of what employees most want [are] recognition for a job well done; interesting, challenging, and exciting work; job security; fair compensation; opportunities for career growth; positive working conditions; and confidence in the truthfulness of leaders at all levels,” Wiley said.

Much has been made of the generational preference of both millennials and Gen Z to have jobs that they find purposeful, meaningful, and impactful. So for many of these motivated, younger workers, working for the civil service or one of the many public organizations that keep society running could be highly appealing. There’s an opportunity for public sector employers to connect with employees who believe deeply in their mission and want to apply their talents in service of it. But HR needs to make sure they’re giving those candidates a chance to find them — and a reason to stay.

By Jennifer Ernst Beaudry

Plan and Replace Your Top Talent Seamlessly with Succession Planning

Succession planning is the process used to find potential leaders and high performers, helping them to develop and advance within an organization. An effective succession plan prepares identified successors with the skills and competencies needed for any future roles. Using a customized development plan can help employees grow and ensure your successors are the right fit for the future position. Creating no need to worry about open positions when top leaders leave.

Succession Planning is essential because, as a business grows, developing current employees for future critical positions is more cost-effective than hiring new talent. Succession planning can also boost engagement and retention rates by providing employees with a clear path forward in their careers and your organization.

The Importance of Succession Planning

The succession planning process is key to long-term business success. It fosters growth in future leaders and replaces them when key contributors leave.

Here are some top reasons why succession planning is essential to your business:

Reduce Costs when Hiring Top Talent

Hiring top talent can be expensive, and your company could lose money if you are not confident in the new replacement. By creating an internal talent pipeline, you can protect the return on your hiring investment with potential successors.

If your successors come from within your organization, you will not need to recruit externally, which reduces costs even further. You can invest the money you save in other areas – like employee training and development.

Find Key Leaders

With the right approach, you can find key employees who can perform well in new specific roles. Helping to measure options and make the best decisions regarding successors for a role. You can also ensure the succession pool aligns with your diversity and inclusion goals for the company and its future growth.

Mitigate Risk

When top roles within your company go unfilled for tooling, your business success will be at risk. With succession planning, you will have a plan when changes occur so your business is always prepared.

Create Your Legacy

When business leaders are aware of their successors for a critical role, they can provide mentorship and share knowledge. All their experiences will be translated into the future efforts of their successor, so your key employees can leave a lasting mark on the company.

Shapes an Exit Strategy

Succession plans ensure leadership exits are smooth and seamless. An effective plan outlines key resource replacements, so your business can run adequately whenever those individuals exit.

Promotes Progression

Succession planning helps you shape the mindset of crucial employees for continuity. When leaders consider how certain events could affect the business, they might be more agile in facing unexpected events.

How Technology Helps in Succession Planning

Most businesses consider succession planning as a time-consuming and ineffective process. With a traditional approach, leaders spend hours compiling spreadsheets which can quickly become outdated and might not lead to actual employee development.

These latest technology features can eliminate risks and streamline your succession planning strategy. You can boost employee growth and drive business success with the right tools.

Identifies Talent and Readiness to Fill Top Positions

For the best hiring decisions, businesses should be able to see their talent all in one place and understand the full scope of each employee’s skill set. With the right tools, you can find the highest potential talent and add them to your succession plans for future growth.

Make Firm Decisions When Talent Leaves

When your key employees leave unexpectedly, it is essential to have a plan in place so you are not rushing to fill the open position. Technology helps you find the best fit for each role, help make precise hiring decisions and reduces negative business impacts.

Promote Growth and Development for Successors

The solution helps you find the employee skills gaps when they are recognized as a successor. This way allows the employees to support their growth and development in the areas that matter. When employees are ready to fill those crucial roles, there is no break in progress.

Your Succession Plan is Always Ready

An advanced tool will keep your succession plan up-to-date, ready, and at your fingertips to illustrate your business’s longevity. A robust succession platform tracks the metrics and ensures your top positions are filled when needed.

Takes the Difficulty Out of Succession Planning

An advanced succession planning system works seamlessly with your employee’ reviews and overall goals. When you can measure and align performance with your succession plans, you will find the best talent and ensures they develop correctly.

Reference: https://www.sutisoft.com/

There is a school of thought when recruiting that you should ‘Hire for culture fit, train for skills’. So what does this mean? We cover practical strategies on how to hire employees for cultural fit and why it’s so successful.

Let’s start by understanding what culture fit is all about. Simply put, culture fit is the likelihood that a person will be able to conform and adapt to the core values and collective behaviours that make up an organisation. When you hire employees for cultural fit, you’re ensuring a better chance of success.

This doesn’t necessarily mean you are hiring for an exact personality replica as yourself either; diversity in people and opinions are important.

However if you have two candidates, one who needs further skills training and the other who enjoys a great skill set, but doesn’t seem like a ‘good fit amongst the team’, then I would always hire the former.

Let me explain.

If you assess cultural fit throughout your recruitment process, you will ensure you hire people who will become fantastic in their new roles, which will certainly help drive long-term growth and success for your organisation.

When you hire employees for cultural fit, the fit within your existing team and understanding of your company values will ensure that they will save you time and money in having to replace them later.

What this means is that when you hire on both job fit and cultural fit, you’ll find that your new recruits are

Faster to start really becoming part of your team
Start contributing quicker than others
Are happier in their new role
Tend to stay longer with your business
Become brand ambassadors, and;
Are likely to become ‘star performers’.

When you make recruiting decisions purely on skills, and don’t take into account the cultural fit of the candidate, you may find;

The candidate doesn’t fit in with your existing team
They will quickly become dissatisfied with their role
Will not adhere to the values and behaviours expected of them
May end up leaving through resignation or termination, faster.

So you can see the benefits of ensuring a great cultural fit through the recruitment process.

The trick is, how to hire employees for cultural fit, without just relying on ‘gut instinct’?

Who you hire ultimately defines your culture.
– Ryan Hoover, Product Hunt

7 Proven Steps to Hire for Cultural Fit

You should start by following these steps;

Ensure you have a set of values and how they translate to the role
Include a page within your website about your company values
Reference these company values in any advertising for the role
Discuss the values and how your culture is during the initial interview
Ask questions that relate directly to these values
Ensure you have a solid induction process that involves cultural induction
Schedule a meeting within their first month in the role to discuss further

Let’s get into some more detail what each of these strategies actually mean.

