As workplaces evolve and employee preferences shift towards more flexible working arrangements, understanding and implementing hybrid recruiting can significantly benefit both employers and candidates. 

Whether you’re a startup looking to scale or an established corporation seeking top talent across borders, hybrid recruiting offers a pathway to engaging with and securing high-caliber candidates in today’s competitive job market.

What is hybrid recruiting?

Hybrid recruiting is a method that integrates the personal touch of traditional, in-person interactions with the efficiency and accessibility of digital processes. 

This approach is not just about conducting some interviews online and others in person; it’s about creating a recruitment strategy that maximizes the strengths of both modalities to enhance the hiring process. 

Actually, 70% of companies use online recruitment platforms to advertise job vacancies, highlighting the importance of digital tools in the hiring process​.

Key components of hybrid recruiting

The efficacy of hybrid recruiting lies in its use of advanced technological tools alongside human-centric methods. Essential tools include AI-driven applicant tracking systems that can parse large volumes of resumes efficiently, virtual reality setups for remote office tours, and sophisticated video conferencing tools for interviews. 

The human elements involve in-depth, in-person interviews, on-site visits, and hands-on assessments that provide a clearer picture of the candidate’s potential fit within the company culture.

Steps in the hybrid recruiting process

Job posting and promotion: Utilize both online platforms and traditional methods to ensure a wide reach. This might include digital job boards, social media, and employee referral programs.

Screening and initial contact: Leverage AI to filter applications based on predefined criteria, followed by human HR managers reaching out to promising candidates for preliminary assessments or brief virtual chats.

Interview process: Conduct initial interviews using video conferencing tools, which can save time and resources for both recruiters and candidates. Follow up with selected candidates through in-person interviews to foster a deeper connection and assess their fit within the team and company culture.

Decision making and offering: Combine insights gathered from both virtual and physical interactions to make informed decisions. Extend job offers digitally and discuss details virtually, providing flexibility and speeding up the negotiation phase.

Onboarding: Employ a mixed approach to onboarding by providing digital resources for learning and development, and scheduling in-person sessions to integrate new hires into the company culture and team dynamics effectively.

Advantages of hybrid recruiting

Hybrid recruiting offers several compelling advantages that can address the challenges of the modern workplace and meet the evolving expectations of job seekers:

Wider talent pool

By not restricting the recruitment process to local candidates or those who can afford to travel for interviews, companies can attract talent from virtually anywhere. This is particularly advantageous for roles that are difficult to fill locally or that require highly specialized skills.

Enhanced candidate experience

Candidates appreciate the flexibility that comes with hybrid recruiting. They can engage in initial parts of the hiring process from the comfort of their homes and travel only when they are seriously being considered, which can increase their interest and engagement in the opportunity.

Cost efficiency

Reducing the number of in-person interviews and leveraging digital tools can significantly cut down on travel, accommodation, and operational costs associated with traditional recruiting methods.

Balanced assessment

By combining online and offline elements, recruiters can get a more holistic view of a candidate’s skills, personality, and potential cultural fit. 

This dual approach allows for a more comprehensive evaluation than relying solely on virtual or in-person methods alone.

Implementing hybrid recruiting in your organization

Preparation and planning

Infrastructure setup: Ensure that the necessary technology infrastructure, such as reliable video conferencing tools and an applicant tracking system, is in place.

Team Training: Provide training for HR personnel on managing hybrid recruiting processes, including using technology effectively and maintaining communication consistency.

Execution

Process design: Develop a clear, structured recruiting process that delineates when to use virtual tools and when to engage candidates in person.

Candidate Communication: Maintain clear and continuous communication with candidates about the process, what they can expect, and how they should prepare for each stage.

Evaluation and feedback

Monitoring outcomes: Regularly assess the effectiveness of the hybrid recruiting process through candidate feedback, hiring manager reviews, and recruitment metrics.

Continuous Improvement: Use feedback to refine the process, addressing any technological snags and enhancing the candidate experience.

The adaptability of the hybrid model ensures that companies remain agile and responsive to the evolving expectations of the workforce, making it a strategic choice for future-focused organizations.

HR professionals are encouraged to consider hybrid recruiting as a versatile and effective approach to talent acquisition. This way, they can attract, engage, and retain the best talent while also building a resilient and adaptive hiring strategy.

The post What is hybrid recruiting? appeared first on Recruiting Resources: How to Recruit and Hire Better.

Let’s delve into one of the most interesting HR terms.

What is People Analytics?

People analytics, also known as HR analytics, workforce analytics, or talent analytics, refers to the practice of collecting and analyzing data related to employees to improve organizational outcomes. 

It involves using statistical methods and software tools to analyze various aspects of the workforce, such as employee performance, engagement, turnover, and more. 

The goal is to turn data into actionable insights that can enhance decision-making processes and drive business success.

Historically, HR decisions were often based on intuition and anecdotal evidence. However, the advent of people analytics marks a shift towards data-driven decision-making. 

This approach allows organizations to identify patterns, predict trends, and make evidence-based decisions that can significantly impact their operations.

The difference between HR and People Analytics

Traditional HR functions typically focus on managing employee relations, compliance, recruitment, and other administrative tasks. 

While these functions are crucial, they often rely on subjective judgment and lack the analytical rigor needed to uncover deeper insights.

In contrast, people analytics leverages data to provide a more objective and comprehensive view of the workforce. 

It involves collecting data from various sources, such as employee surveys, performance reviews, attendance records, and even social media activity. 

This data is then analyzed to uncover trends, correlations, and patterns that can inform HR strategies.

For instance, while traditional HR might identify high turnover rates as a problem, people analytics can delve deeper to identify specific factors contributing to turnover, such as job satisfaction, leadership effectiveness, or compensation discrepancies. 

By addressing these underlying issues, organizations can implement targeted interventions that are more likely to yield positive outcomes.

Importance of People Analytics for HR

People analytics is a crucial tool for modern HR management. Here are some reasons why it is important:

Enhancing talent acquisition and retention

According to research by McKinsey & Company, companies that effectively use people analytics reduce attrition rates by up to 50%. This is achieved through better understanding of employee needs, improved engagement strategies, and predictive analytics to identify at-risk employees.

By analyzing data from the recruitment process, HR can identify the most effective sourcing channels, predict candidate success, and streamline the hiring process. 

Additionally, retention analytics can help identify employees at risk of leaving and develop strategies to retain top talent.

Improving employee engagement and productivity

These analytics can provide insights into what drives employee engagement and productivity. By understanding these factors, organizations can implement initiatives that foster a positive work environment and enhance employee performance.

Research by Gallup shows that organizations leveraging people analytics to understand employee engagement and satisfaction experience 59% lower turnover, 41% less absenteeism, and 21% higher profitability.

Driving organizational success 

Data-driven HR practices enable organizations to align their workforce strategies with business goals. This alignment ensures that HR initiatives support overall organizational success, leading to improved performance and competitive advantage.

Maximizing cost savings

Predictive analytics in recruitment can reduce hiring costs by identifying the best candidates more efficiently and reducing the need for repeated hiring.

Getting started with People Analytics

Implementing people analytics can seem daunting, but with a structured approach, HR professionals can successfully integrate it into their operations. 

Here are some steps to get started:

1. Identify key questions and problems

Begin by identifying the key questions you want to answer and the problems you want to solve with people analytics. This will help focus your efforts and ensure that your analytics initiatives are aligned with organizational priorities.

2. Plan data collection and analysis projects 

Develop a plan for collecting and analyzing data. This includes identifying data sources, selecting appropriate metrics, and determining the analytical methods to be used. Ensure that you have the necessary tools and expertise to conduct the analysis.

3. Report and utilize results 

Once the data has been analyzed, report the findings in a clear and actionable manner. Use the insights gained to inform HR strategies and make data-driven decisions.

Best practices and strategies

To maximize the benefits of people analytics, HR professionals should adopt best practices and strategies that enhance the effectiveness of their initiatives. 

Here are some key considerations:

Integrating people analytics into strategic decision-making: Ensure that analytics is not a standalone activity but integrated into the broader strategic decision-making process. This involves collaborating with other departments and aligning analytics initiatives with organizational goals.

Ensuring data quality and comprehensive analysis: High-quality data is crucial for accurate analysis. Invest in robust data collection methods and regularly audit data quality. Additionally, use comprehensive analytical techniques to uncover deeper insights.

Building a people-centered and long-term oriented approach: HR analytics should focus on long-term outcomes and be people-centered. This means considering the impact of decisions on employee well-being and aligning analytics initiatives with long-term organizational goals.

Future trends in People Analytics

The field of HR analytics is continuously evolving, with new technologies and methodologies emerging. Here are some future trends to watch:

Emerging technologies and methodologies: Innovations in technology, such as artificial intelligence (AI) and machine learning, are enhancing the capabilities of people analytics. These technologies can provide more accurate predictions and deeper insights.

Predictive analytics and AI in HR: Predictive analytics uses historical data to forecast future outcomes. In HR, this can mean predicting employee turnover, identifying high-potential employees, and more. AI can further enhance these capabilities by automating data analysis and providing real-time insights.

Future challenges and opportunities: As HR analytics continues to evolve, HR professionals will face new challenges, such as data privacy concerns and the need for upskilling. However, these challenges also present opportunities to further integrate people analytics into HR practices and drive organizational success.

Implementing people analytics requires careful planning and a strategic approach, but the benefits it offers make it a worthwhile investment for any organization.

The post What is people analytics – HR practices for the future appeared first on Recruiting Resources: How to Recruit and Hire Better.

Organizational health goes beyond mere profitability and productivity – it includes the vitality and functionality of your entire operation.

But wait: what exactly is it? Let’s talk about that first.

What is organizational health?

Organizational health is characterized by a company’s capacity to unite under a shared vision, skillfully execute strategies, and dynamically evolve in response to market shifts and internal demands to maintain innovation and relevance.

Imagine your company as a well-oiled machine – employees are engaged and productive, management is strategic and effective, financials are robust and balanced, and your market presence is active and responsive.

This scenario epitomizes a robust organizational health. It highlights elements of a company that are not easily measured at the bottom line.

The importance of organizational health

Let’s take a look at the impact of employee engagement on organizational outcomes. McKinsey reports that 10% of all employees are pretty much out the door already, with another 43% either actively or mildly disengaged at work. That’s more than half.

This disengagement and attrition can be costly. In that same report, McKinsey finds that a medium-sized S&P 500 company loses between $288 million and $355 million per year in lost productivity as a result.

That’s the cost of poor organizational health.

Business author Patrick Lencioni also highlights the value of a healthy company: “The single greatest advantage any company can achieve is organizational health.”

“The single greatest advantage any company can achieve is organizational health.”

Patrick should know – he authored the book The Five Dysfunctions of a Team. It’s a compelling business fable that delves into team dynamics and strategies aimed at enhancing team performance. He’s also the top boss of The Table Group, a business service that helps companies improve their overall health.

Clearly, it’s important.

How do you measure organizational health?

To effectively measure and enhance your organization’s health, consider assessment tools like the McKinsey Organizational Health Index (OHI). This tool helps gauge various facets of organizational health, providing insights that guide improvement strategies.

Use these tangible measurements tied to OHI to monitor the rise (and fall) of your company’s overall health:

1. Evaluate management practices

Understanding how management behaviors influence organizational health is crucial for long-term success. You can measure this area via:

• 360-degree feedback: Implement a system where employees can provide feedback on their supervisors. This helps identify leadership qualities and areas for improvement.
• Behavioral assessments: Use tools that assess leadership behaviors and management practices to pinpoint specific areas that require development.
• Performance metrics: Track the performance outcomes of different teams. Relate them back to specific management behaviors to identify what works and what doesn’t.

2. Assessing employee experiences

Every organization is made up of people. It makes sense to ask those people directly about how they perceive their working environment and culture. You can do this by conducting:

• Employee surveys: Regularly conduct surveys that ask direct questions about job satisfaction, workplace environment, and the perceived support from management.
• Exit interviews: Use exit interviews to gather information on why employees are leaving. This can provide insights into the work environment and employee engagement.
• Focus groups: Organize focus groups to dive deeper into employee concerns and experiences to gather qualitative data on their daily work environment and culture.

3. Measuring health outcomes

Tracking key health outcomes helps quantify the effectiveness of the organization in maintaining a supportive and productive work environment. You can do this by tracking these three core KPIs:

• Employee retention rate: Monitor employee retention rates as a key indicator of organizational health. High turnover can indicate issues with leadership, compensation, or work-life balance.
• Customer satisfaction scores: Organizational health often impacts service quality. So, measuring customer satisfaction can provide indirect insights into the internal state of the organization.
• Productivity metrics: Assess productivity levels across various departments to determine if leadership and organizational practices support employees’ ability to perform their roles.

How do you improve organizational health?

You can approach organizational health in five focal areas:

1. Be a leader and visionary

Leadership is more than managing day-to-day operations. It involves inspiring and aligning the entire organization with a clear and compelling vision. Effective leaders embody the values they wish to see throughout the organization, ensuring that their actions and decisions reinforce the strategic goals.

This includes not only setting the direction but being actively involved in your company, which strengthens trust and clarity across all levels.

2. Cultivate a supportive culture

A healthy organizational culture is one that promotes transparency and open communication, creating an environment where employees feel valued and recognized for their contributions. This involves more than just financial rewards – it includes acknowledging efforts in meaningful ways, providing growth and development opportunities, and fostering a positive workplace.

Such a culture enhances employee satisfaction and loyalty, which are critical for long-term success.

3. Focus on engagement and productivity

To keep your teams engaged and productive, emphasize continuous learning and well-being initiatives. This includes offering training and development programs that cater to the needs of employees, promoting work-life balance through adaptive working arrangements, and implementing wellness programs that address physical and mental health.

Engaged employees are more likely to be motivated and maintain high productivity levels, contributing positively to your overall goals.

4. Adopt an agile mindset

This business landscape seems to be in constant flux – and this could well be our ‘new normal’. The ability to adapt to change is crucial for maintaining organizational health. Embrace new technologies and processes. Train your teams to be prepared to handle the changes.

Effective change management strategies include involving employees in the change process, providing clear communication about the benefits and impacts of the change, and offering training and support to ease the transition.

5. Communicate far and wide

Strong internal communication is crucial for maintaining a healthy organization. This ensures all employees are informed on company developments. This helps them understand their specific roles within larger objectives, and feel involved in the organization’s journey.

Ensure regular updates, establish open forums for feedback, and include tools that facilitate easy and transparent communication across different levels of the organization.

A healthy body, a healthy mind, a healthy workplace

Just as maintaining a healthy body is crucial for personal well-being and effectiveness, fostering organizational health is essential for a company’s resilience and productivity.

Organizational health, involving comprehensive management of leadership quality, workplace culture, and employee engagement, acts as the backbone of business operations.

It supports the company’s ability to innovate and adapt swiftly to market changes, mirroring how a well-cared-for body responds to stress and recovers from illness.

Investing in organizational health is a strategic priority that yields long-term benefits, enhancing overall performance and ensuring sustainable success.

The post Organizational health: the key to sustained business success appeared first on Recruiting Resources: How to Recruit and Hire Better.

From an HR perspective, the financial rationale is clear: retaining skilled employees is often more cost-effective than recruiting and training new ones. 

Losing a valuable employee can cost an employer three to four times the employee’s salary,* highlighting the financial stakes involved. 

Consequently, these incentives serve not just to retain talent but also to protect the company’s financial interests by discouraging movement to rival firms.

The double-edged sword

While Golden Handcuffs can effectively keep employees within an organization, they also present significant challenges. 

On the one hand, they offer a competitive edge in retaining talent, ensuring that the expertise and knowledge remain within the company. 

On the other hand, they can lead to a sense of entrapment among employees. 

Facet Wealth points out that Golden Handcuffs can create a scenario where the financial benefits tied to continued employment overshadow personal satisfaction and career aspirations, potentially leading to a workforce that is physically present but mentally and emotionally disengaged.

This sense of entrapment can have profound effects on workplace culture and employee well-being. 

The implications extend to exacerbating issues like burnout and dissatisfaction. A study found that about one-fifth (22%) of employees experienced burnout, with organizations not recognized as Best Workplaces seeing a 5% higher rate of burnout compared to their counterparts. 

This indicates a significant correlation between the presence of Golden Handcuffs and workplace satisfaction, suggesting that financial incentives alone may not mitigate the negative aspects of a job.

Furthermore, the broad applicability of Golden Handcuffs means their impact is not limited to top-tier compensation packages but can also involve high starting salaries and benefits designed to make leaving financially unattractive for employees at all levels. 

This widespread use of Golden Handcuffs raises important questions about their long-term viability and the potential for creating a culture of dissatisfaction and disengagement.

As the corporate world continues to evolve, HR professionals are tasked with navigating the complex interplay between employee retention, satisfaction, and the use of Golden Handcuffs. 

Action plan for HR professionals: managing the impact of Golden Handcuffs

The first step in addressing the challenges of Golden Handcuffs is to recognize their signs. 

Regular employee surveys can serve as a vital tool in this regard, providing anonymous feedback on job satisfaction, engagement, and the sense of feeling trapped. 

Additionally, monitoring turnover and retention rates offers quantitative insights into the dynamics at play, helping HR professionals identify patterns that may signal issues with Golden Handcuffs.

1. Fostering a positive workplace culture

Creating a positive workplace culture is essential in counteracting the potential downsides of Golden Handcuffs. 

Promoting open communication encourages employees to voice their concerns and suggestions without fear of retaliation. Valuing non-financial contributions, such as recognizing individual achievements and team successes, can enhance a sense of belonging and appreciation that transcends monetary incentives.

2. Enhancing employee well-being and satisfaction

To combat burnout and dissatisfaction, implementing wellness programs focused on mental health, stress management, and work-life balance is crucial. Offering career development opportunities, such as training and mentorship programs, can also contribute to higher levels of job satisfaction by aligning employee growth with organizational goals.

3. Implementing flexible incentive structures

Adjusting compensation packages to include more flexible incentive structures allows employees to tailor benefits to their specific needs. This approach, combined with offering performance-based bonuses and non-financial rewards, can make employees feel valued for their contributions beyond just their tenure.

4. Encouraging career growth and personal development

Developing clear career pathways within the organization helps employees visualize their growth potential, reducing the feeling of being stuck. 

Support for continuous learning and skill development, through access to courses and seminars, further empowers employees to pursue their career aspirations without feeling financially handcuffed to their current roles.

5. Addressing equity and inclusion

Conducting regular pay audits is vital to ensure equity across all levels of the organization, addressing any disparities that may exacerbate the negative effects of Golden Handcuffs. By fostering an inclusive environment, organizations can ensure that all employees, regardless of gender or background, feel valued and respected.

6. Preparing for the future

Staying informed on industry trends and evolving employee expectations allows HR professionals to adapt their retention strategies proactively. 

As the workforce’s values shift towards greater flexibility and meaningful work, understanding these changes can help organizations tailor their approaches to meet these evolving needs.

7. Review and feedback loop

Establishing a review process to assess the effectiveness of these strategies is crucial. Regular feedback loops, involving both employees and management, can provide insights into what works and what needs adjustment, ensuring that the organization remains agile in its approach to employee retention and satisfaction.

This balanced approach is the key to unlocking the true potential of the workforce, ensuring that financial incentives serve their intended purpose without undermining the broader goals of employee satisfaction and organizational culture.

The post Golden handcuffs: what is it and how your HR team can handle it appeared first on Recruiting Resources: How to Recruit and Hire Better.

Don’t get stressed about this – Claudia isn’t leaving tomorrow. She could just be proud of the work she’s done, but let’s be real: with all the economic uncertainty and industry layoffs, Claudia’s likely just building a backup liferaft. You know, just in case.

This is a strategy known as ‘career cushioning’. This approach involves networking, upskilling, and even exploring side projects, all to ensure a safety net is in place should their career landscape shift unexpectedly.

Claudia’s story is becoming increasingly common – Fast Company is calling career cushioning a trend set to grow in 2024.

What’s career cushioning?

First, let’s define it. Career cushioning refers to the practice of employees taking proactive steps to secure their professional future, often in response to economic uncertainty or a desire for greater career mobility.

This can involve activities such as networking, upskilling, building a personal brand, or exploring alternative job opportunities, all while remaining employed in their current role.

The evolving economic landscape and shifting employee priorities have given rise to this phenomenon. According to a Robert Walters survey, 68% of workers in the United States are now career cushioning.

That’s a significant number. As HR professionals, knowing this trend and its implications is crucial for navigating talent management and retention strategies.

What’s causing career cushioning?

Two major factors contribute to the growing prevalence of career cushioning:

Economic uncertainty: Global economic headwinds, inflation concerns, and high-profile layoffs have instilled a sense of job insecurity among employees. Those jitters are motivating employees to build out that liferaft, so to speak – just in case their careers are impacted.

Evolving priorities: The “Great Reshuffle” highlighted the shift in employee expectations, with many seeking greater work-life balance, flexibility, and purpose-driven careers. Side hustles are becoming more the norm and workers are less willing to put all their eggs in one basket in their main hustle.

What are the signs of career cushioning?

It’s not necessarily a reason to pull the fire alarm across the organization, but it’s something you should be mindful of as an employer.

HR advisor Taylor Queen at Insperity in Florida tells Fox Business: “Although ‘career cushioners’ may not want to leave their current position, they decide to get a jumpstart in case their role should change or be eliminated.”

So, to get ahead of this, it’s important to recognize these signals not only to understand individual employee needs but also to reflect on the broader organizational health.

Here are the key indicators:

1. Increased networking activity

Employees may intensify their connections on professional platforms like LinkedIn, often updating their profiles and engaging more actively with external networks. This indicates their intent to stay visible and relevant in the broader industry landscape.

2. Pursuit of additional qualifications

Enrolling in online courses and seeking certifications are signs that employees are gearing up for new opportunities. This continuous learning can be a double-edged sword: while it boosts their current role performance, it may also prepare them for external opportunities.

3. Exploration of side hustles

Engagement in side projects or freelance opportunities often reflects a desire for greater job security through diversified income streams. This could also point to a lack of fulfillment or challenges in their current roles.

4. Discreet job search activities

Subtle signs like increased private calls, discreet meetings, or a sudden spike in personal appointments during work hours could suggest that an employee is interviewing elsewhere.

What can you do as an employer?

Is career cushioning something to worry about? Maybe. On the contrary, it’s an opportunity for HR to adapt and enhance talent management strategies:

1. Foster open communication

Create an environment where employees feel comfortable discussing career aspirations and concerns. Regular check-ins and feedback loops can provide valuable insights into employee sentiment and identify potential flight risks.

Not quite communication, but on that last point – you can also use predictive analytics to find those trigger points that lead to turnover, and preempt them ahead of time.

2. Invest in employee development

Prioritize upskilling and reskilling initiatives to equip employees with the skills needed to thrive in evolving roles. Providing learning opportunities demonstrates a commitment to employee growth.

3. Champion internal mobility

Establish clear pathways for career progression within the organization – in other words, establish a culture of internal mobility. Encourage employees to explore different roles and departments, fostering a culture of talent development.

Those who stay with you even in different capacities will prove more valuable due to their familiarity with your brand and product/service.

4. Review compensation and benefits

Regularly benchmark compensation and benefits packages to ensure they remain competitive within the industry. Consider offering a range of attractors in your total rewards package, including clear career paths, flexible work arrangements, and well-being programs to enhance employee satisfaction.

5. Build a strong employer brand

Cultivate a positive work culture that emphasizes values, purpose, and employee recognition. Promote your employer brand through various channels to attract and retain top talent. Make your people proud to work for you!

You, too, can be their career cushion

“There’s a bit of a game of musical chairs playing out, and employees don’t want to be caught out when the music stops without a seat,” said Korn Ferry client partner Mark Royal, according to CNBC.

By understanding the motivations behind career cushioning and implementing proactive strategies, you can support employees like Claudia Feinstein to not only be assured of a seat in your company, but also motivate them to choose that seat should they have options in the future. And that’s the music your employees want to hear.

The post Career cushioning: a new trend and a call for action appeared first on Recruiting Resources: How to Recruit and Hire Better.

If your stomach just dropped to your shoes, we get it. It feels like a worst-case scenario for any HR professional, but it’s also a growing trend — especially on TikTok, where the term “Quittok” is gaining steam as a hashtag and category of videos.

A quick TikTok search for #Quittok returns over 2,600 posts. And while not all of them are recordings of actual resignation conversations, plenty of them are.

There’s this one of a corporate jargon-filled performance review that ended with a resignation.

@gabrielle_judge

Quit My Lazy Girl Job with Me! It’s been a year since I have quit my corporate career and I never posted this meeting so I thought I would now to celebrate! I just wrote a memoir on my upbringing and what created all of the anti work philosophy I have. #corporate #lazygirljob #careeradvice #quittok

♬ original sound – Anti Work Girlboss – Anti Work Girlboss

Or there’s this one where the employee quits and calls out a toxic work culture.

@josiejoyyy

honestly could have saved myself and just sent a text cause they don’t care but i had dreamt of this moment for 2 yrs. #quitting #resigning #quitmytoxicjob #cya #trafficcontrol

♬ original sound – Josie Joy

There’s a potential silver lining here: Not all of the conversations are negative. Some offer surprisingly good company publicity.

But it still marks a major shift for employers: Employee conversations that used to stay “in-house” are now out there for the world to see, share, and comment on — a concept that became unmistakably clear with the recent Cloudflare incident when an employee named Brittany Pietsch recorded herself being let go. The video racked up millions of views and tons of press.

So why are employees (particularly younger ones, considering TikTok’s users are primarily Gen Z) publicizing these potentially sensitive conversations? And perhaps even more importantly: Can (or should) you do anything about it?

Control and connection: why employees share their resignation conversations

The idea of publicly posting such a private and potentially confidential conversation feels foreign to many people — especially older generations who were taught not to bad-mouth their employers or air their dirty laundry. But for younger workers? The benefits of sharing their resignations could outweigh the potential fallout.

Building a sense of agency

“Many people use social media as a form of agency, the feeling of being in control of one’s life and one’s future,” explains Paula Caligiuri, DMSB Distinguished Professor at Northeastern University and co-author of “Live for a Living.”

Younger employees, in particular, are struggling at work — which can leave them grappling for some level of authority over their decisions, futures, and well-being.

• According to research from Johns Hopkins University, younger employees are less engaged and have higher levels of stress and burnout than older Millennials, Gen X, or Baby Boomers:
• In research from Deloitte, less than half of Gen Zers say their boss helps them maintain a healthy workload and 28% struggle with their mental health because of their boss
• According to McKinsey, Gen Z is more likely than older generations to report the pay they receive does not allow them a good quality of life and are also less likely to report feeling fairly recognized and rewarded for their work

Where previous generations might have just swallowed their concerns or written them off as normal parts of the working world, Gen Z isn’t as inclined to tolerate perceived mistreatment. The same McKinsey research showed that they’re far more likely than any other generation to point to a hostile work environment as a major impact on their ability to do their work.

Even if they don’t confront their employer directly (something they’re surprisingly unlikely to do), posting on social media is a way of calling their company to the carpet and “holding leaders accountable,” adds Rima Roychowdhury, a Gen Z Journalist and Content Creator who hosts “A Gen Z Journey,” a podcast aimed at bridging the gap between the senior and Gen Z workforce.

Controlling the narrative and perception

“Making a resignation public or sharing it with friends is a way to control the narrative,” says Paula. Think that sounds manipulative? Well, you’ve probably done the same thing before. Look back on your own resignations and you’ll see that you probably put your own spin on them when venting to family, friends, or trusted loved ones.

Maybe your employer didn’t recognize your skills. Or they restricted your development. Or they underpaid you. Or they showed favoritism. Whatever justification you gave, it’s always easier to point the finger at your employer than to accept accountability for why the role or workplace wasn’t the right fit.

Younger workers are doing that same thing, just in a far more public forum that feels intuitive to them. Sharing their resignations allows them to shape the story, manage the perception of themselves and their former employer, and ultimately feel justified in hitting the road.

Finding connection and camaraderie

Love them or hate them (we know, you hate them), these videos resonate with younger workers. “For most of us, it’s probably our first time, or among the first few times, getting fired or resigning, and acknowledging the reality of the situation is tough,” Rima says.

“Seeing others take charge of their situation and posting it gives us the confidence that we’re not alone.”

It’s natural for workers to rely on their social support systems when they experience career setbacks or make hard decisions. And, for younger employees, those support systems are often found online.

When research published in the Journal of Experimental Psychology: General states that “people pay more attention to information they perceive to be related to themselves,” it makes sense that these resignation videos quickly pick up steam online.

Seeing sharing as normal

“Social media has shaped many people to be comfortable making their private world public,” Paula explains. That’s especially true for Gen Z, who are the first real digital natives. They don’t remember a life pre-internet and pre-social media.

For them, sharing big moments — from childbirth to divorce to, yes, even job resignations — isn’t a bold move. It’s normal (and maybe even their ticket to achieving internet fame).

What can employers do to keep conversations in-house (and offline)?

Some of the reasons why younger employees turn to social media are understandable — but that doesn’t mean these videos are advisable. As an employer, this public posting can open up a whole can of worms in terms of your reputation and employer brand.

So it begs the question: What can you do?

“Employers may be tempted to wedge fine print in employment contracts to ban them from filming such videos,” Paula says. “And that’s exactly what they shouldn’t do.” It might not even be legal to do so in some locations.

Your next reaction might be to reach out to the former employee and request that they take the video down. But that could backfire, especially when you run the risk that they’ll record and share that conversation too.

It can feel like you’re tiptoeing around a lot of tripwires here. But rest assured, there are a few steps you can take to respond to this situation with strategy and tact.

Train supervisors on how to have these conversations

Paula says the most important thing companies can do is adequately train supervisors on how to have these types of meetings and employment conversations. “Basically, you want to keep your company from going viral for the wrong reason,” she says.

When managers know how to lead these discussions with respect, honesty, and support, it could turn a negative into a positive if the employee does decide to share the exchange.

For example, take a look at all of the “manager goals” comments on this video below, compared to all of the “groan, corporate jargon” comments in the video above:

@durbinmalonster

Quitting my corporate stable job that I love in this economy??? Y’all should have seen my dads face when I told him hahaha.

♬ original sound – Darby

Solid manager training leads to a more productive conversation – and exposure that helps (rather than hinders) your employer brand.

Take a hard look at your culture and employee experience

You’re asking why an employee is publicly posting about their decision to leave. But perhaps the better question to ask yourself is this: Why are they deciding to leave in the first place? What needs or expectations aren’t being met?

According to motivational psychologists Edward Deci and Richard Ryan, all humans have three innate psychological needs that are essential for well-being:

• Autonomy: Control over work, decisions, and outcomes
• Belonging: Sense of connection with others
• Competence: Continued growth and development

Improving each of these elements can mean employees that are more engaged, happier, and less likely to leave — which means less potential for the dreaded “I quit” videos.

1. Autonomy

Remember that younger workers often share their resignation videos to achieve a sense of autonomy, which indicates they lack those feelings in their daily work lives.

Offering flexible work options can fuel a sense of independence, but organizations should also clearly articulate their purpose, values, and expectations.

“This clarity helps employees understand the boundaries within which they can make decisions autonomously while ensuring that those decisions are in line with the overarching goals of the organization,” says Debra Franckowiak, Organizational Psychologist at Inspired Training Institute.

2. Belonging

Gen Z expects a culture of belonging at work, but it’s something that’s undoubtedly suffered amidst remote or hybrid work arrangements and layoffs. Research form BetterUp shows that 25% of employees admit they feel like they don’t fit in at work.

Focus on ways to help employees feel like part of something bigger than themselves, whether that’s connecting their work to the company’s larger goals or offering plenty of social and bonding opportunities.

3. Competence

According to research from Handshake, 87% of undergrads say learning and development benefits are either important or essential when evaluating a job opportunity. It’s proof that employees — and especially those that are early in their careers — want chances to grow and develop new skills.

From listening to employees’ career goals and providing resources to offering helpful feedback and access to challenging projects, investing in employee development goes a long way in making them feel more valued and supportive.

When a video is posted online, the temptation is strong to jump into crisis mode. However, use it as an opportunity to look inward and make strategic improvements to these three areas. Doing so will create a more positive employee experience, which hopefully translates to more positive (or private) employee exits.

Try video stitching

Want to make lemonade from those lemons? Try using the video as part of your own marketing efforts in the form of a video stitch. It’s a technique that allows you to combine an existing video on Tiktok (in this case, the video of the employee resigning) with a video you create.

“If the public is firing shots at the company, it is an opportune moment for HR to step up and create a video stitch explaining their side of the issue,” Rima says. “It does the job of answering questions and helps with marketing, so it’s a win-win.”

“If the public is firing shots at the company, it is an opportune moment for HR to step up and create a video stitch explaining their side of the issue. It does the job of answering questions and helps with marketing, so it’s a win-win.”

Don’t use your video as an opportunity to pick the former employee’s perspectives apart. Rather, focus on how your organization is acting on that feedback to better meet employee needs moving forward.

When Rima says that “Gen Z wants more transparency,” this is a solid way to meet them where they are, take accountability, and highlight some of your upcoming changes and initiatives. However, remember to keep your audience in mind. If they’re not already in TikTok, the video probably won’t land.

Quittok: An opportunity to question, not quell

Quittok? For employers, it’s more I-don’t-like-it-one-bit-Tok. And for good reason: It’s nerve-racking to reckon with the fact that current and former employees can publicize sensitive conversations that you assumed would stay private.

But as much as the threat of virality might have you battening down the hatches or instituting punitive policies for employees who post online, treat this less as an opportunity to quell and more as an opportunity to question.

What about your culture or employee experience made them feel like they needed to resort to this? And more importantly, what can you do to address those shortcomings moving forward?

