Why Are Employees Leaving their Jobs

Retaining your top talent is every bit as important as attracting new top performers due to the simple fact that a high employee turnover is very costly to every organisation. Hence, managers should always be open and communicative with their employees and do their best to understand why their employees stay and what do they stay for. In the case of those who leave, they should find out why they quit.

A company can ‘achieve’ a high employee turnover for numerous reasons such as following their loved ones to their new job, or they stay at home with their newborn children, they seek a better position in another organisation, they wish to further their studies or they simply change their career field.  These types of events in an employee’s life are difficult to predict by the organisation because they revolve around events that occur in everyone’s life at one moment or another.

However, the majority of reasons why companies have a high employee turnover rate can be managed by the employers. To be more specific, organisational aspects such as workplace environment, culture and the perception an employee creates in relation to his job and responsibilities represent elements that factor in how an employee is affected.

As mentioned earlier, the best way in which to retain your top employees is to keep a close eye on what they think and what they want out of their professional life. Do they believe their work matters? Do they feel they need more of a challenge because their work right now seems dull to them? Is the communication style in the office suited to their needs? All of these questions should help out managers determine how happy and engaged their employees are.

In order to determine if your employees are happy with how things are going one solution is to simply ask them. Take the necessary course of action and carry out stay interviews in order to evaluate why employees stay with your organisation. Pay close attention to the factors that determine them to keep working for the company and then enhance them if possible. No employee leaves because they have it too good, everyone wants to leave for a reason. Discover those motives before it’s too late.

Offer your employees the best possible opportunities for them to do their job within the organisation and your retention levels will soar.

Firstly, let’s talk about salary. Let us not kid ourselves; salary is important, of course, but it does not represent the number one why employees leave. In a recent Gallup study, it has been revealed that salary cannot buy employee loyalty. In their findings, only 22% of respondents have even mentioned salary as the number one reason for their departure from a company. The rest of the respondents have stated reasons that are within a manager’s reach to change or influence for the better.

As a manager, there are a few things you can do in order to reverse the decision of employees who wish to leave.

1. No Opportunity for Advancement

From an evolutionary standpoint, the human race has always been looking for new ways in which to better itself. Being humans themselves, employees are always on the lookout for opportunities to advance their skills in order to advance their careers. In particular, employees from Generation Y and Z wish for their employers to provide them with the necessary tools and training programmes so that they can improve themselves. Consequently, if they start to feel that their job has become routine or their managers show little to no interest in their progress, their natural reaction will be to leave. This represents one of the best predictors of high employee turnover rates. Employees want to have opportunities through which they learn and hone their skills. In Gallup’s Q12 engagement survey, employees who agree with the following statements are more likely to say they feel they have the required opportunities to move up the ladder.

  • “In the last six months, someone at work has talked to me about my progress.”
  • “My supervisor, or someone at work, seems to care about me as a person.”
  • “At work, my opinions seem to count.”
  • “There is someone at work who encourages my development.”

It comes to no surprise that 92% of these respondents have stated that they see themselves working in the same company one year later.

2. Professional Relationships

It becomes more and more evident that employees do not leave a company; they leave their teams and managers. If an employee has a conflict with the manager, then there is only a matter of time until he or she leaves. At the same time, it is also true that if an employee doesn’t manage to make any friends at the workplace or have someone for a quick chat during breaks, most likely his engagement and happiness levels are low and may be looking to relocate.

3. Flexibility

Given the unpredictability and the need for alertness in today’s society, the majority of employees struggle to juggle their jobs with their busy personal lives. As a result, people are actively looking to work from home or try to adjust their hours and schedules accordingly, obviously without jeopardising both their professional and personal lives.

53 % of respondents in the Gallup study mentioned earlier have said that for them a great work-life balance and wellbeing is very important, especially for female employees. Furthermore, 51% of employees said they would make the switch to a new job if they had the possibility of a more flexible schedule whilst 37% of them would relish the opportunity to work from home at least half the time. In these ever-changing times, managers must show their employees they matter and find solutions in which employees feel they have control and that it also makes sense business-wise.

There is a real value in providing companies with the tools to carry out regular organisational assessments and this is where Great People Inside comes to your aid. Our online platform offers the best solutions and tools for your company to thrive in every type of industry and any possible situation your organisation may find itself. In terms of lowering your employee turnover rates, we recommend our GR8 Full Spectrum assessment for hiring and 360° Survey for retention. Finding the right talent, the best fit for the job and your organisation can be a very challenging task. It requires deep knowledge of your own organisation’s culture and a keen understanding of the candidate’s personality, strengths, interests, work style and other characteristics. Our technology and solutions will do the work for you, helping you find employees who can flourish and reach the highest performance required to constantly bring your company forward.

Request a free demo:

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Sources:

https://www.entrepreneur.com/article/311292

https://www.inc.com/marcel-schwantes/why-are-your-employees-quitting-a-study-says-it-comes-down-to-any-of-these-6-reasons.html

https://www.thebalance.com/top-reasons-why-employees-quit-their-job-1918985

Bad Employees and their Toxic Effects

The saying goes that one bad apple can ruin the whole bunch. Interestingly enough, it is the same with employees. The effects of bad employees or ‘hurricane’ employees, as they are also known, can be visible in companies of any size and industry.  Even though this type of person initially impresses in the interview phase, underperforming employees now represent a serious threat to your business.

But just how dangerous are these employees? Well, given the 2013 CareerBuilder survey done on 6,000 hiring managers and HR professionals, it has been discovered that 27% of U.S. employers who had employed a ‘bad apple’, claimed that one bad hire eventually cost their business more than $50,000. This is a financial strain no business should bear. Additionally, the majority of businesses have more than just one bad employee in their ranks.

Recent research done on how contagious ‘hurricane’ employees can be, has revealed that even the most ethical of employees may begin embracing misconduct if they work alongside a dishonest individual for too long. It may be nice to think that the honest employees would instil some moral values into the dishonest employees, that is rarely the case.

For managers and executives, it is extremely important to realise that the money involving an underperformer go far beyond the effects it has on that particular employee– bad behaviour can easily ‘spill over’ into the minds of the other employees through basic peer effect. If organisations choose to under-appreciate the consequences of these spill-overs, a few ill-mannered employees can infect any strong corporate culture.

