Latest HR Trends: Trust-based Culture, Exodus of Senior Employees, Vital Middle Employees, AI disruption of Talent Management, Connected Workplace

?? Hello Everyone and Happy Sunday !

?? Welcome back to the 51th edition of Weekly People Research! ??

??I just returned to Paris today from New Delhi (Noida) and I was so excited to meet my team and chat face to face. So you will see my posts in European times starting next week.

Last week was a fascinating learning week with your inspiring comments! ?? We discussed exciting and following HR topics:

As usual, I also wanted to thank everyone who reads me and shares these ideas!

?? In this new edition,?you will learn more about ??:

??How Employee Relations (ER) Data Can Help Organizations Build a Trust-Based Culture? HR Acuity researchers found that only few organizations are using ER data to forecast outcomes or construct models to predict employee behavior

??How are Return-to-office (RTO) mandates creating a pronounced “exodus” of senior employees to direct competitors? 密西根大学 , Ipsos Public Affairs 美国芝加哥大学 researchers highlighted that these findings suggest that retention issues may be more serious than previously thought, as senior employees and, indeed, the senior managers themselves are leaving.

??How would a successful hybrid work model deliver an average of 3-8% more revenue to organizations? Eptura researchers found that the first step in effectively measuring the impact of change is knowing what to measure.

??How should organizations focus on “Vital Middle” employees to positively impact perceptions of organizational performance? Russell Reynolds Associates found that employees with high wellbeing were 1.4x more confident in their organization’s performance than those with medium wellbeing.

??Why do CHROs place talent acquisition (TA) at the top of their priorities, with a particular emphasis on internal mobility? iCIMS researchers noticed that no clear winner emerged when looking at overall priorities of US CHROs and those for talent acquisition.

??Why no area of HR will be profoundly affected by AI than talent management? Aon researchers found that in HR function across industries, 24% of roles and 58% of headcount will be disrupted.

Dave Ulrich believes these insights continue to evolve as we all learn more and he brilliantly classify these ideas into the following four domains of Human Capability Taxonomy:

*Talent: The “exodus” of senior employees to direct competitors

*Leadership: Build a Trust-Based Culture

*Organization: RIO of hybrid work model

*HR function: Area of HR profoundly affected by AI

???Now, let's do a recap of the week on published research:

Employee Relations (ER) Data can help Organizations build a Trust-based Culture but only a few share data with their employees for legal reasons!

?? Findings of researchers:

Organizations committed to building trust generally have tighter investigation and aftercare.

?? A majority of organizations are now using data to identify predictors of Employee Relations (ER) issues, indicating a greater ability to leverage data insights.

?? Only few organizations are using ER data to forecast outcomes or construct models to predict employee behavior

?? Trust is also a top priority for a larger proportion of Fortune 100 companies, likely because deficiencies in their practices can have significant and public repercussions for brand reputation.

?? Only 11% of organizations share aggregated, anonymous investigation or employee relations outcomes with employees and the main reason is legal concerns.

?? Applications for AI in employee relations have the potential to enhance effectiveness, convert data into a strategic asset and enable proactive decision-making, according to a new interesting research published by HR Acuity in partnership with Isurus Market Research and Consulting - B2B Market Research & Strategy , using data ?? from an online survey of 1,000 employees included employee relations leaders from 253 organizations, representing 8.7 million employees globally.

?? Recommendation of researchers:

Researchers believed that to capitalize on this groundbreaking technology of AI, organizations must:

?? Work with stakeholders to define appropriate uses of AI.

?? Implement guardrails to stave off risk and ensure responsible, ethical use.

?? Continue to prioritize the human elements that create meaningful connections with employees, even when using AI.

?? Select AI tools judiciously to enhance employee relations efficiency and effectiveness without increasing risk or bias.

??My personal View:

This interesting research on employee relations data demonstrates how useful this data can be for HR leaders and executives to build a relationship of trust with employees but also the employer brand. The arrival of AI, however, will disrupt this relationship and organizations must pay attention to ethics as well as the appropriate use of this technology.

