Navigating in a complex global economy
Navigating in a complex global economy, companies face several challenges from both the workforce and the changing nature of work itself. It can include job design, analysis, workforce planning, training and development, performance management, compensation and benefits, and legal issues. For example, differences in culture can be seen in the range of attitudes and values toward authority, teamwork and working hours. Cultural and linguistic misunderstandings can be very costly because they might result in significant losses for the company. Managers have to adapt to the new multi-generational and culturally diverse workers. While some experienced older employees are retiring, others need learning some new skills in technology. Technology facilitates closer contacts not only with the internal clients but also with multicultural teams that stimulate innovation and creativity. Lack of technological literacy will reduce performance measurements. Companies want to hire committed, the productive employee without incurring turnover and training costs in vain. According to the 2013 EIU/SHRM Foundation survey, executives reported that there was the current disconnect between the skills provided by education and what the companies need (The Economist, 2018). Companies are struggling to recruit those with creativity, adaptability and good interpersonal communication skills. Gallup’s 142-country study on the global workforce states that only 13 percent of workers worldwide are psychologically committed to their jobs while 63 percent lack motivation (ibid). Many employees leave the job because of a poor leadership and lack of development opportunities. As seen, hiring talents and retaining a changing workplace is one of the most important challenges in managing people in order to reduce turnover rates and reach excellence.
HRM helps managers to make the successful transfer of experience to younger generations by understanding demographic and technological shifts as well as qualifications and skill sets. HR task is to assess applicants’ qualifications properly. HRM has to offer ongoing training for all employees as IT changes. In addition, it has to adapt hiring and retention strategies, incentives, benefits policies (unlimited vacation time, flex time, wellness programs, commuter benefits, free snacks) to retain a workforce beyond financial compensation. To resolve communication problems (misunderstandings, performance problems), HRM may provide training how to balance meeting goals, managing workloads, motivating employees (through documenting performance, rewards, recognition), and develop coaching, feedback, prioritization skills. Regular check-ins highlight problems and maintain an honest dialogue to unopen employee emotions and solidify the relationships between manager and employee. It creates an environment that promotes continuous learning, growth, and encourages honesty. To attract and retain the best talent, HR focuses on the evidence if the candidates are comfortable with change (enjoy learning, technologically savvy) equipping staff with the competencies to cope with it. Fostering a culture of continuous learning, managing diversity and maintaining wellbeing (EQ) remain employees engaged, loyal and resilient.
If I were a Human Resource Manager, the biggest challenge would be a lost productivity due to using a computer for a personal reason. According to the Nucleus Research, fifteen minutes of doing it will result in 1.5 percent of a reduced productivity (HRM, 2016). At the same time, employees can be dissatisfied because they want to have some ‘freedom’ and good pay and great benefits are not 100 percent guarantee of employees retention. As an HR manager, I would bring the catalyst role – turning talent into performance by carving out a unique set of exceptions toward each individual, highlighting each person’s unique style, spending the most time with the best, using excellence performance as the barometer, focusing on the strengths avoiding fixing the weaknesses.