Knowledge Workers in the Ever-Shifting Gig Economy

The term “gig economy” was coined by former ‘New Yorker’ editor Tina Brown back in 2009. It was used to describe how workers in the knowledge economy were increasingly pursuing “free-floating projects, consultancies, and part-time bits and pieces while they transacted in a digital marketplace.”

The wisdom of the time was that the gig economy would completely change white-collar jobs and call into question the very existence of professional service firms: Why would anyone hire a data analytics firm for a project when you could have unrestricted access to a bunch of experts, connected by a digital platform from all around the globe, who could work together for your company? Given the freshness of the idea, it certainly looked like things were headed that way: the Netflix million-dollar challenge back in 2009 for creating and developing the best recommendation algorithm was won by a team that didn’t belong to a company — or even geography.

In the 1960s, Jack Nilles, a physicist who turned into an engineer, built a long-range communications system at the U.S. Air Force’s Aerial Reconnaissance Laboratory. Later on in his career, at NASA, he helped design space probes that could send messages back to Earth. In the early 1970s, as the director for interdisciplinary research at the University of Southern California, he became fascinated by a more terrestrial problem: traffic congestion. Unrestricted growth in urban areas and cheap gas were creating incredible traffic jams; more and more people were commuting into the same city centres. In October 1973, the OPEC oil embargo began, and gas prices quadrupled. America’s car-based work culture seemed suddenly unsustainable.

That year, Nilles published a book, “The Telecommunications-Transportation Tradeoff,” in which he and his co-authors argued that the congestion problem was actually a communications problem. The PC hadn’t been invented yet, and there was no easy way to relocate work into the home. But Nilles imagined a system that could ease the traffic crisis: if companies built small satellite offices in city peripheries, then employees could commute to many different, closer locations, perhaps on foot or by bicycle. A system of human messengers and mainframe computers could keep these distributed operations synchronised, replicating the communication that goes on within a single, shared office building. Nilles coined the term “telework” to describe this possible arrangement.

However, nowadays remote work is the exception rather than the norm. Flexible work arrangements tend to be seen as a perk; a 2018 survey found that only around three per cent of American employees worked from home more than half of the time. And yet the technological infrastructure designed for telecommuting hasn’t gone away. It’s what enables employees to answer e-mails on the subway or draft pre-dawn memos in their kitchens. Jack Nilles dreamed of remote work replacing office work, but the plan backfired: using advanced telecommunications technologies, we now work from home while also commuting. We work everywhere.

As spring gives way to summer, and we enter the uncertain second phase of the coronavirus pandemic, it’s unclear when, or whether, knowledge workers will return to their offices. Citigroup recently told its employees to expect a slow transition out of lockdown, with many employees staying out of the office until next year. Jack Dorsey, the C.E.O. of Twitter, went even further, announcing in an e-mail that those whose jobs didn’t require a physical presence would be allowed to work from home indefinitely. In a press statement, Twitter’s head of H.R. said that the company would “never probably be the same,” adding, “I do think we won’t go back.”

According to Peter Miscovich, Managing Director, Strategy + Innovation, JLL Consulting in New York, by 2020 gig workers will comprise half the workforce, and as much as 80% by 2030. In the very near future, says Miscovich, enterprise “Liquid Workforce” platforms will be based upon the emerging “Hollywood Model” of working where agile and “liquid” knowledge workers will be intelligently organized via the Internet on a project basis much like Hollywood movies are made today. The future Liquid Workforce will be organized via crowdsourced “uber-like” cloud-based work platforms providing greater workforce and workplace efficiency.

At some point, the pandemic and its aftershocks will fade. It will once again be safe to ride commuter trains to office buildings. What then? Many companies seem amenable to the idea of lasting changes. In April, a survey of chief financial officers conducted by the research firm Gartner found that three-quarters planned to increase the number of employees working remotely on a permanent basis. From an economic perspective, companies have a lot to gain from remote work: office space is expensive, and talent is likely to be cheaper outside of the biggest cities. Many workers will welcome these changes: in a recent Gallup poll, nearly sixty per cent of respondents said that they would like to keep working remotely after restrictions on businesses and schools have been lifted. For them, the long-promised benefits of work-from-home—a flexible, commute-free life, with more family and leisure time—have finally arrived.

