Waves of change: HR on the front line as people managers struggle to boost employee engagement

HR professionals can be forgiven for feeling a little embattled. Ever since a global pandemic ensured that their role could not be overlooked, HR has had both the aftershocks of Covid-19 and the broader socio-economic developments and technological challenges to overcome.

From ‘quiet quitting’ to ‘quiet hiring’, generational differences to hybrid working, talent shortages to a cost-of-living crisis, the list of HR issues goes on and on (and seems to grow with every news cycle).

“Out of this conveyor belt of issues, one thing has become very clear. We are facing change and transformation in multi dimensions.

And this will require a stronger alignment between structures (methods, processes and systems) and culture (values and behaviors)”, states Ramona Kraft, Principal at Odgers Berndtson Germany.

Clearly, if we are to consider the future of work in any company, then the future of HR will count more and more as the decisive factor that separates success from failure.

So, what are the key forces and factors that will shape the future of HR?

Before we enumerate these, there is one background factor to consider. The measure of employee engagement.

For over a decade, Gallup’s annual report has represented “the collective voice of the global employee”. Their survey reflects the measure that counts: just how engaged are employees and are they thriving in their overall wellbeing?

“This engagement survey allows leaders to ask, ‘How am I creating a thriving workplace for my employees today?’", says Jürgen van Zwoll, Partner at Odgers Berndtson Germany.

Well, as Gallup’s 2022 Engagement Survey reveals, Before the pandemic, engagement and wellbeing were rising globally for nearly a decade -- but now, they're stagnant. And those figures are not very impressive at all.

Globally, only 21% of employees are engaged at work and 33% of employees are thriving in their overall wellbeing.

Europe’s figures are actually worse. It has the lowest regional percentage of engaged employees (14%).

Finally, as Gallup reminds us, “Engagement is not a characteristic of employees, but rather an experience created by organizations, managers and team members”.

At the moment, there are a number of issues that are making that experience difficult to create by HR professionals. Here are just four of them.

1 How to create provide skills and training opportunities to keep pace with digitization

Effectory reports that, ”As digitalization, hybrid working models and mergers take place across the business sector, many employees are needing new skills and opportunities to develop their careers.”

 “72% of the HR professionals in Germany surveyed said that career growth and development was very important to helping their organizations be successful in 2023.”

The challenge is to provide the most relevant training and development to ensure an organization’s people remain productive and, importantly,  stay engaged at work.

Those organization that display a lack of training opportunities shouldn’t be surprised to find people leaving them for better opportunities elsewhere.

2 How to master the ‘Future of Work’ and hybrid working

The corona lockdown accelerated the ongoing revolution in how work is done. This is not just about finding the right balance in hybrid working, but dealing simultaneously with the multiple challenges of digitization.

There are multiple questions to answer regarding issues like designing an office that nurtures a positive work culture. How do we cooperate and communicate? 

How do we do this when there are different generations and individuals involved, not to mention other measures of diversity? Can we do this in a way that respects individual wellbeing whilst still driving creativity and collaboration?

3 How to progress with Diversity and Inclusion programmes

Yes, there are plenty of studies that show the value of diverse teams, so achieving diversity, equity, inclusion, and belonging (DEIB) is likely to remain a priority for many HR leaders in 2023.

But public commitments are not enough, there has to be concrete action and results.

As BetterWorks stresses, “It’s up to HR leaders to make sure that DEIB initiatives stay top of mind and are adopted throughout the organization.”

Many suggest that one way to do this is to incorporate the goals of any D&I programme into your performance management process.

If  D&I goals and metrics are converted into practical, visible achievements that are measurable, then managers and teams can track them and tie achievements into remuneration and bonus plans.

4 How to maximise leader and manager effectiveness

Gartner reports that this is a priority for 60% of HR leaders, and, very worryingly, 24% say their leadership development approach does not prepare leaders for the future of work.

“We know that the expectation of leaders and their roles have become more and more complex. Today’s leader needs to display not just competence and agility, but a raised level of authenticity and empathy”, says Dagmar-Elena Markworth, Partner at Odgers Berndtson Germany.

The challenge is to create, or recruit, and then retain, those rare leaders who can combine both a professional and competent quality with a human side too.

To discuss your career, or talent requirements in HR or other roles, please don’t hesitate to get in touch. We’ll be keen to hear from you.