Nevertheless, through observing similar behaviour among staff, it does not explain how and why this similarity even occurs. Co-workers could behave similarly because of peer effects – in which workers learn behaviours or social norms from each other – but similar behaviour could arise because co-workers face the same incentives or because individuals prone to making similar choices naturally choose to work together.

Below, you take a look at some of the more hidden ways in which bad employees can hurt businesses, and why it is imperative to let them go in order to reach personal and company goals.

  1. Negative organisational reputation

One of the most destructive ways in which ‘hurricane’ employees can harm organisations is by destroying its reputation. A business’s reputation takes years on end to establish, and, unfortunately, one poor-performance employee may derail all of that hard work for quality products, services, and professionalism.

It goes without saying that unprofessional customer service or products lacking that lack that level of excellence expected from any business could leave clients and customers disgruntled. Furthermore, this makes them associate poor service and bad quality with the brand. A damaged reputation takes years to bounce back from and in some extreme cases, it is irreversible.

  1. Low levels of employee morale

Besides the fact that bad employees hurt a company’s bottom line, they also drive employee morale to worryingly low levels. This may even occur in the best performing employees. In this scenario, the rest of the team has to pick up the pace due to one’s person unproductiveness, which, consequently, causes the top talents to become disengaged, dissatisfied, or even burnout. This may sound eerie but only one member on the team may cause the entire staff to become frustrated, angry and detached, leading, of course, to cohesion and morale issues, extreme defensiveness and, in some particular cases, a tendency to ignore creative ideas.

This is definitely a case in which managers must take the tough decision and remove harmful employees from the office environment in order for the HR department to focus its efforts on finding a team member willing to work hard.

  1. Daily interruptions

‘Hurricane’ employees also have the tendency to refuse thinking for themselves and solve their problems independently which, in turn, causes workflow interruptions for managers and executives alike. Instead of focusing on issues such as performance and engagement, managers are forced to hand-hold the harmful employee through menial daily tasks. The damage this type of person may do is not only contagious, but it often shows in team performance. In a recent study done at the Rotterdam School of Management, has revealed that one negative employee can “literally cause” a 30% to 40% drop in performance levels.

Of course, this leads to losing productivity at management-level as well, because managers are unable to implement new ideas and initiatives due to the constant supervision they have to undertake with the ‘hurricane’ employee. Even though firing someone who isn’t performing at normal standards is an uncomfortable experience altogether, managers have to ask themselves if they are willing to lose professionally due to one individual. The moment when a manager starts to think about what is best for the organisation, the decision will become all the more clear.

By understanding how and why co-workers make similar choices about committing misconduct can steer managers into preventing misconduct. Misconduct is a product of social interaction and given its nature, knowledge and social norms it may be difficult to spot at first. Generally speaking, if managers can achieve the level of understanding required to why co-workers behave in similar ways has enormous implications for understanding how corporate culture is shaped and how managers can help steer it in the right direction.

There is a real value in providing companies with the tools to carry out regular organisational assessments and this is where Great People Inside comes to your aid. Our online platform offers the best solutions and tools for your company to thrive in every type of industry and any possible situation your organisation may find itself. In terms of lowering your employee turnover rates, we recommend our GR8 Full Spectrum assessment for hiring and 360° Survey for retention. Finding the right talent, the best fit for the job and your organisation can be a very challenging task. It requires deep knowledge of your own organisation’s culture and a keen understanding of the candidate’s personality, strengths, interests, work style and other characteristics. Our technology and solutions will do the work for you, helping you find employees who can flourish and reach the highest performance required to constantly bring your company forward.

Request a free demo:

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Sources:

https://www.inc.com/will-yakowicz/one-toxic-employee-will-spoil-whole-bunch.html

https://hbr.org/2018/03/research-how-one-bad-employee-can-corrupt-a-whole-team

http://www.businessinsider.com/4-unexpected-ways-bad-employees-destroy-companies-2016-9

CSR and Its Growing Importance

It may come as no surprise that corporate social responsibility (CSR) has become a most for businesses all across the world. Organisations that are committed to CSR know that it leads to an enhanced reputation. It is of the utmost importance to establish a clear CSR strategy in order to assure the organisation’s competitiveness in the industry it’s doing business. This normally requires policies which integrate numerous aspects such as social, ethical, environmental, human rights or consumer concerns into daily business operations and the company’s core strategy.

Generally, companies are looking at achieving a positive impact on a community or society as a whole whilst also creating value for the business owners, its employees, shareholders and stakeholders.

In a study done by Kenexa High Performance Institute in London 2015, has found that organisations that had a genuine interest and commitment to CSR clearly surpass those that did not engage in such activities. Furthermore, the study has also revealed that CSR-orientated organisations had a higher level of employee engagement and also offered a better customer support service. At a corporate level, CSR brings a lot of positivity and optimism, even though at organisational level companies do not always accept their responsibilities for CSR, with plenty of businesses admitting adopting CSR purely as a marketing ploy.

At this moment in time, it is vital that we try and create a more sustainable form of capitalism if we are thinking about building a more inclusive, prosperous society and avoid the catastrophic climate changes that are getting closer and closer. The idea for CSR has been around for some time now, so how come it has become mainstream as of late?

The influence of Millennials on CSR policies

It is obvious to everyone that millennials are a growing force in the workplace. Young adults nowadays focus on a company’s impact on the environment and even urge these organisations to have a clear social mission.

Millennials are tech-savvy people, and they immediately research a company and are looking into its ethical and labour practices. Numerous millennials feel like it is their duty to make the world a better place to live in and they do not want, under no circumstances to be associated with companies which do not take responsibility for the world and the people in it.

Interestingly, in a recent Deloitte survey, it has been revealed that employee engagement is closely tied to the CSR reputation an organisation has. A whopping 70% of millennials interviewed have recognised that a company’s desire and commitment to CSR has influenced their choice to work for them. In just a couple of years, millennials will become the leading generational segment in the workforce, thus meaning that companies that wish to hire new workers will have and need to adopt CSR in order to keep the business going. Furthermore, millennials wish to actively partake in these social and environmental changes, not only consume products by companies who engage in CSR projects.