Will an employee sharing their resignation still feel like a betrayal? Of course — and posting online is likely not going to make it onto lists of career best practices anytime soon. But with the right next moves, you can transform that video from a blemish to a benefit.

The post What is Quittok? And what can you do about it? appeared first on Recruiting Resources: How to Recruit and Hire Better.

Contents:

• What is a sabbatical?
• How long is a sabbatical?
• Is sabbatical leave paid or unpaid?
• How does a sabbatical work?
• Sabbatical leave policy

What is a sabbatical?

The sabbatical definition is “a break from work” during which employees can pursue their interests, like traveling, writing, research, volunteering or other activities (or even rest). During that time, the employee is still employed at their organization, but they don’t need to perform their normal job duties or report to work.

This practice is common in educational institutions; for example, a professor may take a sabbatical leave for a semester or two to teach at a foreign university or do research in their field.

Some corporations offer a professional sabbatical as a benefit, too – in 2018, 15% of employers were offering sabbaticals (though only 5% offered paid sabbatical leave). This leave is granted to employees after they complete a certain number of years in service, usually more than five.

The sabbatical leave is separate from other kinds of leave. For example, you may be entitled to 20 days of paid time off per year plus a sabbatical after your fifth year with the organization.

The benefits of a sabbatical leave are clear for employees: they get to take their minds off the stress of their jobs and focus on what they love outside of their work. They can also develop skills, both personal and professional. Employers benefit in various ways, too: for example, their employees are rejuvenated and return to work with new energy and motivation (and without the fear of employee burnout). Plus, offering sabbaticals is a great way to attract talent to your organization.

How long is a sabbatical?

The length of a sabbatical from work varies according to the institution or organization. Some universities may grant this leave for six months, a year (called “sabbatical year”) or more.

Private companies may offer one or more months of sabbatical leave depending on their policy and each employee’s years of service. For example, Adobe offers four weeks of sabbatical to those who’ve been employed in the company for at least five years and five weeks to those who’ve completed 10 years of service.

Is sabbatical leave paid or unpaid?

Often, sabbatical leave is paid, either with the full salary or a percentage of that salary – although some organizations may offer unpaid sabbatical leave.

How does a sabbatical work?

Employees who qualify for this type of leave will usually need to ask for it several months in advance. Organizations will consider that request and approve it if it meets their criteria. Organizations will also need to make arrangements to replace that employee for as long as they’re on sabbatical, or divide their work among other employees.

Many organizations have specific rules regarding sabbaticals. For example, employees might need to take their sabbatical within a specified period after they become eligible or they lose it. Also, if an employee chooses to take advantage of a sabbatical leave, they may need to commit to staying at the company for at least a specified period after they come back (much like with tuition reimbursement benefits).

While on sabbatical, people are still officially employed by the organization. This means that they remain bound by their organization’s policies including harassment, confidentiality, data protection etc.

Sabbatical leave policy

If you’re thinking of introducing a relevant policy to your company, that policy needs to be absolutely clear. First, define sabbatical leave. Is it a break from work so employees can do what they want? Or is it a break for a specific reason, e.g. volunteering in an environmental program?

Then, decide when employees should qualify for sabbaticals. Usually, the minimum is five years, but consider what makes sense for your organization.

The next step is laying out clear guidelines about how employees can ask for sabbatical, how you will evaluate their request, what their obligations are and what applies in regards to their pay, benefits or contract. These elements are essential for an employee sabbatical policy, and clarity and transparency about all aspects of the policy is essential to its success.

If you’re not sure where to start, use our sabbatical leave policy template.

Want more definitions? See our complete library of HR Terms.

The post What is sabbatical leave? appeared first on Recruiting Resources: How to Recruit and Hire Better.

At a minimum, employees need role-specific knowledge and abilities to perform their job duties. But, those who usually stand out as high performers need some additional qualities, such as the ability to communicate clearly, the ability to work well with others and the ability to manage their time effectively. These abilities are examples of soft skills.

Neil Carberry, Director for Employment and Skills at CBI, talks about the balance between attitude and technical skills: “Business is clear that developing the right attitudes and attributes in people – such as resilience, respect, enthusiasm, and creativity – is just as important as academic or technical skills. In an ever more competitive jobs market it is such qualities that will give our young talent a head start and also allow existing employees to progress to higher skilled, better-paid roles”​​.

According to research conducted by Harvard University, 85% of job success comes from having well-developed soft and people skills, with only 15% attributed to technical skills. This underlines the substantial impact soft skills have on professional success​​.

In addition, Deloitte’s research indicates that jobs requiring intensive soft skills are expected to grow 2.5 times faster than other job types. By 2030, it is predicted that 63% of all jobs will be comprised of soft skills roles, showcasing the growing demand for these competencies in the labor market​​.

Contents:

• 15 soft skills examples that are essential traits among employees
• Why are soft skills important?
• How to evaluate soft skills in the workplace
  • How do you assess soft skills in candidates?

Here are 15 soft skills examples that are essential traits among employees:

• Communication
• Teamwork
• Problem-solving
• Time management
• Critical thinking
• Decision-making
• Organizational
• Stress management
• Adaptability
• Conflict management
• Leadership
• Creativity
• Resourcefulness
• Persuasion
• Openness to criticism

Forbes adds to the above Emotional Intelligence and Work Ethic, which are as important as the others mentioned.

Why are soft skills important?

In job ads, it’s common to include requirements such as “communication skills” or “a problem-solving attitude”. That’s because soft skills help you:

• Identify employees who are not just able to do the job, but they’re also able to do it well.
  • Example: An employee with good time management skills knows how to prioritize tasks to meet deadlines.
• Choose between qualified candidates who meet the typical requirements for the job.
  • Example: When two candidates have a similar academic and professional background, you’re more likely to hire the one who’s more collaborative and flexible.
• Hire for potential; not just knowledge.
  • Example: For a junior position, it makes sense to look for candidates with a “willingness to learn” and an “adaptive personality”, as opposed to hiring an expert.
• Make well-rounded hiring decisions.
  • Example: When hiring a salesperson, you want to find a candidate who’s familiar with the industry and has experience in sales, but is also resilient, knows how to negotiate and has excellent verbal communication abilities.
• Evaluate candidates’ culture fit.
  • Example: If you value accountability and you want to have employees who can take initiative, it’s important to look for candidates who are not afraid to take ownership of their job, who are decisive and have a problem-solving aptitude.

How to evaluate soft skills in the workplace

Identifying and assessing soft skills in candidates is no easy feat: those qualities are often intangible and can’t be measured by simply looking at what soft skills each candidate includes in their resume. Besides, candidates will try to present themselves as positively as possible during interviews, so it’s your job to dig deeper to uncover what they can really bring to the table in terms of soft skills.

How do you assess soft skills in candidates?

1. Know what you’re looking for in potential hires beforehand and ask all candidates the same questions.

Before starting your interview process for an open role, consider what kind of soft skills are important in this role and prepare specific questions to assess those skills. This step is important for you to evaluate all candidates objectively. For example, in a sales role, good communication is key. By preparing specific questions that evaluate how candidates use their communication skills on the job, you’re more likely to find someone who can actually communicate with clients effectively, instead of hiring someone who only appears so (e.g. because they’re extroverted).

To help you out, we gathered examples of soft skills questions that test specific skills:

• Adaptability interview questions
• Analytical interview questions
• Change management interview questions
• Communication interview questions
• Critical-thinking interview questions
• Decision-making interview questions
• Leadership interview questions
• Presentation interview questions
• Problem-solving interview questions
• Team player interview questions

2. Ask behavioral questions to learn how they’ve used soft skills in previous jobs.

Past behaviors indicate how candidates behave in business settings, so they can be used as a soft skill assessment, too. For example, you can ask targeted questions to learn how candidates have resolved conflicts, how they’ve managed time-sensitive tasks or how they’ve worked in group projects.

Here are some ideas:

• How do you prioritize work when there are multiple projects going on at the same time?
• What happened when you disagreed with a colleague about how you should approach a project or deal with a problem at work?

Check our list of behavioral interview questions for more examples.

3. Use hypothetical scenarios, games and activities that test specific abilities.

Often, it’s useful to simulate job duties to test how candidates would approach regular tasks and challenges. That’s because each job, team and company is different, so you want to find a candidate who fits your unique environment. For example, a role-playing activity can help you assess whether salespeople have the negotiation skills you’re specifically looking for. Or, you can use a game-based exercise to identify candidates who solve problems creatively.

Here are some examples:

• If you had two important deadlines coming up, how would you prioritize your tasks?
• If one of your team members was underperforming, how would you give them feedback?

For more ideas on using hypothetical scenarios to evaluate candidates, take a look at our situational interview questions.

4. Pay attention to candidates’ answers and reactions during interviews

You can learn a lot about candidates’ soft skills through job-specific questions and assignments. Even if you want to primarily test candidates’ knowledge and hard skills, you can still notice strong and weak points in soft skills, too. For example, one candidate might claim to have excellent attention to detail, but if their written assignment has many typos and errors, then that’s a red flag. Likewise, when a candidate gives you clear, well-structured answers, it’s a hint they’re good communicators.

To form an objective opinion on candidates’ soft skills and abilities, make sure you take everything into consideration: from the way they interact with you during interviews to their performance on job-related tasks. This way, you’ll be more confident you select the most competent employees, but also those who fit well to your work environment.

Want more definitions? See our complete library of HR Terms.

The post What are soft skills? appeared first on Recruiting Resources: How to Recruit and Hire Better.

This piece is your deep dive into the skills-first universe—what it’s all about, how it stands to shake things up, and why it’s more than just a trend. 

It’s the roadmap for HR professionals who are ready to ride the wave of change and set foot in a new and undiscovered environment of skills-based hiring. 

What is a skills-first approach?

The essence of a skills-first approach is succinctly captured by Careerplug’s perspective, which emphasizes the recognition of transferable skills across different roles and industries. 

It acknowledges that a candidate’s diverse experiences and proven track record as an effective employee are as significant as their formal qualifications. 

This paradigm shift towards valuing skills over traditional credentials such as degrees or job titles is reshaping the hiring landscape, fostering a more flexible and inclusive workforce.

The LinkedIn Skills-First Report further illuminates this concept, presenting it as a strategy that not only benefits individuals by democratizing access to opportunities but also offers organizations a robust framework for building resilient workforces. 

By prioritizing skills, companies can tap into broader, more diverse talent pools, enhancing innovation and competitiveness. 

The report’s findings suggest that adopting a skills-first approach allows for a more equitable hiring process, breaking down barriers that have historically hindered underrepresented groups from accessing employment opportunities.

For instance, when it comes to occupations where women are not well-represented, adopting a skills-first approach to hiring can result in a 24% higher increase in the number of women in candidate pools compared to men. 

Also, skills-first hiring globally leads to a 9% increase in the candidate pools of workers without bachelor’s degrees compared to those with degrees. 

The skills-first framework for action

At the heart of this transformative approach is the Skills-First Framework for Action, as outlined by the World Economic Forum. 

This framework champions the prioritization of skills themselves over the traditional focus on how these skills were acquired. 

Such a focus has the potential to democratize access to economic opportunities, creating pathways to employment that were previously obscured by conventional hiring practices. 

The framework calls for a collective effort from businesses, governments, and educational institutions to foster a skills-driven economy. 

This collaborative action is pivotal in developing a highly skilled and inclusive workforce equipped to navigate the complexities of the modern job market.

Key components of the framework include actionable strategies for identifying and nurturing talent based on skill proficiency, rather than educational background or work history. 

It advocates for the development of skills inventories and the use of skill-based assessments in hiring and promotion decisions. 

By doing so, it lays the groundwork for a more adaptable and forward-thinking workforce, capable of meeting the demands of a rapidly changing world.

The skills-first economy

A skills-first economy is one where the primary currency is not the degrees or certificates that individuals hold but the skills they possess and can apply in various contexts. 

Remember the type typesetters? The profession of a typesetter, once pivotal in the printing industry for arranging text and layout, largely vanished with the advent of digital publishing. 

However, the meticulous skills of typesetters in typography, design, and attention to detail found new relevance in graphic design, web design, and digital publishing. 

Their expertise in visual aesthetics and layout seamlessly transitioned into these modern domains, showcasing the power of transferable skills amidst technological evolution.

Same with shoemakers. Shoemakers, once central figures in every town, crafting custom footwear for every foot, have seen their traditional role evolve with industrialization and mass production. 

However, the artisan skills of shoemakers—ranging from leatherworking, stitching, and understanding foot anatomy to an eye for fashion and durability—remain in demand within niche markets and high-end fashion. 

Today, their expertise is not only preserved but revered in bespoke shoemaking, repair services, and in the design departments of luxury footwear brands, proving that the meticulous craftsmanship and personalized touch of a shoemaker still hold significant value in an era of ubiquitous factory-produced shoes.

This shift represents a fundamental change in how value is assigned within the labor market, with far-reaching implications for economic growth, innovation, and social equity.

Benefits of a skills-first approach

The transition towards a skills-first approach in hiring and talent management carries significant advantages for both employers and employees. 

The insights from LinkedIn and additional research underscore several key benefits that underscore the value of this strategy for HR professionals:

1. Expanded talent pools

By focusing on skills rather than degrees or job titles, organizations can access a wider array of candidates. 

This expansion is not just in numbers but in diversity, including historically underrepresented groups, individuals without traditional degrees, and those from varied industry backgrounds. 

The WEF report suggests that adopting a skills-first approach can add up to 20x more eligible workers to employer talent pools.

2. Increased diversity and inclusion

A skills-first model inherently supports more equitable hiring practices. It allows companies to move beyond biases associated with educational pedigree or industry experience, thus leveling the playing field. 

In particular, it can significantly increase the representation of women in roles where they are underrepresented, fostering a more diverse and inclusive workplace culture.

3. Adaptability and resilience

In an era where the nature of work is constantly evolving, a workforce selected for its skills is better equipped to adapt to new challenges and technologies. 

Companies can more easily pivot in response to industry trends and demands, ensuring their workforce remains competitive and productive.

Challenges and considerations

While the benefits of a skills-first approach are compelling, HR professionals must also navigate its challenges and considerations to implement it successfully:

Identifying and assessing skills

Transitioning to a skills-first model requires robust mechanisms to accurately identify, assess, and validate the skills of candidates. This can involve developing new assessment tools and training hiring managers to evaluate skills effectively.

Upskilling and reskilling

To fully leverage a skills-first approach, organizations must commit to the continuous development of their workforce. 

This means investing in upskilling and reskilling programs that enable employees to acquire new competencies and adapt to changing job requirements.

According to the WEF, companies that excel at internal mobility retain employees for an average of 5.4 years, nearly 2x as long as companies that struggle with it (2.9 years).

Cultural shift

Adopting a skills-first approach entails a significant cultural shift within organizations. It challenges traditional notions of career progression and success, requiring buy-in from all levels of the organization to foster a culture that values skills and learning.

Implementing a skills-first strategy

For HR professionals looking to embrace a skills-first approach, a strategic implementation plan is essential. Here are steps to consider in rolling out this transformative strategy:

1. Develop a skills framework

Begin by defining the specific skills and competencies that are critical for success in your organization. This framework should be dynamic, reflecting the evolving nature of your industry and business needs.

2. Revise hiring practices

Update job descriptions, recruitment materials, and interview processes to focus on skills. Incorporate skills assessments into the hiring process to evaluate candidates objectively based on their capabilities.

3. Invest in learning and development

Build a robust learning and development ecosystem that supports the ongoing growth of employees’ skills. This includes formal training programs, mentorship, and opportunities for on-the-job learning.

4. Foster a skills-first culture

Encourage a workplace culture that values continuous learning and skill development. Recognize and reward skill acquisition and application, and ensure that career advancement opportunities are tied to skill progression.

5. Leverage technology

Utilize HR technology platforms, like Workable, that can support a skills-first approach, from skill assessment tools to learning management systems that track skill development and alignment with business needs.

As organizations worldwide embrace this approach, the potential for innovation, growth, and inclusivity in the workplace is boundless. The future of work is skills-first, and the time to prepare for that future is now.

The post Skills-first approach: what it is and why it can help you appeared first on Recruiting Resources: How to Recruit and Hire Better.

Unlike onboarding, which is designed for new employees, reboarding focuses on those who are already familiar with the company but need updates on policies, procedures, or their roles due to changes during their absence.

Reboarding adapts to changes

The purpose of reboarding is multifaceted. It aims to ensure a smooth transition for employees back into their work environment, enhance engagement, and update them on any changes that have occurred. 

This process is crucial for maintaining continuity and ensuring that employees feel valued and informed, which, in turn, supports their productivity and the organization’s overall resilience.

Historically, reboarding was a less formalized process, often reserved for employees returning from extended leaves. 

However, the concept has evolved significantly, especially due to the pandemic’s impact on work models. 

The shift to remote and hybrid work environments has underscored the need for reboarding as a more structured and strategic approach, ensuring employees remain connected and engaged regardless of their physical workplace.

Why is reboarding important?

Reboarding plays a pivotal role in boosting employee engagement and morale. We already know that onboarding could lead to a 70% reduction in new hire turnover within the first year, so we can imagine how effective it could be for reboarding. 

Engaging employees through reboarding shows a commitment to their development and well-being, fostering a positive organizational culture.

Let’s see now other beneficial aspects of reboarding

Productivity and efficiency

The reintroduction of employees to the workplace through reboarding significantly enhances productivity and efficiency. 

By updating employees on new processes, technologies, and policies, organizations can minimize the learning curve and enable employees to contribute effectively in a shorter timeframe. 

Eddy’s insights on reboarding emphasize its benefits in terms of efficiency, consistency, and thoroughness, which are crucial for maintaining operational effectiveness.

Retention and turnover

Effective reboarding strategies are also linked to improved retention rates. The process helps mitigate feelings of disconnect or obsolescence that might occur during extended absences, addressing potential concerns proactively. 

When is reboarding necessary?

Reboarding is not a one-size-fits-all process, it’s beneficial in various scenarios beyond the return of employees from leaves of absence. These include:

Returning employees: Whether from parental leave, sabbaticals, or medical leave, reboarding helps reintegrate employees into their roles and the company culture.

Promotions or internal transfers: As employees take on new roles or responsibilities, reboarding ensures they are equipped with the necessary knowledge and skills.

Rehired employees: For individuals returning to the company after a stint elsewhere, reboarding can update them on changes that have occurred in their absence.

Significant organizational changes: Mergers, acquisitions, policy updates, or shifts in strategic direction all necessitate reboarding to align employees with the new organizational landscape.

Transitions to new work models: The move to remote or hybrid models is a prime example of a scenario requiring comprehensive reboarding to address the unique challenges and opportunities these models present.

Building a successful reboarding program

A well-structured reboarding program is essential for ensuring employees are effectively reintegrated into the workplace. The following components are crucial:

Welcome and re-Integration: Creating a welcoming environment for returning employees is vital. This includes formal welcome-back meetings and informal catch-ups with team members to rebuild connections.

Training and updates: Providing up-to-date training on new tools, technologies, and company policies ensures employees are prepared to resume their roles effectively. 

This training should be tailored to the individual’s needs and the extent of changes that have occurred during their absence.

Communication of changes: Clear and comprehensive communication about any organizational changes, including shifts in strategy, leadership, or operational processes, is essential for transparency and alignment.

Performance management and goal setting: Setting clear expectations and goals for returning employees helps them understand their role in the organization’s objectives and how they can contribute to success.

Regular check-ins and support: Ongoing support through regular check-ins allows for addressing any concerns or challenges that may arise, ensuring a smooth transition back into the workplace.

Best practices and strategies for reboarding

Implementing an effective reboarding program requires thoughtful planning and execution. Here are some best practices to consider:

Tailor the program to individual needs: Recognize that each employee’s reboarding experience will be unique. Customize the program based on the duration of their absence, the reason for their return, and any significant changes that have occurred.

Utilize a variety of methods: Incorporate different reboarding methods, such as one-on-one meetings, group training sessions, and digital resources, to accommodate diverse learning styles and needs.

Seek feedback: Encourage feedback from reboarded employees to continually refine and improve the reboarding process. This feedback can provide valuable insights into the effectiveness of the program and areas for enhancement.

Leverage technology: Use technology to facilitate aspects of the reboarding process, such as virtual reality for immersive training experiences or AI-powered platforms for personalized learning paths.

Focus on culture and connection: Emphasize the importance of reconnecting with the company culture and fostering relationships among team members. 

This can include team-building activities or social events designed to reintegrate employees into the organizational community.

Reboarding is a critical process that goes beyond merely updating employees on new policies or procedures. It’s about re-establishing connections, aligning with the company’s strategic direction, and ensuring employees feel valued and engaged. 

The post What is reboarding and how it can boost retention rates appeared first on Recruiting Resources: How to Recruit and Hire Better.

This article delves into the intricacies of at-will employment, shedding light on its definition, historical context, legal boundaries, and practical implications in the modern workplace.

Defining at-will employment

At its core, at-will employment refers to an employment agreement that can be terminated at any time, by either the employer or the employee, for any reason that is not illegal, or for no reason at all. 

This definition encapsulates the essence of the doctrine, emphasizing the unilateral flexibility it provides in the employment relationship. 

However, this flexibility is not absolute and is bounded by a framework of legal exceptions designed to prevent wrongful terminations.

Historically, the concept of at-will employment in the United States was not the result of formal legislation but rather evolved through legal precedents over the years. 

It is widely attributed to Horace Gray Wood’s 1871 treatise, which articulated the principle that employment could be terminated by either party without notice. 

This doctrine starkly contrasts with employment practices in other countries, where employment contracts and indefinite employment terms are more common, reflecting a different approach to labor relations and worker protections.

Misconceptions and legal boundaries

Despite its widespread application, at-will employment is often misunderstood, with many assuming it grants employers carte blanche to dismiss employees arbitrarily. 

This misconception overlooks the legal boundaries that have been established to protect workers from unjust termination. 

Key exceptions to the at-will doctrine include:

Public policy exception: This exception prevents employers from terminating employees for reasons that violate state or national public policy, such as firing an employee for filing a workers’ compensation claim or for refusing to engage in illegal activities at the request of the employer.

Implied contract exception: An employee may argue that an implied contract was formed, suggesting a guarantee of continued employment, based on the employer’s statements, policies, or practices.

Good faith and fair dealing: Some states recognize this exception, which bars employers from terminating employees in bad faith or for malicious reasons, aiming to ensure that termination decisions are not made out of spite or for reasons unrelated to job performance or business needs.

These exceptions illustrate the legal complexities surrounding at-will employment, highlighting the need for both employers and employees to navigate this doctrine with a clear understanding of its limitations and protections.

Advantages and disadvantages

The at-will employment doctrine offers distinct advantages and disadvantages, influencing the operational strategies of businesses and the career decisions of employees. 

For employers, the primary benefit lies in the flexibility to adapt their workforce to changing business needs without the constraints of fixed-term contracts. 

This flexibility allows for the swift reallocation of resources, adjustments to staffing levels, and modifications to employment terms in response to market dynamics. 

Additionally, at-will employment supports a meritocratic work environment, where promotions and rewards can be based on performance rather than seniority, fostering a culture of achievement and motivation.

Conversely, the disadvantages of at-will employment primarily affect employees, who may face job insecurity and limited protections against arbitrary dismissal. 

The lack of guaranteed employment tenure can lead to a precarious work situation, where employees are vulnerable to sudden termination without cause. 

This vulnerability underscores the importance of understanding the legal exceptions and protections available under the at-will doctrine, as well as the potential benefits of union representation or negotiated employment contracts that offer greater job security.

Rights under at-will employment

Despite the seemingly broad powers that at-will employment grants employers, it’s crucial to recognize the substantial rights and protections that employees retain under this doctrine. 

These safeguards are designed to prevent discrimination, retaliation, and other forms of wrongful termination, ensuring a fair and equitable workplace.

Anti-discrimination laws

Federal and state laws prohibit employers from terminating employees based on race, color, religion, sex, national origin, age (40 or older), disability, or genetic information. 

These protections ensure that all employees have equal opportunities and are judged solely on their merits and job performance.

Retaliation protections

Employees are protected from being fired as a form of retaliation for engaging in legally protected activities, such as filing a complaint about workplace discrimination or harassment, participating in an investigation, or whistleblowing on illegal activities within the organization.

Unions and collective bargaining

In at-will states, unions still play a significant role in negotiating terms of employment that can offer additional job security and protections for workers. 

These agreements may include clauses that limit the reasons for which an employee can be terminated, typically requiring “just cause” for termination.

Understanding these rights is essential for employees to navigate their employment securely and for employers to manage their workforce responsibly. 

At-will employment in practice

In practice, at-will employment encompasses a wide range of scenarios, from straightforward terminations due to business downturns to complex legal disputes over alleged wrongful terminations. 

Here are examples illustrating the application of at-will employment:

Performance-based termination

An employee consistently underperforms despite receiving feedback and resources for improvement. The employer decides to terminate the employment based on documented performance issues, aligning with at-will employment principles while ensuring the decision is justified and documented.

Disputed termination 

An employee claims their termination was due to discriminatory reasons, challenging the at-will termination. This scenario underscores the importance of employers maintaining clear, documented reasons for termination that comply with legal protections against discrimination and retaliation.

Communicating at-will employment terms effectively involves clear language in job postings, offer letters, and employee handbooks, ensuring employees understand the nature of their employment relationship from the start.

Tips for HR professionals on managing at-will employment

Navigating at-will employment requires HR professionals to balance legal compliance, ethical considerations, and organizational objectives. Here’s a concise guide to managing at-will employment effectively:

Stay informed: Keep abreast of changes in employment laws and educate management on the legalities surrounding at-will employment to prevent wrongful termination claims.

Clear communication: Ensure at-will employment policies are transparently communicated through employee handbooks and offer letters, and that employees understand these policies.

Document rigorously: Maintain detailed records of all employment decisions, including performance evaluations and disciplinary actions, to support these decisions if challenged.

Promote fairness: Foster a workplace culture that values fairness and equality, implementing regular training on diversity, inclusion, and anti-discrimination policies.

Handle terminations with care: Approach terminations sensitively, providing clear reasons for the decision and avoiding discriminatory or retaliatory language.

Ethical decision-making: Prioritize ethical considerations in employment decisions, exploring alternatives to termination such as performance improvement plans or reassignment.

Continuous learning: Engage in ongoing professional development to stay current on best practices in employment law and HR management.

Build trust: Cultivate an organizational culture of open communication, where employees feel comfortable discussing concerns and career goals.

By fostering a workplace culture that values fair treatment, transparency, and respect for legal protections, companies can leverage the benefits of at-will employment while minimizing its drawbacks.

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According to Employee Benefits (UK) 69% of employees say a better benefits package would make them choose one company over another while 60% of employees in a report of Harvard Business Review support that benefits and perks are a major factor in considering whether to accept a job offer. 

What are employee incentives?

Employee incentives are rewards or benefits offered to employees to encourage specific behaviors or achievements that contribute to the organizational goals. 

These incentives can be broadly categorized into two types: monetary and non-monetary. 

Monetary incentives include direct financial rewards such as bonuses, salary increases, and stock options. 

Non-monetary incentives, on the other hand, might encompass recognition programs, professional development opportunities, and enhanced work-life balance options.

The rationale behind employee incentives extends beyond simple reward mechanisms; they are rooted in the understanding of behavioral economics and social psychology. 

Concepts like intrinsic and extrinsic motivation play a pivotal role here. Intrinsic motivation refers to performing an activity for its inherent satisfaction, whereas extrinsic motivation involves performing an activity to earn a reward or avoid punishment. 

Effective incentive programs tap into both types of motivation, creating a balanced approach that acknowledges the complex drivers of human behavior at work.

Related: Unlocking global talent: your borderless hiring playbook – Get the ebook

The meaning and purpose of incentive programs

Incentive programs in the realm of human resources (HR) are strategic tools designed to align employee actions with the company’s objectives. 

Their primary aim is to motivate employees to perform at their best by offering rewards that are meaningful to them. 

These programs are multifaceted, not only aiming to boost performance but also to enhance job satisfaction, employee retention, and organizational culture.

A Gartner HR report revealed that 82% of employees consider recognition critical to their job satisfaction, yet a surprising 81% of executives admit their organizations do not prioritize recognition programs adequately​​. 

These findings point to the untapped potential of incentive programs in bridging the gap between employee expectations and organizational practices.

Incentive programs in HR

The role of HR in developing, implementing, and managing incentive programs is central to their success. These programs must be thoughtfully designed to reflect the organization’s culture, values, and strategic objectives. 

Moreover, they should be flexible enough to adapt to changing organizational needs and diverse employee demographics.

A strategic approach to incentive programs involves clear goal setting, choosing the right mix of incentives, effective communication, and ongoing evaluation. 

The Incentive Research Foundation has highlighted the importance of data in guiding program design and measuring effectiveness​​. 

This involves not only tracking the immediate impact on performance and engagement but also understanding long-term trends in employee behavior and organizational culture.

One of the challenges in implementing effective incentive programs is ensuring they are perceived as fair and meaningful by employees. 

This requires a deep understanding of the workforce’s diverse needs and preferences, which can be achieved through regular feedback mechanisms and personalization of rewards.

Related: Top employee engagement ideas to achieve success

15 examples of effective employee incentive programs

Employee incentive programs come in various forms, each designed to meet different organizational goals and employee needs. 

Here is a compilation of 15 examples, categorized by their nature and objectives:

Monetary Incentive Programs

Performance bonuses: These are financial rewards given to employees for achieving or surpassing specific performance benchmarks. Performance bonuses not only reward individual achievements but also encourage the continuation of high performance. To ensure fairness and effectiveness, benchmarks should be clearly defined, achievable, and aligned with the company’s strategic objectives.

Profit-sharing plans: This approach involves distributing a portion of the company’s profits among employees, typically on an annual basis. Profit-sharing plans can enhance the sense of ownership and belonging among employees, as they directly benefit from the company’s success. This incentive fosters a collective effort towards organizational profitability and success.

Stock options: Offering employees the option to purchase company stock at a preferential rate can be a powerful incentive. This method aligns employees’ interests with those of the company and its shareholders, promoting long-term commitment and providing a tangible stake in the company’s growth and success.

Sales commissions: Specifically designed for sales roles, commissions are a percentage of the sales an employee generates. This direct correlation between performance and reward makes commissions a highly effective motivator for sales personnel, driving sales growth and individual performance.

Spot bonuses: These are immediate rewards for exceptional work or achievements beyond the usual responsibilities. Spot bonuses are a great way to instantly recognize and reward outstanding contributions, offering a surprise element that can boost morale and motivation.

Non-Monetary Incentive Programs

Employee recognition programs: Formal recognition programs, such as “Employee of the Month” awards, spotlight individuals for their hard work and dedication. Recognition programs not only provide public acknowledgment but also reinforce the behaviors and values that are crucial to the company’s success.

Professional development opportunities: Investing in employees’ growth through training, workshops, or courses signals the company’s commitment to their career development. This incentive can lead to increased job satisfaction, improved skill sets, and higher levels of engagement.

Extra vacation days: Rewarding employees with additional paid time off is a significant incentive that values their need for work-life balance. It recognizes their hard work and provides an opportunity to recharge, leading to improved well-being and productivity.

Flexible working hours: Offering flexibility in work schedules or the option to work from home addresses the diverse needs and preferences of employees. This autonomy can lead to higher job satisfaction, reduced stress levels, and a more engaged workforce. Actually, flexible schedules are becoming more of a long term setup now, with 46.5% saying in Workable’s The Great Discontent report that they’ve been working on a flexible schedule for more than two years in 2023, and they like it. 

Wellness programs: Providing benefits such as gym memberships or wellness days off focuses on the physical and mental health of employees. Wellness programs demonstrate the company’s care for its employees’ well-being, potentially reducing healthcare costs and increasing overall productivity.

Team and company-wide incentives

Team performance bonuses: Rewards given to teams for achieving specific goals promote collaboration and collective effort. These bonuses can strengthen team bonds and drive collective success, aligning team efforts with organizational objectives.

Company trips or retreats: Organized trips for high-performing teams or individuals serve as a reward and a team-building opportunity. These experiences can foster stronger relationships, boost morale, and provide a memorable reward for achievements.

Corporate events and team-building activities: Activities designed to improve team cohesion and morale can also serve as incentives. Whether it’s a day out for team-building exercises or a dinner celebrating team achievements, these events can enhance team dynamics and employee engagement.

Employee referral bonuses: Incentives for employees who refer successful new hires leverage the existing workforce to find quality candidates. This program not only aids in recruitment but also rewards employees for contributing to the team’s growth.

Special project opportunities: Assigning high-performing employees to prestigious projects or roles is a form of recognition that offers professional growth opportunities. This incentive acknowledges their contributions and trusts them with significant responsibilities, leading to increased engagement and job satisfaction.

These detailed examples of incentive programs illustrate the diversity and potential impact of well-designed incentives in fostering a motivated, engaged, and productive workforce.

Implementing an effective incentive program

The implementation of an effective incentive program is a critical phase that determines its success and impact. It involves several strategic steps, each designed to ensure the program’s alignment with organizational goals and its receptiveness to employee needs.

Identifying goals: The first step in implementing an incentive program is to clearly identify its objectives. Whether it’s to boost sales, enhance productivity, improve employee retention, or foster a positive work culture, the goals of the program should be specific, measurable, achievable, relevant, and time-bound (SMART).

Selecting the right incentives: Based on the goals and the understanding of what motivates the workforce, select incentives that will resonate best with the employees. This selection process should consider the diversity of the workforce, including their preferences, job roles, and what they value most in their professional lives.

Effective communication: For an incentive program to be successful, it’s crucial that all employees understand how it works, how they can qualify for rewards, and what benefits are at stake. Transparent and ongoing communication through meetings, emails, and internal platforms ensures that the program’s details are clearly conveyed and understood.