Ensure you have a set of values and how they translate to the role

If you are in your very early stages, it is likely that you haven’t put thought into creating and documenting your company values.

I believe company values are incredibly important to distill and communicate as early as possible in your businesses lifetime. They explain what the founders and management hold as important, and they help explain the behaviours that all employees are expected to uphold.

Without clear direction and leadership, your business may keep plodding along, however the lack of cohesiveness will eventually start to show, and affect productivity and profits.

You should spend time analysing your inherent values, and document them into specific, clear words.

My previous article, Creating company values that boost company culture, explains my thoughts in more detail, and also outlines the process we went through to achieve our values.

Include a page within your website about your company values

These definitely should not be just static website content that you cut and paste somewhere deep within your website, and promptly forget about.

You should be using other opportunities to link back to these value statements. For example, they should always appear on your careers section, and also be mentioned within any corporate blog or social media. This helps you hire employees for cultural fit.

Some companies go one step further, and create slide decks that portray their values and culture. Here are some recent examples that do a fantastic job of explaining the cultures at these companies;

For extra impact, you could also get written or video testimonials from existing employees, about what the values mean to them, and ask them to explain what the culture of your organisation is. You could then make a series of social media videos or upload them to your YouTube channel.

Reference these company values in any advertising for the role

We always make mention of our values in our position advertising, for example in a recent advertisement, we included a link to our company values page on our website, along with the closing statement of what the application should contain;

Many of the applications we received for the position had well considered responses to these values, and it is not burdensome to ask applicants to do so.

In this recent example, those candidates that did not go to the effort of providing these responses were not afforded an interview with us.

Discuss the values and how your culture is during the initial interview

You don’t want to hire someone and find out within days that they didn’t understand the role, causing you additional costs and time in replacing and re-training yet another candidate.

It is crucial that anyone involved in the hiring process has a good grasp of your company culture, and that they themselves personally display the right behaviours and attributes you expect in your values. This is key when you hire employees for cultural fit.

I like to explain what we look for in candidates, and how we work as a team; the good and the bad. In fact, many candidates are given a tour of our offices, and encouraged to ask any employees that are introduced to, any further questions around culture, teamwork and our mission.

Ask questions that relate directly to these values

During the recruitment interview, rather than just sticking to skill based questions, I recommend that you include a number of questions to determine the candidates personality and cultural fit. For instance, when hiring a dedicated development team, you should not only ask them technical questions but also test their soft skills, whether they are easy to communicate, etc.

Whilst asking for their own personal values is a good start, you will find more benefit by asking them specific questions around your values and determine their reactions and answers.

I like to also ask questions to determine who they are, outside of the office.

For example;

Tell me a little more about yourself; what does your typical weekend consist of?
Tell me what your most positive personality trait is, and why?
Tell me what your worst personality trait is, and why?
What values are important to you as a person?
If given the choice of any role here, what job would appeal to you the most?

I then get into specific culture based questions, such as

What type of team do you thrive in?
How important is recognition to you?
Have you read our values? Which one resonated with you the most?
How would you describe oru culture, based on what you have seen and heard so far.
Why do you want to work here?
What is an example of a time you feel that you feel reinforced our value of [insert one of your values]
Do you feel the role you are applying for, has meaning?
Are you comfortable with our values and what they mean?

As you can see, rather than just asking a candidate to repeat your values, or find out what their favourite movie is, I prefer to dig a little deeper and ask questions to understand their personal motivations and drivers, and get a sense of how they would interact within my existing team and our culture.

When you hire employees for cultural fit, pay attention not only to their verbal answers, but also their body language and comfort levels. Feel free to ask for them to clarify an answer, if required.

By doing this each time you interview, you will quickly find out which candidates best resonate with your values and culture by doing this.

Ensure you have a solid induction process that involves cultural induction

We set aside a 2-3 hour meeting within the first few days of a new hire beginning to take them through a cultural induction process. This meeting has evolved over the last few years, from being a literal reading and discussion around our values, to a more formal approach, where we dig down into the values, what their intent and meaning are, and we describe behaviors that are both reinforcing and against each value.

Whilst this may seem superfluous from the outside, we have found that new recruits appreciate the additional time and effort that we set aside to ensure they are comfortable with our culture, and have an opportunity to discuss their concerns or questions with us.

Schedule a meeting within their first month in the role to discuss further

I always make a point of following up with another one-on-one meeting after a few weeks of the new hire settling into her role. In this meeting, we go through both the position expectations, as well as culture and values, and ensure that they feel comfortable in what they are doing.

I also use this meeting as a way to delve into their thoughts, as a new person within the team, about how our culture and work is, and what improvements or suggestions they could make, based on their prior employment history.

In Summary

We’ve now shown you practical steps on how to hire employees for cultural fit. Using these strategies before, during and after you’ve hired a new person, ensures that you will enjoy a happier, more productive team, more cohesiveness, a reaffirmation of your company values and better employee longevity.

Your company culture is very important; it provides your team with direction, a shared understanding of the behaviour expected, and is effectively ‘the glue that binds the team’.

Employees who embrace your culture and values go on to become great brand ambassadors; they boost morale and teamwork and help positively affect future recruiting.

Always hire employees for cultural fit first, and technical knowledge second.

Reference: https://inside.6q.io/

Introduction

The modern era of governance and its handmaiden “compliance” has spawned a plethora of rules and guides about how boards and management should do their respective jobs.

This is fine, but many situations encountered by directors in boardroom settings are not straightforward, nor can they be neatly categorised so that they can be dealt with “by the book.”

This article discusses how chairs should deal with what can often arise in boardrooms, where subjective comments, biased or pre-emptive behaviour and strong personalities can cloud good decision making.

As a corollary, management can be guilty of the same shortcomings, and management reports received by boards can vary greatly in content and format, and on occasion, are characterised by what they omit, as well as what they say. Facts can be in short supply, and opinions can often drive decisions.

The article also question why there is so much variability in board papers, not just between companies, but also within companies. It also looks at how boards of directors can understand and deal with what can be misleading reports with the underlying management behaviour and shortcomings.

Quite simply most of these issues can be put down to the fact that companies are run by groups of unique individuals with a range of personalities and behaviours. A good CEO can get the best out of his or her team, and good chairs can navigate the path towards rational, and evidence-based decisions by the board. However, it is important that the leaders, in this case the CEO and the chair, understand what is going on and have strategies to deal with them.