Huge companies have decided to engage in mammoth-sized CSR campaigns and that is great news. For example, Apple, which is a tremendously powerful company, can influence with its actions the whole industry. If an issue becomes a priority for Apple, it is clear that will make the ecosystem shift. At the same time, it is easier for big organisations to focus on CSR initiatives because they are less subject to quarterly pressures. It is easier to focus on long-term plans.

There is a definite need for big firms to commit to renewable energy and to lobby for the change in legislation that imposes harsher costs for fossil fuel buyers. There is also a need for big companies to commit to raise the minimum and to lobby for a change in minimum wage legislation. To say they’re not going to dump stuff in the river, or buy from those who do. The top 500 organisations’ revenues are worth nearly 37% of world GDP. Think about what would happen if we could convince 100 of them to go carbon-free and to take a less hostile view of their labour force?

An example of a better-pay practice is the behemoth Cola-Cola and its “5by20” programme. This initiative has been created to empower 5 million women entrepreneurs around the world by 2020. Recent research has indicated that empowering women can have a long-lasting effect and to name a few: increased revenues, more hired work, better-educated and healthier families – all of which lead to more prosperous and happy communities.

Whatever cause your organisation supports, be sure to be transparent and honest with your customers. Authenticity is the key to being successful at anything; otherwise, you will be labelled as deceitful and will lose the trust of your customers. Trust represents the most fragile relationship you could ever have. Once it’s gone, you’ll find it next to impossible to get it back.

In conclusion, corporate social responsibility is more than just a business trend or fad. Businesses that want to stay relevant to new generations and who want to help people in need around the world while increasing their own revenue and efficiency will benefit from embracing CSR.

Great People Inside provides easy-to-use tools and processes to attract, assess, match, select, onboard, manage, develop, benchmark and maintain workforces anywhere in the world.

Finding the right talent, the best fit for the job and your organisation can be a very challenging task. It requires deep knowledge of your own organisation’s culture and a keen understanding of the candidate’s personality, strengths, interests, work style and other characteristics. Our technology and solutions will do the work for you, helping you find employees who can flourish and reach the highest performance required to constantly bring your company forward.

Request a free demo:

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Sources:

 

https://hbr.org/2018/02/more-and-more-ceos-are-taking-their-social-responsibility-seriously

https://www.financierworldwide.com/the-importance-of-corporate-social-responsibility/#.WoP3VtVubIV

https://onlinemasters.ohio.edu/why-corporate-social-responsibility-matters-in-todays-society/

https://www.entrepreneur.com/article/269665

 

Gamification and HR

As we all know, young adults have been introduced to the world of computer and video games early on in their lives. Nowadays, mobile games are a must on smartphones, the more complex, the better. HR and gaming have started working together for some time now, with the purpose of making otherwise dull processes more interesting and increase engagement levels. Founded in 1948, the Society for Human Resource Management (SHRM), has recently revealed there are 2 types of gamification:

  1. Structural gamification – applying gaming rewards such as badges, levels, leaderboards, etc to job-related activities.
  2. Serious Games – where a simulation is created for specific purposes such as training or sales simulation.

Although the whole process of gamification is definitely attractive, it requires serious financial investments in order to increase the visibility and importance of the HR department in the organisation. In general, employees tend to not appreciate anything coming from HR, but for sure they like games. Combining the various and tedious HR processes with games, almost instantly boredom is transformed into fun times and great engagement. Gamification has been discovered to work best with organisational practices such as: recruitment, training, referral recruitment, development and wellness. Of course, there are some instances in which games are not recommended at all, for instance, administrative processes. The risks in this instance are tremendous due to the simple fact that companies can suffer greatly. Administrative processes should be done successfully by everyone.

Here are some of the ways in which gamification can speed up various HR processes at the work workplace:

  • Training: Turn your company’s training into a game. Employees will have to work through numerous tasks in order to obtain points and badges in order to ‘level up’.
  • Cultural Alignment: Employees will be rewarded with ‘culture points’ if they live by the organisation’s core values. Offer people the chance to notice other employees that go the extra mile in regards to cultural aspects.
  • Wellness: It is essential that employees are using wearables such as Fitbit. From the data collected from these wearables, employees have the chance to earn wellness points and actually make a competition out of it with the others. This method helps a lot with morale and engagement.

At their very core, people are competitive, they like to challenge themselves one way or another. Based on this idea, every employee wants to be valued for the work and effort he or she puts into the company. HR departments are struggling annually or biannually to collect performance reviews from employees. If the organisation decides to make a game out of it, engagement would soar through the roof. While they complete their paperwork, employees can also see the progress of their colleagues. This way, people get motivated to move faster and be the first ones to finish.

In a recent Gallup research, it has been discovered that more and more organisations are interested in implementing gamification. In the same study, it has been shown that only 31% of employees are still engaged at their job. And, perhaps not that surprising, millennials are the least engaged. Here is where gamification can come in. By using it and deploying it efficiently, engagement levels could rise but it can also act as a magnet for young talents. Given the fact that millennials will represent 75% of the workforce by 2025 it is of utmost importance that organisations start to treat this matter as seriously as possible.

In order to address the low engagement levels, many Fortune 500 companies have launched their pilot gamification programmes. Here are some examples:

Learning at Walmart: Using short games to bolster safety training

In 2015, Walmart started using gamification in order to offer their 5,000 partners from 8 Walmart distribution centres the best possible safety training. The stakes for Walmart were high because they were addressing one of their bigger issues: a scattered workforce that had to adhere to the company’s safety procedures. The gamification of safety training exercises has been incredibly beneficial. Walmart saw a 54% decrease in incidents in their 8 distribution centres, whilst employees loved the competitiveness and togetherness the games brought. Soon after the programme started, employees started talking not only about the games itself but of the importance of safety protocols. Given the fact that gamification has an ‘emotional aspect’ to it, it is obvious it can have important benefits to employee behaviour.

Internal Collaboration at Qualcomm: Gamification used to increase collaboration between employees.

Qualcomm implemented a simple and very efficient technique. In the organisation’s internal Q&A system, employees can ask and answer distinct questions and the best answers get to be voted up and rise through the rankings. Through this method, Qualcomm employees receive bonus points for their activity and level of engagement. Gathering enough points earns them badges, although there are unique badges that are being offered to people who overachieve. For example, an employee will receive points, a special badge (The Archaeologist) and for answering a question that was unanswered for 30 days. Furthermore, that employee gets recognition on the internal website and the badge will appear on his or her profile in order to reward their willingness to help.