Evaluation and feedback: Implementing a system for regular evaluation and feedback is vital for the program’s long-term success. This involves tracking participation rates, measuring the program’s impact on performance metrics, and soliciting employee feedback to identify areas for improvement. Adjustments should be made as necessary to keep the program relevant and effective.

As companies navigate the complexities of the modern workplace, those that master the art of effective incentive programs will undoubtedly stand out as employers of choice, achieving sustained organizational excellence and growth.

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This article aims to provide a comprehensive overview of PTO, delving into its meaning, operation, and comparison with traditional vacation policies. 

What is PTO?

Paid time off (PTO) refers to the labor law concept of paid leave or, more formally, a leave of absence authorized by an employer. 

This arrangement allows employees to take time off from work for various reasons—such as personal matters, illness, or vacation—while still receiving compensation. 

In contrast to European workers who are usually entitled to 20 to 30 paid days off annually, the United States does not have a mandatory provision for paid holidays, vacation days, or paid sick leave at the national level. 

Instead, companies establish their own policies regarding paid time off (PTO). 

According to the Bureau of Labor Statistics, 76% of American employees have access to PTO, with many receiving between 5 and 10 days per year. PTO policies are designed to offer employees flexibility and autonomy over their time off, as opposed to traditional leave systems that segregate time off into specific categories like sick leave, personal days, and vacation time.

The concept of PTO is rooted in the understanding that employees benefit from having a balance between their professional and personal lives, contributing to a more satisfied and productive workforce.

How does it work?

The operation of PTO systems varies among organizations but generally involves the accrual of time off based on the length of employment and the number of hours worked. 

Employees typically earn a certain amount of PTO hours for each pay period, which they can then use at their discretion for vacations, personal time, or illness. 

This accrual system encourages employees to remain with the company longer, as the amount of PTO available often increases with tenure.

Employers set up PTO policies that outline how and when employees can use their accrued time off. These policies might include provisions for rollover of unused PTO to the next year, caps on the amount of PTO that can be accrued, and procedures for requesting and approving PTO. 

It’s crucial for these policies to be clearly communicated to all employees to ensure a mutual understanding of how PTO can be utilized effectively.

Labor laws in various jurisdictions also play a significant role in determining the minimum requirements for PTO, including the accrual rate, usage, and payout upon termination of employment. 

For example, some countries mandate a minimum number of paid vacation days per year, while others leave it to the discretion of the employer and employee to negotiate PTO terms. 

Regardless of the specific regulations, the overarching goal of PTO policies is to provide employees with the flexibility to manage their work and personal life, fostering a healthier, more engaged, and productive workforce.

PTO vs.vacation: understanding the difference

The distinction between paid time off (PTO) and vacation time is a common source of confusion in workplace terminology. 

While both concepts allow employees to take time away from work, they operate under different principles and policies. 

PTO is a more modern, flexible approach that combines various types of leave into one comprehensive benefit. This includes vacation, sick leave, personal days, and sometimes even holidays, giving employees the autonomy to use their time off as they see fit without having to specify the reason to their employer.

In contrast, traditional vacation policies segregate time off into specific categories, each with its own set of rules and accrual rates. 

Vacation time is specifically allocated for leisure and rest, separate from sick leave or personal days. 

This traditional system often requires employees to plan and use their vacation time distinctly from other types of leave, which can be less flexible and more complicated to manage both for employees and HR departments.

The PTO model’s primary advantage is its simplicity and flexibility, allowing employees to make decisions about their time off based on their individual needs without the need to categorize the absence. 

This approach can lead to increased employee satisfaction and morale, as it respects and acknowledges the diverse needs of the workforce. 

However, it also requires clear communication and robust tracking systems to ensure that PTO is used appropriately and does not impact the organization’s operational needs negatively.

Related: What is a floating holiday? Is it considered PTO?

The benefits for employees and employers

The implementation of PTO policies offers a range of benefits for both employees and employers, contributing to a positive workplace culture and improved organizational performance. 

For employees, PTO provides greater flexibility and control over their time off, allowing them to balance work with personal life, family needs, and leisure activities more effectively. 

This flexibility can lead to increased job satisfaction, reduced stress levels, and improved mental and physical health, which are crucial for maintaining a productive and engaged workforce.

From an employer’s perspective, PTO policies can enhance the company’s attractiveness as a place to work, aiding in talent acquisition and retention. 

A flexible and comprehensive PTO policy demonstrates an organization’s commitment to employee well-being and work-life balance, which can differentiate it from competitors in the job market. 

Moreover, by consolidating various types of leave into a single PTO system, employers can simplify administrative processes, reduce complexity in tracking and managing leave, and potentially decrease unscheduled absences.

Furthermore, PTO can encourage a more responsible use of time off, as employees tend to plan their absences more thoughtfully when given the autonomy to decide how to use their leave. 

This can lead to better coverage planning and less disruption to business operations, benefiting the overall productivity and efficiency of the organization.

Related: Top companies with unlimited PTO – they do exist and thrive

Challenges and considerations in implementing PTO policies

While PTO policies offer numerous benefits, their implementation comes with its own set of challenges and considerations. 

One of the primary concerns for employers is the potential for abuse, where employees might take excessive time off, impacting productivity and operational efficiency. 

To mitigate this, organizations must establish clear guidelines and processes for requesting and approving PTO, ensuring fairness and transparency while maintaining the necessary workforce to meet business demands.

Another consideration is the cultural shift required to move from traditional leave systems to a PTO model. 

This transition can be met with resistance from employees accustomed to separate vacation, sick, and personal leave balances. 

Effective communication and education about the benefits and operation of the new PTO policy are crucial for gaining employee buy-in and facilitating a smooth transition.

Employers must also navigate the legal landscape of labor laws in their jurisdiction, which may dictate minimum leave entitlements, accrual rates, and payout obligations for unused PTO. 

Compliance with these laws while designing a PTO policy that meets the organization’s and employees’ needs requires careful planning and consultation with legal and HR professionals.

PTO tracking and HRIS tools

In the era of digital transformation, Human Resource Information System (HRIS) tools like Workable have become indispensable for efficiently managing PTO policies and time-off scheduling. 

These systems offer a range of features to streamline the administration of PTO, including automated accrual tracking, leave request workflows, and real-time visibility into leave balances for both employees and managers.

Automated accrual calculations eliminate manual tracking errors and ensure that PTO balances are always up-to-date, reflecting earned and used leave accurately. 

The adoption of HRIS tools for PTO management not only enhances operational efficiency but also improves the employee experience by offering transparency and ease of use in managing their leave. 

This technology investment can lead to significant long-term benefits, including increased compliance, reduced administrative burden, and a more engaged and satisfied workforce.

As the workplace continues to evolve, PTO policies will remain a critical component of employee benefits packages, reflecting an organization’s commitment to supporting its employees’ health, happiness, and overall success.

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Understanding who qualifies as a statutory employee in the U.S. and the implications of this classification is crucial for ensuring compliance with tax laws and for the strategic management of human resources.

What is a statutory employee?

The Internal Revenue Service (IRS) defines a statutory employee as an individual who falls under a specific classification that straddles the line between an independent contractor and a traditional employee. 

This classification arises from the statutory provisions that exist within federal tax law, specifically outlined in the IRS guidelines. 

Statutory employees are unique because, although they may perform services for a business in a manner similar to employees, they are treated differently for employment tax purposes.

Statutory employees are subject to Social Security and Medicare taxes, but unlike regular employees, they are exempt from federal income tax withholding. 

This classification allows them to deduct work-related expenses on Schedule C (Form 1040), which is not typically available to regular employees. 

The criteria for being considered a statutory employee include performing services according to a contract that explicitly states the individual will not be treated as an independent contractor for federal tax purposes.

Key characteristics that differentiate statutory employees from regular employees include:

• The manner in which they are paid: Statutory employees receive a W-2 form but are responsible for paying their own income taxes.
• Their ability to deduct business expenses directly against their income.
• The specific nature of their work, which often includes services performed outside of the usual course of the business’s trade.

Statutory employees examples

Determining whether an individual is a statutory employee involves assessing the nature of the work performed and the relationship between the worker and the employer. 

The IRS specifies four categories of workers who can be considered statutory employees if they meet certain conditions:

Driver-salespersons: Those who deliver food, beverages (excluding milk), laundry, or dry cleaning for their employer.

Full-time life insurance sales agents: Primarily selling life insurance or annuity contracts for a single life insurance company.

Home workers: Individuals who work at home on materials or goods supplied by their employer, which must be returned to the employer or a designated person upon completion.

Traveling or city salespersons: Salespersons who work full-time and submit orders from wholesalers, restaurants, or similar establishments on behalf of their employer.

To be classified as a statutory employee, a worker must meet the guidelines set forth by the IRS, including the condition that the contract of service contemplates or states that the individual will not be treated as an independent contractor for federal tax purposes.

Tax implications for statutory employees

The tax treatment of statutory employees presents a unique blend of independence and employee status, setting them apart from both regular employees and independent contractors. 

One of the most significant aspects of being a statutory employee is the handling of taxes, particularly concerning Social Security and Medicare.

W-2 reporting and schedule C deductions

Statutory employees receive a W-2 form from their employers, but with a critical difference—the box for “statutory employee” is checked. This classification allows them to report their income and expenses differently. 

Unlike regular employees, statutory employees can file Schedule C (Form 1040) to report their wages and business-related expenses. 

This ability to deduct business expenses directly from their W-2 income can significantly lower taxable income, providing a tax advantage not available to most employees.

Social security and medicare taxes 

Despite their unique status, statutory employees are still subject to Social Security and Medicare taxes. 

These taxes are typically withheld by the employer, similar to regular employment. However, the responsibility for income tax payments lies with the statutory employees themselves, requiring them to make estimated tax payments throughout the year or face penalties for underpayment.

California provisions about statutory employees

California’s approach to employment classification includes specific considerations that can affect statutory employees. 

The state’s labor laws are known for their stringent criteria for classifying workers, primarily aimed at protecting employee rights and ensuring fair labor practices. 

For statutory employees, this means navigating both federal guidelines and California’s specific requirements.

In California, the definition and treatment of statutory employees extend beyond the federal guidelines set by the IRS, incorporating a wider array of worker categories and specific state-level provisions.

This includes not only the traditional categories recognized by the IRS, such as driver-salespersons and home workers, but also encompasses corporate officers, members of Limited Liability Companies (LLCs) treated as corporations for tax purposes, artists, authors in the entertainment industry under certain conditions, and individuals in the construction industry lacking a valid contractor’s license. 

These inclusions reflect California’s approach to offering broader labor protections and ensuring a comprehensive coverage under unemployment insurance (UI), employment training tax (ETT), and state disability insurance (SDI), aiming to accommodate the diverse nature of work within the state.

Furthermore, California’s regulations detail distinct requirements for personal income tax (PIT) withholding for statutory employees, differentiating based on the worker’s specific classification. 

For example, corporate officers and members of an LLC treated as a corporation, along with workers in the construction industry, are subject to specific withholding requirements. 

Differences between statutory and regular employees

Understanding the differences between statutory and regular employees is crucial for employers, especially when it comes to employment rights, benefits, and tax implications.

Employment rights and benefits

Regular employees typically enjoy a broader range of employment rights and benefits, including unemployment insurance, workers’ compensation, and employer-provided health insurance. 

In contrast, statutory employees, while still covered under Social Security and Medicare, may not be eligible for the same breadth of benefits and protections. 

This distinction underscores the importance of accurately classifying employees to ensure they receive the appropriate rights and benefits.

Employer obligations

Employers have distinct obligations depending on whether their workers are classified as statutory or regular employees. 

For statutory employees, employers are required to withhold Social Security and Medicare taxes but are not required to withhold federal income tax. 

This contrasts with regular employees, for whom employers must withhold federal income tax, Social Security, and Medicare taxes. 

Additionally, the requirement to provide certain benefits may differ, affecting the employer’s financial and administrative responsibilities.

Identifying as a statutory employee

For individuals and employers alike, accurately identifying statutory employee status is essential for compliance with tax laws and labor regulations. The determination hinges on several factors:

1. Contractual agreement: The presence of a contract specifying that the worker is treated as a statutory employee for federal tax purposes is a primary indicator.
2. IRS guidelines: Meeting the IRS’s specific criteria for statutory employees, as outlined in the categories of eligible workers, is crucial for this classification.
3. Employer control: The degree of control the employer has over the worker and the work performed can also influence classification. Statutory employees typically have more autonomy than regular employees but less than independent contractors.

Understanding these factors and consulting with legal or tax professionals can help clarify an individual’s employment status and ensure that both parties meet their respective obligations.

For HR professionals and business owners, understanding the nuances of this classification is essential for compliance, effective workforce management, and strategic planning. 

By accurately identifying statutory employees, adhering to tax and labor laws, and recognizing the specific rights and obligations involved, businesses can navigate the complexities of employment classifications with confidence.

Note: Before taking any action, make sure to consult with your local law counselors as laws and regulations can be modified.

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What is an HR Generalist?

An HR Generalist is a multifaceted professional who handles a variety of HR functions. They are often seen as the jack-of-all-trades in the HR department, dealing with the day-to-day management of HR operations.

Key Responsibilities:

• Overseeing recruitment processes, from job postings to interviewing candidates.
• Conducting employee onboarding and organizing training sessions.
• Managing employee benefits, including health insurance and retirement plans.
• Ensuring compliance with labor laws and organizational policies.
• Handling employee grievances and fostering a positive work environment.

Skills and Qualifications:

• Typically holds a bachelor’s degree in Human Resources, Business Administration, or a related field.
• Possesses a broad knowledge of HR practices and employment legislation.
• Exhibits excellent communication, organizational, and conflict-resolution skills.
• Demonstrates proficiency in HR software and tools.

What is an HR Manager?

An HR Manager is a strategic role, primarily focused on aligning HR strategies with business goals. They play a pivotal role in policy formulation, HR team leadership, and high-level decision-making.

Key Responsibilities:

• Developing and implementing HR strategies and initiatives aligned with the overall business strategy.
• Bridging management and employee relations by addressing demands, grievances, or other issues.
• Managing the recruitment and selection process.
• Overseeing and managing a performance appraisal system that drives high performance.
• Ensuring legal compliance throughout human resource management.

Skills and Qualifications:

• Often holds a master’s degree in Human Resources Management or Business Administration.
• Demonstrates strong leadership and strategic planning abilities.
• Has extensive knowledge of HR policies, systems, and employment law.
• Exhibits excellent communication and interpersonal skills.

Comparing HR Generalist and HR Manager

The roles of HR Generalist and HR Manager, while overlapping in some areas, are distinct in their core responsibilities and impact on the organization. An HR Generalist is more involved in the operational aspects of HR, whereas an HR Manager takes a strategic approach, focusing on long-term HR goals and policies.

Interaction and Synergy

• HR Generalists often work under the guidance of HR Managers, implementing policies and strategies developed by them.
• HR Managers depend on HR Generalists to provide ground-level insights into employee concerns and HR operational efficiency.
• Both roles collaborate to ensure effective HR management and employee satisfaction.

Career Path and Progression

Progressing from an HR Generalist to an HR Manager is a common career path in the HR field. This transition requires accumulating extensive experience in various HR functions, honing leadership skills, and often pursuing further education or professional certifications.

Key Steps for Advancement

• Accumulating hands-on experience in diverse HR roles, including recruitment, training, and employee relations.
• Developing a deep understanding of HR metrics and how they impact business outcomes.
• Enhancing leadership skills, particularly in areas of strategic planning and team management.
• Pursuing advanced degrees or certifications in HR, such as SHRM-CP or SHRM-SCP.

Industry trends and challenges

The HR field is constantly evolving, with new challenges and trends emerging. For instance, the rise of remote work has brought new dynamics to employee management and engagement. HR professionals must adapt to these changes, leveraging technology such as ATS or HRIS systems and innovative strategies to manage a dispersed workforce effectively.

The role of technology in HR

Advancements in HR technology, such as HRIS (Human Resource Information Systems) and AI-driven analytics, are transforming how HR departments operate. These technologies enable more efficient data management, predictive analytics for talent management, and enhanced employee experience through digital platforms.

Global HR practices

In an increasingly globalized business environment, HR professionals must navigate diverse cultural, legal, and regulatory landscapes. Understanding global HR practices is crucial for multinational organizations, requiring HR Generalists and Managers to possess a global perspective and cultural sensitivity.

Diversity and inclusion in HR

A significant aspect of modern HR is managing diversity and fostering an inclusive work environment. HR professionals are at the forefront of developing policies and practices that promote diversity, equity, and inclusion (DEI) in the workplace. This includes creating DEI training programs, ensuring fair recruitment practices, and addressing any form of workplace discrimination.

Employee well-being and engagement

Another critical area in HR is employee well-being and engagement. HR Generalists and Managers play a vital role in designing programs that support employee mental health, work-life balance, and overall job satisfaction. These initiatives not only improve employee morale but also contribute to higher productivity and retention rates.

Legal compliance and ethics

HR professionals must also ensure that the organization adheres to employment laws and ethical standards. This involves staying updated with changing labor laws, implementing compliant HR policies, and maintaining high ethical standards in all HR practices.

The roles of HR Generalist and HR Manager are both critical in shaping an organization’s HR strategy and employee experience. While the HR Generalist focuses on the operational aspects of HR, the HR Manager plays a strategic role in aligning HR practices with business objectives.

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What is chaotic working?

Chaotic working is a term that has gained prominence recently, reflecting a particular behavior in the workplace. It describes a situation where employees, often feeling disaffected or overburdened by their work conditions, engage in acts of generosity or leniency towards customers or clients, sometimes at a small cost to the company.

@speechprof

For legal reasons, I’m not saying you should do this, I’m simply sharing something I saw posted online. #quietquitting

♬ original sound – The Speech Prof

This behavior is a form of passive-aggressive protest against the workplace environment, where employees feel overworked or subjected to excessive quotas. If you’ve heard the term before, you may have heard it as a descriptor of literal chaos in the workplace where employees are scrambling to meet quotas or deliver on expectations – but now, it’s evolved to mean acts of generosity.

This can be seen as a way for employees to express their dissatisfaction with their work situation. It’s a form of rebellion against the company, but instead of direct confrontation or quiet quitting, it manifests as excessive generosity towards customers. In other words, it’s a passive aggressive response.

Why is chaotic working a big thing?

The rise of chaotic working is due to numerous factors. One major driver is the changing perception of work-life balance and the role of work in personal identity.

Today’s workers are seeking meaningful and fulfilling work experiences – and as a result, they’re increasingly intolerant of working environments that they see as oppressive, overly demanding, or misaligned with their own personal values and ethics.

Online griping

There’s also social media. Platforms like LinkedIn, Reddit, and TikTok have become soapboxes for employees to air their grievances.

For example, Reddit has the “Antiwork” and “Malicious Compliance” subreddit categories, both of which have millions of followers. These, among other social media forums, have fueled a collective consciousness about worker rights and empowerment, driving trends up to and including chaotic working.

A challenge to authority

Additionally, societal shifts in attitudes towards authority and corporate structures have emboldened employees to take matters into their own hands, often leading to actions that align with chaotic working.

There’s a growing sentiment, especially among younger workers, to challenge traditional hierarchies and question the status quo. This isn’t just a rebellion against specific workplaces but a broader commentary on today’s economic systems and corporate practices.

Examples of chaotic working

So, what are some good examples of chaotic working? We can pull up three right now – albeit fictional, they’re still great cultural representations of this trend.

1. The Office – Jim Halpert

In the American version of “The Office,” Jim Halpert, a salesman at the Dunder Mifflin paper company, uses his interactions with customers as a way to navigate and occasionally push back against the company’s rigid corporate policies.

Sure, Jim’s more known for his pranks and humorous approach to the absurdities of his office, but he also goes beyond protocol – and bends company rules – to keep customers happy. It’s not just sales; it’s a subtle form of rebellion against the often nonsensical expectations of his workplace.

2. House M.D. – Dr. Gregory House

In the medical drama series “House M.D.,” Dr. Gregory House, a grumpy maverick doctor, is often rankled at the norms of medical practice and the bureaucratic processes of his hospital. He’ll often bypass standard medical protocol and disregard hospital rules in pursuit of accurate diagnoses and effective treatments for patients with complex and baffling conditions.

He’s skeptical about the “way things are always done”, and he’ll gladly rebel for the benefit of his patients even if it means going head to head with authority and risking his career.

Sure, ultimately, you can say that he believes in doing good for his patients and circumventing the BS that gets in the way – but he’s clearly motivated by his frustration with the system as well.

3. Parks and Recreation – April Ludgate

In the TV show “Parks and Recreation,” April Ludgate, portrayed by Aubrey Plaza, works in the Parks Department in a fictional town. She’s absolutely known for her deadpan, sarcastic, and apathetic approach to her job – and yes, passively aggressively rebels against the bureaucratic and mundane elements of her workplace.

And you know what? She sometimes surprises her colleagues and the town’s citizens with unexpected good deeds – although they are still laced with her deliberately acerbic approach and the bending and breaking of departmental rules and procedures.

One might say she does it all for personal amusement to make her mind-numbing day-to-day work more bearable.

So what can employers do about it?

OK. So you do have folks like Jim, Dr. House, and April in your workplace and while you can appreciate that they’re helping their customers (which is kind of the passive-aggressive point of chaotic working), you still need to button this stuff up. It’s not healthy and it’s not sustainable for your company.

To fix it, you’ll need to implement proactive strategies that focus on well-being and satisfaction among your employees. It’s not as complicated as you might think – here are eight tips to help you weed out chaotic working in your company:

1. Open up the comm channels

Establish open and transparent channels for communication. Encourage regular feedback windows where employees can voice their concerns and suggestions without fear of repercussions.

You can do this via team meetings, anonymous feedback surveys, or one-on-one sessions with managers.

2. Recognize and reward accomplishments

A pat on the back for a job well done is fine – but a formal recognition program to celebrate employees for their work and achievements is crucial.

These can range from formal award systems to public acknowledgements – and tangible rewards for meeting stated goals.

3. Promote work-life balance and integration

The blurring of the boundary between work and home means it’s even more important now to support your colleagues in balancing out their home and work commitments.

This can include clearly outlined flexible and remote work policies and overt financial support for new parents and fresh graduates. Also, regularly consult with colleagues and be observant of any situations where overwork and burnout may be on the horizon.

4. Invest in learning & development

It costs far more to fill a talent gap with a new hire than it does to develop your existing employees so they’re more than capable of doing that themselves.

Support the professional growth and skills development of your teams with established L&D policies that can include training programs, workshops, mentorship opportunities, career development plans, and so on.

Related: 5 recruitment and retention strategies that actually work

5. Ensure an inclusive and supportive culture

Yes, DEI factors into all this. Build a workplace environment that values diversity, equity, inclusivity and belonging – and shows it in an actual DEI action plan, not just words.

Encourage an appropriately diverse workforce that reflects the overall society demographics, plan team-building activities, establish mentorship programs, and ensure real equity in salary.

6. Prioritize workplace mental health and well-being

You don’t want your company to suffer from organizational trauma. Provide resources and support for mental health, including counseling services and wellness programs in your benefits package as well as no-questions-asked mental health days.

And as above, ensure open channels of communication and keep an eye out for burnout and malaise.

7. Lead by example

Finally, managers and executives must lead by example. Want a positive work culture? Espouse that in your own management practices by striking a positive tone and supporting your colleagues during meetings and interactions.

Be a bastion of inclusive leadership. Be empathetic and deliberate when checking in with your teams, and practice what you preach. Also, make it clear that the proverbial door is always open should anyone need to approach you about anything – and we mean anything.

By implementing these action items and more, you can create a more engaging and satisfying workplace, reducing the likelihood of chaotic working and improving overall productivity and employee morale.

A symptom of something bigger

Chaotic working is a fun new inclusion alongside quiet quitting, coffee badging, and career cushioning in anyone’s list of new workplace terminologies, but it’s serious business.

It’s a symptom of something and a red flag that calls for immediate attention. It underscores the importance of understanding employee needs and perspectives and ensuring a healthier, more productive working environment.

In other words, it means being more human as an employer. You’re all in this together – as such, the well-being and aspirations of your employees go hand in hand with that of your actual company. It’s a mutually beneficial relationship.

The post What is chaotic working – and 7 things you can do about it appeared first on Recruiting Resources: How to Recruit and Hire Better.

This, of course, requires deliberate planning and self-awareness. You and your teams can’t grow and flourish unless they know their shortcomings well enough such that they can grow out of these shortcomings with smart development and growth.

That’s where a personal development plan can come in incredibly useful. Often referred to as a PDP for short, it’s a roadmap for professionals to not only set goals, but identify the right targets and provide the means to achieve them.

Here’s everything you want to know about a PDP, and we even have a template ready for your use to ensure the holistic development of any professional – not just yourself.

Related: Employee development and the Peter Principle

What is a PDP?

A Personal Development Plan (PDP) is a vital tool that encourages self-awareness, continuous growth, and progression in a professional setting. Not only does it pave the way for skill enhancement, but it also aids in setting clear career objectives.

By having a visual guide and regular check-ins, professionals stay on track, motivated, and accountable.

How is this specific PDP template designed?

This particular template caters to both the professional and the personal side of an employee. It combines both past and present evaluations for a holistic development experience and, more importantly, has a detailed action plan.

That action plan breaks goals down into measurable objectives and then into actionable steps – making an overall development plan more achievable. This ensures clarity, focus, and a tangible sense of accomplishment.

Who should use this PDP?

HR professionals, employers, team leaders, and managers can introduce this PDP template to their teams, irrespective of the scale of the organization.

Honestly, anyone can use this template. It’s ideal for any professional looking to organize, monitor, and accelerate their career trajectory so they can succeed in the areas that they want to grow in.

When should a PDP be used?

Consider the PDP, especially this version, to be dynamic and perpetually evolving. It should be used continuously throughout a professional’s journey, and adapted according to that professional’s progress towards their objectives and goals.

Regular reviews are a must – for example, establish quarterly updates and check-ins to ensure that goals stay relevant and timely, and that accomplishments are celebrated as deserved.

Where can the PDP be implemented?

This PDP can be incorporated into an employee’s annual reviews, onboarding processes, or even as a self-initiated tool by employees looking to optimize their growth and development.

What’s the difference between a PDP and a PIP?

This is important: don’t confuse the PDP with the much-feared PIP. The PDP is a proactive, forward-looking document that outlines an individual’s goals, skills they want to acquire, and steps they plan to take for personal and professional development.

In contrast, a Performance Improvement Plan (PIP) is a reactive tool used by employers to address specific areas where an employee is underperforming, detailing the corrective actions required to meet the expected standards within a set timeframe.

In short: PDPs focus on growth and potential, while PIPs address existing performance deficiencies.

How do I make the most of this PDP?

1. Take time to reflect: The past and present sections encourage a balanced reflection, allowing individuals to understand their roots and celebrate their growth.

2. Set clear goals: Setting 3-5 goals ensures focus without being overwhelmed. By aligning them with professional aspirations and development areas, the goals are both ambitious and relevant. The SMART goals framework can be followed here.

3. Tackle step by step: By breaking down objectives into specific actions and setting deadlines, the path to achieving each goal becomes clear.

4. Review regularly: Scheduled reviews keep the momentum going. They provide an opportunity to celebrate milestones, reassess objectives, or adjust action steps.

Your template for growth

This PDP template isn’t just a tool – it’s a roadmap. It’s your path to personal and professional growth.

Don’t leave professional development to luck or happenstance – you and your colleagues can proactively pursue goals using this deliberate endeavor. The future you will thank you for working the PDP into your regular work habits.

The post Your PDP template: a tool for your team to shine appeared first on Recruiting Resources: How to Recruit and Hire Better.

Contents:

• Bona fide occupational qualification
• Affirmative action
• Equal Employment Opportunity should extend beyond the law

Disclaimer: We don’t provide legal advice, nor is this a legal document. Consult an attorney to learn about your company’s specific legal requirements or the law.

In the legal sense of the EEO definition, “same chances” or “equal opportunity” means that employers cannot use certain characteristics as reasons to hire or reject candidates or make other employment decisions; in other words, they cannot discriminate against those characteristics. In many countries, protected characteristics include:

• Race / color
• National origin / ethnicity
• Religion
• Age
• Sex / gender / sexual orientation
• Physical or mental disability

EEO doesn’t guarantee that people of underrepresented groups will get hired. The purpose of EEO regulations is to make sure nobody will face rejection or difficulties because they’re in a protected group.

For example, under several EEO laws, you cannot reject a candidate simply because they’re Jewish or Christian, African or Caucasian, or because they’re pregnant. Similarly, you cannot advertise jobs asking for candidates of a certain age, and you cannot promote men over women – you can only base this decision on each person’s proven capabilities, performance and other objective criteria, rather than biases against protected groups.

If your company fails to comply with equal employment opportunity regulations, you may face complaints, lawsuits and fines. There are also the intangible costs associated with having a uniform instead of diverse workforce; you’re missing out on the benefits of different perspectives and approaches to the work at hand.

To keep track of how EEO compliant organizations are, U.S. regulations require some employers to file the EEO-1 report. Generally, if you have more than 100 employees, or you’re a federal contractor with more than 50 employees and a federal contract worth more than $50,000, you’ll need to file an EEO-1 report.

Don’t miss our complete EEO guide for employers

Bona fide occupational qualification

Equal employment opportunity that concerns protected characteristics does have some exceptions. These exceptions of the EEO definition are bona fide qualifications (or “genuine occupational qualifications” in the UK) for a specific job. The nature of certain jobs may allow you to make an employment decision based on one of the protected characteristics.

For example, if you’re hiring for an actor to play a teenager, you can hire a person more closely to the age of the film character, rather than a middle-aged actor. Or, if a company makes clothes for men, it can advertise for male models. Another example is when a religious organization of a certain faith hires only candidates who share that faith if their job is related to it (for instance, when they are members of the clergy.)

Affirmative action

There’s another special case when considering specific protected characteristics. This comes in the form of affirmative action: the conscious, proactive pursuit of gender balance and diversity in an organization by supporting protected groups who are traditionally discriminated against.

For example, if your software development team is all white males, you can lawfully partner with associations of female, African or Asian engineers to find great candidates and assemble a team that is more representative of the society where they’ll be working. You still shouldn’t make the final hiring decision because of a person’s protected characteristic; you can only try to attract diverse candidates to broaden your talent pool.

This logic extends to fully formed programs that support affirmative action through education. Introducing training programs to combat hidden biases of hiring teams is an effective way to reduce unconscious discrimination.

Yet, because race-based affirmative action was banned in some U.S. states, the road is open for other effective EEO strategies. At the very least, craft an EEO policy to ensure your employees know you value fairness and diversity.

Equal Employment Opportunity should extend beyond the law

Using arbitrary and non-job-related criteria is the surest way to unfairly discriminate against people, even unwittingly. For example, when screening resumes, consider whether a person’s degree from a prestigious school truly speaks to their suitability for the job you’re hiring for. It’s not illegal to only hire candidates from Ivy League schools, but it certainly narrows your talent pool and reduces the chances of you finding the absolute best candidate out there. Make sure you always use the most objective criteria possible.

Of course, equal opportunity, diversity and relevant laws keep evolving. Different countries or states might enact new regulations, and companies might try out new EEO strategies. Be sure to check for updates regularly and don’t be afraid to test new ways of building a fair, ethical workplace.

Now that you know the answer to the question “what is EEO?”, check out our guides on EEOC regulations, the EEO-1 report and EEO statements. And, consider taking actions to combat overlooked types of discrimination, like age discrimination.

The post What is EEO? appeared first on Recruiting Resources: How to Recruit and Hire Better.

HRIS – or Human Resources Information System – is a software system primarily used by human resources professionals to store and manage employee data such as payroll, benefits, performance reviews, and training records.

HRIS systems are designed to automate HR processes and streamline the management of employee information.

What does HRIS stand for?

HRIS stands for Human Resources Information System.

Why is HRIS important?

If you’re working in human resources, you know all too well the numerous processes and responsibilities that you need to stay on top of on a regular basis. It can be a mountain of work in your day-to-day work, especially when you’re working with distributed teams, larger employee bases, high turnover, and other variables that make for more complex processes.

This is where an HRIS come in incredibly useful in supporting and optimizing your overall workload in HR.
An HRIS can make your work:

1. More organized

You’re able to organize your work better than you could in the past, and your company can be better organized in the way it manages the information in its employee base.

2. More streamlined

Not only are you more organized, you can also optimize your work so you’re not repeating menial tasks and even duplicating efforts day in and day out – an HRIS automates your work, making it a more streamlined experience.

3. More transparency

When you have multiple players in a system and many full-time employees in your HR team and in your company, it’s hard to keep things organized and keep everyone uniformly informed. With a good HRIS, you can reduce any potential confusion by having a single source of information for everything that passes through HR.

Why should HR managers care about HRIS?

HR managers should care about HRIS because it can help them to streamline and automate many of the day-to-day tasks that take up a lot of time and resources to manage.

HRIS systems can also help reduce administrative costs by eliminating manual processes, increasing efficiency and accuracy, and improving data accuracy.

It can also help to provide more comprehensive and accurate data insights that enable HR managers to make more informed decisions and support overall business strategy that involve employees. Likewise, users of the software can better measure and analyze employee engagement, productivity, and other key metrics.

Additionally, HRIS systems provide an organized, efficient and centralized tool to manage employee records, benefits, and payroll, as well as to track performance and attendance.

The different types of HRIS software

There are three primary types of HRIS software that can easily overlap. The basic categorization can be as follows:

1. Human Resources Information Systems (HRIS)

HRIS software focuses on the tactical and logistical – at its very basic level, it stores information related to human resources departments such as employee details, salaries and benefits, organizational charts and policies & procedures. It centralizes all of this in one location, whether in the cloud or on premise.