The board

Much has been written about boardroom personality types and how to build and operate a balanced and effective board, and also about correlating CEO behaviours with success. Understanding what you are dealing with is important, but knowing how to manage these personalities to drive success is also crucial.

To put this into context it would be interesting to know how many company successes and failures are the result of, on the one hand, exceptional individual CEOs, supported by good boards; and, on the other, poor choices of CEOs by incompetent boards of directors?

Changing CEO’s early on in their careers is not a good look but recognising problems early on may make this decision crucial.

Boards are a collective, and consensual decisions are best practice in most circumstances. Agreeing to disagree can sometimes be the only way forward where there are significant differences of view over issues, and where the best outcome for the Company becomes the key driver for the decision.

Likewise, major problems can arise where the board has significant shareholders as directors, who push their personal agendas in preference to the interests of the company. The role of the independent directors is more important in these circumstances and they need to step up and have their voices heard, over what can be dominant and aggressive behaviour.

Management

Boards have more face-time with CEOs than any other management team member, with the exception sometimes of the CFO, who can often double as the record taker, and therefore is generally present for the entire meeting. It is axiomatic that the CEO should preface and present major proposals to the directors, but CEOs vary in their abilities to do this thoroughly and objectively. At one end of the scale CEOs can have an overdose of leadership traits, characterised by hubris; whereas others struggle to present a coherent and persuasive argument, even when important information is available.

With the former, there is one celebrated case where an extremely persuasive CEO was able to convince the entire board of his SOE to go along with his view of the world, and in the process disregarded what were obvious risks, and matters which ordinarily boards would have had have a duty to address and scrutinise. “Black Hats” around the board table can be very challenging for some CEOs, but are a necessary element in board composition and behaviour. Having said that, the Black Hats need to be careful and non-confrontational in putting their views forward.

Management needs to recognise this, and address director’s concerns factually and professionally, even occasionally conceding that there are unresolved issues when seeking decisions.

In the case of an over-assertive CEO, a well-balanced board with an experienced chair will know who they are dealing with; and indeed may have had the responsibility for choosing the CEO — although this is not always the case.

This is why recruitment of the CEO is such a crucial decision, and it is important to know whom you are really employing before it is too late. Thorough due diligence with trustworthy referees can often reveal unsatisfactory characteristics and it is vital that a CEO has integrity, balance and openness in all their dealings with the board. Mutual trust is essential.

Conventional wisdom says that CEOs have a “use by” date and this is often quoted as being seven years, which is also the average longevity of a CEO in New Zealand. Equally some exceptional CEOs grow with the job and the challenge, and they should be supported by their boards and chair to go the distance, providing they continue to grow the company without taking excessive risks.

There are significant differences in approach between management and boards, and how personality and style can impact on company decisions. The board collective, more often than not, has a wide range of competencies, skills, experience and personalities. On the other hand, management can often be embodied in a single individual who has the delegated responsibility to report to the board on behalf of a team of functional managers, whom collectively run the business, operationally and financially.

As we have seen very recently with one of our SOEs, the wrong choice of CEO can lead to the hollowing out of the senior executive team and a huge loss of talent and experience. “Command and control” behaviours are no longer acceptable management styles in today’s world.

Strategy

Strategy formulation is at the intersection between the board and management, which is why good boards share the load with management in this area, and follow good process to ensure there is a high degree of ownership of the final document. Someone once said that strategy doesn’t just happen once a year, and in these uncertain times it needs to be frequently re-visited, and revised if necessary.

It can be tricky when the strategy is not agreed by all the directors, and there have been cases where this has led to “throwing the toys,” and resignation. While understandable, it may be better to stay and see how things play out, and perhaps persuade the board to an alternative view over time.

Key takeaways for boards

Both directors and chairs need to be aware of the influence of individuals and their behaviours in the debate and the discussion which precedes decisions.
Chairs need to know their board members and their personalities. They should be alert to where some directors may choose to take the discussion and be prepared to nudge it gently back on course.
Similarly, individual directors should keep their own counsel and contribute objectively and constructively, particularly when management is present. Enthusiasm needs to be tempered with sound reasoning.
Strategy is about the longer term and tactics are usually short term. Even some directors struggle to know the difference.

Organizational capacity is comprised of several elements that, if maintained at optimum levels, enable an organization to deliver against its purpose, mission and promise and achieve its goals efficiently.

However, one powerful element of capacity is often overlooked. If leveraged well, this single element can drive progress exponentially and become an organization’s secret weapon for rising to the top of the competitive heap.

That capacity-building element is the board. Board members bring necessary expertise, networks and funding that benefit every type of organization (private, public, nonprofits, foundations) beyond what internal resources can provide. They also increase capacity at a lower cost than most other capacity-related resources such as employees, equipment and facilities. The cost of capacity resources includes time, and board members bring their own.

During the 2020 pandemic, most boards stopped meeting in person, and some organizations stopped investing in and nurturing their boards because leadership was focused on more pressing issues.

Post-pandemic, these factors have come home to roost as organizations are feeling the effects of a board that is less engaged and, in some cases, not performing as well as it once did.

As a result, many of my clients are seeking new ways to engage their boards and want a refresher course on governance.

But pandemic or not, when boards need to enhance performance and become effective governing bodies, there’s no training for that. What’s needed is development, not merely a workshop or two.

Here are three keys to leading a successful board development effort:

Review Your Board’s Structure

If you haven’t formalized board governance structures like committees, officer succession, nominating and term limits, this is the time to do so.

Governance structures provide guidelines that define how a board should operate which generally improves performance. These structures are interrelated and interdependent with each structure bringing another to the forefront.

For example, meaningful committee work reveals what skills are needed on the board, and understanding the terms of board members and officers allows the board to develop a succession plan and nominating process to accomplish those goals.

Review Your Board’s Practices

Governance structures are necessary for realizing the full capacity of a board, but they’re only as strong as the board’s practices.

Governance practices help ensure accountability for decisions, actions and performance. They contribute to a high-performing board and board culture. It’s important to define these practices and expectations so that a strong board culture develops.

Clearly state expectations for attendance, committee participation and fundraising. Doing so will make it easier for board members to show up and step up.

Focus On Board Engagement

It’s hard to reap the benefits of enhanced board structures and practices without also focusing on board engagement. Engagement doesn’t just happen spontaneously, it must be cultivated and nurtured by leadership. That’s why a board that intentionally works on increasing engagement will have a higher degree of success.