This is where Great People Inside comes to your aid. Our online platform offers the best solutions and tools for your company to thrive in every type of industry and any possible situation your organisation may find itself. In terms of lowering your employee turnover rates, we recommend our GR8 Full Spectrum assessment for hiring and 360° Survey for retention. Finding the right talent, the best fit for the job and your organisation can be a very challenging task. It requires deep knowledge of your own organisation’s culture and a keen understanding of the candidate’s personality, strengths, interests, work style and other characteristics. Our technology and solutions will do the work for you, helping you find employees who can flourish and reach the highest performance required to constantly bring your company forward.

Request a free demo:

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Sources:

https://www.forbes.com/sites/jeannemeister/2015/03/30/future-of-work-using-gamification-for-human-resources/#1bafcb1d24b7

http://www.creativehrm.com/hr-gamification.html

Unemployment: Blessing or Burden for HR?

Normally, when the economy is growing in a constant manner, unemployment extensions should disappear. However, a study done in 2016 by the National Bureau of Economic Research has discovered that even though the economy has been progressing, high unemployment rates remained persistent due to these extensions. Long-term benefits offer workers the option of either to seek employment or to extend their benefit period. Due to these choices, HR departments may end up being forced to raise wages to encourage people to start working again. Consequently, business profits drop and job creation is proactively discouraged. The obvious conclusion here is that unemployment benefits extensions have a long-term unfavourable impact on the workforce market and it also helps to develop an unending cycle of reduced demand for workers.  Inherently, Americans take pride in their work and they generally prefer to have a job rather than collecting benefits. But this issue should not be considered insignificant, because HR recruitment has become one of the most important activities in most companies.

Long-Term Unemployment Stigma

To be perfectly clear, there are people who desire to work but cannot find anything near their area. In this type of scenario, the extensions do serve their purpose. But as the economy continues to grow and the recruitment process has started to generate some speed, long-term unemployed people find it difficult to get a job. If a person is out of work for more than 26 weeks, then their chances of employment drop considerably due to the fact that organisations are more and more reluctant on hiring such individuals. This is another issue that the HR department has to address. In general, recruiters or hiring managers follow their instinct and have somewhat fixed ideas of what makes a good candidate. Most of them believe that if the candidate is good at what they do, they should not be dealing with unemployment and thus stigma instils. HR needs to recognise this issue and solve it as soon as possible. Given the fact that numerous long-term unemployed candidates have a strong will and desire to work and succeed, they could represent a perfect fit for many companies.

Unemployment Compensation Costs

Organisations with a high employee turnover have to pay annual compensation costs to the employees they lose. Many of these companies believe it is the price of doing business, but they could not be any more wrong. The unemployment tax varies due to the number of claims an organisation receives. In layman’s terms, fewer claims mean a lower tax rate. HR managers can make sure these claims are handled with care or even reduce these unemployment costs. If the unemployment extension continues, it can become a serious burden to companies in the future as they will struggle to reduce costs and make ends meet. Unfortunately, as long as the debate is still held up in Congress, many Americans will continue to fight hard in order to get a job.

Downside of Low Unemployment
On a national level, the Department of Labor has discovered that unemployment levels have reached a 9-year low of only 4.6%, but given America’s population the number is continuously problematic. As the US economy has grown, more jobs have become available, but, at the same time, many unemployed workers have opted to stop looking for work. Interestingly enough, this will only make the rates go even further down given the fact the unemployment rate is only taking into consideration people who are actively searching for a job. Historically, low unemployment levels have impacted companies in various ways. As mentioned earlier, low rates of unemployment are associated with a strong growing economy, but there are plenty of downsides to all of this.

1. Reduced loyalty when problems arise – even with short-term problems this may affect your company. When unemployment is low, people feel that they can find a new place to work almost instantly. This leads to a high turnover and to many employees leaving giving shorter notices as they feel pressured to hit the ground running at the new workplace.

2. Harder to find replacements – Given the fact that there are fewer applicants for your empty position, this means it will take your organisation a longer period of time to find the right person who meets all the requirements.

3. The inability to fill available roles leads to customer dissatisfaction – Organisations may end up losing valuable business if proper solutions cannot be found in the necessary time frame. Consequently, companies may eventually have to turn down new business opportunities because they won’t be able to keep up with the rising demands.

4. Growth will slow down over time – There is a possibility that the unemployment levels are only artificially low due to the simple fact that many workers opted for jobs with fewer hours and less pay. This affects the natural growth of wages and it can also incapacitate the economic growth since employees are also customers and they spend less and less.

5. Bigger training budgets – The skill gap will certainly become a problem resulting from candidates who lack the prerequisite skills in order to do their jobs. Obviously, the profit margins will suffer.

The decrease in numbers in the labour market is also due to retired Baby Boomers. Plus, the changing times that we are all experiencing. In the past, young people have already begun work, but now they are focused on finishing their degrees. Which is not necessarily a bad thing given the fact that this translates into a highly skilled workforce for the future. All in all, the unemployment level is very peculiar and problematic. The short-term figures are at a historic low, whilst HR departments are facing major difficulties in recruiting which suggests the labour market is strained. In order for companies to progress, HR specialists have to innovate in terms of their respective recruitment processes in order for the labour market to stabilise.

This is where Great People Inside comes to your aid. Our online platform offers the best solutions and tools for your company to thrive in every type of industry and any possible situation your organisation may find itself. In terms of lowering your employee turnover rates we recommend our GR8 Full Spectrum assessment for hiring and 360° Survey for retention. Finding the right talent, the best fit for the job and your organisation, can be a very challenging task. It requires deep knowledge of your own organisation’s culture and keen understanding of the candidate’s personality, strengths, interests, work style and other characteristics. Our technology and solutions will do the work for you, helping you find employees who can flourish and reach the highest performance required to constantly bring your company forward.