2. Human Resources Management Systems (HRMS)

HRMS software grows on an HRIS by adding management and automation elements including onboarding schedules, performance review processes, and time tracking.

3. Human Capital Management (HCM)

HCM is more of a complete suite of the above, with additional tools focused on macro-level processes and people strategy including employee engagement, career development, and overall productivity.

Where can HRIS be managed from?

There are two primary areas where you can manage an HRIS. They are:

1. Cloud-based

Everything operates online in a portal that’s accessible by any user from anywhere. This is ideal for businesses that do much of their work online and asynchronously across locations.

2. On-premise based

Everything is stored on site in local computers. This is best for single-location businesses that do much of their work in a physical environment without a strong requirement for online access, such as restaurants, services, garages and gas stations, and so on. Data privacy can also be a consideration – some businesses may want to store their information in a location that’s not accessible online.

How does HRIS help recruitment?

HRIS helps recruitment in several ways. First, it can streamline the recruitment process by automating many of the tasks associated with recruiting, such as tracking job postings, collecting and organizing resumes, scheduling interviews, and more.

Second, an HRIS can provide valuable insights into the recruitment process, such as which job postings are performing best and which candidates are more likely to be successful in a certain role.

Finally, an HRIS can help ensure that a company’s recruitment efforts are compliant with applicable laws and regulations, such as those related to data privacy and equal employment opportunity.

Who can use an HRIS?

An HRIS can be used by human resources professionals, team managers, and other staff to manage the HR functions within a company.

It can also be used by employees themselves as a self-service model to access the information they need at any given time, including time-off usage, company policies and procedures, key performance indicators, performance ratings, compensation and bonus structures, and other relevant information.

Which businesses need an HRIS?

In short, any business that employs people. Although you can feasibly manage the information of a small number of employees through manual paperwork and files, that HR workload can grow exponentially. You’re taking up additional bandwidth every time you add to payroll or backfill a vacated role, open up new offices in different locations, or even introduce new incentives to motivate your existing workers.

Also, a small business may not have the resources to employ a dedicated HR team or even a single human resources professional. So, HR-related matters fall on the shoulders of business managers and owners. An HRIS can greatly reduce the burden on those shoulders.

So, back to the original point – any business that employs people needs an HRIS. There’s an HRIS to accommodate the needs of the smallest businesses all the way up to larger-scale multinational enterprises, and one for every budget.

How many employees can an HRIS handle?

As said above, there is an HRIS for every size of business. There’s no minimum or maximum limit to the number of workers that an HRIS can handle. Software is naturally built to scale, and even if it’s not, businesses can ‘graduate’ to a next-level HRIS as it grows.

Is an HRIS suitable for small businesses?

Yes, an HRIS is suitable for small businesses. The benefits of an HRIS system include improved efficiency, easier reporting, improved compliance, and better data management.

With an HRIS, small businesses can access their employee data in one place, track employee performance, and access analytics to understand their workforce better.

What are the features of HRIS software?

An HRIS software has numerous features, each designed to cover different aspects of human resources management. They include:

1. Recruitment and onboarding

Many HRISes come with a ready-made, fully integrated applicant tracking system or recruitment software that optimizes the hiring process. An HRIS is also equipped with onboarding tools such as online review of policies and procedures with e-signing capabilities and the collection of an employee’s personal information.

2. Payroll management

Managing payroll is one of the most important jobs of human resources – ensuring that every employee gets their compensation as scheduled. An HRIS can manage this from initial entry of compensation details through to automated delivery of payment on a regular basis. Other elements of payroll management include visibility from a finance perspective and tracking of changes in payroll due to raises and internal mobility of employees.

3. Paperless records

When records are stored in the digital realm of an HRIS, this lessens or even eliminates the need for physical documents – which in turn removes the burden of filing and organizing these documents. When everything is stored electronically, not only can an HRIS locate the needed documents at a moment’s notice, it also reduces waste for organizations that are more environmentally conscious.

4. Applicant tracking

As above, the recruitment process includes the tracking of applicants and their information, including their resumes, contact details, interviews, evaluation results, and other details. An HRIS equipped with an ATS can do all this for you.

5. People analytics

People analytics is a crucial ingredient in the HR management playbook and, as such, is a major feature of many HRISes. It helps you spot opportunities and gaps in your employee base to support different people strategies including DEI, retention, internal growth, etc.

6. Time and attendance

When you’re paying by the hour or using contracted workers, or monitoring hours for overtime pay, tracking time and attendance is essential. HRISes will ensure that you stay on top of this important part of human resource management.

7. Benefits management

Managing benefits is one of the major tasks in an HR professional’s day-to-day work – be it in the onboarding process, open enrollment, benefits selection, or something else. An HRIS with this feature enables you to manage your company’s benefits in one place.

8. Mobile app

Not everyone has the time or space to do their work on a laptop, let alone at a desk or in a dedicated workspace. Many HRISes come with mobile capabilities that enable HR professionals to do their work while on the go.

9. Integrations

Your HRIS likely isn’t the only software in your company tech stack, so you want to ensure it seamlessly integrates with your other tools. A well-designed HRIS should fit within your existing tech stack.

10. Employee self-service

HR professionals and managers regularly field requests for information and updates from employees, whether it’s in terms of time off or sick days, a change in benefits, work hours and shifts, or other pertinent data. An HRIS can give employees their own access portal to get the information they need right away.

11. Reporting capabilities

We mentioned analytics above – the ability to create reports to advise and support overall business strategy is a great feature of HRIS software. These reports can show insights in any area of interest, be it retention, DEI, or any other information that can support a strategic business decision.

What are the benefits of HRIS software?

The benefits of an HRIS are almost too numerous to mention, whether tangible or intangible. Highlights include the following:

1. Data-driven decisions

An HRIS enables you to consistently track various elements of employee management, including PTO, benefit usage, employee tenure, promotions, attendance, productivity, and other key metrics. The resulting insights come in incredibly handy when making decisions at a strategic level for your organization.

2. Enhance employee experiences

An HRIS provides a single platform for management and employees to access all the information they need in one place – including policies and procedures, organizational charts, compensation and benefits, employee history, performance evaluations, time off, sick days, and so on. This level of transparency and ability to get quick approval (i.e. in the case of time-off requests) can make a smoother experience for employees.

3. Increased productivity

An HRIS manages PTOs and even work processes so that you can ensure your work is streamlined. For example, if you have a staff of 10, you can’t afford to have seven of them checking out for PTO in a single week.

An HRIS can help you monitor this so that you can stagger the time off and ensure that productivity remains consistently high.

4. Increased automation

When you’re working with resource-strapped HR teams and limited bandwidth, the automation features of an HRIS can make the day-to-day work more consistent and attainable on a regular basis.

5. Fewer errors

When information and processes are regularly logged and tracked in a single resource – in this case, an HRIS – the propensity for sometimes costly human errors is vastly reduced.

6. Speedier processes

An HRIS speeds up the process in many areas of human resources, including signing paperwork for a new hire, getting approvals for time-off requests, creating and delivering reports for compliance purposes, and tracking different elements of an employee’s lifecycle – including promotions, salary changes, attrition and retention, and more.

7. Freed-up HR resources

The reduction of time-consuming errors, increased automation, and accessibility of information in a single place all free up valuable hours in an HR professional’s day-to-day work – allowing HR to focus more of their time on the things that deserve closer attention.

8. Increased compliance

When an employee’s data is collected within an HRIS, and with policies and procedures kept in a single place all with e-signature capabilities, this makes compliance much easier for an organization. That’s especially when you require a paper trail or regular reporting to meet EEOC or GDPR standards.

9. Accommodate business growth

When businesses grow rapidly – especially startups and SaaS companies – they need systems in place that can accommodate the rise in scale, including in HR. The number of processes increases when a company’s FTE count grows, and an HRIS can manage this free of breakdowns, in ways that manual systems cannot.

How to choose the best HRIS for your business

Now that you understand what an HRIS is, what features are included, and what the benefits are, you can then start shopping for an HRIS.

Looking for an HRIS for your organization isn’t a decision to be taken lightly, but doesn’t have to be an intimidating experience even for the less-experienced business leaders looking to shore up their HR processes.

The following guide can help you know what to consider and how to make the right decision in choosing the best HRIS for your business.

Know what you need to do to implement an HRIS successfully

First, make sure you know what you need to do to properly introduce an HRIS into your company.

1. Define your goals and objectives as a company: Determine why you need an HRIS in the first place, what you want to achieve with it, and how you expect it will help your organization.

2. Research and select an appropriate HRIS: Research different systems and select the one that best meets your organization’s needs.

3. Plan and organize the implementation: Develop a detailed plan of the activities and timeline for implementing the system.

4. Train and support users: Provide adequate training for the system users and ensure that they are comfortable using it.

5. Monitor system performance: Monitor the system’s performance to ensure that it is meeting the organization’s goals and objectives.

6. Update system components: Ensure that the system is up to date with the latest features and components.

7. Evaluate the system: Review the system’s performance and make changes as needed.

Know when you should invest in an HRIS system

The best time to invest in an HRIS system is when your current HR processes are not meeting the needs of your business. Consider investing in an HRIS system if you’re experiencing any of the following problems:

• Inefficient processes for tracking and managing employee information
• Staying compliant with labor laws and regulations
• High costs associated with manual processes
• Inability to produce timely and accurate reports
• Difficulty managing and tracking employee benefits
• Unable to recruit and retain top talent
• Not creating and managing effective employee development programs
• Struggles in maintaining a positive work culture and engaging employees

Know what elements your HRIS should include

It helps to know the features that a standard HRIS can be expected to have right out of the box:

1. Employee Database: Information such as personal information, previous employment history, pay rates, and other pertinent data should be stored in a secure, easily accessible format.

2. Payroll System: An HRIS should include a payroll system that allows for easy calculation of wages, taxes, and other deductions.

3. Time and Attendance Tracking: An HRIS should track employee time and attendance, including both regular and overtime hours.

4. Benefits Administration: An HRIS should include a system for managing employee benefits, such as health insurance, retirement plans, and other employee perks.

5. Performance Management: Tools for tracking and evaluating employee performance should be included in an HRIS.

6. Analytics and Reporting: An HRIS should include reports and analytics to help inform decisions about staffing, compensation, and other HR-related matters.

The future of HRIS software

The future of HRIS software is very bright. As businesses continue to recognize the value of HRIS software, the demand for such software is expected to grow exponentially.

Companies are likely to invest in more advanced and sophisticated HRIS systems that will be able to provide greater insights about their employees, better management of employee data, and improved reporting capabilities.

Moreover, the development of AI-driven features and predictive analytics capabilities will also play a major role in the advancement of HRIS software.

The post What is HRIS? And why is it so important for your business? appeared first on Recruiting Resources: How to Recruit and Hire Better.

What is an HRIS?

An HRIS is a software or online solution used for data entry, tracking, and managing all HR operations in an organization. This system provides easy access to an actionable database that helps keep all HR systems running smoothly – whether hosted on the company’s server, in the cloud, or by an outside vendor.

How does an HRIS work?

Most HRIS solutions provide a central database where employee information can be stored and managed. This allows HR teams to input personnel data into the system and access it from anywhere.

What are the main features of an HRIS?

These are the core functions of an HRIS:

• Centralized storage of information about personnel, policies, and procedures in an organization
• Recruitment and talent relationship management
• Automated onboarding of employees
• Performance management
• Employee self-service (ESS) to view and manage personal information
• Time and absence management
• Training management
• Workforce analysis

What are the main benefits of an HRIS?

With all information and analytics in one place, an HRIS can help companies find and analyze data more efficiently. This means better-informed decisions about hiring, firing, salaries, promotions, and other human resources matters. In most cases, an HRIS leads to greater efficiency and productivity for employees and managers.

What is HRMS?

An HRMS usually consists of hardware and software resources that provide much of an HR department’s business logic and help it manage everything HR related.

Related: What is HRIS? And why is it so important?

How does an HRMS work?

Organizations rely on HRMS to automate tasks, organize employee information, and generate data-driven reports. This system eliminates the need for paper documents, making it more efficient and effective.

What are the main features of HRMS?

Some HRMS systems are designed for large companies with many employees, while others are more flexible and can be customized for smaller enterprises. The following are considered general and “best practices”.

• General HR functions such as employee benefits administration
• Time and attendance functions such as absence management and compliance
• Analytics functions including real-time reporting, prediction capabilities, and financial analysis
• Onboarding functions such as paperless forms and reports and probation management
• Compliance features ensuring automatic hiring compliance and legislative compliance
• Learning and development features, such as course management, ensuring compliance, and updating training materials
• Payroll solutions, featuring bulk processing and reprocessing, online payroll, and overtime records

What are the main benefits of an HRMS?

The most notable benefit is the increased security of employee data. In addition, automating HR tasks reduces the likelihood of human error, further protecting the accuracy of employee data. Finally, having fewer HR systems in place makes life easier for both employees and HR professionals.

Human resources management is a major pillar in overall HR. As such, an HRM system is a tool to help you succeed as an HR professional.

What is HCM?

Human Capital Management (HCM) software is a digital HR solution that enables organizations to automate and manage employee-related processes in a centralized system. The goal is to empower organizations to focus on strategic initiatives rather than manual administrative work.

How does an HCM work?

HCM software is a collection of integrated HR tools that use mobile and cloud technology to process data. The data is pulled from the various data centers to run reports and create a seamless user experience for HR professionals.

What are the main features of HCM?

Cloud-based or on-premises, HCM software can give you the data insights to inform compensation packages and work schedules. Predictive analytics and forecasting are used for planning, for business growth, and increased profitability. HCM software automates manual tasks and processes that are time-consuming elements of talent strategies.

It can also include mobile self-service options, multimedia-based training, and chatbot-assisted applicant screenings. Multi-layered protection keeps your data secure, while global and local monitoring capabilities ensure compliance with changing regulations.

What are the main benefits of an HCM?

An HCM system can help businesses improve their decision making by integrating data into a single employee record, supporting mobility, and increasing workforce efficiencies. This can result in reduced costs and improved productivity for the business as a whole.

Main advantages of using an HR system

There are many HR software benefits for your business. These include, but are not limited to:

1. Increase in productivity

HR technology can streamline processes, eliminate repetitive and unproductive tasks, and increase efficiency throughout the organization, leading to increased productivity.

2. Enhanced employee experience

Employees who can find answers to their questions tend to be more satisfied with their jobs. You can create a positive work environment by ensuring employees have access to relevant information.

3. Security

An HR system can help protect employee data from unauthorized access and hackers through encryptions. It can also make payroll processing more secure.

4. Minimize errors

Artificial intelligence software can help reduce errors in processes like payroll management. This can reduce the likelihood of human errors, such as misplaced numbers or decimal points.

How are an HRIS, HRMS, and HCM different?

So, what’s the difference between an HRIS, HRMS, and HCM? Let’s go through them one by one.

HRIS vs. HRMS

An HRMS is a complete system used by organizations to manage employee information. In contrast, an HRIS is simply a database system or collection of databases that track employee data. An HRMS is usually more detailed than an HRIS.

HRIS vs. HCM

HCM refers to a broader concept that encompasses not only HRIS but also other systems and processes related to managing and optimizing the human capital within an organization. HCM systems often include HRIS functionality, but they may also include other tools and features that go beyond just managing employee data.

HCM vs. HRMS

There is often confusion around the terms HCM and HRMS, because many systems perform similar functions. However, there can be important differences between HCM and HRMS programs in terms of specific features and functionality. When considering which system to implement for your company, it is therefore crucial to compare different options in detail.

Which HR software should I choose for my business?

Now that you know the differences between an HRIS, HRMS, and HCM sopftware, you’re probably thinking about how to choose one for your organization. There are many considerations and variables to think about here.

First, define your HR needs. You should consider the extent to which the current HR system is falling short, the most common pitfalls and challenges the department faces, and the biggest barriers to a positive employee experience. It’s also important to determine which HR processes are the most time-consuming and whether new software could streamline them.

In addition, you should research your company’s policies and regulatory requirements around data security, vendor diversity, vendor contracts, etc., and assess how tech-savvy your team is.

Second, identify what matters most when choosing an HR system. Consider whether the system is suitable for your industry and company size. There are many different options, so you must make a list of the features that are absolutely necessary for your business.

To get an idea of what would be most beneficial for your business, talk to stakeholders about where they see gaps in the business and what they would like to see improved.

There is a lot more, of course, but don’t let that intimidate you or scare you off this important decision.

For a deeper dive, check out our complete guide to HR software selection.

The post HRIS vs. HRMS vs. HCM: What’s the difference? appeared first on Recruiting Resources: How to Recruit and Hire Better.

What is garden leave?

Garden leave definition describes a designated duration wherein an employee is mandated to refrain from attending work, usually following their resignation or termination. Throughout this period, the employee maintains their employment status within the company but is not expected to carry out any work duties.

The pros and cons of garden leave

Just like any other HR policy, garden leave comes with its own set of benefits and drawbacks. Let’s take a closer look at some of the main advantages and disadvantages of garden leave.

Benefits of garden leave

One of the biggest benefits of garden leave is that it can help companies protect their interests. By requiring employees to stay away from work for a period of time, companies can keep them from working with competitors or taking sensitive information with them.

Garden leave can also be used to ease the transition of an employee leaving the company, allowing them time to wrap up their work and prepare for their next role.

Disadvantages of garden leave

While garden leave can be an effective tool for companies, it also has some potential drawbacks.

For example, garden leave can be costly for companies, as they are required to continue paying the employee during their garden leave period.

Additionally, employees may feel frustrated or undervalued by being kept away from work, and may even decide to challenge the practice in court if they feel that it’s unfair.

Garden leave around the world

The concept of garden leave originated in the UK. However, the practice is not confined to the UK. It’s prevalent in many countries, albeit with varying regulations and norms.

For instance, garden leave in the US is less common due to different employment laws and practices. Garden leave in Australia is often seen in the financial sector, while in Singapore, it’s a standard clause in employment contracts especially for senior roles.

For more information on garden leave, you can refer to these resources:

• UK Government’s guide on garden leave
• US Legal perspective on garden leave
• Australian Fair Work Ombudsman’s take on garden leave

The difference between garden leave and a non-compete clause

While garden leave and non-compete clauses are similar in that they both aim to prevent employees from working with competitors, there are some key differences.

Non-compete clauses are contractual agreements that prohibit an employee from working in a certain industry or role for a specified period of time after leaving their current employer. There may be legal restrictions to non-compete clauses – double-check with your local authorities to verify.

Garden leave, on the other hand, is not a contractual agreement, but rather a period of time during which the employee is required to stay away from work.

Garden leave period

The length of a garden leave period can vary depending on the company and the circumstances.

It can range from a few weeks to several months, and in some extreme cases, even up to a year or more.

Is garden leave legal?

Yes, garden leave is legal in most countries and is becoming increasingly common in many industries. However, there are certain legal requirements that companies must adhere to when implementing garden leave policies, such as providing adequate notice and continuing to pay the employee during the garden leave period.

Can an employee work elsewhere during garden leave?

The employee is technically still employed by the company during their garden leave period, so they are typically not allowed to work for another employer during that time. However, there are some exceptions to this rule, such as if the employee finds temporary work that does not conflict with their existing employment agreement.

How to manage garden leave with HRIS

By creating a healthy work environment and providing a great employee experience, from onboarding to talent retention, you can avoid managing garden leave situations and focus more on boosting productivity and achieving your higher corporate goals.

You can start today by using an HRIS software to accomplish this. Explore how Workable can help you.

While garden leave may not be right for every company or situation, it can be an effective way to protect company interests and ease the transition of an employee leaving the organization. With the right tools and resources in place, managing garden leave policies can be streamlined and stress-free.

The post Garden leave: what it is and how it works appeared first on Recruiting Resources: How to Recruit and Hire Better.

This article aims to shed light on the concept of work ethic, its importance, and how it can be cultivated and maintained in the workplace.

What is work ethic?

The concept of work ethic involves a set of principles, values, and beliefs that influence how individuals behave and make decisions in their professional lives. It directly affects productivity, job satisfaction, and the overall reputation of a company.

According to a recent survey conducted by ZipDo, an astonishing 83% of employees view work ethic as a highly important trait in their coworkers. This data highlights the significance of work ethic in today’s work environment.

The 5 pillars of work ethics

Work ethic is built on five key elements, from integrity to discipline and teamwork. Work ethic sets the way for a proper and successful work environment. Check the list below:

1. Integrity

This involves being honest, ethical, and reliable in all professional dealings. It’s about doing the right thing, even when no one is watching.

How to achieve it: Be honest and ethical in all your dealings. Keep your promises and be reliable.

2. Responsibility

This involves taking ownership of one’s actions and decisions, and being accountable for the outcomes.

How to achieve it: Take ownership of your actions and decisions. Be accountable for the outcomes.

3. Quality

This involves striving for excellence and taking pride in one’s work.

How to achieve it: Strive for excellence in your work. Take pride in what you do.

4. Discipline

This involves showing commitment, perseverance, and self-control in achieving one’s goals.

How to achieve it: Show commitment and perseverance in achieving your goals. Exercise self-control.

5. Teamwork

This involves working effectively with others to achieve common goals.

How to achieve it: Work effectively with others. Be cooperative and supportive.

These elements are not just theoretical constructs; they are values that have been endorsed by thought leaders and executives alike..

Top work ethic skills you need to look for

In the professional world, individuals with a strong work ethic possess certain qualities that set them apart. These characteristics, often referred to as the hallmarks of good work ethic, are highly valued by employers and contribute to long-term success.

Here are some key traits:

Reliability: Individuals with a strong set of values are known for their dependability. They consistently meet deadlines, fulfill commitments, and can be counted on to complete tasks efficiently and effectively. Their reliability instills trust and confidence in both colleagues and superiors.

Dedication: Those with a strong work ethic are deeply committed to their work. They go above and beyond to achieve excellence and are willing to put in the extra effort when needed. They are motivated by their passion for their profession and take pride in producing high-quality results.

Initiative: Individuals with a strong work ethic are proactive and take initiative in their roles. They don’t wait for instructions or guidance but instead actively seek out opportunities to contribute and make a difference. They are self-starters who are always looking for ways to improve and take on new challenges.

Professionalism: Strong work ethic is often associated with professionalism. Individuals with this trait conduct themselves in a manner that reflects well on their organization. They maintain a positive attitude, communicate effectively, and treat others with respect and courtesy. They understand the importance of representing their company in a positive light.

Adaptability: Those with a strong work ethic are adaptable and flexible in their approach to work. They can easily adjust to changing circumstances, handle unexpected challenges, and embrace new technologies or processes. Their willingness to adapt ensures they can continue to perform at a high level regardless of the circumstances.

Accountability: Individuals with a strong work ethic take responsibility for their actions and outcomes. They don’t make excuses or shift blame onto others. Instead, they own up to their mistakes, learn from them, and strive to improve. They understand that accountability is essential for personal and professional growth.

Time management: Those with a strong work ethic are skilled in managing their time effectively. They prioritize tasks, set realistic goals, and are able to meet deadlines without sacrificing quality. They understand the value of time and strive to maximize productivity in their workday.

Benefits of solid work ethics

A strong set of values benefits organizations in several ways. It leads to increased productivity, as employees with a strong work ethic are more likely to be dedicated and committed to their work.

According to a Taylor & Francis paper employees with a strong work ethic identify better themselves and even influence sick days and return to office issues. This not only boosts productivity but also reduces costs for the organization.

A strong work ethic also improves employee morale. When employees see that their efforts are recognized and valued, they are more likely to feel satisfied and motivated.

Moreover, a company with a strong work ethic is likely to enjoy a better reputation, which can attract top talent and customers.

The post What is work ethic and why is it important for success? appeared first on Recruiting Resources: How to Recruit and Hire Better.

The importance of HR document management software

Employees are the fuel that powers an organization and are often the most valuable asset of any business.

Acquiring top talent, evaluating performance, retaining employees, and maintaining compliance with state, federal, and industry guidelines are all essential elements of an organization’s long-term success, and employee documentation helps inform or ensure all of the above.

Technology has simplified the logistics of managing business documents. Gone are the days of overstuffed file cabinets, making copies, and overnighting important paper documents for review; an HR document management system transforms a pile of file folders and physical paperwork into a secure, easily accessible, searchable archive that improves efficiency while ensuring privacy.

The right document management software (DMS) can also act as an organizational framework for creating a workflow that streamlines the process of managing team members and their records.

Two types of document management systems

A document management solution is a type of content management system that specializes in collecting, managing, and archiving digital documents, and there are a variety of options with different features and functionality to choose from.

One of the first decisions to make when choosing a DMS involves how and where you want to store documents.
There are two main types of document management systems:

On-Premise

An on-premise DMS means that your data is stored on servers that are installed on the premises of your organization. This option is typically chosen by larger companies with dedicated IT staff and resources, since it involves more significant upfront costs and requires your organization to assume responsibility for the storage and security of the documents. There is some risk involved if you fail to back up the files since there is no automatic saved copy being sent to a cloud.

A significant benefit of an on-premises DMS is that you can access your documents without an internet connection, if necessary. You’re also completely in control of your system and its contents since there is no third party vendor involved.

Cloud-Based

With a cloud-based document management system, the data is stored in an external data center managed by a third-party provider. The storage space is on a rented server, with fees paid on a monthly or annual basis.

Costs are generally lower with cloud-based document storage, due to the fact that no hardware or dedicated IT staff are required and fees typically include updates and maintenance. A cloud-based DMS is more easily scaled than an on-premise solution and files can be securely accessed from anywhere, including mobile devices.

However, you are reliant on the vendor to keep the system running smoothly and access may be contingent on an internet connection.

Some organizations have security concerns about storing important digital files in the cloud, but there are potential vulnerabilities with on-premise records management options, too.

What should you look for in HR document management software

There are a lot of different variables when it comes to choosing the right HR document management software for your business.

Before you start doing in-depth research, consider the needs of your organization and decide what pain points you’re hoping to eliminate with an electronic document management system.

Some aspects and key features to consider include:

Security

A lot of sensitive information is collected throughout the employee lifecycle; consequently, security is a critical component of information management. Data encryption, password protection, and permission settings for access control are important security features that can help keep your digital assets safe.

Ease of use

Choosing user-friendly software makes it easier to get all stakeholders on board with adopting a new tool, and helps improve overall efficiency. A good DMS will have a simple file structure, indexing, and robust search functionality to facilitate document retrieval.

File type versatility

The ideal HR DMS should serve as a one-stop-shop for employee records. The ability to store and share documents in a range of different file formats is essential to implementing a single, streamlined solution.

Document tracking

Employee documents often go through different iterations or edits. Version control and document tracking features allow users to review the history of a document or to ensure it has been updated or to track changes.

Integration

Choosing a system that integrates easily with existing programs, such as email clients, CRM software, and HRIS, or that offers an open API, can optimize your HR workflow through automation.

What are the benefits of using a document management system?

Finding the right document management system offers a wide range of benefits that extend far beyond simply organizing paperwork.

Here’s how a document management system can help your organization:

Document security: Protect the confidential information of your employees with data encryption, password protection, and access control to limit who can view or share files.

Paperless storage: Reduce supply costs and the need for physical storage space with a digital solution.

Improve efficiency: Eliminate the time-consuming process of tracking down a file that lives in someone’s desk drawer or hard drive with a central source of information.

Easy access: Search by employee name, document type, date range, file format and more and securely share information with relevant parties with minimal effort.

Scalable: Document management software can grow with your company from fledgling start-up to global conglomerate without a constant need to reinvent the document collection and storage workflow.

Enhanced collaboration: Share documents, collect signatures, and store copies of important information within one platform.

Improved workflow: Create an organizational structure that can seamlessly store and manage documents from job listing to exit interview.

The challenges of document management

The challenges of document management multiply as your business grows. It’s all too easy to lose a piece of important information — from inconsistent file names to sloppy storage protocol, there are a lot of obstacles that can make a search feel like an impossible feat.

Aside from the loss of productivity, being disorganized can eventually lead to serious compliance issues.

Investing the time, cost, and effort into implementing a DMS solution can reduce the risk of future legal liability.

Which teams will benefit from document management software?

It’s not just your human resources department and legal team that will appreciate the benefits of document management software.

Access to a central document repository makes it easier for managers and executives to review resumes, performance evaluations, and compensation data that can help with the decision-making process when it comes to hiring, promoting, or terminating an employee.

A DMS can also expedite the onboarding process by facilitating the collection of information and the exchange of signed documents.

Related: Explore resources that help manage compliance.

How to start using HR document management software

If you’re interested in incorporating an HR document management software into your workflow, start with the following steps:

Identify relevant HR documents

Start by making a list of the types of HR documents used by your organization, including:

• Recruiting collateral
• Hiring records
• Employee contracts
• Company policies
• Medical, leave requests, and disability records
• Payroll and benefit documents
• Personnel records and reviews
• Safety and accident records
• Training or onboarding materials

Assess current storage

Determine where the documents listed above are currently stored and evaluate the most secure and efficient method for exporting a copy of that information into a new system.

Define access and security levels

While reviewing the list of HR documents used by your organization, decide who needs access to that information, how often they will need access, and identify any special security needs. For instance, medical and disability information is protected by law and may need to be stored separately from individual employee files.

Identify retention requirements

Certain types of documents must be kept for a specific amount of time to maintain compliance. Decide how long you need or want to retain documents and configure your DMS to alert you to upcoming expiration dates.

Learn specifics of DMS functionality

Educate yourself and your team on the features and functionality available in the HR document management system that you’ve chosen to help fully inform the creation and implementation of a new workflow.

Finding the right HR document management software solution for your business can maximize efficiency, reduce liability, and empower your organization to prioritize what really matters — the people who make work possible.

The post What is HR document management software? appeared first on Recruiting Resources: How to Recruit and Hire Better.

These deductions serve multiple purposes, from contributing to public services to ensuring employees have access to essential benefits. Understanding these deductions is crucial for both employers and employees to ensure accurate and lawful processing of wages.

What is payroll deduction?

A payroll deduction plan refers to the systematic withholding of money from an employee’s paycheck. This can be for benefits, taxes, or other specific purposes. The deductions can be categorized into two main types:

Pre-tax deductions: Amounts taken out before calculating taxes. These help in reducing the taxable income of employees.
Post-tax deductions: Amounts deducted after taxes have been calculated. They don’t reduce the tax burden.

The final amount after all these deductions is what the employee takes home, often referred to as the net salary.

Payroll deduction in the U.S.

In the United States, these deductions are categorized into:

Pre-tax deductions: Health insurance premiums and contributions to retirement savings plans like 401(k)s.
Post-tax deductions: Wage garnishments for child support or student loans.

Mandatory deductions include federal income tax, FICA taxes for Medicare and Social Security, and state income tax where applicable.

Payroll deduction in Canada

In Canada, employers use the Payroll Deductions Online Calculator (PDOC) to calculate federal, provincial, and territorial payroll deductions. Mandatory deductions include federal and provincial income taxes, the Canada Pension Plan (CPP), and the Quebec Pension Plan (QPP) for Quebec residents.

Payroll deduction in Europe

European countries have diverse deduction systems, but some commonalities exist:

• Income tax: Most European countries have a progressive income tax system where higher earners pay a higher percentage.
• Social security contributions: These are mandatory in most countries and fund various social programs, including healthcare, pensions, and unemployment benefits.
• Healthcare: Some countries have mandatory healthcare deductions, while others operate on private insurance systems with voluntary deductions.

Payroll deduction in Asia

Asia, with its diverse range of economies, has varied deduction systems:

• Income tax: Countries like Japan, South Korea, and India have progressive income tax systems.
• Mandatory provident funds: Places like Hong Kong have mandatory provident fund contributions to ensure retirement savings for employees.
• Health and social insurance: Countries like China mandate employers to deduct amounts for health insurance, unemployment insurance, and housing funds.

Payroll deductions are a universal concept, but the specifics vary widely based on regional laws, economic policies, and cultural norms.

The same applies to time off management.

Whether in North America, Europe, or Asia, these deductions ensure that employees contribute to essential public services, have access to vital benefits, and can manage their finances more effectively.

As global business continues to expand, understanding the nuances of these deductions across different regions becomes increasingly important.

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So, let’s dive in and demystify this term for you.

What is retroactive pay?

At its core, retroactive pay (or “retro pay” for short) is pretty straightforward. It’s the compensation you owe an employee for work they’ve already completed but were underpaid for.

This can happen for a variety of reasons, ranging from simple clerical errors to more complex issues like backdated promotions. Think of it as a way to correct past paycheck oversights.

Why does retroactive pay exist?

Imagine if you were that employee caught in this situation. You’d want assurance that, even if there’s a hiccup in your paycheck, your company has a mechanism to fix this. Retroactive pay exists primarily for two reasons:

Contractual and legal obligations

Sometimes, an employee’s pay rate changes (due to promotions or agreed raises), but this change doesn’t immediately reflect in their paycheck. Or perhaps new legislation mandates certain payments.

Retro pay ensures you’re up-to-date with all legal obligations – after all, you don’t want to have a lawyer banging on your desk because your company accidentally underpaid an employee a couple of months ago.

Employee morale and trust

Financial stability is paramount for your staff. By ensuring they receive every cent they’re owed, you bolster their trust and morale. You have signed an agreement with them – you pay them for the work they do, and you don’t want that to get misaligned in any way.

Plus, if you’re proactive and tell your employee: “Hey, we noticed that your last two paychecks were actually below what you were supposed to get based on your promotion/raise last month. We’ve gone and fixed that for you, so you’ll see that reflected in your next paycheck at the end of this month.” That sends a powerful message to them that you have their best interests at heart.

When is retroactive pay used?

