HR Leaders Look Toward Increasing Productivity as Recession Fear Looms
A new report from Achievers Workforce Institute shows that HR leaders are worried about a coming recession, and increasing productivity tops their list of objectives.
The data also shows that only 26% of respondents say their organization is prepared for and capable of managing unexpected challenges, according to the HR Preparedness Report. Other than initiatives to improve productivity, attracting the right talent and retaining existing employees were actions being taken to prepare for a possible economic downturn.
“It’s been a tough few years for business leaders, and the future continues to look uncertain. Our research shows that 15% of HR leaders are not preparing at all for the possibility of a recession, which could mean a difficult road ahead for those organizations,” says Achievers Workforce Institute’s Chief Workforce Scientist Dr. Natalie Baumgartner. “With most HR leaders concerned about a recession, the best thing businesses can do now is prepare their teams by implementing programs for productivity, resilience, and retention. These tactics will help support lean teams and equip leaders with ways to combat burnout.”
The research points to four factors as the key drivers of productivity: manager effectiveness, connection, recognition, and feedback.
Individual and organizational resilience were found to be driven by different factors. Individual resilience was most driven by a supportive manager, friends at work, and a sense of purpose. The most important factors for organizational resilience were acting on feedback, a culture of recognition, and culturally aligned decisions.
Research Shows Link Between Employee Engagement and Diversity, Equity, and Inclusion (DEI) Policies
Aon’s 2022 Global Diversity, Equity and Inclusion Survey has found a positive link between employee engagement and DE&I commitment and action. The data showed that overall, 74% of companies have an internal DE&I definition and policy. Highly engaged companies, defined as having 70% or more highly engaged employees, have a definition of DE&I 82% of the time, compared to 65% for companies with low engagement (those with less than 40%) highly engaged employees.
“Organizations focusing on DE&I are building a resilient workforce by putting their employees first,” says Dr. Avneet Kaur, head of advisory and specialty practice, Health Solutions EMEA, at Aon.
Other findings include:
- 93% of companies have senior leadership support and sponsorship for DE&I initiatives.
- 84% of companies have identified colleagues responsible for leading DE&I initiatives.
- The top three areas that companies cover with their DE&I policies are gender (71%), ethnicity (66%), and sexual orientation (64%).
Environmental, Social, and Governance Being Embedded into Rewards and Benefits
A new study offers data that demonstrates linking workplace rewards to a firm’s ESG performance could boost its efforts to become more sustainable. According to a new study by Mercer Marsh Benefits and the Reward & Employee Benefits Association, this is resulting in companies considering ways to incentivize employees to surpass ESG targets. A quarter of companies have aligned their benefits strategies with sustainability goals, and almost one-third use their benefits to support local communities. In the next two years, 63% of companies plan to offer benefits that can enable their staff to live more sustainably.
“Sustainability policies very much link up with pay and benefits and are key drivers in the way organisations are redesigning their reward frameworks,” explains David Wreford, Partner, Mercer. “Sustainability is now a major influence on how the employee value proposition is evolving. At the front of HR and reward and benefits professionals’ minds is the extent to which an organisation’s employee value proposition evolves, lives, breathes and is relevant to its employees.”
“Sustainability is no longer a marginal business concern,” says Debi O’Donovan, Director of REBA. “In broader society, consumers have shifted their purchasing behaviour towards being more sustainable. Employees are consumers too, and if businesses don’t demonstrate sustainable products and services as well as values and strategies, both employees and customers will vote with their feet.”
Related Article: Supporting Environmental Causes and Sustainability Is a Key Part of EX
Human Resources Struggles with Burnout and Value Perception
According to new research from Sage, 92% of company executives think the perceived value of HR is a challenge for the profession. While 86% of HR leaders report that the HR sector is adapting to becoming more speedy and agile, more than 60% of business leaders still see HR’s role as administrative. And many business leaders do not expect HR to play a leading role in areas that would seem to fall in HR’s area of expertise such as workforce planning and company culture.
Both groups are in agreement that HR’s scope has seen a lot of change in the last few years, with 96% of C-Suite respondents and 91% of HR leaders agreeing with this point.
The data found that 81% of HR professionals are feeling burnt out and 62% are considering leaving the industry. HR leaders report the volume of work they face is a barrier to success. Technology that can help automate administrative tasks, and self-service capabilities for employees would free up HR time for more strategic thinking.
“HR leaders are often the unsung heroes of an organization but over the last few years have demonstrated their influence, visibility, agility and impact more than ever,” says Amanda Cusdin, Chief People Officer at Sage. “Considering the acute shortage of talent, the great resignation, and the quiet quitting phenomenon that a lot of organizations are facing, business leaders need to prioritize investment in technology, and increase upskilling the HR department. As a sector, we need to embrace tech that relieves HR professionals of the admin tasks and empowers them to focus more on strategy, supporting businesses and employees to reach their growth and development targets.”
60% of Employees Feel Only Somewhat Valued or Not at All
Workhuman’s survey of 1,000 full-time U.S. employees this month found that the majority of respondents (60%) feel only somewhat valued or not at all valued at work. The December Human Workplace Index found that nearly one-third of employees are looking to find a new, better paying position next year. Of those employees who left a job, only 4.3% regret quitting.
Employees reflected on the economy in the survey, and the data showed that about one-fifth of employees reported feeling secure in their jobs despite economic volatility because their industry is in high demand or their company is short-staffed. However, almost 62% of workers are worried that they may lose their jobs if a recession were to occur in the US.
There were positive expectations for 2023 reported such as employees being more vocal about their workplace needs. Work-life balance will see improvement, as will connections with colleagues.
Author Information
As a detail-oriented researcher, Sherril is expert at discovering, gathering and compiling industry and market data to create clear, actionable market and competitive intelligence. With deep experience in market analysis and segmentation she is a consummate collaborator with strong communication skills adept at supporting and forming relationships with cross-functional teams in all levels of organizations.
Sherril holds a Master of Business Administration in Marketing from University of Colorado, Boulder and a Bachelor of Arts in Psychology from Rutgers University.