Figure out the rhythm and format for board and committee meetings. Develop creative ways for members to participate, interact and strategize. Build in social events and time for networking. Rally the board around supporting organizational leadership and track board work against the organization’s strategic plan.

These are all important board member responsibilities and ensure the board stays focused on those topics and activities that are most critical to your organization’s success.

Remember that board members who feel connected will be better at supporting the organization and, ultimately, increasing organizational capacity in the ways only a board can.

Author: Ann Quinn

These are the top 5 strategic initiatives HR leaders are prioritizing heading into 2023.

To help HR leaders better manage and lead during these times, Gartner conducted an annual survey of more than 800 HR leaders and identified the top 5 priorities for HR in 2023. Top of the list is leader and manager effectiveness, but many HR leaders will also prioritize change management, employee experience, recruiting and future of work.

The top 5 priorities for HR in 2023

HR leaders must manage investments in people and technology, cultivate a positive culture and employee experience, and transform HR to be more automated and digital — all while new employee expectations are impacting retention and attraction. But their survey responses reveal their top priorities are as follows.

Priority No. 1: Leader and manager effectiveness

This is a priority for 60% of HR leaders, and 24% say their leadership development approach does not prepare leaders for the future of work.

As organizations and society evolve, so do the expectations for what leaders are responsible for, making their roles increasingly complex. Today’s work environment requires leaders to be more authentic, empathetic and adaptive. These three imperatives represent a new call for leadership: “human” leadership.

Even though HR leaders try to build commitment, courage and confidence in leaders to help them answer the call, human leaders remain few and far between. Leaders do need commitment, courage and confidence to be effective human leaders; however, HR’s typical approaches do not address the barriers that are holding leaders back. These obstacles include their own (very human) emotions of doubt, fear and uncertainty.

To help leaders deliver on the need for human leadership and prepare them for the future of work, recognize their humanity and directly address these emotional barriers.

Priority No. 2: Organizational design and change management

This is a top priority for 53% of HR leaders, and 45% say their employees are fatigued from all the change.

Digital transformations, economic uncertainty and political tensions have led to much disruption and change. As such, organizational design and change management remain a top priority for CHROs, especially now, as organizations are seeing the fallout of too much change and uncertainty.

Employees are also growing more resistant to change — in 2016, the Gartner Workforce Change Survey showed 74% of employees were willing to change work behaviors to support organizational changes, but that number dropped to 38% in 2022.

Change fatigue has clear ramifications. HR leaders must help employees to navigate change and mitigate the impact that change may have on their work and, more importantly, their well-being.

Priority No. 3: Employee experience

This is a top priority for 47% of HR leaders, and 44% believe their organizations do not have compelling career paths.

Many HR leaders struggle to identify the internal moves that employees must make to grow their careers. In a recent Gartner survey on employee career preferences, just 1 in 4 employees voiced confidence about their career at their organization, and three out of four looking for a new role are interested in external positions.

Typically, career development follows three steps:

Set a trajectory and communicate role benefits and requirements.
Find in-role opportunities for potential new roles.
Identify internal roles to achieve goals.

However, that pathway is less clear now that work experience is changing. Career options are less visible with less time in offices; current skills are becoming obsolete and employees aren’t prepared for future roles, and current options don’t satisfy employee needs as people rethink the role of work in their life. This presents new career imperatives for HR leaders to create best-fit careers for employees.

Priority No. 4: Recruiting

This is a top priority for 46% of HR leaders, and 36% say their sourcing strategies are insufficient for finding the skills they need.

Fifty percent of organizations still expect the competition for talent to increase significantly in the next six months, regardless of broader macroeconomic conditions.

This means recruiting leaders must reprioritize recruiting strategies to align with current business needs, plan for multiple potential scenarios in this shifting market and make decisions with great confidence using data.

Focus on three strategies to support strong talent and business outcomes in today’s market:

Build an intelligence-based sourcing capability.
Create an equitable internal labor market.
Build onboarding for engagement.

Priority No. 5: Future of work

This is a top priority for 42% of HR leaders, and 43% say they do not have an explicit future of work strategy.

The “future of work” continues to be synonymous with a remote and hybrid workforce. But while this shift is a seismic change for many organizations, it is only part of the equation. Workforce planning — anticipating future talent needs — is at the epicenter of a future of work strategy and is a top priority for HR leaders. But today’s workforce planning is disconnected from reality and current strategies are ineffective at combating the disruptive landscape. Think: shifting skills, scarce talent, high turnover and a shift in the employee-employer dynamic.

Instead of assuming we can predict future skills needs, access enough talent, fill future gaps by buying and building, and dictate when and where employees work, we need a new approach that unlocks new strategies.

In short:

HR leaders continue to face an unprecedented amount of disruption.
Gartner surveyed more than 800 HR leaders about their top 5 priorities for 2023.
At the top of their list is leader and manager effectiveness, but many HR leaders will also prioritize change management, employee experience, recruiting and future of work.

Author: Jordan Turner

As a business leader, keeping abreast of the current outsourcing trends will help you navigate the outsourcing ecosystem and adapt to the new normal of the post-pandemic world.

The outsourcing trends in 2022 reflect the changes the pandemic brought to the outsourcing market in the last couple of years. It suggests that businesses must look for providers with high-quality services, aim for high flexibility, and leverage updated technology while outsourcing in 2023.

In this article, we’ll discuss the 13 most crucial outsourcing trends of 2022 that you should watch out for in 2023. We’ll also look at the 5 most outsourced services of the year.

Let’s get started.

Outsourcing trends 2022: 13 key trends to watch out for in 2023

Outsourcing gives companies a competitive advantage by reducing operating costs, enabling staffing flexibility, and saving time.

Because of these benefits, more companies opt to outsource business processes, prompting outsourcing market growth.

Businesses expect to spend over $700 billion annually on outsourcing by the end of 2022. This growing outsourcing industry includes IT (Information Technology), healthcare, accounting, and other sectors.

IT outsourcing spending will be $519 billion in 2023, a 22% increase over 2019’s numbers.
Business process outsourcing (BPO) spending will increase to $212 billion in 2023, a 19% increase over 2019.
The HR outsourcing market will be $19.38 billion in 2023.

However, outsourcing can be futile if you don’t plan it properly.