And yet remote work is complex, and is no cure-all. Some of the issues that have plagued it for decades are unlikely to be resolved, no matter how many innovations we introduce: there’s probably no way for workplaces to Zoom themselves to the same levels of closeness and cohesion generated in a shared office; mentorship, decision-making, and leadership may simply be harder from a distance. There is also something dystopian about a future in which white-collar workers luxuriate in isolation while everyone else commutes to the crowded places. For others, meanwhile, isolation is the opposite of luxury. There may be many people who will always prefer to work from work.

But Brown turned out to be only half right. There has been tremendous growth in the gig economy, but most of it can be attributed to unskilled work such as driving (Lyft and Uber), delivering (food, parcels, etc. through DoorDash, Postmates), and doing simple errands (TaskRabbit). A vibrant gig economy for knowledge workers — engineers, consultants, management executives — has not really materialised.

Culture

Gig workers in the knowledge economy will have to work with and for firms that have pronounced values, incentives, practices, and preferences. But they do not assimilate easily into these organizations (unless they join them) as they often work at arms-length with them and are seen by people in the organizations as outsiders — or even threats —impeding effective cooperation and creating the potential for conflict. In this context, gig workers often struggle to understand, let alone accept, the larger organizational processes, people, and politics of many of the people they have to work with. Performance assessment may also be problematic, especially if the gig worker is hired by a firm to do a job that the traditional metrics of most organizations still cannot properly capture.

When you start listing these problems, it becomes less of a mystery why the firms still prefer to hire knowledge workers as full-time employees or other firms with knowledge workers rather than contract directly with gig workers, despite the ability of tech to reduce many of the more obvious costs.

This may, at last, be about to change. But not from the advent of any new technology — it’s from the global pandemic that is forcing the global economy to its knees. The organizational factors that act as barriers for knowledge-based gig work are the same ones that in the past have inhibited remote work by full-time employees. If these issues can be resolved, whether a remote worker is full-time or gig-based is simply a matter of contractual documentation. Clearly, the experience of working during the pandemic provides useful insights on how to successfully contract knowledge work to external contractors. But we need to approach these lessons carefully.

Tasks Are Vital

Knowledge work is not uniform and, to the extent that you can even talk this way, a given “unit” of knowledge work is itself highly complex. A university, for example, educates students for degrees. A unit, therefore, could be the degree that a student comes out with. But a lot of very different tasks go into creating that unit. So what does “gigification” mean in this context?

Universities could certainly consider using gig workers for graders, teaching assistants, or for pre-recorded online lectures. But it is unlikely that the majority of milestone classes (face-to-face or virtual) that need to be delivered live at specific moments will be delivered by gig workers. Since any degree will inevitably involve both kinds of classes, university teaching will always be hybrid between the two, at least at the course level, possibly even at the class level.

The lesson is that all knowledge-based work can be unpacked into a set of different tasks. To figure out the future of the gig economy for knowledge workers, therefore, we need to analyse things at the task level rather than at the work level. We have found the simple process chart shown below to be extremely useful in figuring out which kinds of tasks are amenable to gigification.  It involves asking these three basic questions about each knowledge-intensive task involved in delivering a product or service.

The Covid-19 epidemic could well prove to be a pivotal point in the gigification of knowledge work, and many firms will be attracted by the prospects of the direct and indirect cost savings that the gig economy model seems to offer.  But given the complexities of knowledge work there’s also a risk of overreach and wasted investment.  The simple task-based categorization we propose will help managers make smarter choices about how just what tasks should be contracted to gig workers.

Given our current situation knowing that your colleagues or employees are best suited for this new scenario we find ourselves in. Finding the right talent, the best fit for the job and your organisation can be a very challenging task. It is now important to find out whether your managers or your team is well-equipped of working together from various locations. It requires deep knowledge of their personalities, strengths, weaknesses, interests, work style and other characteristics. Our technology and solutions will do the work for you, helping you discover if your people are resilient during times of hardship, if they are autonomous, if they are team players, without actual human contact. Given that our platform is cloud-based, everyone can use it from home as well. Humanity finds itself at a crossroad for various reasons now, why not help people discover and develop themselves from the comfort of their own homes?