So, how might you find yourself dealing with retro pay? A few scenarios to consider:

Contractual changes

Let’s say you’ve awarded an employee a raise starting the 10th of the month, but payroll is processed on the 1st. Retro pay comes into play to cover that gap.

Clerical errors

Even in the best systems, mistakes happen. Perhaps someone was inadvertently underpaid; retro pay allows you to square things away.

Overtime corrections

If an employee’s overtime was miscalculated, submitted late, or simply overlooked, retro pay ensures they’re compensated correctly.

However, be cautious. If you’re frequently resorting to retro pay, it could signal deeper systemic issues in your payroll system. And trust us, repeatedly dishing out retro paychecks won’t do wonders for your company’s reputation. It can also be a headache for your friends in Finance.

Pros and cons of retroactive pay

Let’s quickly go over the pros and cons of retro pay, one by one:

Pros:

Fairness: Above all, it demonstrates to your team that you’re committed to honoring your financial commitments.

Boosts morale: Employees trust employers who correct their mistakes.

Legal safeguard: Protect yourself from potential legal repercussions by ensuring everyone gets paid what they’re due.

Cons:

Administrative burden: Handling retro pay can be a paperwork nightmare – especially if it starts piling up.

Financial strain: Large retroactive sums can strain your company’s financial health – and makes it more difficult for the finance department to keep those books balanced.

Potential damage: Relying on retro pay too often can erode trust in your payroll system for existing employees – which can spill over to negative commentary on Glassdoor and other employer review sites.

Retro pay: it’s best to have it and not need it

Being in HR or leading an SMB is no walk in the park. But by ensuring accurate and timely pay, you foster a positive work environment, solidifying employee trust and commitment. So, take a moment to review your payroll systems. Perhaps even consider regular audits. It’s always better to be proactive than retroactive when it comes to pay. The same goes for time off management as well, but that is a topic for another article.

Stay informed, stay proactive, and always prioritize your employees. Because at the end of the day, a company’s greatest asset isn’t its products or services – it’s the people who make it all happen.

The post Retroactive pay: what it is and what you need to know appeared first on Recruiting Resources: How to Recruit and Hire Better.

However, this trend could have both beneficial and detrimental effects on productivity, work-life balance, and the global job market.

What is unlimited PTO?

Unlimited PTO (Paid Time Off) is an emerging trend in the HR field where employers offer their employees an unrestricted amount of time off from work. The premise is rooted in the idea of trust and accountability – employees are trusted to responsibly balance their work and time off, contributing to their well-being and productivity.

With an unlimited PTO policy, there is no predetermined limit to vacation or personal days, empowering employees to make decisions in their best interest while maintaining performance standards. The intention is to enhance work-life balance, lower stress, and increase retention.

How does unlimited PTO work?

Unlimited PTO operates on a principle of trust, autonomy, and responsibility. Rather than allotting a specific number of days for vacation, sick leave, or personal time, companies with this policy allow employees to take as much time off as they need, whenever they need it. The idea is to enable employees to maintain a healthy work-life balance without the constraints of a conventional leave system.

However, it doesn’t mean employees can take indefinite time off. The policy is grounded in an understanding that employees will complete their responsibilities and maintain their performance levels while using their discretion to take time off.

This requires open communication between employees and management to ensure workloads are managed and business objectives are met. Some organizations may require employees to provide reasonable notice or have their time-off requests approved, while others may operate on a more informal basis.

Unlimited PTO works best in a culture of mutual respect and responsibility, where time off is seen not as a luxury, but as a necessary part of sustaining productivity, creativity, and overall employee well-being.

As ShortStack CEO Jim Beloisie says: “I’ve learned that when you treat employees like grown-ups, they act like grown-ups.”

Now let’s look at the potential impacts of unlimited paid time off in depth:

1. Productivity

The pros:

A Gallup study finds that when employees are more engaged and less stressed, they are 18% more productive and absenteeism goes down by a whopping 81%.

One might think that giving those employees unlimited options for time off can lead to those kinds of results. Workers would have more freedom to rest, recuperate, and pursue personal interests, reducing burnout and maintaining mental health.

Moreover, with the ubiquity of digital technologies, work can often be done remotely and on flexible schedules and even a “work from anywhere” policy, maintaining productivity.

The cons:

However, on the flip side, unlimited time off may lead to an “always on” work culture. If employers anticipate that employees will take more time off, they may expect them to be available outside of traditional working hours.

This could result in employees feeling compelled to work during their time off to stay on top of their tasks. If not managed appropriately, this could decrease productivity due to fatigue and burnout.

2. Work-life balance

The pros:

Unlimited PTO could greatly improve work-life balance. Employees could take time off to handle personal issues, pursue hobbies, or spend time with family without worrying about conserving their limited vacation days.

This could contribute to a healthier lifestyle and improved mental health.

The cons:

However, paradoxically, some employees might end up taking less time off. Some people may feel guilty or anxious about taking too much time off, particularly if there’s an implicit expectation within their company that they should always be working – or if they see their colleagues taking less time than themselves.

There is also a potential detrimental effect when non-parents and up-and-coming workers are able to devote as much as they can to their work to increase their changes of advancement – and a parent or mid-career employee will feel guilty about taking a few days for themselves and their families.

This could, in fact, lead to a worse work-life balance.

3. Global job market

The pros:

With unlimited time off, jobs might become more attractive to potential employees around the world, leading to a more competitive job market. For example, employees from a country that normally standardizes time off will be attracted to the concept of taking as much time as they want or need.

Companies offering such benefits may attract top talent, increasing their competitiveness.

The cons:

On a broader scale, if this becomes a global trend, it could affect migration patterns. Employees in countries with less generous time-off policies might be more inclined to seek employment in countries or companies where unlimited time off is standard. If your company has a PTO limit for all employees, your hands may be tied in attracting workers who value their personal time.

Smaller companies and those in industries with thin profit margins may also struggle to offer unlimited time off, making it harder for them to compete for talent.

Other changes in unlimited time off

Should unlimited time off become widespread, it could change societal norms about work. People might start to prioritize personal time and flexibility over salary and traditional job security. This could lead to a reimagining of success and fulfillment, shifting away from the “workaholic” culture prevalent in some societies.

While that would be the ideal scenario, there are drawbacks. Offering unlimited time off options could also exacerbate societal inequalities – for example, those in higher-paid, knowledge-based jobs might enjoy the benefits of unlimited time off, while those in lower-paid, manual jobs might not.

Unanticipated outcomes of unlimited PTO

Having an unlimited PTO policy might also lead to some unanticipated outcomes. For instance, it could change our perception of retirement. If people can take time off throughout their careers, they might choose to work longer, changing the demographic dynamics of the workforce.

On a more cautionary note, it might lead to companies blurring the lines between personal and professional time, creating a kind of “pseudo-freedom,” where you’re never really and truly off work.

Unlimited PTO: is it right for your company?

In summary, the trend of unlimited PTO holds promise for improved work-life balance and productivity, but careful management and clear communication of expectations will be key. Also, it’s essential to consider potential inequalities that might arise, and measures should be taken to ensure this benefit is accessible to as many people as possible.

However, its effectiveness varies across organizations and cultures, necessitating a thoughtful implementation process. It’s crucial for HR practitioners to ensure clarity, communication, and manage the potential pitfalls of misuse or underuse, fostering a culture where taking time off is normal and encouraged.

An unlimited PTO policy signifies a shift towards more flexibility and autonomy in the workplace, although its real-world implications and impacts on productivity and employee satisfaction are still subjects of ongoing research and debate.

The post What is unlimited PTO and how does it work? appeared first on Recruiting Resources: How to Recruit and Hire Better.

HR software helps companies manage their human resources. It can provide a variety of features such as employee tracking, recruitment, performance management, payroll management, benefits administration, and more.

HR software can automate manual processes and reduce paperwork, allowing HR departments to focus on more macro-level, strategic work. It can also help improve employee engagement and productivity.

Why do businesses need HR software?

HR software can help streamline and automate many of the tedious and time-consuming tasks associated with human resources, such as keeping track of employee information, payroll, scheduling and attendance, onboarding and training, and performance management.

It can also help improve communication between departments, align processes and objectives, and provide insights into key HR metrics and trends.

HR software can also provide the tools needed to manage compliance with employment laws, regulations and policies. In addition, it can help organizations analyze data to make better decisions, improve the overall employee experience, and support the long-term success of their business.

Now that’s covered at the surface level, let’s go through the benefits of HR software one by one:

1. Improve communication across the organization

HR software streamlines communication processes and automating mundane tasks. It provides a centralized platform where employees can access information, share files, collaborate on projects, and communicate with one another in real-time.

HR software can also be used to send out reminders, announcements, and event notifications to ensure everyone is on the same page. It also provides a platform to store employee data and records, making it easier to access important information for managers, employees and, of course, HR professionals.

2, Improve compliance

HR software can help your business stay compliant by providing a centralized database of employee information, automating employee onboarding processes to ensure accuracy, automating employee training processes to ensure all employees are up to date on regulations, and providing automated alerts and reminders to ensure compliance with local laws and regulations.

HR software also has reporting and analytics features that can help you identify areas where your business might be falling short and help you stay on the right side of the ever-evolving compliance landscape.

3. Reduce administrative costs

HR software cuts down on administrative costs as well. We mentioned automation of mundane tasks including processing payroll, benefits administration, and attendance tracking. All that time spent manually entering and processing data is now freed up.

HR software also streamlines hiring processes, such as applicant tracking and onboarding, which can reduce the amount of time and money spent on recruiting and onboarding.

And all that paperwork associated with managing employee records, such as benefits forms and performance reviews? Gone. It’s now stored in a central resource in the software, cutting down on all that time organizing, processing, maintaining and storing documents.

4. Ensure consistency

HR software ensures a more consistent workflow by automating and streamlining many of the processes associated with overall human resources management.

Consistency also has an equity element to it – because HR work can now be more uniform and replicable for each employee, you’re ensuring that all employees are treated fairly and have a consistent experience without the disruption of unconscious bias.

This is also a compliance consideration – you’re ensuring that all company policies and procedures are followed equally and that employees are trained and informed on a regular basis.

5. Deepen your data analysis

HR software supports data analysis by providing users with comprehensive, organized data that can be easily sorted, filtered, and analyzed as needed. This data can be exported into other forms, such as graphs and charts, to help visualize patterns, trends, and correlations. The resulting reports – whether it’s focused on people data or company processes – can be immensely useful when making strategic business decisions.

What are the different types of HR software?

There are numerous different types of HR software, all of which meet the varying needs of an organization depending on size, complexity, priorities, goals, budget, operations, location, and other variables.

1. Human Resources Information Systems (HRIS)

Human Resources Information Systems (HRIS) is a software solution that stores and manages employee data and automates the processes related to human resources departments. It simplifies and streamlines administrative tasks such as payroll, benefits, recruitment and performance management.

Additionally, an HRIS can provide insight into employee data and trends, allowing HR to make more informed decisions. Think of it as a resource-oriented software that compiles information and administration into a single place.

2. Human Resources Management Systems (HRMS)

Human Resources Management Systems (HRMS) expands on the above-described HRIS capabilities by supporting a company’s management of internal HR functions, including employee data management, payroll, recruitment, benefits, training, talent management, employee engagement, and employee attendance.

Yes, there’s obviously overlap between this and an HRIS – the difference is that where an HRIS is primarily about storage and centralization, an HRMS focuses more on management.

3. Employee Document Management Software

Employee document management software is what it says – it supports the creation, storage, tracking and management of employee documents specific to payroll, insurance, benefits, policy and procedures, contracts, and other employee-specific paperwork that can be stored in a central hub.

4. Applicant Tracking System (ATS)

An applicant tracking system (ATS) is a software that supports and automates the administrative processes related to hiring and recruitment. For example, ATSes enable self-scheduling capabilities for interviews, distribution and promotion of job postings, employer branding, applicant management and candidate evaluation through the recruitment funnel.

5. HR Payroll Software

HR payroll software supports and optimizes the management of an organization’s payroll – including salary, paychecks, bonuses, and other forms of compensation.

6. Human Capital Management (HCM)

HCM – or Human Capital Management – software is more of a complete suite of the above, focused on processes related to employee management, development, and productivity.

What’s the difference between HRMS, HRIS, and HCM?

HRIS stands for Human Resources Information System, which is a system used to store and track employee information.

HRMS stands for Human Resources Management System, which is a software application used to manage HR functions in a tactical way.

HCM stands for Human Capital Management, which is an approach to managing people within an organization. It focuses on the development of people to help the organization achieve its objectives.

What are the latest trends in HR software?

Just like any technology, HR software is always evolving. Let’s look at the latest trends that impact HR software:

1. AI & machine learning

AI and machine learning are increasingly being incorporated into human resources software to help streamline and automate a range of tasks.

With a good HR software, you not only can automate processes, you can also predict employee performance based on existing data, personalize L&D experiences, identify potential compliance issues, and even make AI-driven decisions.

2. Workforce management

Workforce management is an increasingly popular tool in HR software, used by employers to streamline and optimize labor management processes including time and attendance, scheduling, payroll, benefits and more.

The growing sophistication of workforce management as a feature in HR software means that employers can more accurately forecast labor hours and productivity, allowing better allocation of resources and reduction of redundant and overlapping processes – saving on costs across the board.

3. Integrated systems

As digital transformation (DX) continues in companies as a result of the migration to remote and hybrid environments, the digitization of everyday work processes, and the incorporation of technology into workflows, smooth integration of different softwares and tools is a must.

4. Company branding

The HR function has been described as becoming more crucial in a company’s overall branding, including as an employer. People are at the heart of a company’s growth and success, and human resources teams are at the core of attracting and retaining top talent.

With the many capabilities and tools in HR software focused around benefits management, learning & development, and team-building, HR software can play a huge role in making a company more attractive to work for.

What core functionalities should you look for in HR software?

When shopping for HR software, you should look for a variety of functionalities. They include but are not limited to:

1. Recruitment and onboarding

HR software should cover all the elements of an employee’s lifecycle with an organization, and recruitment and onboarding is no exception. Make sure your HR software has a capable applicant tracking system – or is at least integrable with one in your existing toolbox – and enables a smooth onboarding experience for your new hires. This includes options for training, orientation, policy review, and employee information collection.

2. Payroll

Your HR software should include at least basic capabilities for management and tracking of your organizational payroll down to each individual employee. This can also include other fiscal elements such as bonuses, raises, and work-related expenses, and fit cleanly within your financial tech stack.

3. Time, attendance and scheduling

Even with the advent of flexible work, many companies still need to regulate and manage their employees’ working hours. Monitoring attendance, allocating time slots, and managing time off are all time-consuming when controlled manually – every HR software should include capabilities for all this.

4. Benefits administration

Employee benefits programs – including health insurance, retirement plans, paid leave and other compensation packages – are a core element of human resources. HR software must include options for managing, administering, and communicating these programs on a regular and repeatable basis.

5. Compliance

Whether it’s employee data privacy or equal employment opportunity, there are numerous legislations to be aware of when managing human resources. Your HR software should have ISO-certified capabilities for storage of sensitive information and the ability to create and send reports to comply with regulations in your area of operations – for instance, those related to GDPR and EEOC.

6. Reporting and analytics

Because of its storage and management functionalities, HR software is naturally designed to accurately track employee data. When you’re playing a role in business strategy, this data is valuable. The ability to build reports and stay on top of your people analytics is a must-have in any HR software system.

Final thoughts on HR software

Now you know what HR software is, why your business may need one, what types of HR software are available, and what standard features should be included in any HR software.

What’s next? That’s up to you. Whether you’re in the market for a new HR software to support your business, or just looking to learn more, it’s always good to be aware of the options that are available.

The post What is HR software – and how can it help your business? appeared first on Recruiting Resources: How to Recruit and Hire Better.

• creating and administering policies and procedures
• monitoring and managing employee performance
• providing guidance and support to ensure employees remain productive and motivated

Employee management differs from talent management in that it’s more tactical and administrative, whereas talent management is more focused on strategy – including career pathing, development of high-performing employees, and employee engagement/retention.

Why is employee management important?

A successful employee management strategy is crucial because a business runs efficiently when its people are managed efficiently. Proper employee management helps to create a clear structure and organizational framework within a business. This improves communication and collaboration across teams and departments – as well as up and down the chain of command.

In employee management, key performance indicators are clear, projects are implemented and carried out by the book, and compensation (in the form of bonuses and raises) and praise are assured for a job well done.

It also helps to foster good working relationships between managers and employees, which can lead to higher job satisfaction and better morale. This leads to lower turnover rates and greater employee retention, leading to more efficient budget management and higher productivity.

What makes good employee management?

Now that you know what employee management is and why it’s important, it’s time to understand the main aspects that make up a solid employee management strategy.

1. Recruitment and onboarding

The first element of employee management is in the recruitment process itself. Even before a candidate is hired, your organization is setting expectations in terms of compensation, career opportunity, and company culture. When this aspect is managed efficiently, then you’re setting clear expectations for your new employees and delivering on them.

Likewise, a smoothly executed onboarding strategy sets your new hires for success from the get-go. Learn how you can ensure a consistent and positive onboarding experience in your company.

2. Performance monitoring

Employees are more motivated when their expected outcomes are clear and attainable, and they’re compensated for successful delivery on their KPIs. Consequently, managing your employees must include monitoring their performance on a regular basis – ideally in a tangible way.

For example, your SDRs are expected to convert a specific percentage of the leads they’re given. Your dev team must build a new feature by the end of the quarter. Your customer support team must resolve tickets to the customer’s satisfaction within a specific period of time.

When you monitor all of these metrics, you are not only establishing clear goalposts for your teams, but you’re also making it easier for your company to identify and reward high performers for their stellar work.

3. Communication channels

Communication is a crucial ingredient in the playbook for a smoothly operating business. Managing your employees includes numerous forms of communication:

• Team manager communication: the manager of a team works with team members in outlining projects, assigning duties, setting expectations, etc.
• Departmental communication: the leader of a department communicates expected deliverables as outlined in board and executive meetings to team managers and members
• Top-down communication: the leaders of an organization communicate with employees on business goals and results via all-hands
• Bottom-up communication: as above, but the other way around – where employees can communicate up the ladder to management and executives on their work needs, priorities and experiences via surveys, 1-1s, reviews, etc.
• Collaborative communication: colleagues communicate laterally as they work together on mutual projects

There’s more, of course – communications can be complex, and that’s no different in the workplace.

4. Rewards and incentives

Employees are more motivated to do a good job when the work is not only compensated, but also incentivized and rewarded. This core facet of employee management pays dividends in terms of productivity, engagement, happiness and retention.

What are the main benefits of proper employee management?

Managing your employees isn’t just about managing the person – it’s about managing their ability to do the job they’re assigned to do. If you don’t manage properly, your employees won’t be able to do their job effectively, and your overall business picture will suffer.

That’s the macro-level benefit of proper employee management. Let’s look at the more specific benefits:

1. Improve efficiency

When you have multiple team members collectively working together, you want them working with minimal overlap and maximum cohesion. That requires smart and calculated employee management which improves efficiency.

2. Increase productivity

When companies operate more efficiently, they’re more productive. A well-managed group means fewer breakdowns and overlaps, speeding up processes and increasing productivity.

3. Data security

When you’re managing your employees, you’re not just managing their work – you’re also managing their information, such as their salary, benefits, time off, contact details, bank and tax information, and other sensitive employee information. Proper employee management includes proper containment of all this data.

4. Lower long-term costs

Not only does your bottom line benefit from a more efficient and productive employee base. You’re also reducing costs related to employee turnover, duplicate and redundant efforts, expensive human errors, and budget mismanagement.

How do you improve employee management?

The payoffs of effective employee management are clear. So, how do you tangibly manage your employees so that those benefits are realized in your organization? There are a variety of ways, including but not limited to the following:

1. Set clear expectations

Establish clear expectations with your employees. This is crucial to setting them up for success. An employee should know what they’re expected to do, what their performance goals are, and what rewards and compensation they can hope to receive for reaching those KPIs.

2. Help your employees to grow

Career pathing is an important part of the employee lifecycle. An employer should guide and support its employees as they grow in their careers.

This can be achieved via learning & development programs, performance reviews, guidance and feedback, and even skills analysis. Support your employees’ growth, and they’ll stay with you.

3. Build trust

When an employee trusts their manager and executive team, they’re more motivated to succeed. This trust can be in the form of job security, delivery of promises (i.e. bonuses, promotions), and transparency and communication (i.e. all-hands, business planning). Earn their trust – and keep it strong.

4. Establish open communication early

Open and transparent communication is crucial to successful employee management. Your employees should have access to all the information they need to do their jobs effectively.

That doesn’t just include who’s responsible for what, departmental updates, and performance feedback. It also includes the higher-level stuff such as mission and vision and positioning statements, and company values.

Keep those channels of communication open – and establish that from the first day of employment.

5. Set and achieve goals together

A company ‘north star’ – in other words, the mission and vision – is crucial to success. That lays the groundwork for goals to be set at the departmental and team levels, and then assigning roles and responsibilities to individual employees to achieve these goals.

Be clear on where that north star is, what the subsequent goals are, and how you and your colleagues can achieve them.

6. Recognize employee efforts and achievements

Simply managing your employees’ work isn’t enough. Validating an employee’s hard work and success through recognition and reward is crucial to engagement and retention. Ensure that your top performers are rewarded accordingly.

7. Be consistent

Don’t promise one thing and then deliver on another. Likewise, don’t say “We’re going this way!” and then change your tune halfway through the quarter.

Make sure you’re consistent in your messaging, decisions and actions as an employer – this is crucial to gaining the trust of your colleagues.

8. Utilize employee management software

Doing all of the above can be a daunting effort for any HR professional or business leader, especially with numerous variables and tacticals throughout. Optimize your employee management by introducing software and technology into the mix.

How do you choose the right employee management software for your organization?

The right employee management software depends on the size of your organization and your specific needs. Consider your current and future needs, your budget, your software’s compatibility with existing systems in your tech stack, and the user-friendliness of your interface.

Your organization should also consider whether you need a cloud-based or on-premise solution HRIS, as well as what features meet your needs and fill your gaps. This can include time and attendance tracking, performance management and review, payroll and benefits, recognition and rewards, logistic management, company and colleague communication, and other elements of employee management.

Also, look at your needs for data security, employee support, and accessibility.

Establish what your budget is to meet all of those needs – and think about what kind of return on investment can be expected so you can justify the purchase of an employee management software.

Ultimately, look for a software solution with a good reputation, plus reviews and case studies from other organizations.

The tie-back is that good employee management equals greater retention and engagement – which leads to better productivity, a stronger reputation and a positive bottom line. Everyone benefits in the end!

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What are floating holidays?

Floating holidays are typically paid days off that employees can use at their discretion. Unlike fixed holidays, such as Christmas or Independence Day, floating holidays can be used on any day that the employee chooses.

They were introduced to accommodate the diverse cultural and personal needs of employees, offering a more inclusive approach to time off.

Can you use a floating holiday anytime?

In most cases, yes. The beauty of floating holidays is their flexibility. However, company policies may dictate certain restrictions, such as requiring advance notice or prohibiting use during peak business periods. It’s important to clearly communicate these policies to avoid confusion.

For example, an employee might use a floating holiday to observe a religious event, celebrate a personal milestone, or simply enjoy a long weekend.

Are floating holidays paid out?

Typically, floating holidays are paid days off. However, whether unused days get paid out at the end of the year or upon termination varies by company. Some organizations may allow a carryover to the next year, while others may have a “use-it-or-lose-it” policy. It’s crucial to clarify these details in your company’s time off policy to ensure transparency.

Floating hours: What does it mean?

While floating holidays are entire days off, floating hours refer to flexible hours that an employee can add to their workday.

For instance, an employee might start work early one day and leave early another day.

This flexibility can boost employee satisfaction and work-life balance. However, like floating holidays, clear policies are needed to prevent misuse and ensure fair application.

How many companies offer floating holidays?

While exact numbers fluctuate, various HR surveys indicate that a significant number of companies – particularly those with diverse workforces – offer floating holidays.

This trend is growing as organizations recognize the benefits of flexible time off in attracting and retaining talent. As an HR professional or SMB employer, it’s worth considering if this approach aligns with your company culture and operational needs.

Floating days around the world

Floating days vary from country to country. In this section, we will discuss the most common cases worldwide.

Floating days in the US

Floating holidays in the US can be used for any day the employee chooses, but they are often used for observances like Martin Luther King Jr. Day, Presidents’ Day, or personal events like birthdays if these days are not already recognized by the employer.

Some companies also allow employees to use a floating holiday for New Year’s Eve if it falls on a weekend.

Floating days in Europe

In Europe, the practice of floating holidays is becoming increasingly common as companies recognize the need for more flexible time-off policies.

These holidays are often provided as additional paid leave, allowing employees to observe personal, national, religious, or cultural events not recognized as public holidays.

For instance, Spotify, a Swedish company, has implemented a policy where employees can work on a public holiday and then exchange it for a day off at another time that holds more personal significance.

Similarly, in Italy, an employee might choose to work on Christmas Day, a recognized public holiday, and then use that day off at a later time that is more personally meaningful.

In the UK, this concept is less common, but it’s gaining traction. Employees might use a floating holiday to observe a cultural event, religious holiday, or personal occasion that isn’t recognized as a public holiday. The specifics would depend on the company’s policy.

Floating days in Australia

In Australia, some companies offer a “floating” public holiday per year, which allows employees to “swap out” an Australian public holiday for another day during the year to celebrate a religious or cultural holiday such as Chinese New Year or Diwali.

This approach is part of a broader effort to promote inclusivity and accommodate the diverse cultural backgrounds of employees.

Floating days in Asia

In Asia, this concept varies due to the region’s cultural diversity and differing labor laws.

For example, in China, employees might use a floating holiday for cultural events like the Lantern Festival, which aren’t recognized as public holidays.

Similarly, in India, a floating holiday could be used to observe widely celebrated festivals such as Diwali, which isn’t a public holiday in all areas.

Meanwhile, in South Korea, floating holidays could be used for cultural celebrations like Seollal, the Korean New Year, or Chuseok, the harvest festival, if these aren’t already recognized as public holidays by the employer.

How to implement floating holidays in your company

Implementing floating holidays requires careful planning.

Start by reviewing your current time off policies and considering how they could fit in. Consult with legal counsel to ensure compliance with labor laws.

Communicate the changes clearly to your team, explaining the benefits and any restrictions. Be prepared to handle questions and possibly adjust the policy based on feedback.

Floating holidays offer a modern, flexible approach to time off that can enhance employee satisfaction and inclusivity.

By understanding and implementing these policies effectively, you can position your organization as a forward-thinking employer that values its employees’ diverse needs.

As with any HR initiative, clear communication and thoughtful planning are key to success. So, why not float the idea in your next team meeting?

The post What is a floating holiday? Is it considered PTO? appeared first on Recruiting Resources: How to Recruit and Hire Better.

Every employee plays a pivotal role in the success of an organization. When employees are absent, especially unexpectedly, it can disrupt the workflow, leading to decreased productivity and potential financial losses.

This is where absence management comes into play. It’s a little different from time-off management, which covers pre-approved and pre-planned time off.

What is absence management?

Absence management is a program designed to control absences due to various reasons such as illness, injury, or other emergencies. It encompasses policies and action plans tailored to monitor and reduce unplanned leaves, which are absences not scheduled in advance or those that employers cannot predict or control.

Examples include short-term sick leave, long-term medical leaves, lateness, unauthorized leaves, and more.

Why is absence management important?

Absence management is crucial for several reasons.

The importance of effective absence management cannot be overstated. From a financial perspective, unplanned absences can be a significant drain on resources.

Since 2019, organizations believing in underreported absences rose from 36% to 55% by 2023, post-COVID.

Average absence days per employee annually increased by 2.6 days since pre-COVID times.

The direct cost of absence per employee surged from $3,395 to $4,025. Four out of five (80%) surveyed companies attributed increased absences to COVID restrictions.

Beyond the monetary implications, absenteeism directly affects the productivity of an organization.

Tasks might face delays, or the overall quality of work could see a decline.

Furthermore, when some employees are absent, others might have to shoulder additional responsibilities, leading to increased stress and potential burnout.

This can have a cascading effect, where the increased workload on present employees might lead to further absences.

Moreover, in sectors where customer or client interaction is frequent, inconsistent staffing can lead to a decline in the quality of service provided.

Benefits of absence management

The benefits of a well-implemented absence management system are manifold. For starters, it leads to improved productivity.

By proactively addressing and reducing the root causes of absenteeism, companies can maintain a consistent and productive workforce. This, in turn, translates to cost savings.

Fewer unplanned absences mean fewer disruptions and a more streamlined operation.

Additionally, by fostering a supportive work environment where absenteeism is addressed, companies can boost employee morale and job satisfaction.

Lastly, in customer-facing roles, consistent staffing ensures that clients and customers receive a uniform and high standard of service.

How to track absence?

To get a grip on absence management, it’s imperative for organizations to have a robust system in place to track all instances of absenteeism.

Modern tools, such as self-service HRIS systems, can be invaluable in recording and analyzing this data.

Regular reviews of this data can help organizations identify any emerging trends or patterns related to absenteeism.

Open communication is another cornerstone of effective absence management.

By ensuring that there are open channels of communication between employees and management, organizations can gain insights into the reasons behind absences and address any underlying issues.

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With a focus on providing valuable insights and practical advice, this article will break down what preboarding is, when it occurs, best practices, and when to include it in your HR work – all within a concise 600-word limit.

When does preboarding occur?

Preboarding starts right after a successful job offer is accepted by the candidate, continuing until their first day at work. This interactive phase acts as a bridge between recruitment and actual onboarding, enhancing employee engagement and preparing new hires for their roles.

Best practices for preboarding

Implementing effective preboarding practices engages new hires from the start, laying a foundation for a positive work experience. Here are some best practices you can apply to your preboarding process:

Send a welcome message

A simple yet crucial step, sending a welcoming email or personalized video can make new hires feel appreciated and excited to join your organization.

Provide company information

Offer comprehensive company information, including values, culture, and mission statement, to help familiarize the new hires with the organization. This can be done through an employee handbook, a series of videos, or easy-to-digest infographics.

Begin paperwork early

Send essential documentation like contracts, tax forms, and policy acknowledgments in advance. Utilizing e-signature services or onboarding software can speed up the process and simplify record-keeping.

Introduce new hires to the team

Connecting new employees to their colleagues before they start can foster a sense of belonging. Organize a virtual meet-and-greet or encourage team members to send greeting emails to set a positive tone.

Assign a mentor

Pairing new hires with dedicated mentors can further facilitate their integration into the team and provide them with valuable support from day one.

Outline expectations and goals

Clearly explain job responsibilities, expectations, and initial goals to help new hires feel more prepared. Provide details on their work schedule, reporting structure, and key performance indicators.

Facilitate IT setup

Coordinate with your IT department to set up necessary tools, access, and equipment ahead of time, ensuring a smooth start on their first day.

Offer training materials

Provide access to relevant training resources like videos, articles, or e-learning courses, fostering professional growth from the beginning.

Including preboarding in your HR work

Incorporating preboarding into your HR strategy is essential, regardless of company size or industry. It enables new hires to hit the ground running and feel genuinely welcomed, thus reducing turnover rates and increasing overall job satisfaction. Consider adopting preboarding in your HR work in the following scenarios:

• New hires: Preboarding is vital for every new employee, regardless of their position or experience level.
• Internal transfers: When an employee is transitioning to a new department or role within the company, preboarding can ease the shift.
• Reboarding: Preboarding practices can be adapted for employees returning from an extended leave of absence or rejoining after a temporary departure.
• Seasonal or temporary hires: Even short-term hires can benefit from preboarding, improving overall productivity and engagement.

Ultimately, a well-planned and effective preboarding process is a valuable addition to your HR work and lays the foundation for new hire success. By following the best practices outlined above, you can create a tailored preboarding experience that benefits both your employees and your organization.

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This type of technology can include an applicant tracking system (ATS), talent acquisition software, recruitment marketing systems, and more. The term “recruiting software” can be considered an umbrella term that covers all the different versions and formats within. This list of best recruitment softwares can help you make a decision when purchasing one.

What does recruitment software do?

The hiring process has many intricate steps, from posting job ads to multiple job boards to screening hundreds of resumes to preparing and sending job offers – managing and tracking the whole process via email and spreadsheets is time-consuming and makes record-keeping or reporting difficult (if not often impossible).

That’s where recruiting software comes in; organizations can have the hiring tools they need gathered in one place, where all the necessary information is organized in a clear way. Also, good systems allow smooth collaboration among various stakeholders (i.e. hiring teams, candidates, recruiters, HR) in that centralized location, eliminating cumbersome back-and-forth emails or needless confusion.

This helps candidates, too: this type of software simplifies the job application process, makes for more informative careers pages and streamlines scheduling and communication between candidates and the company.

More specifically, organizations can use recruiting software for:

• Automating tasks. This is a big advantage of recruitment technology. Instead of organizations and candidates spending a large amount of time on scheduling interviews, communicating or moving through the steps of the hiring process, the software will take over at least some or much of the burden. By optimizing the hiring process, recruitment software lets organizations hire faster and better.

Want to see how the Workable recruiting software optimizes and improves your hiring process? Get a demo or start a free trial.

• Finding and attracting candidates. Many hiring software solutions have features to help organizations attract candidates (e.g. job posting or careers pages). For example, Workable, as a talent acquisition software, offers a robust tool to source elusive talent.
• Evaluating candidates. Some recruiting systems integrate with video interview and assessment providers, and they also have built-in interview questions and scorecards – all of which help great candidates shine and organizations choose the best among them.
• Reporting. Accurate hiring reports can be generated directly from recruiting software. That way, organizations can see what works and what doesn’t in the way they hire. Some systems have basic reports, while others offer more complex reporting.
• Powering up recruitment. Most systems have carefully selected integrations that improve the hiring process. Apart from those that help with evaluating candidates as mentioned above, organizations can use software integrations with job boards (for easy job posting and perhaps discounts), background check providers, HRIS systems and more.