 

Request a free demo:

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Sources:

http://www.hraffiliates.com/unemployment-extensions-and-how-it-affects-hrs/

http://hrdailyadvisor.blr.com/2017/01/12/downsides-low-unemployments/

https://www.shrm.org/resourcesandtools/hr-topics/talent-acquisition/pages/low-unemployment-rate-high-underemployment.aspxs

https://www.forbes.com/sites/louisefron/2014/08/20/tackling-the-real-unemployment-rate-12-6/#47b42c7e2473

How to Build a Strong Employee Value Proposition

Numerous managers, HR specialists and entrepreneurs struggle with the meaning of Employee Value Proposition (EVP). Most of them even confuse it with Employer Brand. Just to set the record straight EVP represents the salary, benefits and compensation that an employer gives to his employees in order to get the best out of their skills, productivity and experience, thus encouraging the continuous development of the company’s values, mission, purpose and business goals. An organisation’s Employee Value Proposition works alongside the Employer Brand and is a crucial factor when talking about attracting, retaining or losing talent within a company.

Whether they are aware of it or not, every existing organisation has an EVP and it may or may not thoroughly defined.

Traditionally, the Employer Value Proposition can be divided in 3 parts: salary, compensation and benefits. Things get even more interesting when talking about benefits. They can come in 3 forms as well:

  • Supplementary compensation – These benefits can consist of: health insurance, dental plan, company car, gym membership, flexible working hours, etc.
  • Values, mission and purpose – They definitely represent benefits for employees. If they can relate to them on a personal level, performance levels may go through the roof.
  • People and culture – Usually, it is an overlooked benefit. Great people want to work with great people. No one wants to be surrounded by incompetent colleagues. If the HR department is doing its job well, great people will definitely attract great people. Although the brand starts the culture, it can only be brought to life by its employees.

Due to a more and more tightening labour market, it has become extremely difficult to attract and retain top talent, thus the re-emergence of the Employee Value Proposition.

EVP puts pressure on the organisation, not the employee

 Due to its unique concept, EVP puts the company in the position of developing a ‘proposition of value’ to the people they want. Hence, the Employee Value Proposition may very well be the solution of fixing the problems revolving around employee engagement. The existing research done on engagement has revealed that most employees are “engageable” and very willing to cooperate.

People who have helpful managers, are well paid and their merits are being properly recognised, do not experience burnout due to exaggerated to-do lists, have the opportunity to advance professionally, they become devoted employees. If they are being deprived of these experiences, frustration instils and they leave at a moment’s notice.

Up until now, the term ‘employee engagement’ was used to criticise disgruntled employees, thus enabling the organisation to put the burden on their workers. They were expected to be ‘engaged’ and if that did not happen, instead of the company questioning itself, employees were deemed flawed.

EVP analyses the company through the eyes of possible and former employees

Current engagement programmes are tailored around surveys designed for current employees. Unfortunately, the results of these surveys do not help much because there is no outside perception from the people that might be hired or have left.

In the case of compensation, this topic tends to be terribly underestimated in the survey analysis. This happens due to the fact that the people who have chosen to remain within the organisation are being properly remunerated, whilst the top talent has left the company in search for higher wages and they do not partake in the surveys because they are former employees.

Interestingly enough, people working in marketing do not have this type of mentality. They are continuously preoccupied with what consumers think and feel about a brand, why they shop at their competitors, etc. Due to the fact that EVP has its roots from the marketing concept of customer value proposition, the Employee Value Proposition pays special attention to the ‘employer brand’ in a way general employee engagement programmes never had. This idea is especially essential now that websites like LinkedIn and Glassdoor offer people the possibility of getting information from former and current employees.

If done properly, EVP leads to a focused approach on employee happiness

According to the research conducted by BI Worldwide, what employees cherish the most is happiness. This is hardly a new concept in employee performance analysis, because if organisations take a closer look, they do not want to engage employees but to make them happy. EVP stands for a strategic framework in which the organisation creates experiences that will trigger happiness into their employees. In layman’s terms, happiness represents the ultimate EVP.

EVP ensures success due to its roots and the responsibility it places on companies. Furthermore, in many industries, the demand for workers is so high nowadays that businesses tend to ignore this concept. In light of the fact of people spend most of their time at their job and their egos get so tangled in their work, companies should take the necessary steps in adopting EVP. The target should be that when employees think fondly of their work, their contributions and breakthroughs, their wonderful colleagues, their reliable manager, their great leaders and all the other small perks that are being offered it should result in the perfect workplace. People do not like settling for second best and organisations need to become aware of this, otherwise, their demise will be swift.

Great People Inside provides easy-to-use tools and processes to attract, assess, match, select, onboard, manage, develop, benchmark and maintain workforces anywhere in the world.

Finding the right talent, the best fit for the job and your organisation can be a very challenging task. It requires deep knowledge of your own organisation’s culture and a keen understanding of the candidate’s personality, strengths, interests, work style and other characteristics. Our technology and solutions will do the work for you, helping you find employees who can flourish and reach the highest performance required to constantly bring your company forward.

Request a free demo:

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Sources:

https://www.forbes.com/sites/roddwagner/2017/01/23/an-employee-value-proposition-mindset-just-might-fix-employee-engagement/#4854e36f4c3d

https://www.willistowerswatson.com/en/insights/2016/09/employers-look-to-modernize-the-employee-value-proposition

https://www.socialtalent.co/blog/employee-value-proposition-what-does-it-all-means

The Role of HR in Cyber Security

In a 2012 article in The Washington Post, it was reported that both the public and private sector will require 50,000 cyber security jobs in the immediate future. For example, the Pentagon has plans to expand their cyber security workforce from 900 to 4,900 military and civilian personnel in the next few years. In recent times, there have been countless efforts in order to increase students’ desire and interest in the field, due to the simple fact that cyber threats won’t wait until companies, agencies and countries are ready. From a HR perspective, the recruitment process of a cyber-professional is of the utmost importance.

Reconsider the status quo

Organisations as a whole have to rethink their hiring and development strategies. Based on the 2013 IT salary survey report done by Information Week, HR specialists will have to continuously educate themselves on how to identify, attract and retain cyber security professionals. Unfortunately, at the moment, degrees and certifications still hinder highly qualified people from even being considered for an interview, let alone the actual position.

Given the fact that most cyber-attacks are done by people who do not have the diplomas to actually confirm their expertise, maybe it is time to re-evaluate the recruitment process. More and more sophisticated attacks are being launched week after week and it is highly unlikely they are all done by university graduates. HR managers and their teams may have been looking at this issue all wrong; perhaps a more liberal and progressive approach to selection and recruitment will allow companies to hire the most competent candidates for the required positions.

