Technology, data, employee experience: What’s high on agenda
I believe it will be all the three – technology, data and great employee experience as all these cannot work in isolation. In times to come technology and data enabled decisions will deliver superior employee experience. I think organisations will have to deploy AI-powered solutions to streamline key HR processes including recruitment, onboarding, learning & development and performance management to name a few and it will also be integrated across employee lifecycle that will help HR to drive higher productivity and engagements. I also think that virtual assistants and bots will become more common tools in the workplace.
Reskilling and upskilling the workforce will become a key business concern which will be integrated with AI algorithms in the background that will help organisations to track and measure. To optimize employee learning and to make it more personalised and interactive, mobile learning with interesting apps will become more common. Data analytics, metrics/benchmarks in areas such as employee churn and retention, employee performance, recruitment, employee development and engagement will enable HR and business to identify behavioural patterns which will be used to identify underlying causes.
Emergence of all above technology and data led to the role of HR to champion the cause of the employee by having meaningful conversation with employees to understand their needs and aspiration to help them be motivated, developed and productive. This will create a superior and more personalized employee experience and engagement.
The biggest challenge for HR in your sector
The biggest challenge in the automotive sector is to unprecedented change happening around in terms of new age technology and this warrants employees to be more capable, agile and work with real speed and reinvent themselves every day. Employees are experiencing a hard time aligning with these changes which leads to decreased productivity and morale during periods of change. HR must constantly build an environment and culture to enable and help employees to deal with it. The challenge for HR is getting employees to embrace innovation and learn new technology. Therefore, it is important to upgrade strategies, structure, and internal processes i.e. Leadership Development, Workplace Diversity, retaining talented employees.
Ladder shaped to pulse shaped compensation mechanism
The traditional stepwise salary increment was suitable for the businesses in the past but today it will no longer work. Today when business is unstable, uncertain and complex, organizations must bring pulsed salary adjustment. By updating employees’ salaries as we see changes in the market and do their salary adjustment. The companies must also recognize that today talent is considerably more mobile than it used to be, and this pulsed salary adjustment will make employee feel they’re paid fairly and be happy with their salary. Compensation strategies are rapidly changing towards intangible benefits, the changing workforce attitude requires leaders to rethink on current compensation framework & strategy, I think going forward, companies have to scale up incentive or variable pay content of total rewards, including career development opportunities and other benefits which will create an big personalized experience for an employee like sponsoring vacations, family dinners, gym, foreign travel etc. to emphasize employees’ physical and mental wellbeing.
The changing external environment requires employees to maintain a high level of creativity which will be unpredictable output and exploration ability. The stimulation of this ability leads to setup of spontaneous compensation, welfare and incentives within the organization. I think the gig workers which the new future is, will not be limiting to monthly salary but also real-time pay, quarterly pay, pay per piece, and other ways of payment.
Internal equality and internal equity
I feel both Internal equality & internal equity will go hand in hand rather shifting from one to another. Equality is never a cut-and-dry process. Essentially, equality in the workplace means that no person should experience, or fear discrimination based on their gender, sex, age, race, etc. Rather I call it positive discrimination. It needs to recognize & confront conscious and unconscious biases which can reinforce prejudices, stereotypes, and inequalities, or highlight differing experiences between colleagues.
Internal equity is to ensure fair pay and compensation within the organisation. The success of any compensation program depends on the ability to appropriately compete with external markets, to recognize and reward exceptional performance, and to maintain a shared sense of internal equity and fairness. HR must ensure fair and equitable compensation practices and maintaining competitive salaries, a review of pay equity and market comparison must be conducted on a scheduled basis to identify pay inequities. Failing to do the same will lead to dissatisfaction and attrition among employees now majorly comprising of Millennials who demand transparency and fairness.
A counteroffer may be necessary to retain a top performer if the employee is offered a salary higher than their current pay, by another employer, to perform the same duties. Factors such as internal and external market data, skill set, qualifications, and impact must be considered upon a determination of an appropriate retention increase. Organizations must not be temperamental in taking such decisions. Instead adopt a straightforward and honest payment system, your employees will believe that they are being paid fairly and with equality.
Digital recognition and virtual medals
Millennials look at different appreciation which is why there is a need for companies to rise above traditional rewards and reach to next level. To meet expectations of technologically advanced workforce, R&R must be tech-enabled method for rewarding meritorious employees. Companies may have to promote social appreciation and instant rewards that are encouraged with the power of choice. It focuses on digital vouchers & gift cards that can address instant needs of employees while giving them the freedom to choose their own reward. The digital age is asserting its influence on employee R&R programs by making the benefits instant and the gift of choice. For instance, a point system wherein employees simply receive digital recognition or virtual medals, Bit-Coins via SMS, e-mail and intranet converted into a point and redeem them for gifts of their choice once they have enough points. Digital rewards/vouchers or points will help frequent performers encourage to work even harder to earn more points and get bigger purchase for themselves.