???? What were the HR expert opinions:

Dave Ulrich Thanks for sharing. AI will obviously enable sharing of all kinds of information. The broader question is what information to share and how the information is used. We proposed a four-stage model for sharing information based on the desired. Sharing ER investigation and other information may be sensitive because of privacy and legal issues. The reported research reinforces the importance of trust which makes sense. Most of the ideas in this research are at stage 1 and 2 of the AI model below. One of our questions is whether the information on ER delivers stakeholder value (stage 3: Guidance) more or less than other information that could be shared. Thanks again for sharing research on topics that help us think and learn.

Deb Muller Thank you for highlighting our study. I appreciate your insights and love the conversation that it has started!

Munyaradzi Chikwanha Interesting! Trust significantly impacts organizational practices by fostering environments where transparency, collaboration, and ethical use of technology, such as AI, are prioritized.

George Kemish LLM MCMI MIC MIoL I picked up on: 'Only 11% of organizations share aggregated, anonymous investigation or employee relations outcomes with employees and the main reason is legal concerns'. The legal concerns may well explain why employee relations surveys are often carried out anonymously. Unfortunately, this makes it difficult to put employee experience into context and adds little value to employee engagement. If that feedback is 360 then the individual has a real opportunity to provide data that can make a difference on an individual level. In short, it is people that engender (and earn) trust not AI.

Namita Gopinathan,MBA It's encouraging to see the adoption of data-driven approaches, there's a clear opportunity for organizations to further enhance their strategies. As you accurately highlighted, there are challenges, particularly in sharing aggregated ER outcomes due to legal concerns. Organizations should consider sharing aggregated and anonymized ER data with employees to enhance transparency. Legal concerns are valid, but with proper data anonymization techniques, companies can share insights without compromising confidentiality. Lastly, your insights on the integration of AI in ER present a compelling vision for the future of workforce management. There's a broad interest in AI, its application should be strategic. AI can automate routine tasks, provide data insights, and support decision-making without compromising the human touch.

The Return-To-Office (RTO) mandates are creating a pronounced "Exodus" of Senior Employees to direct competitors!

?? Findings of researchers:

RTO had a negative effect on the tenure and seniority of senior workforce.

?? There is a reduction in counterfactual tenure that increases for employees with longer tenure.

?? The patterns in the raw data suggest a decrease in tenure and seniority at Microsoft after its RTO.

?? A firm returning to the office with the aim of increasing productivity or innovation may end up doing so in a narrow sense, improving the output metrics of those who stay, but harming them for the company as a whole, according to a new interesting research published by a team of US researchers from 密西根大学 , Ipsos Public Affairs 美国芝加哥大学 using data ?? from 260 million resumes matched to company data at three large tech companies 微软 , SpaceX , and 苹果 extracted by People Data Labs (PDL)

?? Recommendation of researchers:

?? Taken together, these results imply that return to office mandates can imply significant human capital costs in terms of output, productivity, innovation, and competitiveness for the companies that implement them.

Furthermore, the sorting of skilled labor across companies that these findings imply can have important consequences for the employment landscape, which we leave to future work.

??My personal View:

This insightful research look at the relatively understudied impact of return-to-office (RTO) mandates and the long term impact of WFH on employee tenure and seniority. Researchers estimates that a return to office mandate at Microsoft led to a significant outflow of senior employees to large competitors. While several of the papers mentioned have documented a positive relation between employee attrition rates and degree of required office attendance (research of Nick Bloom and his team), these results illuminate how this attrition realizes across the employee distribution, with senior and long-tenured employees leaving at higher rates.

???? What were the HR expert opinions:

Dave Ulrich Fascinating. Return to Office "mandates" seem to give employees a sense of increased choice about where they work, Perhaps the social bonds of working from home are lessened and it is easier for them to look elsewhere. I wonder if the opportunities they are looking for a working remotely or in a new office setting? Are the "leaving" the company (with return to office mandate) or being pulled into new opportunities? I also wonder if those who leave under these circumstances (and are highly qualified) might be more likely to be rebound hires? Also, I wonder if the type of work they are doing makes a difference, e.g., if they are doing work that is "meaningful" to them regardless of where they work? Again, very interesting research on hybrid work... as you say, much has been done on where people work and its impact. So much depends on the specifics of the job, person, and work required. Thanks for sharing.