Even though education plays a crucial part in forming fantastic generations of IT-savvy individuals, it should be noted that there are gamers and hackers out there who are majoring in totally unrelated subjects. There is definitely talent, interest and ability in many of these people and perhaps all they require is the right incentive to switch fields. Companies should be encouraged by this thought and take advantage of these circumstances and try and engage these students for a future collaboration and mutual benefits. For example, there are various cyber competitions which are held every year in high schools and universities. These gatherings are a fantastic opportunity to identify possible future employees. Ordinary prizes could fall behind the opportunity of dealing with intricate security problems or learning and developing new skills and techniques.

The role of human resources

A considerate number of cyber security problems occur because of the actions performed by a company’s own workforce. The number of cyber-attacks could be reduced with the joint help and collaboration of HR and IT professionals within an organisation. Specifically, HR departments hold some of the most private, important and sensitive information of them all. An HR database holds information such as: bank details, dates of birth, social security numbers, home addresses and many more. It is crucial that in this day and age HR departments not only understand how to protect their own data, but the organisation’s as well.
HR managers could play a centre role in preserving the security of the company in cyberspace. This can be done through a couple of easy steps.

  1. Ethical and practical security measures

Regular check-ups may stop employees from putting the company in harm’s way, but it has to be morally consistent with the way in which employees think and behave. Randomly generated passwords have been tried and tested but, unfortunately, given the multitude of technology surrounding us nowadays, it is hard to keep up with all of them. Some organisations have tried monitoring their employees’ activity, which almost immediately led to questions revolving around trust and how this practice is crossing the boundaries between personal and professional life. This is where the HR team needs to analyse and advise which course of action is best.

  1. Risk management and employees

Inside an organisation with a strong risk management strategy, HR departments have the opportunity to mediate the impact of employee turnover through monitoring and prevention. When an employee is bound to leave the company, the HR team can manage that exit keeping in mind the security aspect as well, thus greatly contributing at stopping any leaks. For example, in the United Kingdom there already is a guideline on how organisations should manage people, physical and cyber risks.

Due to the nature of cyber-security, the IT department cannot be held solely responsible. Technology has become ever present and is instilled in almost every aspect of the office life, thus making organisations vulnerable to all sorts of attacks.

When companies make sure they have one of the best security programmes in place, they can be sure that both internal and external information is safely secured, which of course it is in the best interest of both HR and the company.

According to data gathered by Heimdal Security, cyber-crime is costing the global economy an astounding $100 billion each year and that nearly 60% of fired employees steal valuable organisational data when they leave a company.

Although this issue may seem highly complex and problematic, HR specialists must deal with this situation through innovative workforce and development strategies. There are solutions, but they require immense thinking and planning ahead. Bold people and ideas could very well arise with the necessary means of fighting back these attacks.

Great People Inside provides easy-to-use tools and processes to attract, assess, match, select, onboard, manage, develop, benchmark and maintain workforces anywhere in the world.

Finding the right talent, the best fit for the job and your organisation, can be a very challenging task. It requires deep knowledge of your own organisation’s culture and keen understanding of the candidate’s personality, strengths, interests, work style and other characteristics. Our technology and solutions will do the work for you, helping you find employees who can flourish and reach the highest performance required to constantly bring your company forward.

Request a free demo:

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Sources:

http://www.paconsulting.com/insights/putting-human-resources-at-the-heart-of-cyber-security/

http://www.hcamag.com/hr-news/why-hr-is-critical-in-cybersecurity-228188.aspx

https://hr.blr.com/whitepapers/HR-Administration/Employee-Privacy/Cybersecurity-threats-A-people-problem-HR-can-solv

http://www.ghrr.com/blog/2016/02/24/the-role-of-hr-in-mitigating-cyber-security-threatss/

The 5 Future Roles of HR

It is clearly time for a massive change in the HR field, and industrial-organisational psychologists (I/O) working with HR professionals can help with the transition by tackling organisational problems and identifying ways through which to measure the value delivered by HR, whilst also running research related to human performance in the organisations of tomorrow. Nowadays, companies are focusing on being employee-centric in order to keep up with the changing times. As we all know, great people make a great company.

Because of these continuous changes, the HR department is under immense pressure and HR managers have probably already experienced it through budget cuts and internal processes being heavily criticised. Here are some harsh facts about the workforce. According to a Gallup Survey, a meagre 13% of worldwide employees happen to be engaged. In Europe, a study conducted by the European Working Conditions has discovered that 20% of employees claim to be experiencing poo mental wellbeing.

Moreover, talent has become increasingly difficult to attract and retain and have the power to actively change and influence the culture within a company. All these problems and changes can be solved only by a brand new and transformed HR team. This department is actively engaging with new technologies whilst also dealing with employee expectations and guaranteeing the company is productive. All in all there are five new roles that will help the HR department become as powerful as ever:

Employee Engagement Manager

Companies have already started shifting away from the outdated review processes that were used to measure and assess employee performance, happiness, and engagement. Organisations have also discovered that a proper conversation between leadership and teams is far more engaging and productive. As a result of proper existing employee engagement software, managers and teams can now benefit from a dynamic dialogue revolving around performance. Companies no longer have to wait for the 3, 6, or 12 month review sessions in order to assess performance and happiness around the workforce.

Just like in the case of social media which requires a manager, the HR team will depend upon a dedicated Employee Engagement Manager who will be responsible with creating a link between employees and their managers. His responsibilities will entail coming up with frequent surveys to gather feedback and analyse the health and happiness of the company’s workforce.
An Employee Engagement Manager will be responsible of both managing the technology needed to communicate across the company and designing the appropriate approach to internal engagement.

Learning Director

Competitive companies constantly train their workforce through various development programmes. We can all agree with the fact that technology will change, processes will change; and especially customers will change.
The Learning Director will be a crucial in organising and implementing constant education programmes for the workforce. The usual training programmes are infamously known for being disengaging, uninspiring, and a total waste of time for busy employees. The person who occupies this role will have to be knowledgeable in terms of the adult learning process, and will be essential for coming up with voluntary or mandatory training programmes.

