Wednesday, August 24, 2016

Rethinking the employee value proposition

Rethinking the employee value proposition

To understand the future of work, PwC dove deep to identify a few strategic imperatives that will help employers best manage and optimize the workforce for success in the years ahead

With 38% of the workforce expecting to change jobs within the next year, do you need to revisit your Employee Value Proposition?

Today, leaders are faced with an ever-increasing complexity on their side of the employment pact. Value-based levers, such as purpose and respect, and the importance of strong relationships are expanding the currency of management.

Success is not simply about creating a good customer experience, it’s also about designing a more engaging and rewarding employee experience.

Today’s workforce—a cross-section of Boomers, Gen X, Millennials and Gen Z—has distinct wants, needs and ways of thinking. This has increased the level of leadership complexity and requires more tailored solutions—catering to desires for both flexibility and autonomy, and for a more stable work environment and pay cheque. To attract and retain talent, leaders must demonstrate their commitment to the needs and success of their disparate workforce. The changing workforce dynamic has often strained the employment value proposition and the core relationship between leaders and their employees. Our research indicates a discrepancy between how employees feel and how employers think their employees feel—creating frustration within the workplace. And yet, many employers may be attuned to the needs of their workforce, but may not be equipped with the necessary tools and experience to think in fundamentally different ways. As talent wars continue, employers must remain innovative in how they attract, engage and retain top talent. A strong employer brand, employee value proposition and organizational culture are critical to the success of talent acquisition processes—and businesses are investing heavily in these areas. This means building up talent management as a strategic capability, particularly around talent acquisition and talent development, including:

• Designing a candidate-centric approach to personalize the talent acquisition process, and offer recognition awards to drive accountability to these practices
• Incorporating more digital platforms and tools to streamline orientation programmes and enable real-time collaboration
Here are a few strategic imperatives we’ve identified for success in today’s marketplace:

Embrace technology as a significant driver in reshaping the future workforce:

Employees want mobile and wearable technology at work, so employers are identifying opportunities in which these new technologies provide value to employees, business processes or strategic initiatives. These opportunities help uncover insights that impact both upstream and downstream HR (human resources) initiatives, such as healthcare costs, work-life balance gains, workforce agility and employee satisfaction. Robotic Process Automation (RPA) is a productivity software capability that sits on top of existing systems and performs manual, repetitive and rule-based activities traditionally performed by individuals. RPA enables the next level of productivity optimization by redefining work and reassigning employees to execute higher value activities. RPA can reduce cost and human errors, increase compliance and efficiency.

Understand which cultural complexities are reshaped by shifting employee requirements:

Employees today are looking for a culture that promotes relationship development and connectivity, personal and professional development, social consciousness and respect. It is important not only to feel valued as an employee, but also to feel the work you do has meaning and purpose. Ethical values, employee engagement and work-life balance in return for loyalty towards an organization that does right by its employees—this is the future of the workforce culture.

Focus on employee experience to directly drive business performance:

To be competitive, companies are creating exceptional employee experiences from hire-to-retire. Although many organizations are already implementing customer-centric HR practices, most lack a holistic approach in creating an exceptional employee experience and only focus on the early stages of the employee journey. Organizations that can attract and develop top talent are improving the organization’s ability to compete, innovate and deliver to customers. Many are applying lean start-up type thinking to the employee experience, building a prioritized road map of releases to drive impact over time, with ongoing testing and learning. As a result, retention rates and productivity improve because employees are engaged and satisfied, thus reducing costs and improving performance.

Understand that the “gig economy” isn’t right for all workforce populations:

Flexibility, autonomy and varied challenges are job characteristics we hear the Millennial and Gen Z workforce populations asking for. On the surface, it would seem the freelance economy is a perfect match; however, the short-term nature and lack of stability aspects of this business model may be some of the reasons we don’t see more Millennials taking the plunge into the freelance economy.

These workforce populations may not have the experience, the network or the capital that the Baby Boomer and Gen X populations may have to venture into this new territory. Two out of five people around the world believe that traditional employment won’t be around in the future.

Instead, people will have their own “brands” and sell their skills to those who need them. Some organizations are taking the concept of the “gig economy” internal and allowing employees to choose projects, and negotiate project terms and deliverables based on their high demand skill sets. Compensation is adjusted based on the amount of time worked. These employees are allowed the autonomy of freelance, but with the safety net of the larger organization.

Evolve HR to achieve the new capabilities needed to accelerate tomorrow’s workforce:

The role and structure of HR is shifting from transactional to strategic to keep up with the changing marketplace. Some examples of emerging roles include:

Data Analytics and Technology Integrator: forecaster of skills, data modeller, integrator of talent technology experience for employees
Organizational Engineer: facilitator of virtual teams, developer of leadership, experience designer, expert in talent transitions
Culture Architect: talent brand builder and cultural advocate, connects employee purpose and corporate purpose
Global Talent Scout: identifies the right talent from any labour pool around the world to match the business needs, and works to develop and mature this talent
Social Policy and Community Activist: CSR (corporate social responsibility) leader, policy influencer, talent and community engager. Visible shifts require HR organizations to rethink and retool how they deliver an enhanced employee experience and support new ways of working
Implement an HR Operating Model that is fit for purpose and flexible enough to adjust as the business portfolio inevitably changes in the future
Increase technology maturity to get the organization more comfortable with user-friendly, on-demand solutions that quickly address the most common and pressing business needs
Implement holistic metrics that track the business impact of HR and not just standard HR efficiency and effectiveness metrics



Regards

Pralhad Jadhav
Senior Manager @ Library
Khaitan & Co


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