Generally, software for recruiting aims to make life easier for hiring teams and offer a better experience to candidates. Beyond that overarching purpose, each recruitment software provider will have a different way to cover the recruiting needs of organizations.

If you like this “what is recruitment software” definition, check out our ATS definition and our other HR terms.

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The short answer is because they provide innovative services and products. But, this is an understatement to their accomplishments in the digital innovation field. They have in fact created new business processes and solutions which have impacted the entire tech scene. In other words, they have tackled the “digital transformation challenge”.

What is digital transformation?

The digital transformation definition in business is the use of cutting-edge technologies to improve functions and processes. Companies utilize cloud-based systems, artificial intelligence, and complex data analytics, among others, to modify existing methods or create new ones. These methods help simplify procedures and increase efficiency in functions such as operations, customer service, and IT.

But why are so many businesses going through a digital transformation? In addition to streamlining internal processes, the rapid growth of technology and available resources have changed customer needs and demands. Nowadays, people have access to many services and products through apps, websites, and other tech – and have become more selective in their decisions. To stand out from the crowd, companies need access to more data and faster analytical processes – and need to provide that access as well – to attract and retain customers.

For instance, digital transformation can enhance a company’s marketing activities. By acquiring complex data-driven techniques and advanced analytics, marketers can gain a deeper understanding of consumer behavior. This way, they can reform their marketing campaigns and improve customer experience and retention.

Most of the time, it makes good business sense to take advantage of the technology that’s out there. The real challenge for companies is to choose the right type of technology and also implement it in ways that ensure people will use it properly and securely – and ensure that the new tech integrates seamlessly within their existing tech stack.

What is a digital transformation strategy?

A “digital transformation strategy” refers to all steps and actions a company takes to implement technology and reap its benefits. It starts with understanding current business operations and how they can evolve by means of technology.

Then, the company sets business objectives and analyzes potential risks about implementing software and platforms across processes and departments. Thorough research is essential to identify available resources and how technology can impact the business.

An example of a digital transformation strategy would be revamping the recruitment process via technology. For instance, a talent acquisition platform could include anything from AI that supports sourcing activities to complex analytics on the efficiency and quality hiring methods.

Keep in mind that a digital transformation strategy needs time to produce positive results. Some employees may find transitioning to the “digital world” challenging. Whether these employees are slow to adapt to new technology or whether they’re consciously resisting change, companies need to address their concerns via a well-formulated plan. With the right training and mindset from leaders and managers, these setbacks can be overcome. Digital transformation requires buy-in from all parties – be it executives, employees, or even customers – to truly succeed.

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Workable CHRO Rob Long knows. “It’s a top 5 metric that we track at Workable,” he wrote in LinkedIn. “When it’s high enough, you can do incredible things – things that other companies cannot do. It’s a huge competitive advantage.”

So what is human capital efficiency? Let’s take a look and learn.

What is human capital efficiency?

In short, human capital efficiency refers to how well a company uses its human capital – the skills, knowledge, and experience of its workforce. It measures the output and business impact generated per dollar spent on employee-related costs.

With today’s tight talent market and competitive hiring landscape, human capital is more precious than ever. Maximizing your workforce’s contributions relative to their cost is essential for SMB success.

Why human capital efficiency matters

High human capital efficiency means your workforce is delivering substantial value in relation to what you spend on compensation, benefits, training, and other employee costs. The higher your HC efficiency, the better your return on human capital investment.

For SMBs, improving HC efficiency can lead to:

• Increased productivity and revenues without expanding headcount
• Ability to pay team members more competitively by boosting revenue per employee
• Reduced costs via streamlined operations and automation
• Better identification of skills gaps to target training and recruitment
• More accurate performance measurement to reward top talent

“It’s like an ROI on all the human elements that go into your company,” Rob adds. “When you’re operating a business, you’re making investments in it to make it run more smoothly and bring greater return. Your employees are a huge part of that – you’re investing in your people so they can bring their best to the job.”

So how do you invest in your people?

Rob answers: “Salary is the obvious one. But there are also other investments: benefits, perks, learning & development, all-hand retreats, lunch & learns, even team dinners and social outings. Any and all of these can tie back to employee productivity and a direct impact on revenue. That’s human capital efficiency in a nutshell.”

Calculating your human capital efficiency

So how do you calculate human capital efficiency? Easy – it’s simple math. Take your total revenue or net income, and divide it by your total employee expenses for a given period.

Let’s say your company generated a million dollars in revenue last quarter, and spent $200,000 on employee costs. That means your human capital efficiency would be $1M / $200K = 5.

This means for every dollar you spend on human capital in the last quarter, your business earns $5. The higher the ratio, the better.

You can track this metric over time to monitor what’s going well and what’s not – and benchmark against competitors in your industry to see how you stack up against them.

You can go deeper. Here are three other, more specific ways to calculate human capital efficiency:

1. Human Capital Value Added (HCVA)

This method calculates the economic value added by employees, beyond any material, overhead, and other operational costs.

HCVA = Operating Profit − (Capital Charge × Capital Employed)

Where:

• Operating Profit is the profit generated from operations before interest and taxes.
• Capital Charge is the rate of return required by capital providers.
• Capital Employed is the value of all the capital used in the business.

Then, to get the Human Capital Value Added per employee:

HCVA per Employee = HCVA / Number of Employees

2. Human Capital Return on Investment (HCROI)

This metric measures the rate of return on the investments a company makes in its workforce.

HCROI = Operating Profit / Total Employee Costs (Salaries + Benefits)

A higher HCROI suggests that a company is getting more return from its investments in its people. Conversely, a lower HCROI might indicate inefficiencies or that the company is not realizing the full potential from its human capital.

3. Revenue Per Employee

While simpler and more direct, this method offers a quick gauge of how much revenue each employee contributes to the company. It’s particularly useful for comparing efficiency across different firms in the same industry.

Revenue Per Employee = Total Revenue / Total Number of Employees

This method, although straightforward, is a gross measurement. It doesn’t take into account the nuances of capital structures or the specific roles and responsibilities of employees within different departments. Nor does it give you an indication of how much you’ve invested in human capital.

“We’re always thinking about ways to optimize the work we do at Workable,” Rob says. “When we’re making a decision on people, we’ll ask ourselves; ‘Will this grow our human capital efficiency? And how?’ And that’s our needle for success right there. We want to move that needle in the right direction. These formulas help us measure our progress on that.”

Strategies to boost HC efficiency

Once you know your starting point, here are some proven tactics to maximize human capital efficiency:

1. Analyze revenue per employee: Which employees, teams, or departments are generating the highest revenue relative to their cost? Determine what makes them successful and replicate across your organization.

2. Identify automation opportunities: Can any manual processes be automated to reduce labor costs? Do repetitive administrative tasks take up time that could be spent on high-ROI activities?

3. Review skills utilization: Are employees operating in their strongest skill areas? Are any skills being underutilized that could drive new revenue streams?

4. Invest in training and development: Targeted training to close skills gaps can greatly increase productivity. Offer development opportunities to boost engagement and retention.

5. Reward top performers: Incentivize and retain your standout talent. Be cautious not to overpay low performers.

6. Track performance rigorously: Tie individual goals to company objectives. Maintain clear metrics to identify low and high performers.

7. Promote knowledge sharing: Collaboration and documentation prevent knowledge loss when employees leave.

8. Seek cost-effective hires: Hire for culture fit and train for required skills. This expands your talent pool.

Making the most of your human capital

For SMBs facing stiff competition for talent, maximizing your workforce’s impact is vital. Boosting human capital efficiency allows you to extract more value from your employee investments.

“If you don’t have this metric in your OKRs, you need to add it,” Rob emphasizes. “Your company is nothing without its people. Investing in your human capital is crucial to your success – and so is the return on it. It’s how you can get ahead of others.”

So, as Rob stresses – take the time to calculate your current human capital efficiency, identify problem areas, and capitalize on opportunities to grow this ratio. Your closest business advisors – your employees – are your number-one asset. Optimize their output through calculated input, and your SMB will reap the rewards.

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What is a CV?

CV is the abbreviation of the Latin ‘curriculum vitae’, which means ‘course of life’. In the US and Canada, a CV includes a person’s detailed career and educational history. Common CV sections are:

• Personal Statement
• Education
• Working experience
• Skills 
• Research
• Publications 
• Conferences
• Grants

Globally, CVs are common when applying for academic roles, such as research and medical positions. However, in Europe, the UK, and Ireland the word CV is used more broadly and describes a one- or two-page document with the applicant’s most important information – no matter the role they’re pursuing. This CV definition is closer to the US resume.

And what is a resume?

The French word résumé means ‘summary’. A resume, indeed, sums up the applicant’s career history and achievements. In the US and Canada, resumes are popular when applying for business and non-profit roles. They are concise and include all relevant skills and qualifications that show an applicant’s suitability for a certain position. 

Job candidates often tweak the format to match the specific requirements of a role. For example, they might restructure their resume to shift the emphasis either on professional or academic achievements. Resumes mostly include:

• Education
• Personal statement
• Working experience
• Soft skills
• Technical knowledge
• Knowledge of foreign languages

Can I use a resume instead of a CV? 

CV vs. resume – which one should I choose? When applying for a role, make sure to read the job application guidelines carefully to figure out if you need to include a resume or a CV. When you don’t have specific instructions, follow the trends of the country you’re in. When you’re posting a new job ad, no matter where you are in the world, you need to use the “local language” of the country you’re recruiting in. To sum up:

1. In the US, a resume is more common while CVs are used for academic purposes.
2. In Europe, the UK, and Ireland the term CV is prevalent but describes a shorter document. For academic purposes, people use the so-called academic CVs, which include their full career history.
3. In other countries, like Australia, candidates use the word CV and resume interchangeably to describe the same document, which briefly mentions the candidate’s most important career details.

Did you find this CV vs. resume definition useful? For more HR-related definitions, see our HR Terms section.

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Finding a clear talent definition is challenging. Some will argue that it’s genetics, others will say it’s learned, and most will agree that it’s a little bit of both. We can define talent as a special ability that potentially leads an individual to success.

Contents:

• Talent Examples
• Talent vs Skill
• What about the talent definition in the workplace?
• How can I spot talent?

Here are some talent examples:

• Writing
• Researching
• Brainstorming
• Inspiring
• Self-managing
• Networking
• Innovating
• Listening
• Negotiating
• Programming

This list can also describe skills, as we often use these terms interchangeably. However, there is a slight difference between talent and skill.

Talent vs Skill

Talent and skill describe related properties, but they’re not exactly the same. Talent comes naturally while skill is something you develop through learning.

• Talent definition: a natural aptitude, an inner quality that emerges effortlessly
• Skill definition: an acquired ability, learned with effort

According to research, genes play a significant role in talent. They form the way individuals respond to certain stimuli and how they seek out specific experiences.

The environment is equally important for talent identification and development. For example, a child with an ear for music does not necessarily become a musical genius without access in musical instruments or a good tutor. A talent becomes an enduring ability only with effort and practice.

What about the talent definition in the workplace?

The word ‘talent’ has become very popular in business language. In HR departments, job titles such as Chief Talent Officer and VP of Talent Acquisition have become commonplace. Recruiters and HR professionals use new technology and recruiting methods to discover potential talent for their companies and create the so-called ‘talent pools’.

Here are the most common definitions of talent functions related to HR:

• Talent acquisition refers to attracting and recruiting skilled employees
• Talent management is the process of developing and retaining employees with skill training and succession planning
• Talent pool is a group of candidates who are potentially a good fit for a company’s current or future hiring needs

In general, talent in the workplace is approached in multiple ways: it can describe innate or mastered skills, but is also used to define high-performing and high-potential employees. Hence, the exact meaning of talent in a business setting varies according to the context and point of reference.

How can I spot talent?

In competitive markets and in high-demand jobs, companies want to win the ‘war for talent’. Scouts and recruiters are in a constant talent-hunting, aiming to identify and recruit high-potential candidates who’ll help achieve the business goals. Here are some tips on how to build a successful talent acquisition strategy:

• Be specific about talents and skills you’re looking for. Identify all the skills that will help an employee to shine in a particular role. Make sure that your requirements are realistic, by distinguishing between must-haves and nice-to-haves.
• Look beyond typical requirements. Now that you know what you’re looking for in candidates, think about how you’ll find employees with those skills. Previous work experience and education are not always reliable criteria. Look at hobbies and interests in candidates’ resumes or turn to your network for referrals.
• Interviews matter. It’s common to overlook talent when you don’t know what to ask and how to evaluate candidates’ answers. Prepare and ask all candidates talent- and skill-relevant questions. When you’re actively looking for talent, it’s more likely to recognize it in candidates’ answers.
• Identify candidates’ mental strengths. Resilience, grit, and positive mindset are important elements of talent development. You can use the STARR model (Situation, Task, Action, Result, and Reflection) to understand how candidates act, react, and respond in a given situation. Ask them to describe a problem they faced at work and find out how well they manage and overcome it.

Lastly, after you hire these brilliant candidates, make sure to nurture and support their talent and skill growth. Create a working environment which enables employees to develop over time and accomplish their endeavors. Equip them with learning, training, and coaching opportunities and watch them succeed and bring positive results to the company.

Want more definitions? See our complete library of HR Terms.

Relevant job descriptions:

• Talent Scout
• Talent Acquisition Specialist
• Director of Talent

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Contents:

• Common C-level executive job titles
  • CEO
  • COO
  • CFO
  • CTO
  • CMO
  • CHRO
• What are some essential skills for C-suite executives?
• What other employee levels exist?

Common C-level executive job titles

While each company might have a unique grade system and job classification, certain job titles are used universally. Here’s a list of corporate titles you’ll likely find in a company along with a brief description of those C-suite roles and responsibilities:

CEO – Chief Executive Officer

This is the highest-ranking role in a company. CEOs oversee all business operations and decisions and are responsible for the success of the organization. All other C-suite executives report to the CEO. In some cases, the founder or co-founder of the company serves as the CEO.

COO – Chief Operating Officer

COOs are responsible for the proper execution of all business plans and strategies. In other words, they ensure that the company runs like clockwork. The COO is usually the second-in-command to the CEO.

CFO – Chief Financial Officer

A CFO manages all financial aspects of the company. They’re responsible for long-term budgeting and risk analyses, but also oversee the company’s financial reporting and overall financial status.

See CEO vs. CFO

CTO – Chief Technology Officer

CTOs are in charge of the tech stack that helps a company grow: they research and implement new systems, oversee security and set up infrastructure. Often, the term Chief Information Officer (CIO) is used for the same role. When a company has both job titles, the CTO is responsible for building new products and features while the CIO’s focus is internal, ensuring that IT systems operate effectively.

CMO – Chief Marketing Officer

This is the person who’s responsible for building and implementing marketing strategies. Depending on the company’s industry and goals, those strategies could be around digital marketing, advertising, product positioning, events and email campaigns.

CHRO – Chief Human Resources Officer

CHROs oversee anything that has to do with the people of an organization. They establish how the company hires, promotes, trains and evaluates employees. They also manage long-term HR strategies, such as succession planning and talent acquisition.

What are some essential skills for C-suite executives?

Each executive-level employee should be an expert in their own field. For example, a CMO needs to have extensive experience in marketing, while a CFO needs in-depth knowledge of financial and accounting matters.

However, from the C-level executive definition we gave above, it’s clear that all employees who hold these roles have something in common: they all need to have a strategic mindset in order to drive business decisions. Here are some common skills employees should practice as they rise in senior positions:

• Leadership
• Change management
• Critical thinking
• Decision-making
• Conflict management

What other employee levels exist?

In most companies, the board of directors and the founders are at the top of the corporate hierarchy followed by the C-level executives namely the CEO, COO, CFO, etc. But what’s below C-suite? That depends on each company’s organizational structure.

Usually Vice Presidents (VPs) and Senior Vice Presidents (SVPs) report to C-level executives. For example, the VP of Product Marketing and the VP of Digital Marketing will report to the CMO. D-level executives are the ones who report to VPs. In this case, D stands for director, e.g. a Director of Engineering or a Director of Sales belong in this grade. Some companies also use the term “B-level executive” to describe mid-level managers.

Related resources:

• Best job sites for executive-level candidates
• CEO vs. President
• CEO vs. CFO
• CIO vs. CTO
• SVP job description
• Managing Director job description
• Executive Director job description

The post What is a C-level executive? appeared first on Recruiting Resources: How to Recruit and Hire Better.

In turn, mindful leadership is a mindfulness-based management approach that enables someone to focus their full attention on each project at a given time. Plus, mindful leadership does not only benefit the manager, but their team and business as a whole.

What are the benefits of mindful leadership?

As already mentioned, team leaders like Sarah handle various tasks on a daily basis. At the same time they must cater to their teammates in the best possible way. However, distractions and uneasiness can interfere with their thinking process and make them lose sight of the task or goal at hand. That’s why mindfulness can be a huge asset and enable team leaders to quickly regain their focus.

Besides that, mindfulness has been linked with many other benefits related to leadership style and overall performance. Here are the major ones:

1. Reduced stress: People usually get stressed not because of things that happen in the moment, but by overthinking past or upcoming events. By staying in the present, you surpass these stressors and overcome all challenges when and if they happen.
2. Increased attention: When you practice mindfulness, you focus your full attention on the current task in the moment. This doesn’t mean that you’re blocking other stimuli around you. You continue to receive and evaluate it, but you’re less likely to be lured to it.
3. Improved relationships: As a mindful leader, you can form more constructive relationships with co-workers. Your enhanced listening skills, combined with increased focus, helps you connect on a deeper level and empathize with your teammates.
4. Boosted creativity: Mindfulness is also linked with higher creativity. It strengthens your cognitive functions that lead to creative output, such as brainstorming.

How can you become a mindful leader?

So if you’re in a similar position as Sarah, and you wish to practice mindful leadership at work, you can start with related training. First off, know the assets of mindfulness and its positive impact not only for your work and leadership style, but for your overall quality of life as well. Then, follow these common practices:

• Perform mindfulness exercises: Search mindfulness exercises online and choose those that appeal to you the most. Whether that’s through a 20-minute mindful walk or a body scan meditation, train your brain to sync in the moment you’re in. Remember, mindfulness is a skill to be practiced consistently.
• Disconnect regularly: How well do you manage your time? Do you take time-outs during your workday or in between tasks? If not, then it’s time to start. You can begin with the Pomodoro technique, which will help you narrow down your focus on a given task and disconnect systematically.
• Relabel stress: With all the tasks you handle per day, it’s normal to feel stressed at times. To manage workplace stress, all you need to do is start looking at it as a sign that you should pull yourself back into the moment again.

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We live in a diverse business world. There’s not just variability in our workforce, there is also diversity in the customers we want to attract, in the messages we share or consume via various platforms, and the markets we plan to expand to.

Inclusive leadership helps balance all these elements – inclusive leaders adapt quickly to diverse scenarios and alternate perspectives with an open, non-judgmental mind to bring on the best results possible. And research shows that, when done right, there are many benefits; teams perform better and more collaboratively, and make better overall decisions.

With businesses increasingly optimizing their diversity and inclusion activities, inclusive leadership is more relevant now than ever. No matter how great your company’s diversity metrics get – be that in new hires you make or deals you close – if you don’t have an inclusive environment that embraces all these differences and creates a workspace where everyone can bring their true selves to work, your D&I initiatives will fail. That’s why inclusive leaders are needed to set the right tone.

What are the top qualities of inclusive leaders?

According to Deloitte, these are the top strengths inclusive leaders possess:

1. They’re loyal ambassadors of diversity and inclusion – they never miss a chance to spread the word of D&I significance at work.
2. They accept that they’re vulnerable and show it.
3. They combat old-fashioned paternalistic leadership styles.
4. They’re aware of their own biases and challenge their habitual patterns.
5. They’re excellent communicators – i.e. they’re curious and great listeners.
6. They understand and adapt to various cultural norms.
7. They’re team players, eager to help and do what’s best for the team.

Tips to boost inclusive leadership at work

When recruiting for a senior role or promoting someone to a managerial position, it’s good to keep these traits in mind. There are also ways to reinforce these characteristics over time. Here are some best practices for inclusive leaders:

• Attend an inclusive leadership training: Through certain activities (e.g. storytelling) you can learn what the most triggering biases are for you and ways to overcome them. You can recall and practice them on a regular basis to stay bias-free.
• Find a mentor: Talk to someone with more experience in the area, and who has excelled in managing diverse teams. It doesn’t have to be your own manager – it can be an external source you trust and look up to for their inclusive leadership behaviors and skills.
• Ask for feedback: You can use your 1:1 meetings to discuss openly with your teammates how inclusive your managerial approach is. Do they feel valued as a member of their team? Do they feel like they can ping you when something is wrong? Leaders should not take all these for granted – it’s easy to get lost in translation when talking about biases.

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Applicant tracking system (ATS) and candidate relationship management (CRM) software both help automate, organize, and optimize the recruitment and hiring process but knowing how, when, and why to integrate each of these tools into a talent acquisition strategy is key to maximizing their value.

To compare an ATS vs CRM, let’s start with defining each, and then delve into the similarities and differences.

What’s an ATS?

An applicant tracking system (ATS) is recruitment software designed to streamline, automate, and optimize the hiring process for recruiters, HR professionals, and hiring managers.

An effective ATS simplifies the entire talent acquisition workflow from start to finish, using automation to simplify tasks which may include the following:

• Publishing job postings to social media, LinkedIn, and job boards
• Organizing the application process
• Creating a talent pool of candidate profiles
• Parsing resumes
• Administering skills assessment tests
• Collecting and reporting hiring metrics
• Scheduling interviews
• Sending follow-up communication
• Performing background checks
• Issuing hiring and job offer letters
• Collecting signatures for employment contracts
• Onboarding

Using an ATS as a tool during the recruitment process improves the candidate experience while also making it easier for hiring professionals to attract, identify, and retain top talent.

Automating important but time-intensive tasks keeps the entire lifecycle of the hiring process organized, improves communication with candidates and among stakeholders, reduces time-to-hire, and allows hiring professionals to focus on finding the best talent for open roles.

Not sure which ATS is the best option to meet the staffing needs of your business? Look at our ATS buyers’ guide.

What’s a CRM?

CRM is an acronym for customer relationship management (or candidate relationship management when used as a recruitment marketing tool). Recruitment CRM software is used to create a talent pipeline of job seekers, current employees, and passive candidates that recruiting teams can leverage for recruitment and hiring purposes.

Candidate relationship management systems often have features to help with the following:

• Building a database of potential candidates
• Making saved resumes searchable by keyword
• Delivering targeted messaging to talent pool
• Fostering a relationship between the employer brand and candidates
• Tracking candidate progress during hiring and onboarding
• Sending surveys and compiling feedback on hiring process
• Collecting and reporting hiring analytics

A CRM is a tool that helps build and nurture relationships with talent, creating a scalable source of qualified candidates to choose from. Having access to an existing pool of candidates can eliminate the need for a recruitment agency, increase the quality of applicants to job openings, and reduce time-to-hire.

Should you integrate your CRM with an ATS?

Although there’s a slight overlap in the services offered by ATS vs CRM software, they’re two different types of tools, each with a distinct purpose. An ATS organizes and coordinates the actual application and hiring process, while a CRM system helps create and maintain a pool of active and passive talent for recruitment — both are valuable recruiting technology tools.

Using a CRM with an ATS integration creates a tech stack that automates and optimizes each and every step of the talent acquisition process, making it easy to source candidates from your own qualified pool while also effortlessly attracting outside applicants.

With a CRM and ATS integration, qualified applicants go through the hiring workflow organized and managed by the ATS, the best candidate is selected by the hiring manager, and the CRM maintains a relationship with the remaining candidates for future job openings, creating a valuable cycle for recruitment.

Aside from the clear benefits to hiring professionals, today’s competitive job market offers candidates a lot of options. Having an organized talent acquisition pipeline with clear communication and professional responsiveness builds trust with applicants while expediting the hiring process in a way that gives your company a competitive edge.

How can Workable help me?

Workable is an industry leader in ATS software and can integrate into your already existing workflow. By partnering with the most popular tools in recruiting technology, Workable offers a single, powerful solution for maximizing efficiency while optimizing your recruitment and hiring process. Find out more about us and our partnerships here.

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Alternative names for an applicant tracking system include: ‘hiring software’, ‘talent acquisition software’, ‘hiring platform’, and ‘recruitment software’.

Who uses applicant tracking systems? 

Everyone involved in recruiting, such as business owners, hiring managers, and recruiters, will use applicant tracking systems at some point. Understanding the costs of traditional hiring methods, both in terms of time and money, makes companies turn to an ATS. With the help of this system, organizations can optimize their hiring process.

What should an applicant tracking system do?

Some areas an ATS system can help in are:

• Scheduling
• Communication between candidates and hiring teams
• Collaboration with teammates
• Legally compliant candidate sourcing
• Candidate evaluation with the use of assessments and scorecards
• Employer branding to convey the company culture and vision
• Measuring hiring effectiveness through recruiting reports, e.g. candidate sourcing reports

Each ATS may specialize or excel in specific recruiting areas. Before purchasing an applicant tracking system, it’s useful for organizations to compare several options with each other. To do so correctly, they may map their individual hiring methods, analyze the problems they need to resolve or identify opportunities for improvement. Then, they can evaluate available systems based on important criteria.

This list of best applicant tracking systems in the market today can also help you make an informed decision.

Why should you use an applicant tracking system software? 

It’s not out of sheer luck that applicant tracking systems (or generally recruiting software) keep gaining popularity in the recruiting world. They take a huge burden off the shoulders of hiring teams and give them time to focus on what matters – connecting with candidates and making hiring decisions. More specifically, some important benefits of applicant tracking systems are:

Boosted productivity and efficiency: Gone are the days of sifting through piles of resumes manually. An ATS automates many of the time-consuming aspects of recruitment, from sorting applications to ranking candidates based on specific criteria. This automation ensures that hiring teams spend their time where it counts the most.

Enhanced candidate experience: A swift and smooth hiring process is not just beneficial for employers; it’s crucial for candidates too. With faster scheduling, timely communication, and a streamlined application process, candidates feel valued, leading to a positive perception of the company.

Centralized application management: With the proliferation of job boards and platforms, managing applications can become chaotic. An ATS provides a unified platform where all applications, regardless of their source, are aggregated, making it easier to review and manage them.

Strengthened employer brand: In today’s competitive job market, an employer’s brand is paramount. An efficient hiring process, facilitated by an ATS, sends a strong message about the company’s professionalism and its value for potential employees.

Data-driven insights: Beyond the immediate hiring process, an ATS offers invaluable analytics. These insights, ranging from the effectiveness of different hiring channels to the time taken to fill positions, provide actionable data that can refine and optimize recruitment strategies.

Ensured legal compliance: Recruitment is fraught with legal intricacies. Whether it’s ensuring non-discrimination in hiring practices or adhering to data protection regulations, an ATS can be configured to assist companies in staying compliant, reducing the risk of legal complications.

Interested in an ATS for your company? Request a Workable free trial to see how it can help you improve your hiring process. 

Did you find this applicant tracking system definition useful? Visit our library of HR Terms to find more definitions.

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‘Ghosting’ is a term borrowed from online dating; for instance, when someone disappears suddenly without informing their dating partner.

“Candidate ghosting” or “applicant ghosting” is a similar term for job candidates who unexpectedly miss their screening calls or interviews with hiring teams. The phrase might also indicate that the company ghosts candidates by not keeping them informed about the status of their application.

Contents:

• Why does employee ghosting happen?
• What can you do about this?

The phrase “employee ghosting” shouldn’t be confused with “ghost employees” – these are employees who exist on a company’s payroll, but don’t actually work at that company. Having ghost employees is a type of accounting fraud.

Why does employee ghosting happen?

In the U.S., wherever “at-will” employment applies, neither party has to give notice when they want to severe the employment relationship. So in these cases, there are no repercussions for an employee who wants to quit without giving notice.

There are many reasons – some complex – why that employee would not inform their company ahead of time. Here are a few possible explanations:

• Employees lack professionalism. Contrary to what you’d like to think, it does happen.
• Employees feel uncomfortable or even unsafe about discussing their resignation. This is especially if their manager reacted badly or even threateningly to past hints of quitting. In this case, an employee will probably find it easier to just leave without saying anything.
• Employees don’t have a good understanding of the difficulty or cost of hiring someone to replace them. So, they might not think it’s necessary for them to give you any notice or warning, especially since you, as an employer, have the right to do the same (in the U.S., at least).
• Employees don’t want to be guilted into staying for longer. For example, if an employee has accepted another job offer and wants to start work there soon, they wouldn’t want their manager to coax them into staying until their replacement is found. Instead, they prefer to avoid the discussion with their manager altogether.
• Employees are angry or dissatisfied. There’s the possibility that an employee ghosted their employer because they were not happy with something that happened at work or the way their employer handled that situation afterwards.

Of course, this list isn’t complete – there are many more reasons for employee ghosting at work. And for candidates, reasons will be different too.

What can you do about this?

Probably not much – at least not directly. What you can do is establish a good work environment where employees can feel safe and free to discuss anything. Be as transparent as possible to encourage employees to give you the same courtesy. Build a culture based on an open door policy and respect your employees so they’ll respond in kind when they decide to leave. Of course, you can also take actions to improve retention so that fewer employees will think of quitting in the first place.

Want more definitions? See our complete library of HR Terms.

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Businesses have recently introduced the term “people team” along with new roles such as “People Manager”, “SVP People” or “People Operations Specialist”. These seemingly non-traditional job titles are actually alternate names for human resources or personnel professionals.

What those job titles have in common is the word “people”. Companies build people teams to shift the focus of HR from simply performing administrative tasks to taking care of what matters the most: their employees.

“The people team is responsible for creating a healthy and productive workplace that attracts, retains, supports, engages and develops top talent.”

This team maintains a holistic approach: it’s not only about hiring procedures, HR paperwork or office management; it’s all of these together, along with many more functions such as training and development, succession plans, diversity and inclusion, and employer branding. Read more about how people teams differ from HR teams.

Who is in a people team?

The structure of a people team differs across companies. For smaller companies, it could be a team of one to three recruiters and HR professionals who coordinate hiring, onboarding, training, and development, along with an office manager who handles the day-to-day life at work.

As companies scale, the people teams could grow, too, and create an entire people operations function. For example, they might add an employee with a marketing background to manage employer branding initiatives, such as gathering employee testimonials and building online content for the company’s careers page. The people team could also include an event organizer, to schedule training and team bonding activities for employees as well as recruitment events for potential candidates. Even someone with a background in IT can join a people team to manage all HR systems that are needed to ensure a smooth employee onboarding and management.

Depending on each company’s business goals, it might make sense to create specialized roles inside the people team. For example, an employee could be responsible for all diversity and inclusion efforts across the organization, e.g. in terms of hiring and payroll. Or, another one could be focused on employee satisfaction, e.g. by analyzing internal surveys and implementing new perks and benefits.

What does a people team do?

A people team handles all of the regular HR tasks, from recruiting to employee management, keeping the focus on employee satisfaction and well-being. Here are the main responsibilities of a people team:

• Handle employee data (e.g. new hire information and employment contracts) in an efficient way, using secure systems, applying automation when possible and reducing bureaucracy.
• Understand labor law and deal with complex issues (e.g. remote or multinational teams).
• Overview employee performance appraisals, coordinate trainings and lead employee development initiatives.
• Manage the workplace in a way that employees are happy, motivated and productive. (e.g. by applying fair company policies)
• Organize business events, team activities and trips.
• Coordinate hiring managers so that the recruiting process is cohesive and objective.
• Build a strong employer brand and ensure all candidates have a positive experience.
• Implement meaningful compensation and benefits packages that incentivize and retain employees.
• Track HR metrics, identify areas of improvement in hiring and management and allocate budgets efficiently.
• Provide necessary resources to all employees so that they’re able to perform their tasks successfully.

Want more definitions? See our complete library of HR Terms.

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Let’s look at the main responsibilities of people operations in more detail. They are:

• Modernize and digitalize outdated, bureaucratic HR systems, including payroll and applicant tracking software.
• Treat employees as internal customers and increase their satisfaction.
• Support employees on a day-to-day basis and answer questions about benefits and company policies.
• Keep track of and analyze HR metrics (e.g. turnover rates, time to hire).
• Onboard new employees and ensure they have access to necessary resources and tech.

Overall, the role of people operations is to empower employees and facilitate the day-to-day work life. Depending on the company’s size and objectives, there could be one or multiple employees responsible for the people operations. For example, one company might choose to hire a people operations specialist who’ll take care of new employees as they join the company and for their first six months until they’re fully productive. Or, another company might create an entire people team that’ll redesign the entire HR department and will be responsible for the entire employee lifecycle inside the organization.

The structure of people operations teams

The structure of People Operations teams varies based on the size and needs of an organization. In smaller companies, a single individual might handle the responsibilities of People Operations, Human Resources, and Talent Acquisition. However, as organizations grow, the People Operations team often expands, with roles dedicated to specific aspects of the employee experience.

For instance, larger companies might have a Learning & Development Specialist to oversee employee training programs or a Head of Diversity, Equity, Inclusion, and Belonging (DEIB) to ensure an inclusive workplace culture.

The primary goal of these specialized roles is to craft programs and initiatives that shape the work experience of current employees, ensuring they are resourced, supported, and empowered.

In the modern business landscape, People Operations is more than just a rebranded HR department. It’s a strategic function that puts employees at the center, treating them as internal customers.

