This month Danielle asks:
As 2007 comes to a close, the question that is asked most often is "What will be the biggest challenge facing HR executives next year?"
It's clear to us that the biggest challenge facing HR executives next year is that the war for talent - at all levels - is becoming much more intense. Many factors contribute to this, from an uncertain economy, to baby boomers retiring, to a greater range of employment options, to globalization. However, the need for an effective employee engagement strategy that enhances a company's employer brand may be the most critical.
According to the Conference Board, 25% of employees are "just showing up to collect a paycheck"; 40% feel "disconnected" from their employers; and - most alarmingly - 66% "do not identify with or feel motivated to drive their employers' business goals or objectives."
Employer brand development is an increasingly vital strategic imperative for large employers and employers of highly-specialized and scarce talent, an essential counterpart to any best place to work initiative, and a unique opportunity for HR to add strategic value to the business. This is also one of our core competencies.
When it comes to engaging top talent, more organizations are now focusing on communicating the value of their culture, understanding that the employer brand is not just an external recruiting tool. We recently spoke with Mary Cheddie, SVP Human Resources for Interval International, who said, "This is important because if we want to be remotely ready to have our people engaged and contributing at a higher level, it can only occur through learning, development, and great leadership. Additionally, employees want their company to contribute value to the world through corporate social responsibility and green initiatives." The bottom line here is that employees need to understand that they are making a difference.
Moreover, an engaged employee population is the difference between high-performing and under-performing organizations. In fact, U.S. Cellular's Russell Nykaza says, "The challenge is Leadership's ability to develop a committed workforce that will allow the organization to compete and win in the marketplace. The workforce must be engaged today and enthused about its future, and Leadership needs to provide opportunities for employees to pursue personal and professional development." Employees who realize that they are part of a bigger initiative resulting in measurable outcomes are frequently happier, more productive and more likely to contribute to organizational success than their less engaged counterparts.
Unfortunately, HR departments are rarely given additional resources to do a bigger job in effectively engaging their workforce. We find that a common mistake companies make is not clearly communicating to the workforce the great things that they are doing both inside the office - for example, delivering exceptional work for clients - and outside the office, such as philanthropy and community service.
To conclude, while the challenges facing HR executives seem complex, the good news is that the solutions are not.
Questions? Comments? Email wecanhelp@tmp.com for more information.