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Sources:

https://serraview.com/gig-economy-impacting-corporate-workplace/
https://www.newyorker.com/culture/annals-of-inquiry/can-remote-work-be-fixed
https://hbr.org/2020/06/will-the-pandemic-push-knowledge-work-into-the-gig-economy

Leaveism or Why Do People Work while on Holidays?

The term has been coined by Dr Ian Hesketh in 2013 to describe the annual leave habits of employees. ‘Leaveism’ refers to workers taking annual leave to catch up on their workload or working outside of their office hours.

In a research done by the Chartered Institute of Personnel and Development (CIPD), it has been discovered that 63% of UK leaders reported that ‘leaveism’ had occurred in their business. As businesses become increasingly lean, the now here to stay ‘always-on’ culture ‘allows’ itself to late night emails and employees never really have the chance of switching off from work.

While offices can be a breeding ground for distraction and interruptions, ‘leaveism’ can be conducive to employees feeling increasingly pressured or obligated to work out of hours.

In a recent article published by the BBC’s Worklife discusses the hidden tactic of ‘leaveism’ and how being “away from the distractions of the inbox, watercooler chat with colleagues and the stresses of office life” is fuelling its fat increasing rise.

‘Leaveism’ is an increasing problem for all types of organisations, and it’s an issue that employers should take seriously. If left unmanaged, leaveism could bring down workplace morale and increase stress levels among your staff, which in-turn affects productivity.

Clearly for organisations, the cost of employees being anything other than fully productive can have an enormous impact on operational effectiveness. In the UK, average day’s sickness in the private sector are around 5.8 days per year compared with 7.9 days per year in the public sector. The overall cost of working age ill health in the UK exceeds £100 billion every year, employers pay an estimated £9 billion in sick pay and associated costs, and the state pays £13 billion in health-related benefits (incapacity benefits). There is a similar picture in the USA, with health-related productivity losses estimated to reach some $260 billion annually. These financial outcomes, in terms of absence costs and lost productivity, are often what eventually attracts the attention of senior managers, providing a persuasive argument for them to focus on improving aspects of working life that are proven to be detrimental to an employee’s well-being.

Absenteeism, presenteeism and a concept labelled here as ‘leaveism’ are used to provide a lens through which to view employee responses to feeling unwell or being overloaded. So what exactly is ‘leaveism’?

  • Employees utilising allocated time off such as annual leave entitlements, flexible hours banked, unused rest days in order to take time off when they are in fact unwell;
  • Employees taking work home that cannot be completed in normal working hours;
  • Employees working while on leave or holiday to catch up.

All of these behaviours sit outside current descriptions associated with ‘absenteeism’ and ‘presenteeism’.

Although absenteeism and presenteeism cover some of the human responses to workload and illness, ‘leaveism’ provides the missing link. It defines the previously uncharted phenomenon that describes a situation where an employee uses their own time, in whatever guise, to avoid the workplace when they are in fact unwell, or take work home in order to complete outside contacted hours due to the sheer volume asked of them. These unintended consequences may be brought about by organisations adopting counterproductive policies that were introduced with the [best] intention of reducing absence. Attendance at work policies, actionable attendance policies and the wider use of punitive and incentive-based HRM policies are all examples of schemes intended to reduce absence.

Together with increasing workloads, fewer staff and higher expectations, ‘leaveism’ presents an additional consideration for traditional employee monitors that cannot be overlooked. ‘Leaveism’ also adds a further dynamic to human behaviours associated with responses to workplace well-being, and ought to be included in future discussions associated with workforce satisfaction and productivity measures.

It may be a counter-intuitive proposition, but organizations may wish to consider the economic loss should this practice cease as a means of measurement. Whatever the consequences and subsequent approach, ‘leaveism’ presents a real issue when it comes to establishing the true picture of employee well-being and should not be ignored.

Never not Ready for Action

We are in an era where people are much more afraid of losing their jobs than in the past: companies have been operating in a low-growth environment for the past decade, which has meant more focus on profitability – including labour costs. Alongside this is the prospect of more and more jobs being automated in the coming years.

This has meant more employees having to live with excessive workloads, and bosses afraid for their own livelihoods who are micromanaging people and not giving them enough autonomy and control at work. A study of Austrian workers in 2015 concluded that employees were more likely to use annual leave to go off sick if they fear losing their jobs or having them downgraded, or if they were experiencing low job satisfaction.