This approach is evident in the range of responsibilities that fall under People Operations, from onboarding and internal communications to engagement, manager empowerment, and performance management. As the workplace dynamics continue to evolve, with factors like remote work and changing employee expectations, the role of People Operations becomes even more critical.

It’s not just about administrative tasks but about creating an environment where employees can thrive and contribute to the organization’s success2.

Want more definitions? See our complete library of HR Terms.

The post What is people operations? appeared first on Recruiting Resources: How to Recruit and Hire Better.

Contents:

• What is HR in simple words?
• What does the Human Resources department do?
• What are the Human Resources functions?
• What are the types of Human Resources roles?

What is HR in simple words? 

Based on the Human Resources definition, the HR department takes care of the organization’s most valuable asset; its employees. HR professionals make sure that employees have everything they need to perform their day-to-day tasks and they’re also responsible for creating a healthy work environment that attracts and retains qualified people.

What does the Human Resources department do?

Human Resources professionals perform a plethora of tasks, including recruiting, managing employee relations, and creating company policies. In small companies, HR Generalists perform all relevant tasks, whereas in larger companies HR professionals could specialize in certain areas, e.g. sourcing and hiring, compensation and benefits, HR operations.   

What are the Human Resources functions?

HR teams undertake various responsibilities in an organization. They:

• Recognize current and future hiring needs
• Ensure compliance with federal, state, and governmental labor rules and regulations 
• Attract, recruit, and retain talent
• Manage compensation and employee benefits
• Ensure effective employee relations 
• Manage onboarding, training, and learning and development processes to boost performance
• Apply health and safety measures
• Handle administrative tasks, such as payroll and taxes 
• Organize and oversee quarterly or annual performance reviews 

Human Resources also implement important company policies and regulations, for example, they ensure compliance with the Equal Employment Opportunity (EEO) and GDPR regulations. They need to stay up-to-date with changes in labor legislation and research new HR trends that will keep the organization running smoothly.

What are the types of Human Resources roles?

In most cases, especially in large companies, different functions are managed by different HR professionals, who report to the HR Director or the HR Manager. Here is a list of common HR job titles:

• Senior HR Manager
• HR Executive
• Payroll Manager
• HR Analyst 
• HR Assistant
• Recruitment Manager
• Talent Acquisition Manager
• HR Advisor
• HR Recruiter
• HR Generalist
• HR Specialist
• HR Administrator
• HR Administrative Assistant

New specializations such as Diversity and Inclusion Manager, HR Onboarding Specialist, and Compensation and Benefits Specialist have also emerged. If you want more HR job descriptions visit our extensive job descriptions library with more than 700 ready to use templates.

The complex duties of Human Resources have gradually led to creating more distinct HR roles and departments. In some cases, the name “HR” has even been removed from the job title and replaced with “talent management”, “talent acquisition” and “people operations”. This is the result of a shift from the administrative role that HR departments used to have to a more holistic, strategic approach.

Click here to learn the differences between talent management vs. talent acquisition, people operations vs. HR management and what exactly a people team does.

Want more definitions? See our complete library of HR Terms.

Related resources include:

• The most important HR skills and how to master them
• How to assess human resource skills
• How to build a strong talent acquisition team

The post What is Human Resources (HR)? appeared first on Recruiting Resources: How to Recruit and Hire Better.

Contents:

• What is diversity in the workplace?
• Diversity and discrimination
• What is diversity and inclusion?
• The importance of diversity in the workplace

To better understand and define diversity, we can think about it in a social context. For example, at work, you might interact with coworkers of different genders, age groups, faiths and so on. Likewise, at school, students may come from different socio-economic classes and have different personalities and physical abilities.

While the first things that come to mind when we talk about diversity are race and gender, there’s more than that. For a deeper analysis, you can refer to the breakdown of the different types of diversity.

What is diversity in the workplace?

To come up with a workplace diversity definition, we have to think about all the different characteristics that employees (could) have. First, we have the protected characteristics, such as race, age, gender and sexual orientation. And secondly, we have all the different:

• Experiences
• Talents
• Skills
• Opinions
• Personalities

These differences, for example employees’ talents, are less obvious and require the organization’s effort and proactiveness to shine.

Diversity and discrimination

Diversity in the workplace is also closely tied with discrimination. Bias and discriminatory employment practices exclude people who have specific characteristics, making it difficult for organizations to achieve and maintain diversity. That’s why many companies take action; here are some more examples of diversity in the workplace along with ways to tackle discrimination:

• Hiring women in the tech space
• Bringing gender diversity in sales
• Fighting gender inequality in leadership roles
• Dealing with age and gender discrimination
• Fostering an age inclusive workplace
• Building the case for disability inclusion
• Considering candidates with a non-traditional background
• Removing unconscious bias from the hiring process

What is diversity and inclusion?

In the recruiting and HR space, you might often hear the phrase “Diversity and Inclusion (D&I)”. There’s a reason why these two terms are distinct; diverse employees don’t automatically form an inclusive workplace where every employee is valued and given opportunities to thrive. To achieve both diversity and inclusion, companies could have people or teams (e.g. a D&I Manager) dedicated to designing anti-discrimination policies across the organization and ensuring that all candidates and employees get equal opportunities regardless of their protected characteristics.

The importance of diversity in the workplace

Building a diverse company means that you don’t discriminate against protected characteristics and that you’re an equal opportunity employer. This will help build up your employer brand and keep employees satisfied and productive (and it’s also the right thing to do).

While you might be obliged by law to be unbiased when hiring and managing employees, it’s not mandatory to actively aim to build diverse teams. However, there are some business benefits associated with diversity in the workplace, that you should take into account.

Diverse companies:

• Reflect societies and demographics more accurately
• Speak to a broader market
• Get more creative and profitable

Read some studies and interesting stats that can help you build the business case for building diverse teams.

Want more definitions? See our complete library of HR Terms.

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Contents:

• Examples of information you can find using the Google X-Ray search
• What is a search string example on Google?
• Boolean commands and symbols

Google Boolean strings are commands that help you come up with targeted results by applying the so-called Boolean operators, for example AND, OR, and NOT (see the Table below). 

Google X-Ray is popular in recruitment, with Boolean search being a powerful tool for effective candidate sourcing. By putting together specific words and phrases, you can narrow down your search to a limited number of results and spot candidates with the preferable qualifications and skills.

Examples of information you can find using the Google X-Ray search

• Contact details (e.g. phone number, email address)
• Resumes and portfolios
• Employees who work or have worked in a specific company
• Academic degree and other certifications
• Candidates from a specific location

What is a search string example on Google?

The Google search string should have all the essential keywords and symbols that’ll bring you accurate results. Here is a command example searching for a physical therapist with a degree in kinesiology:

(intitle:resume OR intitle:cv) “physical therapist” kinesiology (bachelor OR master OR degree) -job -jobs -sample -examples

This search string detects all the resume or CV files (intitle:resume OR intitle:CV) that contain the word ‘physical therapist’ and mention a degree in kinesiology. With the inclusion of the minus sign, you exclude sample resumes and job ads which will give you irrelevant results. To better understand the basic Boolean commands and symbols and build your own Google search string, see the table below:

If you want to gain a thorough understanding of X-Ray search techniques to craft your own Boolean search strings, read our tutorial on Boolean search for recruiters 

Also, visit our library of Boolean search cheatsheets.

Want more definitions? See our complete library of HR Terms.

More resources:

• How to find candidate resumes
• How to find candidates’ locations
• How to find phone numbers
• How to find candidates by keyword (skills and experience)
• How to find email addresses

The post What is a Google X-Ray search? appeared first on Recruiting Resources: How to Recruit and Hire Better.

Content:

• What is an employee retention strategy?
• Reasons why employee retention is so important for an organization
• But, as an employer, how do you retain employees?

Employee retention rate formula:

What is an employee retention strategy?

Employee retention strategies are practices an organization follows to retain its staff (e.g. through compensation, policies, benefits, office perks, etc.). A company’s main intent when planning those strategies is to minimize employee turnover, in other words, the number of employees that leave a company during a certain period. 

Even though a small turnover rate can be healthy depending on the nature of each industry, higher percentages can be expensive both in terms of money and time. Replacing an employee can be expensive, costing approximately 6 to 9 months salary based on the position. Losing highly performing employees can also impact team productivity and employee morale, as it requires adjustments to the daily functioning and workflows of a department or team – particularly if the departing employee is a manager or higher.

Reasons why employee retention is so important for an organization

These are the most important benefits of effective employee retention strategies:

• Sustained productivity flow: Professionals who work for long periods in an organization add significant value to the company. They understand the company’s vision at a deep level and know well how to fulfill their role’s expectations. Plus, they have acquired all the important skills needed to effectively complete tasks on a daily basis.
• Reduced company costs: Retaining skilled and reliable employees is financially beneficial for an organization. Scouting, recruiting, and onboarding new staff is expensive and time-consuming, with the average expenses reaching $14,936 and average replacement time of 94 days. With lower employee turnover costs, companies have more funding to invest in other parts of the business.
• Reduced training time: Long-term employees are highly trained and feel confident to carry out their daily responsibilities. They have built effective communication channels with their manager and colleagues and know how to deliver their projects on time. New employees require training and time to adapt to the new environment and its requirements, which can strain team productivity temporarily.

But, as an employer, how do you retain employees?

Having explored the employee retention definition and its importance, let’s look at which areas most companies usually focus on when crafting employee retention strategies and programs:

• Compensation and benefits: You can attract a good candidate by offering them a competitive salary and basic benefits (e.g. health insurance, discounts for wellness programs), but that’s often not enough incentive for them to stick around. Rewarding employees based on their performance with pay raises, bonuses or thoughtful gifts vividly shows that you acknowledge their efforts and the value they bring to your company. 
• A nice working environment: When organizing your company’s office, remember that it will be your employees’ ‘second home’. Many companies offer free snacks and lunch to employees, along with other perks to improve life at the office and increase employee wellbeing. They also organize team-building activities to support healthy relationships in the workplace, both with teammates and team leaders. New additions to organizational policies, such as telecommuting, also highlight the company’s care to embrace employee work-life balance. 
• Training and career development: Offering learning and training opportunities is also a huge motivator for employee retention. Employees can acquire new knowledge by attending interesting seminars and courses to develop professionally. It’s normal for long-term employees to want to experiment with new methods and specializations. It shakes up well-worn routines and motivates them to develop further in their roles.
• Clear communication: When you share important information with your employees, for example, pay-raise schemes or a new job task, make sure that you explain all the important details clearly and refer to relevant policies if possible. Employees might get confused with ambiguous messages and expectations and find it hard to respond accordingly. Craft useful documents and policies and distribute them to the staff in order to avoid such hazards.

Wondering how to retain employees? See our tutorial on how to create an employee retention program.

Want more definitions? See our complete library of HR Terms.

See also:

• How do you improve employee retention
• How to reduce new hire turnover
• How to improve your restaurant turnover rate

The post What is employee retention? appeared first on Recruiting Resources: How to Recruit and Hire Better.

Based on the standard diversity definition, the types of diversity in a social context are theoretically infinite: they encompass every characteristic that appears with variations among a group of people (such as hair or eye color). But usually, when it comes to workplaces, there are seven types of diversity we pay attention to.

Contents

• List of the Different Types of Diversity
• Protected by law
• Additional types of diversity
• Why is diversity important?

Here’s a list of the different types of diversity in the workplace:

• Cultural diversity
• Racial diversity
• Religious diversity
• Age diversity
• Sex / Gender diversity
• Sexual orientation
• Disability

Here’s a breakdown of these forms of diversity:

Cultural diversity

This type of diversity is related to each person’s ethnicity and it’s usually the set of norms we get from the society we were raised in or our family’s values. Having different cultures in the workplace is more common in multinational companies.

Race diversity

Race has to do with a person’s grouping based on physical traits (despite the dominant scientific view that race is a social construct and not biologically defined). Examples of races are Caucasian, African, Latino and Asian.

Religious diversity

This type of diversity refers to the presence of multiple religions and spiritual beliefs (including lack thereof) in the workplace.

Age diversity

Age diversity means working with people of different ages and, most importantly, generations. For example, millennials, GenZers and GenXers can coexist in the same workplace.

Sex / Gender / Sexual orientation

Sex and gender can be used in the traditional sense of male and female employees. For example, you may sometimes hear the term “gender balance” used by companies trying to achieve a 50-50 balance between employees who identify as male and employees who identify as female. But, as gender is increasingly redefined, the term “gender diversity” may be more appropriate, since there are multiple variations in gender and sexual orientation.

Disability

There are various types of disabilities or chronic conditions included here, ranging from mental to physical. Companies often make reasonable accommodations to help people with disabilities integrate into the workplace, such as installing ramps for wheelchairs or providing mental health support. Some companies also adjust their hiring process to make sure it’s inclusive.

Protected by law

The characteristics corresponding to these forms of diversity are protected by law in many countries: these “protected characteristics” are attributes that companies shouldn’t take into account when making employment decisions (especially adverse decisions, like terminating employees or rejecting job candidates). For example, you mustn’t decide to reject an applicant for a job simply because they’re Asian, female or a person with disabilities.

Conversely, it’s good practice to strive to have all these diversity categories in your workforce by eliminating biases and using affirmative action plans.

Additional types of diversity

Apart from protected characteristics, there are other important types of diversity, too, like:

• Socioeconomic background / Class diversity
• Education
• Life experiences
• Personality
• General worldview / opinions

These are characteristics that are more intangible than protected characteristics, but it’s equally useful to take them into account inside the business context.

Why is diversity important?

The business case for diversity has been thoroughly laid out for years. If every team member has the same backgrounds, attributes or perspectives, their team might not be as creative and successful as it could. Homogeneity deprives teams from healthy conflict that brings innovation and progress.

How do we reap the benefits of diversity? It starts with getting rid of harmful biases when making employment decisions.

See more on the definition of diversity and biases.

Want more definitions? See our complete library of HR Terms.

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You might have heard that an increasing number of employees telecommute. But, what is telecommuting? Also known as ‘telework’ or ‘work from home’, telecommuting is an arrangement that allows employees to work away from the company’s offices. 

This telecommuting definition refers to working from an employee’s own home, but also includes remote work from suitable and secure workspaces, such as libraries or other private premises. Some employees telecommute full time, while others have the chance to telecommute certain days per week or on special occasions (e.g. during pregnancy, health issues, etc.). 

Content:

• The pros and cons of telecommuting

Telework is becoming more and more popular recently as, for a great many jobs, the majority of resources and tools needed to complete daily job activities are online. Telecommuters connect with their coworkers via online platforms and visit their offices occasionally if needed. 

Here are a few examples of popular telecommuting jobs: 

• Web developers
• Content writers
• Graphic designers
• Accountants
• Social media specialists
• Account managers

Despite the rising popularity of work-from-home opportunities offered by employers, telecommuting is not an option for every type of job. There are job duties that require physical contact – for example, counseling, welcoming guests or meeting with customers. Usually, people who work as Office Managers, Security Guards, Sales Associates, etc. aren’t able to telecommute. 

The pros and cons of telecommuting

Many companies increasingly craft work from home policies recognizing the benefits of telecommuting. These are the most important ones:

• Telecommuting boosts productivity. An employee’s home is a quieter place, allowing them to focus on the task at hand for longer periods. Employees also feel comfortable at home and this may boost their efficiency.
• Telecommuting increases general well-being. Work from home enables more flexible scheduling and a better work-life balance. Commute often increases stress levels as it exposes people to extra noise and fatigue. Allowing people to work from home reduces these effects and adds to overall productivity. Also, if employees come down with a cough or other contagious symptoms, they can choose to work from home so as not to infect others in the office. 
• Telecommuting reduces material and environmental costs. Telework saves some office costs (such as the costs of lunches or free snacks) and may reduce the environmental impact of commuting (e.g. car fumes). 
• Telecommuting increases employee retention. Most employees who telecommute are happier at their jobs and less likely to change companies. This is because they feel more autonomous, less stressed on a daily basis, and overall trusted by their managers.

But, there are two sides to the coin. Telecommuting has drawbacks, too, both for employees and employers:

• Telecommuting might affect productivity. Employees may sometimes find it hard to set clear boundaries between job duties and other responsibilities (e.g. taking care of children, cooking lunch) that occur when they telecommute. This means that they might get distracted from job tasks, which has a negative effect on their productivity.
• Telecommuting can create a feeling of isolation. Some employees may feel left out when they are away from their office since interaction with their colleagues is limited. They may feel they’re missing out on the chit-chat and fun during breaks. These feelings of isolation might have a negative effect on morale and performance.
• Telecommuting may cause problems with communication. Relying only on technology to communicate with managers and co-workers can be challenging at times, no matter how tech-savvy a company is. Employees might miss out on important information that is vital in understanding a project or incident. Differences in time zones can also create problems. 

Despite the disadvantages, many telecommuters discover effective ways to remain productive. For example, some create small workspaces in their house with limited distractions or complete their personal errands before the start of their working hours.

Having explored the definition of telecommuting and its pros and cons, we can conclude that telecommuting adds good value to the labor world. It has created many flexible working opportunities, both for employees and employers, with better work-life balance. By preparing a detailed work from home policy, companies and workers will be able to reap the benefits of telecommuting and avoid blockages in productivity or effective communication. 

If you are interested in creating telecommuting job opportunities in your own company, check out our work from home policy.

See also our comprehensive library of company policies.

Liked this “what is telecommuting?” definition? Check out more HR terms.

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The hostile work environment definition refers to two elements: the legality and the well-being of the workplace. To make sure you have a happy and productive workplace, you need to define a hostile work environment by looking at both angles.

Contents:

• The legal definition of a hostile work environment
• The well-being of a workplace goes beyond laws

The legal definition of a hostile work environment

According to the law in the United States:

A ‘hostile work environment’ is a workplace where there are serious instances of harassment and discrimination against protected characteristics such as race, color, religion, sex and pregnancy, national origin, age (40 or older), disability or genetic information.

More specifically, this type of unwelcome conduct is potentially illegal when it’s severe or pervasive enough to result in creating a hostile work environment.

The Equal Employment Opportunity Commission (EEOC) indicates that “petty slights, annoyances, and isolated incidents (unless extremely serious)” aren’t considered illegal. This means that an employee might be able to file a successful lawsuit if they face unwelcome, discriminatory conduct (e.g. racial slurs) on a regular basis, but they might not be able to win a legal battle about a single off-hand insult.

The well-being of a workplace goes beyond laws

Based on the hostile work environment definition above, not every unpleasant workplace can result in legal trouble. If your colleagues steal another colleague’s lunch, gossip about that colleague’s personal life, play a cruel prank on a colleague or make a single sexist joke, you have some hostile work environment examples that are probably not illegal. But, consider that:

• Any kind of unwelcome conduct, whether illegal or not, makes people feel unsafe and unhappy. Apart from the ethical concerns, tolerating unwelcome conduct can reduce employee productivity, engagement and retention, and also affect the company’s employer brand.
• Victimization and harassment against people in the workplace, even if they’re not on the basis of protected characteristics, lay the foundation of unlawful behavior. For example, if someone gets away with making disrespectful or inappropriate comments against their colleagues, they might decide to attempt more severe conduct, too.

So, in that sense, we can broaden the meaning of hostile work environment to go beyond legality:

A hostile work environment is any workplace where at least one reasonable employee feels disrespected, humiliated or ignored, and these feelings can be detrimental for work relationships and business results.

If you suspect that someone bullies, offends or victimizes others, or if you’ve been the recipient of this conduct, step up and take measures against this behavior, whether it’s reporting to HR, talking directly with the offender or taking other appropriate actions. This will not only be important for the well-being of your workplace, but it’s also simply the right thing to do.

Learn more about the hostile work environment definition and find out ways to recognize and deal with a hostile work environment in our guide.

Want more definitions? See our complete library of HR Terms.

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So what is the difference between hard skills and soft skills? It’s obvious now. Hard skills refer to the job-related knowledge and abilities that employees need to perform their job duties effectively. Soft skills, on the other hand, are the personal qualities that help employees really thrive in the workplace.

Hard skills help you identify candidates who are good on paper, whereas soft skills indicate which of these candidates are good in person, too. This means that you need a good mix of hard and soft skills in every employee so that they can be successful in their role.

For example, imagine you’re hiring a developer. Some hard skills examples that are necessary for this role include knowledge of specific programming languages (e.g. Java), frameworks and tools. On the other hand, useful soft skills examples are: collaboration, problem-solving attitude and time management abilities.

Contents

• Defining hard skills vs. soft skills
• Developing hard skills vs. soft skills
• Measuring hard skills vs. soft skills
• Evaluating hard skills vs. soft skills

Defining hard skills vs. soft skills

Hard skills, also called technical skills, are job-specific, relevant to each position and seniority level. In other words, each position in every company will require a unique hard skills list. For example, an accountant needs to know how to reconcile bank statements, while that knowledge is unnecessary for a developer. At the same time, reconciliation is important for accountants no matter their level of experience, but preparing business budgets is a skill that’s not usually required of a junior accountant.

Soft skills are general characteristics, relevant to personality traits. Some soft skills you’d like to see in all employees regardless of their position or expertise, while other soft skills make sense in certain jobs and are less important in others. For example, if you value collaboration in your company, you want to hire employees who are great team players and can communicate well with others. On the other hand, networking and relationship-building skills might be essential for sales and marketing roles, but irrelevant for engineering roles. Likewise, leadership abilities make sense for people who’ll manage a team no matter their department.

Developing hard skills vs. soft skills

Employees develop hard skills through education and on-the-job practice, while they develop soft skills through various, life-long professional and personal experiences. For example, marketers can learn marketing techniques and tools by attending a marketing course, whereas they could grow their collaboration skills by participating in a sports team.

Measuring hard skills vs. soft skills

Hard skills are measurable and can be described using numerical or yes/no criteria. On the other hand, soft skills are often intangible or hard to quantify and are usually described with qualitative scales. For example, one salesperson might be:

• an excellent user of X CRM software having used its features on a daily basis for the past 5 years and;
• a good communicator being able to explain ‘fairly well’ the benefits of a product to a potential customer.

Evaluating hard skills vs. soft skills

You can evaluate hard skills, through resumes, portfolios, job-related assignments and role-specific interview questions.

On the other hand, soft skills are better assessed by asking situational and behavioral interview questions, by using soft skills questions and tests and by taking into account a candidate’s overall personality characteristics as presented during the entire hiring process.

Want more definitions? See our complete library of HR Terms.

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Apart from traits such as resilience and grit, which help bounce back from setbacks, another perception determines how employees react to difficulties – whether they have growth vs. fixed mindset. Some believe that abilities evolve through practice and effort – i.e. a growth mindset – while others support that we are born with a particular skill set – i.e. a fixed mindset. Based on Stanford University psychology professor Carol Dweck’s theory, these perceptions shape people’s learning behavior to a great extent; it affects their motivation and response to success and failure.

What is a growth mindset?

The ’growth mindset’ definition is the belief that talent and intelligence are growable and changeable. Employees with this mindset consider effort a crucial element of success. For them, it’s normal to fail before acquiring a new skill, and setbacks are viewed as learning opportunities.

What is a fixed mindset?

The ’fixed mindset’ definition is the belief that people are born with a specific talent and level of intelligence. For those with a fixed mindset, any undue exertion of effort in a new task is an indicator that they don’t possess the required skill. For example, an employee who struggles when giving presentations in front of a big audience is likely to believe that public speaking is not for them.

The distinction between the growth and the fixed mindset is not always that “fixed”, though. A person might believe that some skills are workable while others are not, or can switch between mindsets from time to time. For instance, a professional with a growth mindset who realizes they’re at risk of burnout or has a growing family at home might turn to a fixed mindset because of shifting priorities.

Growth vs. fixed mindset in the workplace – a closer look

Not only individuals fall into the growth vs. fixed mindset dialogue, but also teams and organizations. How can you tell if your organization has a growth or a fixed mindset culture and what does this mean? Let’s have a look at how these mindsets reflect on two processes; assessing candidates and management style.

Assessing candidates

• Growth mindset: Recruiters and hiring managers actively look at potential and appetite for learning in prospective employees. During screening, they try to identify skills in candidates that show eagerness for development and resilience.
• Fixed mindset: Recruiters search for credentials, qualifications, and established skills. They prefer candidates who are fully prepared for the role from the get-go. They will thoroughly research a candidate’s background to ensure they have all it needs to succeed in their role.

Management style

• Growth mindset: Managers and leaders with a growth mindset usually give employees opportunity and time to grow. They focus on effort and praise employees for it. They often act as mentors and give employees opportunities to develop and train.
• Fixed mindset: Managers and leaders with a fixed mindset usually keep an eye on employees with profound credentials. They usually congratulate them based on results.

Growth vs. fixed mindset: Which one is better?

Overall, nurturing a growth mindset in organizations has positive outcomes for a company. It is linked with better employee productivity, and, hence, profitability. It boosts employee morale and good collaboration with colleagues. In a growth mindset environment, employees feel responsible for delivering their daily tasks and have a sense of belonging and independence. Recognizing these benefits, many big companies, such as Microsoft, started to adopt a growth culture to make the most out of their employees’ motivation to learn through failure.

On the other hand, in companies where a fixed mindset culture is dominant, employees sometimes feel threatened when obstacles occur. They feel that there is no room for failure as managers emphasize and celebrate big results, not effort.

Even though a growth mindset is linked with many benefits compared to fixed, the latter is not destructive per se, but per condition. For example, in technical and manual jobs, where tasks are performed automatically or require consistent attention to detail-oriented tasks without variation (e.g. a laborer) a fixed mindset culture can work well. This is also the case for companies that recruit only based on credentials. If an employer hires somebody who has the whole skillset and doesn’t challenge them to grow and develop themselves, then the growth mindset may not show at all.

Whether you’re hiring for or nurturing a fixed or growth mindset, take a look at your organization and decide which one is best for you. Both have their place and both can thrive – and falter – in the right or wrong work environment.

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Although it’s common to use communication platforms like Skype or Hangouts for these reasons, video interview platforms have emerged recently as a reliable tool. They are used specifically by companies that want to interview job candidates remotely.

Let’s see the benefits of video interviewing and some key features that employers should be looking for when considering a video interview platform for their hiring process.

What are the benefits of video interview software?

When you evaluate candidates through video interviews, you can:

• Connect with top talent from all over the world: You don’t have to limit yourself to local candidates.
• Reduce hiring costs and time to hire: You will save money and time when you schedule onsite interviews only with the candidates who’ve successfully passed the video interview round.
• Evaluate communication and language skills: For roles where these skills are essential, it’s useful to see how candidates communicate and how fluent they’re in a certain language, instead of just relying on their resume.

Learn more about how you can use video interviews in your hiring process.

Which are the most important features of video interview software?

In other words, what’s the difference between video interviewing software and regular communication tools or phone calls?

• Asynchronous interviews. When using video interview software, you don’t have to meet every candidate in real time; you can record questions (once for all candidates) and they can send you their answers at their own convenience. Learn more about the benefits of one-way interviews.
• Structured interviews. By pre-selecting and recording your interview questions by role, you reduce bias, since you ask all candidates the same questions. You can then focus on candidates’ answers and you won’t be influenced by unrelated factors, e.g. small talk as you walk into the interview.
• Hiring team sync. Hiring is not a one-person job. All members of the hiring team can view candidates’ recordings on the video interview platform and make well-rounded hiring decisions.
• ATS integration. When video interviews live inside your recruitment software, it’s easier to organize your entire hiring process. You can review candidates’ skills, schedule video and in-person interviews, and leave feedback without having to switch between platforms.

Useful resources:

• How can you invite candidates in a video interview?
• What kind of questions are asked in a video interview?
• How can you conduct video interviews with Workable?

Want more definitions? See our complete library of HR Terms.

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Many of the privacy regulations spawning all around the globe have numerous similarities (including the ostensibly similar acronyms) and several key differences. If you’re wondering about the CCPA and GDPR comparison, let’s take a look.

First, what are GDPR and CCPA?

CCPA

Recently, California passed its own privacy law, CCPA or the California Consumer Privacy Act, set to take effect in January 2020. The CCPA law gives rights to consumers regarding how their personal information is collected, sold or shared by organizations.

GDPR

One of the most discussed – and possibly stricter – privacy laws, the EU GDPR, or General Data Protection Regulation, has been in effect since May 2018. To strengthen people’s privacy rights, it restricts the collection and processing of personal data by organizations.

To help ensure GDPR compliance, check out our GDPR privacy policy template.

CCPA vs GDPR

Let’s start with the similarities: both laws oblige organizations to follow certain guidelines when handling personal information of natural persons; namely, being transparent and acting to the best interest of the people whose information they collect. For example, both involve following disclosure requirements such as informing people about what personal information they collect and about their rights according to CCPA/GDPR.

But, how is CCPA different from GDPR? Here’s a breakdown of basic differences (note that this list isn’t exhaustive):

Scope

Privacy rights

Specific regulations

Fines & consequences

Terminology & descriptions

CCPA-GDPR comparison:

• If your company complies already with the GDPR, you might find it easier to comply with CCPA as well (although companies shouldn’t assume that their GDPR compliance efforts will necessarily satisfy the requirements of the CCPA).
• CCPA places criteria based on the ‘gain’ companies get from consumer’s personal data or their overall revenue.
• CCPA applies to households and devices as well as natural people, unlike GDPR
• Both CCPA and GDPR can protect consumers or data subjects regardless of where they are at any given time.
• Both laws protect the same types and categories of information of natural persons. CCPA may protect more information such as information linked to a device (e.g. browsing activity).
• Both laws have disclosure and transparency requirements.

If you liked this CCPA vs GDPR article and would like to learn more about commonly compared terms, see our HR terms section.

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This deadline is for data on wages and hours from the 2017 and 2018 reporting periods. Employers that employed more than 100 employees during the 2017 and 2018 “workforce snapshot periods” need to submit component 2 for each reporting year and for all full-time and part-time employees. (Note: the “workforce snapshot period” is an employer-selected pay period between Oct.1 and Dec.31).

Contents:

• Recent history of EEO-1 component 2 data
• Component 2 vs. Component 1
• EEOC will not renew data collection

Any other employer (including federal contractors with fewer than 100 employees) isn’t obliged to submit component 2 data in their EEO-1 report.

Recent history of EEO-1 component 2 data

The EEOC (Equal Employment Opportunity Commission) had decided to ask employers to start submitting paydata for the 2017 EEO-1 reporting period on. However, that decision was then stayed by the Office of Management and Budget (OMB).

In the beginning of 2019, that stay was in turn overruled by Judge Tanya Chutkan in the US District Court for the District of Columbia. The EEOC was ordered to collect component 2 data after all.

Component 2 vs. Component 1

After paydata collection was ordered by Judge Chutkan, the EEO-1 report consisted of two components: component 1, or demographic data (employees broken down by gender, race/ethnicity, job category), and component 2, or paydata (employees’ W-2 income information broken down by gender, race/ethnicity, job category).

Employers needed to submit component 1 by May 30, 2019, while September 30, 2019 was set as the deadline for component 2.

EEOC will not renew data collection

Because of the Paper Reduction Act (PRA), the EEOC needs approval from OMB to continue collecting data in EEO-1 reports. While the EEOC decided to ask OMB to renew approval for component 1, it announced that they won’t submit a request for approval for component 2 data: “the EEOC is not seeking to renew Component 2 of the EEO-1”.

The court’s approval for Component 2 collection will expire no later than April 25, 2021. The stay of the OMB is now pending on appeal (National Women’s Law Center, et al. v. Office of Management and Budget, et al., Case No. 19-5130 (D.C. Cir.).)

None of these affect the upcoming deadline for component 2 data for 2017 and 2018. Covered employers are obliged to submit this data as instructed. But, it’s possible employers will not have to gather and submit component 2 paydata in the years to come.

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But what exactly does FTE mean, how is it calculated, and why does it matter? This article will demystify FTEs so you can leverage this metric strategically.

What does FTE mean in HR?

Full-time equivalent is the long version of FTE, meaning the number of full-time employees a company would have if all employees worked full-time. For example, if you have four employees who each work 30 hours per week, their total combined hours are 120. 120 hours divided by a 40 hour full-time work week equals three FTEs.

In other words, FTE allows companies to standardize headcount and measure workload capacity by converting part-time staff to a full-time basis.

This enables useful comparisons across teams and functions for organizational planning and analytics.

How is FTE calculated?

FTE is calculated by adding up the total number of hours worked by all employees and dividing that total by the number of hours in a full-time work week, which is typically 40 hours.

Let’s revisit the example above: if you have two employees who each work 20 hours per week, their total combined hours are 40. Forty hours divided by a 40-hour work week equals one FTE.

When tallying up hours worked, things like paid time off (PTO) and sick leave are included. However, external contractors and freelancers are generally not included in the FTE count.

Many HRIS softwares can automate FTE calculations by incorporating data on employee hours worked, absences, time-off calendars, and more.

Why FTE matters for HR

For HR professionals, understanding and monitoring FTEs is essential for several reasons:

1. Budgeting

FTEs are the essential data needed to accurately forecast and manage labor costs across the organization. Each FTE represents the fully loaded expense of having one full-time permanent employee on staff.

By multiplying the number of FTEs by the average cost per FTE, HR can predict total labor budget needs more precisely than just using headcount alone.

Tracking FTEs over time also allows HR to identify growing or decreasing expenditure on salary and benefits. Finance teams will also be interested – ånd revenue per FTE can also be calculated from this.

2. Staffing

Analyzing FTE data helps HR proactively identify the need to hire more staff or reduce hours. For example, if team productivity is declining while FTE levels remain flat, it may signal that more staff need to be onboarded to meet workload demands.

On the flip side, a spike in FTE levels without corresponding business growth may indicate a need to realign staffing plans and reduce hours.

Sudden changes or churn in FTE numbers can serve as an early warning for HR of underlying staffing problems or challenges.

3. Productivity

FTEs can be compared to revenue output and other productivity metrics to assess workload balance across the organization.

