HR professionals and senior leaders alike have faced some unique people
challenges in recent years, particularly as a result of Covid-19. As 2022 draws
to a close, organisations continue to grapple with a range of HR issues, new
and old. From skills shortages and recruitment challenges to hybrid working
models and the current cost of living crisis – how should you respond
effectively to attract, retain, develop, and support your teams in 2023?
At Northumbria University, we’ve gathered expert input from business
leaders, policy experts and leadership and management academics – including
practical advice, tips, and tools to help tackle some of the challenges ahead…
1) Competition for people and skills – talent attraction and retention
HR
and people professionals consistently discuss the competitive labour market and the challenges they face in
attracting candidates. This ranges from decisions about employer brand to what
packages can be offered to entice talent. Added to that is the difficulty that
many organisations, especially those in the public sector, face in maintaining
competitive salaries and retaining staff. As a result, organisations are now
required to leverage positive internal behaviours; organisations who are
authentic, with HR professionals who understand the merits of a positive
culture, will be more likely to win this war for talent and skills.
Nicola
Inge, Employment & Skills Director at Business in the Community, said: “Vacancies
remain at a record high and the number of unemployed people remains low – 1.2
million people (ONS, 2022). This is a real challenge as businesses struggle to
fill vacancies, but it is also an opportunity to reach a diverse, untapped
talent pool. However, to reach those who face disadvantage in the labour market,
businesses need to change the way they recruit.”
Tips for
attracting and retaining staff
include: focusing on organisational culture and the benefits of being a ‘good
place to work’; highlighting the total rewards package; going beyond the salary
to other perks like flexible working, volunteering opportunities or childcare
vouchers; and finally, bringing attention to training opportunities. There
needs to be a paradigm shift towards visible career development and
progression routes. The benefits in staff retention far outweigh the cost of
training, or indeed higher salaries.
2) Cost of living – and how employers can support their workforce
People professionals
have an important role in supporting their colleagues and the organisation
through the cost of living crisis. Many employees will be experiencing finances
which are tighter than ever – especially younger workers experiencing the first
major recession or challenging economic time in their working lives. Marianne O’Sullivan, Policy Manager,
North East England Chamber of Commerce, added: “With
many businesses currently looking at how they can help staff to cope with rising inflation, some businesses are
offering cost of living payments and others are looking at general pay rises which, as well as easing current pressures,
can help to support retention.”
As well as financial concerns, HR practitioners and people professionals need
to take account of the resultant mental health ramifications – not only from a
pastoral sense but also as a
business practicality. Of course, anxious and stressed employees are not as
productive – recent figures suggest that 36% of millennials find their
performance is impacted by money worries (CMI, 2022) – so there is certainly a
business case for offering support. This can be achieved by creating a culture in
which talking about challenges and finances is enabled and resources are
provided to help employees to access practical financial advice. This is a life
skill that employees will benefit from well beyond the current situation and
could support both financial and psychological wellbeing longer term.
3) Wellbeing – and its impact on performance, productivity and staff retention
Wellbeing is
one of the most important issues that HR practitioners and people professionals
must tackle. Many challenges have stemmed from the pandemic and been further
exacerbated by the cost of living crisis. Evidence suggests that financial
wellbeing support can also increase productivity (CIPD, 2022); but wellbeing is
not just about financial support. Josh Jackman, Operations Director, ART Health
Solutions, commented: “Quality
of life and wellbeing have become the top priorities for office workers, even
above salary, which is now in third place. To attract and retain top talent,
businesses must be seen as somewhere that supports employee health and
wellbeing.”
It’s important
to have an integrated approach that can nurture higher levels of employee
engagement while fostering a workforce where people are committed to achieving
organisational success. It is also important to remember that your business may
be very different to others, and that one size does not fit all. Don’t be
tempted to look at competitors and try to mirror their wellbeing policy,
instead tailor policies and practices
to the unique needs and characteristics of your organisation and people.
HR and people
teams can support employees by training managers and senior leaders to ensure
they are equipped to provide the right support to staff. Having sensitive
conversations and embedding actions that offer support and flexibility can be
highly beneficial to an employee’s health and performance. Cultivating a robust
organisational culture and developing a framework that ensures employees are
heard will make them feel understood, valued, and recognised. Additionally,
communications strategies between
managers and employees that establish trust in challenging times will increase
the likelihood of seeking help when needed.
4) Hybrid working – and how to ensure it works effectively for both employers and employees
The pandemic
saw a seismic shift in how organisations view and implement hybrid working,
given that only around 5% of the workforce worked from home pre-Covid-19 (CIPD,
2022). This has led to significant shifts in working practices, which people professionals
must help their organisation to adapt to as hybrid working often requires
different skill sets. For hybrid working to be truly effective, there must be a
significant cultural shift, with organisations establishing associated policies
and practices.
To ensure that
hybrid working is mutually beneficial, a clear policy must be developed
alongside supporting guidance that reflects the organisation’s strategic
position. Parameters should be clearly defined and placed within the specific
organisational context. These parameters will often need to be tailored depending
on role requirements.
Managers should
be provided with ongoing training to enable them to support, communicate and
share feedback on hybrid models and organisations must be dynamic enough to
support and respond to any associated implications such as technology and
people infrastructure. Attention must also be paid to social relationships and
cohesion, so as not to negatively impact organisational culture or wellbeing.
Supporting
your HR and People teams to tackle these challenges
Recruiting
staff from a challenging labour market, motivating, engaging, and supporting
existing staff and tackling the lingering impacts of Covid-19 all require people
professionals to understand a broad range of topics to optimise their
workforce. Northumbria University has developed its innovative Senior People
Professional Higher Apprenticeship Course to support HR professionals with the
knowledge and skills to tackle current workplace challenges such as these.
For more information, visit our course page.