Compounding this sense of unhappiness at work is likely to be the way that technology is changing how we do our jobs. In a survey of 1,000 HR professionals representing 4.6 million UK employees, 87% said that technology was affecting people’s ability to switch off out of working hours. Common examples were employees taking work-related phone calls or responding to work emails.

At first glance, these behaviours may look fairly innocuous and just part of modern-day working life. However, we are in danger of endorsing a tech-enabled 24-7 working culture from which it is increasingly difficult to switch off. Work-life balance is becoming a thing of the past. For many of us this is being overruled by work-life integration.

Whatever the positives of not being tied to the office desk, it is not helping us to relax. Stress and mental ill health now account for 57% of all long-term absences from work, having replaced physical complaints, such as backache, as the main reason employees are off sick.

According to the UK mental health charity Mind’s most recent Workplace Wellbeing Index, employees with poor mental health may resort to taking leave rather than disclosing mental health problems in as many as one in 12 cases. In an echo of the Deloitte findings, Mind found younger employees far less likely to disclose they are struggling with mental health.

So, what can be done to stop this worrying trend?

Reorganising the Workload 

Whether you are HR or Management, if you notice staff frequently using annual leave to keep on top of their workloads, think about the amount of work on their plate. Sit down with them and go through their weekly task list and help them to prioritise.

Having some insight into the volume of tasks they have to complete can help you to understand where they need some support; be it redistributing their workload or scouting a new hire to share the work.

This transparency will help to foster a positive atmosphere that your staff can thrive in without fear of what might happen if they don’t complete their work.

Flexible Hours and Remote Working 

Offices are inherently sociable places, and rightly so. However, distractions are often plentiful and concentrating on a task can be very difficult, leaving work to quickly mount up. Research has shown that the average worker is disrupted around 56 times a day and the cost of a distracted employee vastly outweighs that of a loss of productivity, according to a study done in 2018.

Remote or flexible working offers an ideal balance for many, removing distractions without punishing workers. Giving employees the flexibility to work from anywhere at any time instead of having to be in a distracting office environment during strict hours can often be the push they need to power through their workload.

Crushing the ‘always-on’ culture

If your employees are frequently working after hours and responding to emails, this is a sure-fire sign of leaveism. Our smartphones have made it easier than ever to catch up on work, check emails or access documents during our downtime. Coupled with the rise of Cloud software; the line between our professional and personal lives has become increasingly blurred.

A 2016 report by the Chartered Management Institute found the majority of UK managers spent an extra 29 days annually working outside office hours; something that is sure to have only increased in the last few years.

While French and German businesses have made strides in quashing the ‘always at work’ culture, the British have yet to make a stand against the digital ties that chain them to their work, to the obvious detriment of employee mental health and wellbeing.

In 2014, Daimler in Germany arranged for emails to be automatically deleted when employees were on holiday. The sender would then receive a message inviting them to find an alternative recipient of the email, leaving the employee to return from holiday to an empty inbox. 2017 saw France introduce a right to disconnect, with companies instructed to set out the hours when staff shouldn’t send or respond to emails.

While these two cases are relatively extreme, as an employer you should be ensuring that your employees don’t feel pressured into working outside of their contracted hours. Set expectations and understand your employees’ needs. Your employees also need to take some responsibility as it is up to them if they switch their phones off or not. Finally, we have to give a nod to all those emails outside working hours. Managers need to stop sending them. You know who you are.

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://academic.oup.com/occmed/article/64/3/146/1439077
https://www.naturalhr.com/2019/09/20/what-is-leaveism-and-how-can-you-combat-it/

http://theconversation.com/leaveism-welcome-to-the-dark-side-of-21st-century-flexible-working-130976

Organisations Have to Prioritise Young Workers’ Mental Health

Young workers aged between 18 and 30 are more likely to have mental health issues than their senior colleagues, with a whopping 48% reporting suicidal thoughts or feelings. This information has been made available from a survey of around 3,884 people conducted over two years by Accenture revealing this worrisome fact. In comparison, only 35% of older workers experience such dark emotions.

Even though they are more susceptible to experiencing such feelings, 45% of young workers admitted to ‘holding back’ from talking about their mental health in the workplace, compared with only 22% of older employees.

