Has the role of human resources changed?
HR must enable employee self-reliance by providing the tools and resources they need to survive under post-recessionary employment relationships. This new role requires an HR organization that can adapt swiftly to change, one that uses a holistic approach and addresses employee needs via a comprehensive plan. Traditionally, HR has been structured in functional silos, which leads to disparate data collection and programs. When you break down the internal barriers, HR can respond to signs of dwindling employee engagement, like increasing absenteeism or declining productivity, with coordinated and connected wellness programs, incentives or training.
While many companies offer self-service financial management tools, employees also need stress management skills, health management resources and career planning strategies to be fully self-sufficient. This is the perfect time to connect with employees and offer new services to boost their confidence.
How can employers use compensation, given smaller annual raises?
Many companies are moving to larger performance-based incentives and smaller annual raises, but it is still possible to raise confidence and limit turnover by designing a flexible compensation system that rewards high achievers and affords every employee the opportunity to increase income. This is treacherous territory, however, because competitive base pay is still the primary attractor of new talent according to our survey, and 61 percent of employees said that making more money was very important after several years of limited promotional opportunities and small raises. The stakes are high, so HR needs to take the time to get it right.
How can executives rekindle employee trust and sustain engagement?
Now that the economy has improved, executives need to focus internally rather than externally; in fact, 44 percent of surveyed employees said that senior leaders should be more visible and were conspicuously absent during the recession. Simply spending time with employees and giving them a chance to voice their concerns can be therapeutic after the prolonged downturn. Leaders are expected to care about the well-being of others, so if morale seems low, it may be time to take a stand and declare an end to cost cutting. Some CEOs have recently declared their companies fat-free, such as Mark Hurd, president and CEO of Hewlett Packard. His bold actions received kudos from his employees. Rebuilding employee confidence takes time and a plan, but the key is trustworthy leaders who keep their promises and advocate for employees.
Tom Davenport is a senior consultant with Towers Watson. Reach him at (415) 836-1127 or [email protected].