Diversity Officer

Numerous studies have proved time and time again that a diverse workforce results in a prosperous company. Organisational success revolves around the cultivation of men and women of all backgrounds – whether we’re talking about gender, race and skillset.
The Diversity Officer will have to ensure that the staff contains talented people with various backgrounds. Just hiring candidates in order to ensure a diverse workforce won’t do because of the work that needs to be within the organisation post-hire. The Diversity Officer will have to work closely with both the Learning Director and Employee Engagement Manager to design the necessary inclusion training programmes that will promote a better understanding between different types of people and teams.
The role is aimed to encourage the benefits (both economic and psychological) of a workforce that’s made of diverse employees.

Talent Manager

Although talent recruitment is done by a hiring manager, a full-time dedicated Talent Manager will be the eyes and ears for specific industries. This particular manager will have to build great relationships with recruitment agencies and should also keep an eye on highly-rated business incubators and industry communities. The Talent Manager’s responsabilities also include following and analysing the latest trends that exist in the marketplace such as: new and fresh skillsets and salary expectations in order to offer the organisation they are working for the best possible competitive advantage through which top talents are attracted and retained.

Mindset Coach

An overworked workforce is definitely an unhappy one. Internal wellness programmes and policies within companies are powerful tools to keep employees healthy, focused and happy. The Mindset Coach will have to implement important programmes which will help individuals in creating good habits in their day-to-day activities. These habits go far beyond the sphere of everyday exercising and healthy eating.
Proper wellness programmes will entail work-life balance processes, stress management and therapy programmes, whilst also promoting an open dialogue policy around mental health in order to remove the stigma that usually appears in conversation and thought. Furthermore, the Mindset Coach will have to collaborate with the Employee Engagement Manager on how to craft the best programmes so that employees are encouraged to participate and create a general openness across members of staff.

Great People Inside provides easy-to-use tools and processes to attract, assess, match, select, onboard, manage, develop, benchmark and maintain workforces anywhere in the world.

Finding the right talent, the best fit for the job and your organisation, can be a very challenging task. It requires deep knowledge of your own organisation’s culture and keen understanding of the candidate’s personality, strengths, interests, work style and other characteristics. Our technology and solutions will do the work for you, helping you find employees who can flourish and reach the highest performance required to constantly bring your company forward.

Request a free demo:

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Sources:

https://www.forbes.com/sites/kaviguppta/2016/06/30/5-roles-that-will-power-21st-century-human-resources-departments/#1dec737c51c2

http://www.siop.org/tip/backissues/tipjan98/may.aspx

https://www.linkedin.com/pulse/5-future-roles-hr-david-ducheyne

The Gender Pay Gap: An Everlasting Problem?

It is crystal clear by now that women are being paid less than men, whether we are talking about low-skill or high-skill jobs. The Bureau of Labor Statistics from the United States has released the median weekly earnings of both women and men physicians and the differences are quite staggering:  $1,497 in comparison to $2,087. Moreover, in 2012, Forbes has analysed the average weekly wages data from the Bureau of Labor Statistics and discovered that women earned less close to approximately 83% to every dollar men had made.

In the corporate world, climbing the ladder would normally guarantee a person a higher salary, but unfortunately, not an equitable one. In recent years, the media has focused their attention on what women can do on a personal level in order to close the pay gap. In terms of what women can do, it is pretty straight forward. First and foremost it is imperative they know their worth and after that they have to be really well prepared in terms of research and negotiation.

There is so much a woman can do, but organisations have to play their part here in order to tackle the systemic pay gap. Here is a list of just a few of the things that can be done for this issue to become obsolete:

  1. Salary Based on Qualifications

Companies need to determine the level of knowledge, value and responsibility required for each job to eliminate the pay gap between female-dominated and male-dominated jobs which are different but comparable in terms of complexity or physical threats. Managers should work alongside their HR personnel so that job offers are being evaluated based on the value the position brings to the company and not on what a candidate has earned previously. Because of this, it reduces the potential for women, especially those of colour, to be paid equally due to their past salary inequities.

  1. No Bias Recruitment and Promotions

During the recruiting process, it is difficult to spot and overcome biases due to the fact that many of them are subconscious and begin when a recruiter sees a candidate’s name. Due to these problems, unconventional methods should be expected to eliminate biases from recruiting. A very interesting approach that has been found practical was to briefly conceal identifying information such as names from applications until the applicants reached a certain point in the hiring process. Given the fact recruiters where forced to only look at qualifications, it had become nearly impossible to discriminate.

Organisations should monitor promotions and raises to establish a bias-free procedure. Everyone in the company with similar qualifications should have access to:

  • possible assigned jobs where pay and promotion opportunities are better.
  • recommendations towards opportunities that could increase skills that will affect advancement.
  • similar increases and add-ons to bonuses and so forth.
  1. Pay Transparency Implementation

If everyone knows what their colleagues are earning this would make women aware if they are making less than their male counterparts.  For example, after the Sony hack, it was revealed there was gender pay gap amongst the main actors. Consequently, Charlize Theron took action and corrected a $10 million discrepancy between her and her male co-star, Chris Hemsworth, in The Huntsman. This was a natural response. Everyone wants to be treated fairly and it would make the gender gap problem self-correcting.

There is no denying the fact that this would represent a bit of a headache for managers, especially in the early stages of implementation. Defending the pay of their employees should not necessarily mean disaster for a company, but it may actually work as a great incentive for employees to increase productivity. Organizations worldwide would have to establish a meritocracy. The most productive get paid accordingly. For example the U.S. Office of Personnel Management publishes the salary and wage range for each federal worker— and federal workers’ gender pay gap is only 11%, which is tremendously better than the national average (69%). Other companies publish the criteria and formula used to determine pay and bonuses. Whole Foods post the individual salaries of their employees on their intranet. Although it may seem like publishing individual salaries may be taking transparency  a step too far — knowing another employee’s salary without knowing the criteria and formula used to determine their pay can make salaries appear arbitrary. Having published the criteria and formula eliminates misconceptions and also provides a clear goal for employees to aspire to.

  1. No more Negotiations

Eliminating negotiation is another technique through which the gender pay gap may be reduced. There are numerous studies which have revealed that women do not perform as well as men in negotiations. More often than not women avoid negotiation altogether and accept the first offer they have been presented with by an employer. One study that focused its attention on graduating masters’ students has discovered that despite being urged by their respective university to negotiate; only 7% of women graduates tried negotiating for a higher salary, while 57% of men graduates asked for more money. To put in it simpler terms, this is 8 times as many men asking for more money. Unfortunately, many women have reported fear as their primary concern thinking they may appear aggressive in pursuing a bigger salary.