Deena Priest During and after Covid, businesses were hiring from a global or non-local talent pool. I think it doesn't surprise me too much that an RTO mandate is causing an exodus. Perhaps some of the talent who are being asked to RTO are non-local and so it simply isn't convenient for them to travel so much.

Mikhail Lvovskii Interesting insights! The data presented truly highlight the intricate relationship between office mandates and employee dynamics. It's a reminder for organizations to prioritize both productivity and employee satisfaction for sustainable growth. The demands for RTO become less and less supported, people want freedom to chose, I think. Not that they are against the office work per se.

Eleonora Durmaz Thanks for the hard data... but it raises the question: does returning to the office affect different genders equally? Also, do we have any information on the original number of employees hired for remote roles during COVID, who were later required to return to the office, thus inevitably leading to their departure?

Balwinder Kumar It's crucial to recognize the profound impact that Return-To-Office mandates can have on employee tenure and seniority. Your research sheds light on the hidden costs and implications for both employees and companies. Thank you for sharing these insightful findings.

Nadia B. Thank you for this insightful analysis on the impact of return to office (RTO) mandates. I find it particularly interesting to see how these policies can affect the tenure and loyalty of senior employees. It is crucial for companies to understand these dynamics in order to preserve their human capital. One solution could be to create hybrid policies that offer more flexibility, while maintaining the benefits of working in the office.

Enrique Alvarez Ruano, Ph.D. Very interesting, Nicolas. As an overall comment, it shows the need of SEGMENTING TALENT appropriately to make informed decisions.

A successful Hybrid work model would award an average of 3-8% more revenue to Organizations!

?? Findings of researchers:

Managing change is often more difficult than implementing new technology.

?? The incremental value attributed to hybrid work varied according to company hybrid policy, depending on whether that was company-mandated, employee-led, or manager-led.

?? Two metrics "Employee satisfaction" and "Employee attendance" metrics are more frequently used by businesses the more they become digitally connected.

?? For 62% of operational leaders, their biggest barriers are implementing a change management program and measuring the impact of change, according to a new interesting research published by Eptura using data ?? more than 16.3 million users with independent research across 200 senior-level professionals at organizations with more than 1,000 employees.

?? Recommendation of researchers:

Researchers found that the incremental value attributed to hybrid work varied according to company hybrid policy :

?? Employee-led policies project the highest value on in-office collaboration.

?? Company-mandated hybrid work policies project the least value on in-office collaboration.

Researchers emphasized that hybrid policies are often governed by corporate culture. There is no right or wrong policy, there is only the right policy for the company.

??My personal View:

This insightful research into the latest workplace trends demonstrates that organizations must understand significant value that connected workplaces bring to their operations, impacting employee experiences. Almost 10% impact on revenue if a hybrid model is successful is an impressive figure for leaders.

???? What were the HR expert opinions:

Dave Ulrich I so agree that defining key outcomes (dependent variables) becomes a primary starting point for change. These key outcomes are often defined in the form of a question that is relevant for the organization leaders. Many of the outcomes of change are around the questions in this study: how do we use space better, get higher occupancy, reduce costs, and increase employee satisfaction/attendance? I wonder if someone put 10 possible outcomes in front of executives if these five would be the top 5? The question I would ask of the executives is: what are the outcomes that matter most to you so that your organization is successful? In our work, we focus on stakeholder outcomes, e.g., as executives, we define our organization success through these stakeholder value received*employee satisfaction (or version of morale) and productivity*business strategy reinvention and implementation*customer share and commitment*investor confidence and financial performance (profitability)*community reputation If these are the stakeholder outcomes executives care about, then where should they invest to make them happen (independent variable). I like that this research shows that hybrid work increases financial results

Jos van Snippenberg Interesting findings on the impact of mandatory office or home working. Looking to the future, where changing the type of work will become the norm, everything depends on its context. The important questions every leader will need to ask are: What does the company want to achieve in the market? Why does the company want to achieve this? How will the company achieve this? The answers immediately reveal the possibilities of "on-site/office/mobile and hybrid working." These answers provide the opportunity to incorporate this into the Employee Value Proposition. This way, more responsibility can be placed on employees, who will likely remain more motivated due to the autonomy they experience. This, in turn, gives leaders more space and time to facilitate this effectively.