Younger people have also reported that they are experiencing more pressure in their lives than their older counterparts, with 4 out of 10 people between the ages of 18 and 30 revealing that the pressures from work are affecting them on a daily basis, 1 in 3 are worried about the mental health of someone close to them.

Barbara Harvey, managing director and mental health lead for Accenture UK, has said “It’s clear that many young people face challenges with their mental health before they enter the workforce and while working, and that they are affected more often than their senior peers. Therefore, mental health must be a priority issue for employers.”

The aforementioned study has also brought up to the attention of the general public about the advantages of working in a supportive and open culture, with 41% of those working in such environments experiencing mental health challenges, compared with 65% in less supportive environments.

Mental ill health has been estimated to cost the UK economy around £94 billion per year, according to figures released in 2018 by the Organisation for Economic Cooperation and Development (OECD), with 1 in 6 people across Europe struggling with their mental health.

The financial aspect alone offers a compelling and insightful reason for organisations to take action in addressing this problem. For example, in 2017, an independent review commissioned by the British prime minister put the annual cost to UK employers of poor mental health in workers between £33 billion and £42 billion.

Additional action needs to be taken. Here are 3 simple actions leading organisations have started taking to get things moving faster in the right direction.

1.   Onboarding is Essential

Young people often enter the workforce with little sense of what is about to hit them. It’s important to help them make the transition to a kind of pressure many have never faced before.

Boots, a UK health, beauty and pharmacy company, regularly reaches out to secondary schools, colleges, and local universities. It runs workshops and gives talks that help potential recruits better understand the workplace, and taps its own younger employees as leaders of these events to ensure that the messages resonate. Boots also helps young hires to build skills and confidence and better adjust to their new responsibilities through group discussions and workshops. Early-career tutors are trained to help these workers and are, in turn, helped by others; they know how to escalate any concerns to a colleague who has had specific training on mental health issues.

2.   Train Them How You Want Them

Once people have been onboarded, they need help understanding how to manage the stresses and strains of the job and how to deal with those particular situations. The key here is to design solutions.

The international law firm Allen & Overy has many trainees, most of whom join on a two-year contract. Working with and led by the younger cohort, senior managers created a programme that focuses on the human element of life as a lawyer. Trainers equip new lawyers with ‘practical resilience skills and advice’ to help them achieve a healthy work-life balance in a high-pressure environment. Among those lessons are included how to set and maintain boundaries between personal and work time. A message that is best delivered by people who have experienced that.

One recent pilot initiative coming out of this process involves ‘protected evenings.’  It allows trainees to flag nights that are important to them, giving them more control over their schedules. Trainees also publish a newsletter every two weeks that helps address key concerns on their agenda.

3.   The Role of Senior Leaders

They should be open about the challenges they have faced and they should show vulnerability. When they speak up, not only would they help their struggling younger workers realise that they’re not alone, they would also be giving them some language to use to describe their own experiences.

Paul Feeney – CEO of Quilter a wealth management company in London – has stated that making it personal is the best solution: “In our industry, we have a saying, ‘Don’t take it personal.’ We should make it personal. People need to know it is OK to not be OK. The best thing to do is open up and talk about it.”

The more we can do to reduce the stigma of this topic and bring it further out of shadows into the mainstream, the less will people need to be brave to talk about their experiences. And they will be happier, more confident, and more productive at work and beyond.

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.zenefits.com/workest/young-workers-demand-emphasis-on-mental-health-in-the-workplace/

https://www.independent.co.uk/life-style/health-and-families/young-workers-suicidal-thoughts-mental-health-talking-a9217911.html

https://www.wsj.com/articles/the-most-anxious-generation-goes-to-work-11557418951

Betrayal in the Workplace and How to Deal with It

Betrayal comes in many ways and forms and the one that happens in the workplace is no different. There may be times when you be undermined by a co-worker during a presentation, ignored by your manager or blindsided by a fellow colleague. This almost always leads to professional and personal deception, which, more often than not, leads to unwarranted stress and disappointment. The next logical step in this situation would be to take some affirmative action, but caution is key here. It is imperative that you have a clear understanding of the situation and circumstances of the betrayal in order to fully understand what and how you have to act next.