You’ll need to know relevant outsourcing trends to develop a successful strategy.

Here are a few outsourcing statistics and trends of 2022 that can help you make better outsourcing decisions in 2023:

1. Prioritizing quality

Companies now emphasize providing high-quality services to their customers.

For this, they’ll need skilled employees and advanced technology — which can be expensive in most countries.

As a result, companies are switching to processes such as software development outsourcing, HR outsourcing, business process outsourcing, legal process outsourcing, etc.

According to research from Commit, software development outsourcing will increase by 70% between 2022 and 2023,

Moreover, outsourcing enables companies to offer their clients customized solutions. An outsourcing company is more likely to have the time, expertise, and resources needed to customize solutions than an in-house team.

2. Ensuring business continuity

Companies preferred outsourcing with multiple vendors before the pandemic. But now, most want a strategic partnership with one (or fewer) vendors, as recently reported by the University of Cambridge.

Businesses now believe a strategic partnership with fewer outsourcing companies can ensure business continuity and cost saving.

How?

Frequently changing service providers can disrupt business continuity.

And a company is more likely to build a strong relationship with its outsourcing company when it’s working with the same team for an extended period. A strong bond can increase commitment and trust, which makes reaching objectives easier.

Additionally, businesses can ensure continuity with an outsourcing partner through a more extended outsourcing contract.

More extended contracts can ensure you’re provided services even during uncertain times because you’ll work with a trustworthy outsourcing partner.

3. Wanting business flexibility and adaptability

The Covid pandemic and the resulting lockdowns were chaotic and disruptive. Many countries had a hard time recovering from the short term economic shock. According to Deloitte’s 2021 Global Outsourcing Survey, these conditions are prompting businesses and service providers to become flexible concerning work.

And to match the growing agility demands of companies, an outsourcing provider will need to:

Accept if the company suspends or pauses a project abruptly.
Ensure work is completed before the deadline, even if there are sudden obstacles in the outsourcing destination.
Increase collaborative initiatives.

4. Hiring niche talent

According to a 2022 ManpowerGroup survey, 75% of employers find it hard to find talent in the US.

Most importantly, there is a shortage of talent specialized in new technology. This shortage is the most significant barrier to the adoption of 64% of modern technology used in fields, like network and security, according to a 2021 Gartner survey.

And since it’s time-consuming to upskill in-house teams, companies are outsourcing services to a vendor with expert talent in a desirable outsourcing destination.

By outsourcing to a skilled vendor, a company can instantly access the expertise it lacks in-house.

5. Using modern technology

Companies keeping abreast of emerging technology can use it to automate processes, increase efficiency, and simplify operations.

But software development, automation, IoT (Internet of Things), and other modern technology evolve regularly. It can be challenging to update technology frequently, so companies are outsourcing to service providers.

A service provider is an expert in their specific field. As a result, they’re more likely to update themselves about the advancements in technology than an in-house team.

Here are the most current and trending technologies used in the outsourcing industry:

A. Robotic Process Automation (RPA) solutions

RPA is software development that helps build, deploy, and manage robots to carry out simple tasks.

The demand for robotic process automation is increasing as companies realize it is more cost effective to use robots to perform repetitive tasks.

A 2022 Grand View Research report states that the RPA market size was worth $1.89 billion in 2021.

This market will expand at a compound annual growth rate (CAGR) of 38.2% from 2022 to 2030.

B. Artificial intelligence, machine learning, and automation

Business and outsourcing companies use Artificial Intelligence to automate repetitive tasks, calculations, or replying to messages.

Additionally, Artificial Intelligence helps a provider improve customer service. Chatbots or cloud-based IVR (Interactive Voice Response) are examples of this revolutionary, emerging technology.

A 2022 Grand View Research survey reported that the global AI and Machine Learning outsourcing market size was $93.5 billion in 2021.

The AI and Machine Learning outsourcing market will expand at a compound annual growth rate (CAGR) of 38.1% from 2022 to 2030.

C. Cloud computing

Cloud outsourcing is essential to access other modern technologies like AI, RPA, and machine learning. It also empowers a company to collect and store resources on the cloud and access cloud services.

Companies such as Amazon Web Services (AWS), Google, and Microsoft are investing more capital into their cloud platform and cloud services.

A 2022 Cloudwards survey revealed that the total value of cloud computing and the cloud platform market will amount to $832.1 billion by 2025.

6. Demanding better cybersecurity

Digital transformation can open up several ways for intruders to access inside data.

A Forbes article revealed that 82% of companies faced cyberattacks in 2022. But managing an in-house security team can be difficult.

That’s why companies are hiring a Managed Service Provider (MSP). An MSP is a third-party service provider that manages a specialized operation, like data security.

Companies are handing over cybersecurity to MSPs as they’re more likely to have cybersecurity experts and advanced solutions. The demand for MSPs is so high that it was worth $152.02 billion in 2020 and will grow to $274 billion by 2026, as per Statista.

7. Outsourcing surge amongst startups and small businesses

Outsourcing allows small businesses or startups to access the best talents and tools at economical prices.

These businesses outsource repetitive tasks to save time and money. Small companies are also less likely to have experienced employees due to their limited payroll budget, and outsourcing enables them to access the best talents.

According to a Clutch survey, 90% of small US businesses plan to outsource a business process in 2022, a 10% increase from 2021.

This outsourcing trend will continue in 2023 and disrupt various industries.

8. Favoring nearshore outsourcing over offshore outsourcing

Nearshore outsourcing involves hiring a third party from a neighboring country to complete a business task. On the other hand, offshore outsourcing is outsourcing to a faraway country, usually in a different time zone.

In the post-pandemic world, companies are nearshoring more than in previous years.

According to the Inter-American Development Bank (IDB), nearshore outsourcing will add $78 billion to the export sector in Latin America and the Caribbean after 2023.

Similarly, a 2022 report by Bloomberg revealed that 80% of companies in North America like the United States, were actively considering nearshoring.

This change could be due to the relative comfort of companies’ experience in managing supply chains over a shorter distance and more minor zone differences of nearshore companies.

Additionally, navigating time zones and labor regulations in distant and culturally different countries, such as Malaysia, South Africa, and the Philippines, can be a huge business challenge. Nearshoring may empower businesses to overcome some of these barriers without hurting their bottom line.