Gemma Atkinson Such an interesting topic that has more questions than unified answers. As an executive and an employee the outcomes are not yet aligned in organizations who are still relatively new to this. Change takes time and we learn lessons along the way

Dr. Bhanukumar Parmar It’s fascinating to explore the impact of workplace management on Revenue, Reporting (employees), Reduction in Cost, Rationalization of Space, Re-Engagement. After COVID-19, the workplace Management is in vogue and there has been lot of research & actual work that has happened in this areas. Yes, the metrics used are as depicted by the researchers. Though broadly covered, adding finer points - Sustainability - Green, Solar, Tech driven, Ease of movement, etc.

Shiva Venkateswaran Thank you Nicolas for your regular insights. I find them very useful. As we are still coming to terms with hybrid working and distributed teams, there is no denying that building a collaborative ecosystem is more crucial than ever before in building cohesive, purposeful and productive teams. When people collaborate rather than compete for power, resources and recognition, wonderful things start happening.

Organizations must focus on "Vital Middle" employees to positively impact perceptions of Organizational Performance!

?? Findings of researchers:

?? In the future of work, employee wellbeing is a non-negotiable.

While employers often focus on addressing employees with a low sense of wellbeing, understandable, as these employees feel 4x less impactful in their roles compared to those with high wellbeing, they actually account for a relatively small portion of organizations.

??Employees with high wellbeing were 1.4x more confident in their organization’s performance than those with medium wellbeing

?? Employees with high wellbeing were more likely to report that their managers display behaviors that help create a positive work environment, according to a new interesting research published by Russell Reynolds Associates es using data ?? from an online survey of 3,813 senior leaders and 8,753 employees across 105 countries, which was carried out between May 2, 2023, and May 18, 2023.

?? Recommendation of researchers:

?? Finally, researchers provide recommendations below for leaders looking to make meaningful improvements to employee well-being and the success of their organizations:

?? Ensure that employee wellbeing (or related outcomes like engagement and retention) is incorporated into the objectives of senior leaders and managers.

?? Clearly communicate the organization's commitment to wellbeing by stating concrete goals and integrating them across business units.

?? Allocate resources and investments towards cultural practices that support employee wellbeing.

?? Empower employees to contribute to goals: clarify objectives and expectations for employees, ensuring clear roles and responsibilities with autonomy and flexibility where possible.

?? Purposefully and consistently recognize employee achievements.

?? Regularly assess, monitor, and prioritize organizational culture to better assess if employees feel safe enough to bring their full selves to work.

??My personal View:

Although the relationship between wellbeing and employee performance is well known and obvious, this interesting new research demonstrates that organizations need to focus more on what they call the "Vital Middle" to transform them into high wellbeing employees and thus have a positive impact on organizational culture.

???? What were the HR expert opinions:

Dave Ulrich I agree that employee "sentiment" (attitude) has been studied for some time. We proposed five waves of "sentiment" that becomes grounded in an employee value proposition. What I also like about this research is the importance of the "middle"... where most people live and work. Very nice!

Vaibhav Mahajan, GPHR Absolutely, I agree with your view of the need to focus on the "Vital Middle" boosting their Well-Being which will positively impact the organizational culture as a whole. However, it is also important for organizations to really understand the core of the real "well-being" that is referred here, encompassing the critical elements of emotions, body, social network, purpose, and community. It is also noteworthy that each of these elements may impact differently to each of employees depending on their value structure, personalities and experiences. Hence knowing your employees is crucial. While many times organizations do concentrate on the right mass/population, the core structure of the initiative might be missing the target.

George Kemish LLM MCMI MIC MIoL There are so many elements that can have an effect on employee wellbeing - one of them is to treat people as individuals - providing individual development, giving individual feedback, ensuring that people know that they are valued for the contribution that they make towards the success of the organization - the list goes on.

Jessie Schofer The middle are the multipliers - so important to focus on them.

