The “Great Re-Evaluation” where employees are re-evaluating when, where and even why they work, is among the biggest challenges facing HR leaders, according to The Global CHRO of the Future Research, an Executive Networks survey of Chief Human Resource Officers (CHROs) employed at Global 1000 organizations.
According to the research, three-quarters of CHROs indicated that talent retention and attraction are their key priorities. Eight in 10 global organizations (83 percent) are facing a significant talent retention problem and 50 percent of those respondents said their retention problems are limited to high-demand roles. 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.
“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, EVP, 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.”
Three in 10 respondents (28 percent) expect their budget for employee well-being programs to increase by 10 – 19 percent 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.
The survey identified these additional methods that CHROs are using to address high turnover rates:
- Creating Internal Talent Marketplaces– 73 percent of survey respondents have internal talent marketplaces but 32 percent of those are limited in scope.
- Increasing Employee Referral Bonuses– This can be a cost-effective way to tap into a large, qualified labor 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.
- Removing 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– Employers become both the vendor and the employer, eliminating the middleman and sourcing talent in a cost-effective way.
“The past two years have changed the way we work in profound ways and return to office has become a crucial concern for CHROs and members of the C-suite,” Meister said. “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.”
Another recurring issue for CHROs is budgets, which are under constant pressure. Over the next 12 months, four in 10 CHROs (41 percent) expect their budgets to increase by up to 9 percent. A quarter (24 percent) expect their budget to stay the same and 17 percent expect an increase of 10 – 19 percent.
When CHROs were asked if they could double their budget for 2023, they say they would allocate more funding to these areas:
- Improving employee experience (15 percent)
- Leadership development for next-generation leaders (14 percent)
- Investing in new HR technologies (13 percent)
- Upskilling and reskilling employees (12 percent)
- Improving employee well-being (11 percent)
Learn more at https://www.executivenetworks.com/.