9. IT outsourcing to Eastern Europe

Although India and China dominate the IT outsourcing industry, many tech businesses today are outsourcing tasks to Eastern Europe.

According to Statista, IT Outsourcing to Eastern Europe will reach $2.69 billion in 2022.

Companies in North America like the United States prefer East European countries, like Romania, Ukraine, Poland, and Belarus, for IT outsourcing due to their proficiency in English and cultural similarity.

Also, Eastern Europe has a high percentage of skilled people (including tech professionals), affordable talent, and strong data security.

Additionally, the salaries in several countries of Eastern Europe are low when compared to that in other countries, like the USA or Canada.

10. Preferring remote work

Due to the Covid pandemic, remote work has become the new norm.

According to a 2022 study on remote work by SCIKEY, 82% of respondents prefer working from home.

The study further revealed that 64% of employees said that they are more productive working from home and feel less stressed.

This trend is set to continue in 2023 and beyond.

11. Improving customer experience and satisfaction

Customer experience is the key brand differentiator in 2022 and will continue to give businesses a competitive edge in the coming year.

To provide a better user experience, businesses may have to invest in customer support and social media coverage more.

Focusing on customer experience can help companies:

Ease customer acquisition.
Increase customer satisfaction.
Strengthen customer relationships and brand loyalty.

But the unpredictability of customer call volumes can be difficult to manage.

Companies may have to quickly scale up and down and manage the workforce for proper functioning.

This opens up more avenues for outsourcing customer service.

According to the Global Call Center Outsourcing Market’s 2022-2026 report, the call center outsourcing sector will grow by $21.72 billion.

The report also stated that the CAG rate will accelerate by 3.96% during 2022-2026.

Outsourcing services such as customer support improves the customer experience and lowers operational costs significantly.

12. Emphasizing cost reduction

Before the pandemic, companies were moving from cost reduction to prioritizing quality and scalability but that changed with the pandemic.

Deloitte’s Global Survey 2021 stated that 88% of the surveyed companies said cost reduction was now their main outsourcing objective.

Most surveyed outsourcing companies said that although clients wanted agility, scalability, and technology enablement, the reduction of operational costs brought by outsourcing services was the primary decision making factor.

This trend could continue in 2023 while the world economy recovers from the pandemic and recessions.

13. Practicing transparency in workflow

In the past years, most companies had little idea about the decisions made regarding the outsourced project as the outsourcing provider handled it completely. This led to frequent misunderstandings.

However, there’s now a growing demand for transparent communication with outsourcing companies.

A study by the American Scientific Research Journal for Engineering, Technology, and Sciences said that expressive communication is crucial for transparency.

Additionally, a Deloitte study reported that creating an outsourcing contract like an SLA can help increase transparency. An SLA can give your business a clearer idea about the quality of the outsourced work and help enterprises to hold the outsourcing provider accountable.

Now, let’s look at the most outsourced tasks in 2022.

5 most outsourced tasks in 2022

Here are the most outsourced services in 2022:

1. Information Technology (IT)

According to Statista, the IT outsourcing industry is growing at a CAGR of 8.93% and will be worth a market volume of $551,956.3 million by 2026.

Of all the IT services, most companies engage in RPA and software outsourcing.

In fact, the RPA market will be approximately $32.7 billion by the end of 2030.

Furthermore, Latin America is one of the most rapidly-growing regions for software outsourcing. Companies such as Amazon, Google, Uber, and Microsoft are all outsourcing software development to Latin America.

Other IT outsourcing trends include:

Implementation of digital transformation.
Mobile app support and management.
Search engine optimization.
Data center management.

2. Administrative

Commonly-outsourced administrative activities include telephone services, bookkeeping, event management, payroll management, and more.

Companies also hire virtual assistants (independent contractors who work remotely on tasks like scheduling appointments,completing administrative activities, and more).

According to Technavio, the global virtual assistant market size will grow by USD 4.12 billion, at a CAGR of 11.79% between 2021-2025.

3. Business Process Outsourcing (BPO)

Generally, companies outsource a business process such as IT services and human resource management to an external BPO company.

BPO has become the ideal cost-effective solution for companies looking to grow their business. BPO service providers help companies bridge need gaps within their structure and cover additional technical or non-technical business functions.

The BPO solutions industry is one of the fastest-growing industries in the world, with a CAGR of 9.1% from 2022 to 2030 (Grand View Research 2022).

4. Blockchain development

Blockchain development outsourcing is the process of finding an external third-party provider to take on the development and management of your blockchain technology.

Blockchain development outsourcing can be the ideal cost saving solution when a business needs to develop a blockchain product quickly.

The global blockchain technology market size was $5.92 billion in 2022.

The market is also expected to grow at a CAGR of 85.9% from 2022 to 2030 (Grand View Research 2022).

5. Legal process outsourcing

According to American Lawyer Media research, 93% of legal departments rely on several legal service providers to handle a wide array of tasks.

Outsourcing can differentiate your legal department and improve capacity without increasing overhead.

It enables companies to delegate time-consuming and mundane tasks such as document review and contract drafting to an outsourcing service provider.

In house legal teams can then focus on more meaningful work such as mitigating legal risks by designing and implementing suitable company policies and procedures.

The global legal process outsourcing market size was USD 10.77 billion in 2022.

The market will grow at a compound annual growth rate (CAGR) of 30.9% from 2022 to 2030 (Grand View Research 2022).

Wrapping up

Outsourcing has been witnessing several progressive trends post-pandemic.

Studying these trends can guide you to develop successful business plans for 2023. Learning more about an outsourcing trend can also help you handle uncertainties in your business and manage internal stakeholders effectively.

You can go through the top outsourcing trends listed above to develop a strategic plan for successful outsourcing for the coming years.

Use these 10 strategies to attract and retain skilled workers.

Writing good job descriptions can help you find the best employees.
Job seekers want comprehensive salaries and benefits, inclusive company cultures, and ample career development opportunities.
Training management can have a big impact on employee retention.
This article is for business owners and hiring managers looking to attract and retain top talent.

Every business wants to attract and retain the best employees, but this is often easier said than done. A 90% retention rate and a 10% turnover rate are considered “good,” but a 2021 Bureau of Labor Statistics report found an average annual turnover rate closer to 57%. This means that the fight for talent is tougher than ever before.