Reema Purohit It's enlightening to see the focus shifting towards the "Vital Middle" employees and their impact on organizational culture. Thank you for sharing these valuable insights

CHROs place Talent Acquisition (TA) at the top of their priorities, with a particular focus on Internal Mobility!

?? Findings of researchers:

More than half (56%) of CHROs spend more time in their role on talent acquisition today than they did two years ago

?? 86% of CHROs and chief people officers say that internal mobility is a priority for their companies in 2024 - Indeed internal hires are up 11% and internal applications are up 18% since April 2023.

?? The focus on retention and internal mobility doesn’t stop in the U.S and is the same in European countries.

?? The majority (65%) of CHROs plan to implement AI in their recruiting processes. Of these, 40% plan to do so in the next 12 months, according to a new interesting research published by iCIMS using data ?? from a survey conducted by Censuswide among 2,000 chief human resource officers (CHROs) and chief people officers (CPOs) across the U.S., U.K. and France between April 11 and April 22, 2024.

?? Recommendation of researchers:

Finally researchers provide below recommendations for HR leaders seeking technology change:

1?? Identify the business problem: Clearly articulate the problem or inefficiency the new technology aims to solve, approaching it with a clear understanding of current processes and systems.

2?? Focus on employee experience: Highlight how the technology will enhance the overall employee experience, including onboarding, workflows and mobility.

3??Consider the impact on IT: Understand and address the impact to the tech team and foster a collaborative approach to implementation

??My personal View:

This insightful research - with a large sample of data on CHROs in the world - demonstrates that the priority of CHROs remains focused on talent and their recruitment. It is obvious that to succeed in this challenge, CHROs must rely on technology and data to already understand their talent pool thanks to People Analytics and invest in technology and the power of AI to select best talents.

???? What were the HR expert opinions:

Dave Ulrich Thanks for sharing this research. In our work, we have identified 10 talent initiatives, then assessed the extent to which they deliver value to five stakeholders. Talent acquisition has the highest impact for most of the stakeholders. See background of the work: OGS. It is interesting (and confirming) that the survey of CHROs shows the same basic results. Thanks for sharing.

iCIMS Thanks for sharing and analyzing key findings from our report!

Kathie Vu I believe TA plays a critical role in supporting both Internal Mobility and the skill-based approach under Strategic Talent Management (STM). By recruiting and hiring employees based on their skills, potential, and cultural fit, TA can ensure that the organization has a strong foundation of talent with the right capabilities. Additionally, TA can support internal mobility by identifying existing employees who have the skills and potential to take on new roles or responsibilities, thus facilitating career progression and development within the organization.

Ahmad Al Mahri Very insightful data. Some companies have started implementing tools called talent marketplace which helps match their talent with expected future roles based on their skills and competencies. This helps with their retention strategy and keeps door open for growth and continuous development!

Layla Halabi An interesting extension of this discussion could involve exploring the integration of AI with other emerging technologies like blockchain for secure and transparent credential verification. This could further enhance the recruiting process by ensuring the authenticity of candidate qualifications.

George Kemish LLM MCMI MIC MIoL Given the current skills shortages, this does not surprise me. However, do employers even know what knowledge, skills and experience their employees can offer? When applying for jobs most people tailor their applications to the post for which they are applying (isn't that what recruiters advise?). Great, so what about the skills that have not been recorded anywhere within the organization that might add value in the future? Before engaging in an internal mobility program, I would suggest that employers undertake a skills audit across the workforce in order to highlight the skills currently not being utilized as this may assist in the internal recruitment process (and save money where external recruitment would otherwise seem necessary - but where the skills are already available)

Christian Madsen Great insights Nicolas. Wonderful to see TA being a high priority as a central focus area and that both DEI and AI capabilities are prioritized. That’s critical to hiring the diverse talents for the future and bridging the two is a huge opportunity.

Murthy Nibhanipudi VS It's encouraging to see that more than half of CHROs are dedicating more time to talent acquisition, indicating a heightened focus on acquiring and retaining top talent. The emphasis on internal mobility as a priority reflects a growing recognition of the importance of nurturing and developing existing talent within organizations. Additionally, the intention to implement AI in recruiting processes underscores a commitment to leveraging technology to enhance efficiency and effectiveness in HR operations. Overall, this research offers valuable insights for HR professionals and organizational leaders seeking to stay ahead in today's competitive talent market.