Of course, in a perfect world scenario, team members, managers and leaders work towards the same goal. But, unfortunately, there are moments when you’re doing your job at peak performance and, out of the blue, your manager throws you under the bus. It is never good when it happens and as an ‘added bonus’ it can damage your reputation with others.

You can count on the fingers of one hand things that are more hurtful than betrayal, especially when it is done by a person of trust. When the betrayal is done by your boss, the pain can be exacerbated given the fact that it’s the person who impacts your career and, more or less, livelihood. Betrayal by your boss can come in numerous ways: public shaming for a colleague’s mistake, taking credit for a project you solely did and oversaw and giving the promotion they have promised you to someone else.  

Given the fact that we have a wide and complex range of emotions, our brains process betrayal as trauma and, just like every other trauma, we expect it to repeat itself. Reactions to boss betrayal can range from losing the ability to trust other co-workers, hindering your optimism and resilience during strenuous times and even lacking the capacity to deal with complex situations. When this happens, our own behaviour should start concerning us, not our boss’s.

Recent research has discovered that 85% of workplace betrayal is unintentional. Although your boss’s betrayal wasn’t intentional, it still raises serious questions regarding his personality and seriousness. Furthermore, the research has stated that after your manager behaves badly, you are more inclined to do the exact same thing. It is of the utmost importance that you are clear on the values you wish your professional relationship to be based upon.

Even though it is as clear as the light of day that you won’t be able to change your boss’s behaviour and attitude, you can still manage to keep their bad conduct from changing you. Here are a few ways how.

Focus and Get Your Facts Straight

Before you act on your emotions and anger you must be sure that the information you have is correct, especially if you have received it second-hand in the first place. It is recommended that we discuss and assess the situation with the people we trust the most and which witnessed the exact circumstances. Even if you discover that your boss actually betrayed you, emotions must be kept in check. If you give in to those emotions and react unprofessional, you will unwantedly pass along the negative news that is out there about you.

 Patterns of betrayal

People who, unfortunately, tolerate abusive behaviour all their lives believe they deserve it and this can happen with an abusive boss. In some strange manner, a sort of Stockholm syndrome sets in and you start to accept betrayal as something normal. This type of action can be counter measured by interrupting them as soon and as much as possible. If they fail to keep their promises, keep their commitments to you well-documented. If they take credit for your work, make sure there are other managers who know that you have worked on that project. These actions may not change the behaviour, but they may just keep your mental health in order.

Reach out to HR

If the workplace treatment you are receiving is becoming more and more unfair and abusive and you cannot handle it any longer it may be time to involve the human resources (HR) department. By reporting the issue to HR, you are not just helping yourself, but the company as a whole. Problem managers can be easily identified and removed from an organisation if HR is involved. Worst case scenario, HR can help you find other opportunities within the company if a ‘cease fire’ cannot be agreed upon with the problematic manager.

It is quintessential to remember that not everybody is out to betray you. It is understandable that if you are constantly betrayed by your boss, you can easily become paranoid and stop trusting people altogether. It is imperative that you pay attention to your emotions and behaviours. You do not want to damage your professional relationships with other authoritative figures within the business. Are you constantly questioning the actions and motives of the people you rely on doing for your job? Are you over-analysing the decisions people are making in the office? As mentioned earlier, betrayal is an incredibly powerful and toxic force which can easily spread in to all other aspects of your life. Keep reminding yourself that not everyone is out to get you.

In conclusion, it is safe to say that when you are working for a ‘betrayal boss’ you should get out of there as quickly as can be. Until you can make your professional move elsewhere, do anything in your powers to protect yourself and not become a shadow of your former self. The choice to allow their betrayal to negatively impact you and who you are is and will always be yours.

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://work.chron.com/survive-workplace-betrayal-18986.html

https://hbr.org/2019/07/what-to-do-when-your-boss-betrays-you

https://www.fastcompany.com/40437356/what-to-do-when-your-boss-throws-you-under-the-bus

The Rise of Analytics in HR

Back in 2017, in Deloitte’s Human Capital Trends report, it has been revealed that people analytics was a top trend and a top priority for every respectable organisation. 71% of companies that were surveyed for the report have stated that people analytics is of great priority.