Simply offering a large salary isn’t enough anymore. Job seekers want to work for inclusive organizations that offer great salaries and benefits, inclusive company cultures and ample career development opportunities. They also prioritize companies that align with their goals and values. Employers should keep this in mind as they think about which strategies they can use to not only attract the best workers, but also keep them long term.

Although your recruitment and retention strategy will be unique to your business, here are 10 ways you can attract and retain skilled workers.

1. Write good job descriptions.

The first step to attracting skilled workers who match your needs is writing a good job description. A well-written job description can make a big difference in finding qualified candidates.

Content: A job description is much more than a simple list of employee responsibilities; it is often one of the first impressions a job seeker has of your organization. As such, an effective job description should not only include skills, tasks, expectations and role requirements, but also give the reader a feel for your company culture. A recent study by Skynova showed that 7 in 10 job seekers find salary to be the most important aspect of a job posting, followed by the benefits package. As such, it can be beneficial to include this information as well.

Tone: The way you write your job descriptions should match your company and brand. For example, if you have a lighthearted, goofy company culture, consider using words that convey the silly nature of your workplace. However, steer clear of words such as “guru,” “ninja” and “wizard.” The Skynova study found that many job seekers respond negatively to these terms.

Format: Format your job descriptions in a way that is easy to read. Use headers and bullet points when writing out details like requirements and responsibilities, as this will make the job description easier to scan. You will also want to include a clear call to action so that applicants know how to apply.

2. Be intentional with your hiring process.

According to a survey by BambooHR, 31% of workers leave a job within the first six months, and 68% of those depart within the first three months. A strategic recruitment and onboarding process can reduce these high turnover rates by helping new employees feel connected to their roles.

Employee recruitment

Find out which websites and job boards most align with your organization and the employees you are looking for. Asking employees for referrals is also a great strategy for finding reliable talent. You can use recruitment software or applicant tracking systems to manage your talent pipeline from start to finish.

Employee interviews

When hiring new employees, it helps to have a recruitment process that is uniform and consistent across the board. Train your HR and hiring managers on how to conduct effective employee interviews, including which types of questions they can and can’t ask. This will make your hiring process more productive and equitable.

Employee onboarding

Your hiring responsibilities don’t stop when you offer an applicant the job and they accept. You will also need a comprehensive onboarding process that reviews all required paperwork, welcomes and trains the new employee, and quickly integrates them into your team.

3. Offer competitive compensation.

Although it’s not the only thing that matters to employees, a competitive salary is still top of mind when job seekers look for a new job. If you want to hire skilled workers, you must be prepared to pay them what they are worth. Start by reviewing the industry average for employee salaries. You can also use salary benchmarks based on location, role and experience.

Pay isn’t the only way to compensate employees for a job well done. Consider other forms of compensation, such as employee retirement plans, bonuses, paid time off and stock options. Offering a diverse combination of compensation can make a job offer more attractive.

4. Build a comprehensive employee benefits package.

Although you are legally obligated to offer only a few employee benefits (e.g., family and medical leave, health insurance, unemployment insurance, and workers’ compensation, as well as FICA contributions that fund public benefits like Social Security and Medicare), creating a comprehensive benefits package is essential to attracting the best employees. Employee benefits are a great way to improve your employees’ health, well-being, job satisfaction and productivity.

The most popular employee benefits fall into five categories: health and wellness, financial well-being, work-life balance, professional development, and diversity, equity and inclusion. Create a benefits package that offers some combination of these elements.

5. Provide employee development opportunities.

A Work Institute survey found that a lack of career development opportunities is the biggest reason why employees quit their jobs. If you want to retain your most valued employees, you must provide them with a clear path to future development. Each employee should have their own career development plan that is unique to their strengths and interests.

Here are a few ways you can foster career development:

Identify clear goals to work toward. Have your employees clearly identify their career goals and then come up with a development plan to achieve them. Periodically measure employee success to see if they are progressing toward their goals or if they need assistance.

Offer training courses. Offer in-person or online training opportunities for employees to learn and build their career knowledge.
Create a mentorship program. Identify less experienced employees who show potential, and pair them with mentors who can help guide their careers with the company.
Offer stretch assignments. Provide internal staff with challenging projects just beyond their comfort zone. It will expand their skill sets and build their confidence.
Promote from within. Although you won’t always find the right candidate for a senior role from your current pool of employees, consider hiring from within when a position becomes available. If you know you will need to fill a position in the future and it aligns with one of your employee’s development goals, create a cross-training program that will enable them to earn that spot.

6. Recognize your employees.

Make your employees feel appreciated and valued. You can do this by creating an employee recognition program. Although your recognition program should be fair and equitable to all employees, it’s important to note that not all employees want to be recognized in the same way. Therefore, you should be strategic about how you create your program.

One way you can create an employee recognition plan that is unique and meaningful to each employee is to use a points system. For example, employees can earn points for their achievements and then spend them on the rewards they value most (e.g., gift cards, company swag, experiences). You can also survey your employees to learn which incentives are most engaging to them.

7. Prioritize company culture.

Company culture can impact employee job satisfaction in a big way. Many people want to work for an inclusive workplace that values and celebrates staff diversity. This all starts at the hiring process. Be intentional about whom you hire. Your company leadership also plays a huge role, as company culture usually flows from the top of the organization. For example, if your team leaders constantly show up late to meetings and talk negatively about staff members, other employees will also think it is okay to treat people this way in the workplace.

8. Monitor employee engagement and burnout.

One key to retention is employee engagement. High employee engagement can reduce employee turnover and absenteeism, as well as increase productivity and company morale. You can improve employee engagement by encouraging open communication and feedback, among many of the other tips mentioned in this article.

In addition to keeping employees engaged, you want to ensure they are not experiencing workplace burnout. Your best employees can often be saddled with the most work, which can quickly result in fatigue, negativity and reduced productivity. Bring in skilled temporary professionals to relieve overburdened staff and support resource-intensive projects.

9. Communicate your company mission and vision.

Another way you can attract and retain employees is to clearly communicate your company mission and vision statement. These are the goals and values of your organization. People want to work for an organization that they identify with. They want to know that the organization is acting in a way that they trust and support. Not everyone will click with your mission and values, and that’s okay. That’s why you want to clearly communicate these from the start, so you can build an organization filled with people that truly support your purpose.

10. Train your management staff.

It is important that your company leaders are properly trained on how to successfully manage their teams, as good managers can have a big impact on employee retention. In fact, Gallup found that 52% of departing employees claim their manager or organization could have done something to prevent them from resigning.