In an interesting experiment, researchers Linda Babcock and Sara Laschever have explained in layman’s terms how even one negotiation can be detrimental from a woman’s perspective. Two equally qualified man and woman are offered $25,000 at the tender age of 22. The man manages to use his skills in negotiation and raise it to $30,000, whilst the woman accepts the initial $25,000 offer. Up until they are both 60 years old, they receive 3% raises every year and by that time their salaries would be separated by $15,000.

The road to equal pay is long and tedious, with organisations being urged to correct their processes from top to bottom. Women make up almost 60% of university graduates, so it would be wise for organisations to level the ‘paying’ field and offer themselves a strong competitive advantage when recruiting top talent.

Great People Inside provides easy-to-use tools and processes to attract, assess, match, select, onboard, manage, develop, benchmark and maintain workforces anywhere in the world.

Finding the right talent, the best fit for the job and your organisation, can be a very challenging task. It requires deep knowledge of your own organisation’s culture and keen understanding of the candidate’s personality, strengths, interests, work style and other characteristics. Our technology and solutions will do the work for you, helping you find employees who can flourish and reach the highest performance required to constantly bring your company forward.

Request a free demo:

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Sources:

https://hbr.org/2014/12/what-hr-can-do-to-fix-the-gender-pay-gap

https://www.forbes.com/sites/kimelsesser/2015/11/19/two-solutions-for-the-gender-pay-gap-that-can-be-implemented-today/#191ae482d35a

http://www.hrpayrollsystems.net/hr-eliminating-gender-pay-gaps

How to Take Advantage of the The 4th Industrial Revolution

The 4th Industrial Revolution

The technical advancements of the last 3 or 4 decades have brought society an explosion of gadgets and different types of software and hardware that continuously shape the way people live their lives. The business world hasn’t escaped these changes. Nowadays, in a hyper-connected social environment, robots and people share the same workplace and HR has a lot of things to reassess. Machines depend upon regular updates and maintenance services, people still need to be paid and attracting the best possible talent to the company is still a priority.

The 4th Industrial Revolution is still in full swing with emerging technologies such as: autonomous cars, virtual reality (VR), 3D printing and the most intriguing of all, artificial intelligence (AI). Professor Klaus Schwab, the founder and executive chairman of the World Economic Forum, has stated that technology is still an industry that is going through continuous changes and developments and has the unique potential of connecting people from all around the world and, at the same time, enhance the efficiency of organisations worldwide. The developments we are all experiencing are not occurring within one industry or discipline, but actually all of them, changing and challenging us as humans to better understand ourselves.

Due to the Industrial Revolution 4.0, the work environment has become faster than ever before. With the introduction of robots in the workplace, employees are facing more frequent training and retraining programmes in order to be brought up to speed with the technology that revolves around the robots.

As mentioned above, HR will have to change and update their processes in order to handle all the challenges that occur with all the developments that are taking place at the moment.

Agile organisational structure

The structure of the company must reflect the way in which the organisation is willing to do business. Structure should represent the foundation from which managers build their teams and offering them all the necessary data and resources in achieving their goals. Traditional models of structure are becoming obsolete and change is incremental to positive outcomes. These old structures do not offer any kind of flexibility or clearance desired to make fast decisions thus inhibiting change altogether.

The Flexible Workforce

Companies nowadays wish to have employees on their roster that have numerous abilities and can easily manage change. Managers are recommended to break the usual stigma and stop thinking in terms such as positions or jobs, but more towards capabilities. The entire recruitment process should be focused on discovering adaptability and eagerness to change in their candidates.

Continuous Learning and Assessment

Companies cannot expect transformations to just happen within their organisations. Training programmes are becoming increasingly popular and for a good reason. Employees have the chance to further develop their skills and also learn new ones. Furthermore, thanks to technology, tracking improvements can be easily done in order to confirm individual development.

The World Economic Forum has stated that “By 2020, more than one-third of workers will need skills they don’t now have. While necessary talents can vary, 36% of business jobs will require “complex problem solving” as a core skill”. To put things into perspective, young adults nowadays cannot recall a time when they did not have internet or a smartphone. Growing up in a society where communication and interaction is basically instant, they are well informed in regards to emerging technologies and how it can make their lives easier than previous generations.

This young generation is fully aware of the necessity of proper education in order to have a strong foundation from which they can build strong professional careers and succeed in the continuously evolving workforce. They do not shy away from emerging technologies; they embrace everything that is new in a very positive and optimistic way. A survey conducted by Infosys on 1,000 16 to 25 year-olds from industrialised and developing countries, has uncovered the fact that 70% of those surveyed are more than willing of learning a whole new set of skills in order to land a job if mandatory.

Young people do not get flustered by rapid change. They welcome any challenge that comes their way and are more than happy to acquire skills that they may be of good use in their personal lives as well. Also, over 50% of young adults have stated their preference for working within medium-sized companies where they believe they could experience proper training.

In any given era in history, young people have always proven that they embrace change. The current generation is no different and is more than willing to continuously learn and be flexible in their demands as long as the companies they work for keep their end of the bargain; coming up with innovative ways for their employees to apprehend knowledge, experience and skills that will drive them and the business forward.

Great People Inside provides easy-to-use tools and processes to attract, assess, match, select, onboard, manage, develop, benchmark and maintain workforces anywhere in the world.

Finding the right talent, the best fit for the job and your organisation, can be a very challenging task. It requires deep knowledge of your own organisation’s culture and keen understanding of the candidate’s personality, strengths, interests, work style and other characteristics. Our technology and solutions will do the work for you, helping you find employees who can flourish and reach the highest performance required to constantly bring your company forward.

Request a free demo:

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 Sources:

https://www.asug.com/news/transform-hr-to-meet-the-needs-of-the-fourth-industrial-revolution

https://www.cornerstoneondemand.co.uk/blog/what-does-%25E2%2580%2598fourth-industrial-revolution%25E2%2580%2599-mean-hr#.WRHB0FWGPIU

http://www.hrzone.com/community/blogs/infosys/talent-in-the-fourth-industrial-revolution