It has become more and more evident that data analytics in HR have become to matter more than ever before. Although people skills remain a top priority for every HR manager, there are numerous companies and non-profit organisations that are using data and are calculating everything from talent acquisition and productivity to retention and job structure. This shift towards data and analytics is saving businesses tremendous amounts of money.

Furthermore, the data which is being collected is being used by analytics experts and HR managers alike to study and learn more about employee behaviour, overtime patterns, how people relate with each other in the workplace, time management – all of this to better understand their workforce and how to boost the company’s performance and production.

Oracle is another company that has been doing its very own global survey in order to better grasp where HR is in terms of analytical functionality within an organisation. Their findings have revealed that HR departments are one of the most analytical in various companies, and it’s even pulling ahead a bit in relation to the Finance department. Some HR departments are actually using the latest technology in predictive and prescriptive models and, in some specific cases, artificial intelligence.

This is an enormous shift from ten years ago when studies began to arise in talent analytics. At that time, the only player that was using sophisticated HR analytics was Google. Back in those days, there was a ‘normal’ amount of reporting that was happening, but there wasn’t anyone designated to predict. A minority of HR organisations even had an analytics employee. To better put things into perspective, ‘HR analytics’ was typically understood as a conversation about the total number of employees the company had and how to better measure the employees’ level of engagement.

Even before the surveys from Deloitte or Oracle came out, there was a definite shift in trends in today’s modern organisation. Most multinational corporations have a few employees, specifically, to just analyse data. Nowadays, there are various conferences around the world tailored to this specific topic. Organisations now alter or adapt the way they do business in order to shape growth, engagement and other variables which are considered key.

The aforementioned Oracle survey involved 1,510 respondents from 5 continents and 23 countries. Through these respondents, there were senior managers, vice-presidents and directors from HR (61%), 28% from Finance and 10% from general management. It is also important to know that all executives that have participated were from businesses with at least 100 million dollars in revenue. The detailed statistics are as follows:

  • 51% of HR respondents could perform predictive or prescriptive analytics, by contrast only 37% of Finance respondents could tackle these advanced forms of analytics.
  • 89% were in agreement with the statement “My HR function is highly skilled at using data to determine future workforce plans currently (e.g. talent needed),” and only 1% disagreed.
  • 94% of respondents agreed that “We are able to predict the likelihood of turnover in critical roles with a high degree of confidence currently.”
  • 94% also concurred that “We have accurate, real-time insight into our employees’ career development goals currently.”
  • When respondents answered this question “Which of the following analytics are you using?” “artificial intelligence” had the highest response rate, 31%. When asked to further explain how they used AI, the most common answer was “identifying at-risk talent through attrition modelling,” “predicting high-performing recruits,” and “sourcing best-fit candidates with resume analysis.”

So why is it that HR departments have become more ‘natural’ in their use of advanced analytics than Finance, which is theoretically work based around numbers? In most cases, this is because Finance organisations and the respective CFOs that have lead them found it extremely difficult to move from reporting and descriptive analytics towards advanced analytics that are being used nowadays.

The reason why Oracle has chosen to survey both the HR and Finance executives and managers is due to the simple fact that there has been a serious increase in their need to cooperate. Given the fact that most often than not employee expenditures represent a company’s highest costs and because an organisation’s financial position will always guide the size of the business, there is a clear need for symbiosis.  Fortunately, the Oracle survey has found that high levels of collaboration are already in place. In the same survey, it has been discovered that 82% of respondents agreed and strongly agreed, with only 5% of them disagreeing, that “Integrating HR and Finance data is a top priority for us this year.” However, not everything is pitch perfect. Numerous interviews conducted post-survey have brought to light the fact that there are many more opportunities to be seized further than sharing of data and cooperating on analytics.

In conclusion, it would be stretch to think that analytics will solve HR’s every problem, but they can definitely provide a deeper understanding of every department within an organisation, help train HR specialists into developing projects that can enhance talent investments whilst also monitoring and developing recruitment, engagement, development, retention, productivity and many more workplace activities.

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://bovardcollege.usc.edu/hr-analytics-are-a-driving-force-in-recruitment-retention-and-productivity/

https://hbr.org/2019/04/is-hr-the-most-analytics-driven-function?ab=hero-subleft-2

https://lesley.edu/article/how-hr-analytics-are-changing-business

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