Perhaps these managers were thrown into the fire without the proper tools. In a study by Udemy, 60% of respondents think that managers need more training, and 56% of respondents think that people are promoted too quickly. Effective leadership training programs can help your team build their leadership skills and better manage employees, resulting in a higher employee retention rate.

Author:Skye Schooley

Author: Clara Shih

In sociology, the “proximity principle” describes the tendency for people to form interpersonal relationships with those who are nearby. We often become friends with people we encounter regularly, energizing and bringing joy to each other and sharing a smile, an inside joke, or drinks after work.

Then Covid happened. These days, proximity is harder to come by than ever. Even employees who do go into the office may find it empty or populated by coworkers they barely know due to hoteling or hot-desk arrangements. As evidenced by employee engagement surveys, burnout, and attrition across industries, employees’ social and emotional needs are no longer being met. People feel isolated and fatigued working from home, yet most (81%, according to a Harvard Business School survey) don’t want to give up the flexibility of not having to come in every day.

In this new reality, how can leaders fill their employees’ cup? How do we provide autonomy and flexibility while fostering togetherness? How can we balance social interaction with efficiency, since no one likes long meetings? We need something to replace the daily social dopamine hit we used to get from interacting with coworkers in the office — but as we’ve experienced over the last two years, more emails and Zoom happy hours aren’t going to do the trick. So, what will?

The Growing Importance of One-on-One Interactions

Employee experience can be viewed as the combination of an “air game” (of one-to-many interactions) and “ground game” (of one-to-one and one-to-few interactions). Leadership teams set the strategy and provide air cover with corporate brand, culture, values, and policies such as compensation philosophy, parental leave, return-to-office mandates, and more. The ground game is what employees experience day-to-day with their managers, peers, and direct reports. The ground game involves managers going out in the field, walking the talk, meeting with people, and confronting real problems on the ground. Contrast that with air-game tactics like company-wide email blasts.

While companies need to have both an air game and ground game, it’s very hard, if not impossible, for a corporate leadership team to facilitate deep connection from the top down. In today’s virtual and hybrid work reality, employee engagement and human connection are a person-to-person ground game. To illustrate the point, imagine an electrifying in-person company all-hands, or the last live concert you went to. Now try to imagine watching the same all-hands or concert on your computer. Even if you’re lucky enough to not have distractions or disciplined enough to not be multitasking, the online experience is nowhere close. In a remote work environment, the ground game becomes more important than ever in driving employee experience, engagement, and loyalty.

How Managers Can Keep Teams Engaged in a Hybrid Environment

Once managers have the support they need, they can take steps to foster emotional connection, team bonding, and fun to compensate for the loss of proximity in the office. Here are a few:

Have shared commitment and mutual expectations.

In the highest-trust relationships and highest-performing teams, each person commits to what can be expected of them so that the other can support, amplify, and help hold them accountable. In a remote setup, this extends beyond metrics like OKRs to include explicitly where, when, and how individuals prefer to work. Earlier this year, every team across Salesforce Service Cloud created a working agreement to document each team member’s needs and preferences. Often, an individual may belong to multiple teams: a team of peers (their manager plus their manager’s direct reports), their team of direct reports (if they’re a manager), and perhaps a scrum team. A working agreement should be created for each and may differ — for example, a scrum team needs to meet more often than a team of managers each running separate projects.

Check in Often.
The tidbits of life news and body language we’re used to picking up from physical proximity are now gone or drastically diminished, so managers need to be more deliberate about creating space for team members to share — perhaps dedicating part of staff meetings to checking in on life updates or having a Slack prompt inviting everyone to share a photo from their summer. One of the Service Cloud leadership team’s highest-engagement (and most fun) Slack threads last year was everyone sharing a photo from Halloween.Because so much meaning can get lost or easily misinterpreted in text or email, I’m also a big believer in picking up the phone. I make it a point to call or text each person on my direct team (or vice-versa) at least once every few days, even if it’s just to say hi and let them know I’m thinking about them. Bring the team together to decide what kinds of updates, requests, and sharing should happen over email or Slack versus in real time over the phone or on video.

Meet in person regularly.
Always have the next in-person meeting planned so the team has something to look forward to. Save contentious debates and collaboration-heavy work for those meetings. Spend extra time planning offsites, which are higher-ROI than ever, as they now need to generate enough team social capital to last between in-person meetings. I’ve found that first-time managers often need extra coaching and support to plan and execute their first offsite. Leaders should invest the time in sharing best practices as well as providing input, feedback, and encouragement.

Show appreciation frequently in large and small ways.
Without the smiles, nods, and other nonverbal cues we used to give our coworkers in the office on a daily basis, we now have to be more deliberate about giving praise. This was a lesson I learned when starting a new job during the pandemic in late 2020. Due to stringent Covid policies at the time, I didn’t meet any of my coworkers in person for over six months. At one point, one of the highest-performing VPs in my organization asked me during a one-on-one whether I thought he was doing a good job. He was (and is) doing an incredible job, and I told him so, but I was taken aback by the question. I realized then how little he must have felt he knew me and what I think, especially in contrast to if we’d been in the office together day-in and day-out. Thanks to this experience, I try to be much more deliberate now about giving out recognition frequently, celebrating the small wins, and encouraging all the managers across my organization to do the same.

Find a way to be together while apart.
Shared context bonds people together, and Covid has forced us to take a fresh and creative approach to team building. One of the most enjoyable evenings I had during the pandemic was a virtual Italian dinner with my team and our cross-functional partners. Though the 12 of us live in seven different places, we all enjoyed the same bottle of wine (shipped to each person ahead of time) and menu (from a local Italian restaurant in each person’s city). It was almost as good as being together in person and something we can do much more frequently than flying everyone to the same location. Another memorable moment was celebrating the holidays together last December with a beautiful virtual musical performance by one of our team members.

Not only are new methods required to address employees’ social and emotional needs, who carries out these methods is shifting from traditional corporate structures (air game) to the line managers running important ground plays. Providing employees with space, flexibility, and psychological safety isn’t enough — companies need to go beyond these table stakes to offer today’s remote and hybrid workers experiences that address their human need for the authentic connection, team bonding, and fun that used to come with in-person proximity at the office.

Culled from https://hbr.org/2022/08/keeping-hybrid-employees-engaged