Andrew Lang Good insights Nicolas! I do agree that AI can be an effective to HR personals as well as help CHRO make better decisions.

No area of HR will be affected profoundly by AI as Talent Management with 24% of roles and 58% of headcount will be disrupted !

?? Findings of researchers:

Artificial intelligence (AI) is having a measurable impact across all aspects of HR.

?? The level of AI disruption can vary greatly by industry. In the technology industry, researchers found 32% of job roles and 69% of headcount are at risk of significant disruption from AI.

?? By contrast, the analysis of life sciences firms shows that 23% of job roles and 34% of headcount are at risk of significant disruption from AI.

?? In HR function across industries, 24% of roles and 58% of headcount will be disrupted.

?? Also AI has not yet been used as much in retirement planning as in other areas of HR, according to a new interesting research published by Aon using data ?? from a survey of nearly 400 HR professionals said the areas of people analytics, talent recruitment, and learning and development.

?? Recommendation of researchers:

?? Finally researchers provide four Ways HR Professionals can manage the AI Transformation:

?? Relate AI use back to company values

?? Ensure accountability and quality with the use of the technology

??Develop skills and competencies for the workforce to manage AI

??Proceed with caution and keep an open mind about limitations

??My personal View:

As this wonderful study demonstrates with a great dataset, HR professionals have a strategic seat at the table when it comes to managing the transformation of the workforce that AI may bring and they need to understand which roles will change and how, and to harness the capabilities that are unlocked by using AI across the HR ecosystem. The fact that talent management function is deeply affected by AI, Talent leaders must anticipate this technology well so as not to find themselves behind their competitors.

???? What were the HR expert opinions:

Dave Ulrich No question GenAI will impact many human capability areas (talent + leadership + organization + HR). We laid out some of the changes in LinkedIn post. Interesting to estimate the impact of these changes from this research.

Kiran Nar The first thing is to start! We (HR) are slower to adopt the use of AI or at least start to think about how AI could improve how we work. The possibilities are endless. However the most important thing is to review what is going to make the most difference to your organization. Here are some thoughts:- Review where AI could benefit your organization and understand the tools that could be used or developed. -Understand your current processes and pain points, where could AI really add value?- Develop a strategic AI roadmap with a clear vision for HR. - Research and invest in the tools needed. - Upskill your HR teams (address any concerns, ethics, compliance). I think AI will be game changing for HR. Start now to be ahead of competitors.

Liz Rider Interesting that we often talk about the future state when this is happening now. If we just take talent management. Many companies have adopted AI powered talent mobility platforms to democratize career development, up skilling people and providing learning. (Think talent review and succession).

Jelena Joksovic I believe that the way to navigate the challenges of AI era, is by taking a human first approach. Taking the lead, the HR leaders must work closely with an AI expert in their organizations to understand, and rigorously test any AI software based application before its released for work. We must think of things like security, privacy of data, fairness and reliability that are currently being pushed aside because of the hype around AI.

Ahlam Bakkal Organizations can prepare for the massive arrival of AI by looking first at the scope of work in each role. In other words, How much % of time and effort will be saved through AI for each role. Then review the organization structure (maybe some roles can be combined). And by training resources to use AI in their scope of work. That's one way to prepare.

If you've enjoyed this piece, don't hesitate to press like, comment on what you think, and share these articles with your network.

?? Follow me as a Top Voice person on LinkedIn , and click the ?? at the top of my profile page to stay on top of the latest on new best?HR, People Analytics, Human Capital and Future of Work research, become more effective in your HR function and support your business, and join the conversation on my posts.

Everyday, I share a new research article about?People Analytics, Human Capital, HR analytics, Human Resources, Talent,….

Let's spread the HR knowledge together and understand the Future of Work!

That's it for last week's recap - Happy Sunday and wishing you health and success?!???

?? if you haven't already, subscribe to receive my Weekly People Research and join +17,00 HR passionate !

Thank you so much for your support and Happy Sunday !

Nicolas BEHBAHANI

#futureofwork #peopleanalytics #hr #research