Employee productivity can be measured to determine how much each full-time equivalent generates for the business.

Trends in this ratio can show which teams are operating efficiently and which may be over or understaffed relative to output.

4. Compliance

Many laws and regulations related to benefits eligibility, overtime pay, and other workforce standards depend on whether an employee is classified as full-time or part-time based on FTE status.

HR must track FTEs correctly to remain compliant and avoid penalties. For example, the Affordable Care Act in the United States requires applicable large employers to provide health insurance to employees working an average of 30+ hours (0.75 FTE).

5. Culture

The ratio of full-time to part-time employees impacts company culture, engagement, and retention. Full-timers often identify more closely with company mission and values.

Declining FTE percentages may indicate problems retaining full-time staff. HR can analyze FTE ratios to ensure the workforce alignment supports desired cultural goals.

FTE trends and statistics

The FTE landscape is being shaped by two trends.

• Hours worked in the US: The average FTE worker in the United States worked 34.4 hours per week in June 2023
• Part-time workforce in the US: About 17% of the US-based workforce worked part-time (less than 35 hours/week) in 2022

In summary, understanding the meaning of FTEs is a key competency for HR professionals today. Knowing how to accurately calculate and strategically apply FTE analysis helps optimize staffing, forecast budgets, align talent strategy to business goals, and support employee retention.

Stay on top of FTE trends and leverage HRIS tools to master this essential workforce metric.

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You’ve probably heard the discussion about EEO vs. affirmative action. EEO (equal employment opportunity) and affirmative action are certainly relevant terms and therefore easy to mix up. Here’s the difference between EEO and affirmative action:

EEO is giving everyone the same opportunity to thrive, while affirmative action is actively supporting those who’ve been consistently deprived of fair and equal treatment.

To make this distinction clearer, let’s dig deeper into their individual definitions:

Contents:

• What is EEO?
• What is affirmative action?
• EEO VS affirmative action

What is EEO?

The idea behind the equal employment opportunity definition is that everyone should be treated fairly and have the same chances to succeed when they’re considered for employment decisions (such as hiring or termination). This implies people responsible for those decisions have succeeded in combating any systemic or individual biases they have against particular characteristics (most often protected characteristics like race, gender, age, disability, etc.)

More about EEO:

• Everything you need to know to be an equal opportunity employer
• How to file an EEO-1 report
• Understanding EEO categories
• EEO policy statement

What is affirmative action?

Affirmative action describes all initiatives that support members of a disadvantaged group that has suffered past discrimination. We see affirmative action programs mostly when it comes to education or government jobs. The underlying idea is that equal opportunity means nothing if past inequalities haven’t been corrected.

For example, several countries have implemented hiring quotas (like the caste quota in India or the Employment Equity Act in Canada) or have special admissions programs for higher education to give opportunities to underprivileged children. This is because large disparities in early opportunities will result in the more privileged getting hired more often for better-paying jobs (those privileged are usually white males, but often, members of non-preferred groups also have greater privileges than other members of their group – think about the difference in educational opportunities between a black girl from a village and a black boy from a large city, like New York).

An example from the workplace itself is when organizations decide to set goals of a 50-50 balance between male and female employees in senior positions, and when governments introduce legislation to enforce similar goals as seen recently in California.

EEO VS affirmative action

Equal opportunity is almost universally accepted as desirable. Affirmative action, on the other hand, has gone through various legal battles and heated debate in the U.S. and other countries. This is because some affirmative action practices, like racial quotas, can be thought of as discriminatory against people who don’t belong into underrepresented groups (in other words, “reverse discrimination”). That’s why some U.S. states, for example, have declared these types of affirmative action as generally unlawful. Internationally, countries such as Sweden (in 2010) and the UK (described as “positive discrimination” under the Equality Act 2010) have also declared it unlawful.

Though the validity of this view is up for debate, there are types of affirmative action (or positive action) that are lawful and can help build a fairer workplace. For example, an organization that steadily receives applications from white men could launch a targeted campaign to encourage minorities and women to apply.

Generally, organizations should look at EEO, diversity, discrimination and affirmative action more holistically, and consider everyone’s point of view. Bias training, communication training and objective employment processes (e.g. structured job interviews) can help employees be more accepting of colleagues belonging in different groups and also help eliminate unconscious biases.

So we shouldn’t be talking about affirmative action vs equal opportunity but rather, how equal opportunity and affirmative action principles can be applied in complementary fashion to improve the balance of our workplaces and society in general.

Want more definitions? See our complete library of HR Terms.

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While recruitment marketing sounds like another HR buzzword, it’s actually a business function that aims to attract and engage potential job candidates for future hiring needs.

To better understand this recruitment marketing definition, let’s see how it compares with traditional corporate marketing:

In short, recruitment marketing adopts the methodology of traditional marketing for hiring purposes: to attract not customers, but candidates, and to promote not the commercial brand, but the employer brand of the company.

But why do companies need to combine marketing with recruiting? Isn’t the role of HR and recruiting to attract candidates anyway? The main difference is that recruiting is focused on specific current or upcoming hiring needs. On the other hand, recruitment marketing is broader – perhaps more holistic – and aims to promote the company as an appealing employer in order to facilitate future hiring.

This side-by-side comparison explains the different scopes:

What is a recruitment marketing strategy?

Marketing and recruitment are two disciplines that can learn from each other and use similar techniques, each for their own purposes. In traditional marketing, companies craft strategies in order to tell their company story, promote their products or services and reach out to potential customers.

Respectively, in recruitment marketing, companies craft strategies to tell their culture story, promote their workplace and employees and reach top talent.

Those strategies could use various methods and mediums, including:

• Blog posts
• Social media
• Employee interviews
• Videos
• Events

For example, you could create a dedicated section on your website where employees talk about their work life and what they enjoy about working at your company and you could share pictures and videos from your offices on social media.

The ultimate goal, when building your own recruitment marketing strategy, is to boost awareness around your employer brand, communicate your values externally and attract like-minded people.

Interested in learning how HubSpot uses it to attract top talent globally? Read our interview with Hannah Fleishman, Inbound Recruiting Manager at HubSpot.

What does a recruitment marketing manager do?

Large companies could build dedicated teams (usually under the HR department) or hire one recruitment marketing specialist. Smaller companies might approach it as a project or practice, i.e. one or more HR professionals could work on recruitment marketing activities among their other tasks.

Whether it’s a full-time job or only one part of the job, the main job duties for someone who’s responsible for recruitment marketing include:

• Identifying candidate personas, i.e. the profiles and skill sets of ideal candidates per role
• Shaping the company culture based on feedback from current employees
• Communicating the work life through blog posts, videos and social media
• Organizing and participating in events to promote the company’s employer brand

If you’re looking to hire for the role, or if you want to get a better understanding of it, see our recruitment marketing manager job description.

What’s the difference between recruitment marketing and employer branding?

Conceptually, these two terms are close to each other. However, you shouldn’t use them interchangeably.

Employer brand is the company’s reputation as a place to work. Employer branding includes everything a company does to define and improve its reputation among current and future employees.

Recruitment marketing, on the other hand, is more tactical and includes everything a company does to market its employer brand externally to potential future employees and, eventually, to get them to apply to its open roles.

You can use the following table to better understand these two terms:

Read here our comprehensive definition of employer branding or check our complete HR terms library for more HR-related definitions.

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Usually, online job boards allow recruiters to use some features without charge, offering options for free job postings or trials. Job boards also offer premium schemes, such as sponsored jobs or unlimited access to their candidate database. Some job boards, for example, Monster and Careerbuilder, can be used by employers in all industries, while others are niche, for industries like tech (e.g. Dice), design (e.g. Behance), and other types of roles. 

Contents:

• The benefits of using job boards
  • Job boards are well-known job advertising tools
  • Job boards provide resume databases
  • Job boards help with employer branding

Job boards are most often free for job seekers.

Now that we’ve covered what a job board is, see our comprehensive list of the top job boards.

The benefits of using job boards

Job boards are valuable tools for recruiters and hiring managers aiming to  attract and find new talent. Here’s why:

Job boards are well-known job advertising tools 

Job seekers have been using job boards for years, so these sites give employers access to millions of good candidates. Most of the job boards are candidate-focused and user-friendly, allowing applicants to complete the process quickly, using simple tabs and buttons.

Nowadays, many job boards are integrated with Applicant Tracking Systems (ATS), such as Workable, which have improved candidate experience by making the application process more fluid and efficient.

Want to know how you can easily post to multiple online job boards and organize incoming applications? Get a demo here.

Job boards provide resume databases

Candidates can sign up at job boards and upload their resumes. This way, recruiters can actively search for potential employees, setting the right Boolean commands or criteria and contacting high-potential professionals. This is a benefit because some great candidates aren’t currently looking for a job so they won’t see your job ad; but with the resume database, you can proactively reach out to a good candidate.

Job boards help with employer branding

Many job boards, such as Glassdoor and LinkedIn, allow employers to craft their own company page in the website. Companies can showcase their vision and culture, and, with the right storytelling, attract candidates who would be good culture fits. 

Find similar resources here:

• How to create a job posting for multiple job boards with Workable
• How to source candidates on job boards and resume databases
• Best job sites in the UK – Free and Premium job boards
• The Best free and premium job sites in Canada
• 15 best job sites in Australia
• The best job sites in Singapore

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What is people operations?

People operations, often termed “People Ops,” is a modern approach to managing employees within an organization. It adopts a proactive and strategic mindset, focusing on creating a robust and healthy workplace environment. People operations prioritize the overall employee experience, from onboarding to offboarding, ensuring that staff are resourced, supported, and empowered in their roles. The goal is to align human resources with the company’s mission and vision, fostering a culture of transparency, collaboration, and continuous growth.

What is HR management?

Human Resource (HR) Management is a traditional function responsible for handling various administrative and operational tasks related to employees. This includes recruitment, payroll processing, performance appraisals, and addressing employee grievances. HR management often operates reactively, addressing issues as they arise and ensuring compliance with labor laws and company policies. While it plays a crucial role in the day-to-day functioning of an organization, HR management is often perceived as being more transactional and less strategic compared to people operations.

Differences between People Ops and HR management

Here are the main differences between people operations and HR management:

Reactive vs. Proactive
Historically, HR has been seen as a reactive function, stepping in to address issues as they arise. For instance, when an employee resigns, HR’s immediate response is to initiate the recruitment process for a replacement. This approach is often about damage control and immediate solutions.

In contrast, people operations adopt a forward-thinking mindset. They not only address the present but also anticipate future challenges. By focusing on creating a robust and healthy workplace environment, they devise strategic hiring plans that align with long-term business goals, ensuring continuity and growth.

Execution vs. Strategy
HR has traditionally been viewed as a checklist of tasks. From recruiting and onboarding new employees to managing payroll and conducting performance reviews, HR’s role has been largely transactional.

While these tasks are essential, they often lack a strategic perspective. People operations, however, take a broader view. Instead of just ticking off tasks, they start by understanding the overarching business objectives. They then strategize on how to motivate, train, and lead employees to achieve these goals, ensuring that human resources align with the company’s mission and vision.

Siloed teams vs. Multi-discipline teams
There’s a prevailing notion, whether accurate or not, that HR teams operate in isolation, often withholding information and making decisions behind closed doors. This perception can sometimes lead to a lack of trust between employees and the HR department.

People operations challenge this model by promoting transparency and open communication. Recognizing the value of diverse perspectives, people operations teams are often multidisciplinary.

They might include a tech expert ensuring that employees have the necessary tools and training, while another member might focus on fostering collaboration by designing efficient meeting structures. These meetings often bring together representatives from various departments, encouraging cross-functional collaboration and working towards shared objectives.

Want more definitions? See our complete library of HR Terms.

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Contents:

• Who’s responsible for employer branding?
• Employer brand vs. Company brand
• The benefits of having a strong employer brand
• How to build your employer branding strategy

It’s important here to make the distinction between intentionally and unintentionally. While companies might strategically promote their workplaces, their reputation could also be affected by things that are not directly under their control. For example:

• Candidates who didn’t get a response after their interview with the company could leave negative reviews online.
• Employees who are excited about the benefits they get at their company could share their positive experience with their friends and families.

Who’s responsible for employer branding?

Usually, HR is the first one that comes to mind when we think about employer branding strategies. And this is correct if we refer to the official actions a company is taking to build and promote its employer brand. But, employer brand is not something you choose – it is what you are. And your identity as a company is shaped by various stakeholders:

• The founders or business owners, the CEO and all C-suite executives who have a strategic vision for the company and set the values they want to reinforce
• The line managers who lead, evaluate and train their team members
• The HR team that manages employee relations and establishes company policies
• The marketing team that communicates company news externally (e.g. via social media, events, etc.)

All of these stakeholders can play a part in how their company is perceived among job seekers, but, to build a strong employer brand, they need to work together. For example, the marketing team can’t promote how happy their colleagues are enjoying benefits such as bonuses and flexible working hours unless the senior management approves those benefits and HR implements them.

Employer brand vs. Company brand

Another distinction we need to make is between employer brand and company brand. Those two terms should not be confused: the former indicates your reputation as an employer for job candidates whereas the latter indicates your reputation as a company in general.

In this employer branding definition, when we talk about “brand” we refer solely to a company’s reputation as an employer.

Although they’re different, one can impact the other. A company with a strong brand is usually an attractive place to work. On the other hand, a company that has a negative employer brand might discourage people (or other companies) from becoming customers.

The benefits of having a strong employer brand

It’s easier to understand the importance of employer branding if we think of employers with a good reputation. Companies with a strong employer brand:

• Get job applications without having to spend too much, since employees proactively apply to companies they know they have a nice work environment.
• Reduce time to hire, as candidates are more likely to accept a job offer from a company with a positive reputation.
• Improve retention, because employees value healthy workplaces and stay at companies where they can thrive.
• Attract top talent, as people who’re evaluating different job offers, will consider all criteria – including your reputation as an employer – before making their final decision.

Check out all HR definitions in our complete HR terms library.

How to build your employer branding strategy

The first step is to be a good employer and the second step is to promote what you’re doing as an employer externally. To become a good employer, you need to think about how you treat those who interact with your company, whether you’ve hired them or not. For example:

• Design an inclusive hiring process, where all job seekers have equal opportunities to get hired regardless of protected characteristics or background.
• Respect candidates’ time by evaluating their candidacy objectively and replying to them promptly.
• Craft fair company policies to ensure all employees feel safe, comfortable and valued at work.
• Provide compensation and benefits that motivate employees and help them balance their work with their personal life.
• Build career development plans, so that employees can grow their skills and develop professionally within your company.

While working on creating a healthy work environment, you can also design employer branding campaigns to promote your company. Here are a few ideas:

• Share pictures of your workspaces and group gatherings on social media.
• Build engaging careers pages where candidates can learn more about your work life.
• Give voice to your employees (through videos, testimonials, blog posts, etc.) so they can share their unique experiences while working with you.
• Host career days at your offices where job seekers can see first-hand what it’s like working at your company.

Want to get more ideas on how to boost your employer brand online and offline? Take a look at these ways to improve your employer brand strategy.

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What is diversity?

Diversity in the workplace describes the variation in personal, physical, and social characteristics, such as gender, ethnicity, age, and education.

What is inclusion?

Inclusion refers to the procedures organizations implement to integrate everyone in the workplace, allowing their differences to coexist in a mutually beneficial way. The goal of inclusion strategies is to make everyone feel accepted and comfortable, ready to share their opinions and thoughts without hesitation. 

In other words, diversity indicates the “what” and inclusion the “how”.

What is the main difference between diversity and inclusion?

To further clarify the distinction of diversity vs. inclusion, we can look at diversity as a globally accepted concept which brings different people into the same territory. Inclusion, on the other hand, introduces concrete methods and strategies to make diversity work. 

For example, a recruiter who has overcome their unconscious biases will manage to hire diverse people and build a diverse team. If these team members feel valued, respected, and able to contribute equally to the team, then the company has succeeded in including them at a high level through its policies and culture.

 Workforce diversity has been linked with many benefits, such as boosting creativity and enabling more effective problem solving. Hiring managers, though, tend to hire people with similar attributes to them, which leads to homogeneous teams and culture. This is mostly down to the fact that people are often attracted by similarities, which automatically creates a feeling of common understanding and belonging. But, having recognized diversity’s blessings, recruiters have started to combat bias and strive for heterogeneity when they hire people. 

Once managers have achieved diversity in their team, the next step is to implement inclusion tactics. Team members need to feel psychologically safe and included to bring diversity’s benefits to light. Some of the common strategies companies adopt to enable this are implementing an EEO policy, conducting training sessions in inclusive leadership or intercultural communication and recruiting diversity and inclusion managers.

To sum up, diversity and inclusion are complementary and depend on each other. Inclusion is the conscious effort organizations exert to support diversity and pull it beyond simple hype.

Want more definitions? See our complete library of HR Terms.

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It isn’t always clear. People – especially in the US – use them interchangeably when talking about post-secondary education. In other English-speaking countries, the meaning of ‘college’ can vary. 

This is why it’s sometimes difficult for recruiters to understand someone’s educational level if they do not have a clear understanding of what each one entails. The definitions below will help you determine the major differences between college and university.

What is a college?

In the United States: Colleges are educational institutions that offer undergraduate degrees and vocational qualifications. Some colleges provide bachelor’s degrees after completing four years of study. There are also junior and community colleges with two-year associate’s degrees. Colleges usually specialize in specific areas, such as design or health. A few colleges offer graduate opportunities, too, and have kept the name college mostly out of tradition (e.g. Boston College).

Outside the United States: The college meaning is not the same in all countries. Generally, they are institutions to attend after finishing compulsory education. However, as described above, they can describe other settings, too. For example, in the UK, distinct parts or faculties within a university are often called “colleges”. Colleges are also institutions for those to obtain advanced qualifications as a “bridge” to entering university. In Australia, the word college is also used for senior high schools. In Canada, ‘’community colleges’’ – i.e. city level – are popular and offer technical, vocational, and artistic qualifications.

What is a university?

Universities are higher education institutions that offer undergraduate and graduate degrees. After completing a bachelor’s degree, a student can continue studies in a master’s or a doctorate program. Universities usually offer a wide range of degrees and have distinct faculties and departments (e.g. Medicine, Behavioral Sciences, etc.). They also emphasize scientific research. Unlike colleges, universities usually follow a similar structure across different countries.

Which one is better, university or college?

In university vs. college, which one takes precedence? It depends largely on one’s own  vocational goals. College is more suitable for those interested in more technical and vocational expertise, while university is better for those who are research-oriented and want graduate opportunities. 

If you’re a recruiter looking for candidates with more technical knowledge, both colleges and universities are fine when it comes to background and education. If the position you need to fill in requires more theoretical and research skills someone with a university degree would be a better fit. Be mindful of the distinctions between each – and the country you’re recruiting in – when writing up your list of requirements in job ads and assessing resumes or CVs. This especially applies when you’re building a global team.

Did you find this college vs. university definition helpful? For more HR definitions, see our HR terms section.

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CEO and President are both leadership job titles in organizations. They are both members of the executive management team and make important company decisions. So what marks the difference between CEO vs. President? 

Contents:

• What is a CEO of a company?
• What is the president of a company?
• Is CEO higher than President?
• Let’s look at a head-to-head comparison of CEO vs. President:

What is a CEO of a company?

A CEO, the chief executive officer, is behind all high-level organizational decisions. They develop new strategies and policies, set effective business goals, and shape the company’s public image.

What is the president of a company?

A President manages micro-level decisions and day-to-day operations of an organization. They supervise other executives and managers and ensure that company departments function properly. Sometimes, the President is also the COO (Chief Operations Officer).

Is CEO higher than President?

Yes, the CEO is the top-ranking executive in a business and the President is right below the CEO. In some organizations, one person may hold both titles. The type of company and organizational structure plays a significant role here. For example, in small businesses, the business owner is often the CEO, President, and Managing Director all at once. 

When a company scales up, the CEO, President, and other C-suite level roles usually become separate as each position’s duties are increased and demand more time and dedication.

Let’s look at a head-to-head comparison of CEO vs. President:

Rank

CEO: Highest-ranking executive in an organization. 

President: Second executive in hierarchy, right below the CEO. 

Reports

CEO: They report to the board of directors, with most CEOs being members and sometimes chair of the board.

President: They report to the CEO and the Board of Directors and sometimes, they are board members.

Focus

CEO: Their focus and responsibilities are mostly outward-facing. For example, they meet shareholders and investors and source new opportunities to keep the company profitable. They may also serve as the public ‘face’ of the company.

President: Their focus is more within the company. They implement strategic plans agreed by the CEO and board members and ensure all policies are followed by the employees.

Vision

CEO: They shape the company’s vision and organizational culture.

President: They help maintain organizational culture and facilitate the company’s vision.

Relationships

CEO: They mostly collaborate with shareholders, board members, and other executives.

President: They usually work with executives and managers and build a positive relationship with employees.

See more:

• Top 5 recruiting challenges CEOs face in a business
• Best job boards for executives

Does that clarify the difference between CEO and President? Visit our library of HR Terms to learn similar definitions.

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In this CIO vs. CTO term, you’ll find out the main differences between these roles and what their exact responsibilities are:

Contents:

• What is a CIO?
• What is a CTO?
• CIO vs. CTO: A head-to-head comparison
• Should a company have both a CIO and CTO? 

What is a CIO?

A CIO manages a company’s IT operations and infrastructure. They apply technological systems and products to simplify internal business processes. Their goal is to maximize day-to-day efficiency and productivity within the company, for instance, by automating complex tasks or enabling faster communication across departments.

CIO responsibilities include:

• Developing goals and strategies for IT and Operations
• Researching new systems to improve infrastructure 
• Collaborating with vendors and suppliers to acquire the best business solutions
• Increasing profitability by providing effective operating solutions

What is a CTO?

CTOs are responsible for building technological products/services that meet the customer needs. The role of a CTO requires constant research for high-tech solutions to improve the company’s product/services. They manage engineers and developers who design the products/services and evaluate the appeal and functionality of the final product/service versions.

CTO responsibilities include: 

• Developing goals and strategies for product designers, developers, and engineers
• Collaborating with vendors in order to improve the company’s products/services
• Ensuring the products/services align with business goals
• Increasing company revenue by delivering cutting-edge technology to customers

CIO vs. CTO: A head-to-head comparison

Here, you can briefly see the differences between the CTO meaning and the CIO meaning, based on their responsibilities and day-to-day functioning

Should a company have both a CIO and CTO? 

Both CIO and CTO roles are important, especially for big companies with distinct C-suite positions. Based on the comparison above, they both contribute to the company’s proper functioning from a different scope (CIO/internally and CTO/externally) and participate in the company’s profit (CIO) and revenue (CTO) growth.

Did we clarify the difference between CIO and CTO? Visit our library for more HR Terms.

See also:

• CEO vs. President: How they differ
• CIO job description
• CIO interview questions
• CTO job description
• CTO interview questions

The post CIO vs. CTO: Their key differences appeared first on Recruiting Resources: How to Recruit and Hire Better.

CEO vs CFO: How do these two C-suite roles differ? To examine their similarities and differences, let’s first give a brief definition for each:

Contents:

• What is a CEO?
  • Who is higher than the CEO of a company?
• What is a CFO?
  • Is the CEO higher than the CFO?
• The difference between CEO and CFO

What is a CEO?

The ‘CEO’ meaning is Chief Executive Officer – the leader of the C-suite team and, by extension, the organization as a whole. CEOs are the ones primarily responsible for company strategy, mission and organization.

Who is higher than the CEO of a company?

Usually, CEOs report to the board of directors, a group of internal and external members supervising management and large-scale decision-making in the organization. The CEO is usually an internal member (or inside director) and may be the chairman or chairwoman of the board.

What is a CFO?

The ‘CFO’ meaning is Chief Financial Officer – the head of the finance department of an organization. They’re responsible for overseeing financial operations, budgeting and financial reporting.

Is the CEO higher than the CFO?

Yes, the CFO is one of the positions who reports to the CEO. The CFO may often be a member of the board of directors, too.

The difference between CEO and CFO

By their respective definitions, their differences lie on the scope and level of their responsibilities. Here are 8 principal differences between the CEO and CFO positions:

So generally, CEOs are responsible for steering the organization to overall success (including increased revenue, market share, brand awareness, etc.) while the CFO is responsible for ensuring the organization has the right financial resources in place to achieve its goals. Both are high-ranking officials that have significant impact on the overall management and direction of the organization.

For more see our CEO job description and CFO job description.

Looking to hire C-suite executives? Check out our list with the best job boards for executives.

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If you’re wondering about the difference between blue collar vs. white collar workers, take a look at their… clothes. Workers of any profession can be classified in a specific collar type job, including white, blue, pink, black, etc. Each color usually has a symbolic meaning behind it. For example, pink collar workers are those in professions that used to be popular among women (e.g. nurses).

So what is the difference between blue collar and white collar? This refers to the type of labor each worker performs. Let’s take a look at the respective definitions:

Contents:

• Blue collar meaning
• White collar meaning
• Difference between white collar and blue collar

Blue collar meaning

Blue collar workers are those who perform manual labor. The name comes from the early 20th century when these workers wore resistant fabrics of darker colors (e.g. blue denim or blue uniforms). They preferred these clothes because they usually got them dirty at work and often couldn’t afford to wash them frequently because of low wages.

See our blue collar definition for examples of blue collar jobs.

White collar meaning

White collar workers are those who work in an office. The name comes from older times, too, when office workers usually wore white, collared shirts at work (and some of them still do). The writer Upton Sinclair was the one who coined this term. White collar jobs examples include bank employees, people in finance jobs, or administrative assistants.

So, what is the difference between white collar and blue collar?

Based on their definitions, there are several differences between these two types of workers:

• Work setting. The most obvious one is that a white collar worker works at an office, while blue collar workers can work in various non-office settings, such as construction sites, production lines, on the road etc.
• Type of labor. While white collar workers may often use their hands to do their job (e.g. data entry clerk), they most often don’t rely on their physical abilities like blue collar workers do. Manual labor is a characteristic of blue collar jobs.
• Pay. White collar jobs tend to pay better than blue collar jobs. But, there are exceptions – for example, a skilled machine operator might make more money than a bank teller.
• Education. Many white collar jobs require degrees, so workers in these professions are usually more educated than blue collar workers.
• Legal regulations. For example, in the U.S., white collar workers are exempt from FLSA (Fair Labor Standards Act), while most blue collar workers aren’t.

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Contents:

• What is a CEO?
• What is a COO?
• Who is higher: CEO or COO?
• What is the difference between CEO and COO?
• CEO vs COO

What is a CEO?

The CEO meaning is Chief Executive Officer. This is the highest-ranking person in the company. CEOs formulate business objectives and make strategic decisions (e.g. expansion in a new market or development of a new product).

What is a COO?

The COO meaning is Chief Operations Officer. This is the second-in-command to the CEO. COOs take the CEO’s vision for the company and turn it into an executable business plan. They oversee all operations and ensure that teams work toward achieving the business goals.

Who is higher: CEO or COO?

The CEO; this is the top-ranking position within the company. The COO comes second in the hierarchy and reports to the CEO. Depending on the structure of the company, the CEO could report to the board of directors, the investors or the founders of the company.

Small companies might not have a COO at all, while the CEO could be the founder of the company (or one of the founders) or the chair of the board. As companies grow and have more complicated procedures, they might need to hire a COO to advise the CEO and manage all internal operations.

What is the difference between CEO and COO?

If we want to explain the difference between CEO and COO in one sentence, we’d say that CEOs are in charge of where the company is going, while COOs are in charge of how the company will get there. In other words, the CEO has a vision for the company and the COO executes it. But, this doesn’t mean that the CEO spends their time in vague plans or that the COO only has a transactional role.

Both of them have high-level responsibilities that affect the success of the business. CEOs rely on COOs to keep an eye on daily operations and provide their insights in the course of organizational changes. On their part, COOs will make strategic decisions and establish company procedures once they get input from CEOs regarding bigger picture plans and shareholders’ perspectives.

To better understand their differences, let’s compare these two roles side-by side:

CEO vs COO

Related resources:

• COO interview questions
• Executive interview questions
• What is a C-level executive?
• CEO vs. CFO
• CEO vs. President

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Contents:

• What is a blue collar worker?
• How many blue collar workers are there in America?

What is a blue collar worker?

Blue collar workers work most often in a non-office setting (construction site, production line, driving etc.). They use their hands and physical abilities to perform their duties. Examples of blue collar employees include construction worker, machine operator, millwright, assembler and truck driver.

The blue collar job definition doesn’t specify the skill level or the type of pay workers receive: they can be skilled or unskilled, waged or salaried. It does imply that employees are likely to do jobs that can get their clothes dirty – e.g. from soil or grease. This is the source of the “blue collar” description, dating from the beginning of the 20th century when these workers were wearing darker clothes than “white collar” workers, or clothes more resistant to the increased wear and tear of physical work, such as blue denim. However, workers in some service professions could also be categorized as being blue collar, e.g. home health aides or cashiers.

Under U.S. federal law, blue collar workers are usually not exempt from overtime or minimum wage regulations in the FLSA (Fair Labor Standards Act); although, some states may exempt specific types of blue collar workers, like drivers.

How many blue collar workers are there in America?

The US. Bureau of Labor Statistics (BLS) provided the numbers of workers in every profession, including blue collar jobs. For example, in 2018, construction laborers numbered around 1,405,000 while workers in maintenance and repair totalled 1,488,000.

Also, based on a 2018 Washington Post article, about 13.9 percent of workers are in blue collar professions.

The growth of blue collar jobs is presented in a map on the site of the Center for Economic and Policy Research, based on BLS data. According to some reports, it’s currently challenging for employers to find workers for blue collar jobs.

If you liked our blue collar worker definition, check out the rest of our HR terms.

Types of jobs and industries typically associated with blue collar work

Blue-collar jobs encompass a wide range of professions that primarily involve physical labor or skilled trades. These jobs are often contrasted with white-collar roles, which are typically office-based and may involve administrative or managerial tasks. Blue-collar professions can be found in various industries, and while they might be physically demanding, they offer a high level of job satisfaction for those who enjoy hands-on work or mastering a particular trade.

Construction, manufacturing, mining, and maintenance are some of the primary industries associated with blue-collar work. For instance, construction managers oversee projects from start to finish, ensuring timely completion and compliance with safety regulations. Electricians, on the other hand, are responsible for installing and repairing electrical systems in homes, factories, and businesses.

Other examples of blue-collar jobs include train conductors, who ensure the safe transportation of passengers and cargo, and aircraft mechanics, who inspect and repair aircraft engines. These roles might not always require a college degree, but they do demand specialized skills or expertise, making them indispensable in their respective fields.

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What is the performance management cycle

The Performance Management Cycle is a continuous loop that begins with planning and ends with rewarding, only to start again.

It is designed to be a structured process for the ongoing management of employee performance.

The cycle involves setting clear objectives, monitoring performance against these objectives, offering opportunities for skill development, and finally, evaluating and rewarding performance.

This approach ensures that employees are aware of what is expected of them, receive regular feedback, and are fairly assessed and rewarded.

The four stages of the performance management cycle

The Performance Management Cycle is generally divided into four key stages that guide the process from start to finish.
These stages are not isolated events but are interconnected, each feeding into the next. They are designed to be flexible and adaptable to the needs of both the organization and the individual employee.

Here are the four main stages:

Planning

This is the foundational stage where the groundwork for the entire cycle is laid. Managers and employees collaborate to set achievable yet challenging goals.

At this initial stage, the focus is on setting clear, measurable objectives that align with the organization’s broader goals.

For example, a manager and a marketing executive might use the SMART goals framework to set an objective like “Increase website traffic by 20% over the next quarter.”

Monitoring and developing

This stage is all about tracking progress and making adjustments as necessary. It’s a dynamic phase that involves ongoing communication between the manager and the employee.

This is an ongoing stage that requires regular check-ins and adjustments.

For instance, if a project is falling behind schedule, the manager and employee can discuss strategies to get it back on track during their weekly one-on-one meetings.

Reviewing and rating

This is the evaluative stage where the focus is on assessing performance against the goals set during the planning phase.

The aim is to provide a comprehensive evaluation of the employee’s performance.

For example, a 360-degree feedback system might be used to collect input from peers, subordinates, and supervisors, in addition to self-assessment.

Rewarding

This final stage is about recognizing and rewarding achievements, thereby closing the loop and setting the stage for the next cycle.

For instance, an employee who has consistently exceeded targets might be given a performance bonus or even a promotion.

Related: Top employee engagement ideas to achieve success

Why performance management cycle is essential for your company

The Performance Management Cycle is essential for companies as it aligns individual goals with organizational objectives, fosters employee development, and enhances accountability.

Through continuous feedback and structured evaluations, it helps in timely identification of performance gaps and facilitates data-driven decision-making.

This not only boosts employee engagement and retention but also drives overall business success by ensuring that human resources are effectively utilized.

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What is employee onboarding?

Employee onboarding is the process of integrating a new employee into an organization, providing them with the necessary tools, resources, and knowledge they need to become a productive and successful member of the team.

This usually involves orientations, introductions, training programs, meetings with team members and supervisors, work station setup, familiarization with policies and procedures, and other activities designed to help the new employee learn their job and become comfortable with their new team and workplace.

Why is effective employee onboarding so important?

Effective employee onboarding is crucial because it sets the tone for the entire employee experience. It sets the stage for the new hire to understand how the company and the team operates, what their roles and responsibilities are, and how they fit into the overall organization.

An effective onboarding strategy also ensures that new hires quickly become productive, fully operational members of the team – in other words, fully ‘ramped’ – and that those expectations are managed from the first day they’ve signed on for the job.

Onboarding also has its intangible impact; it helps to build trust and develop relationships between the new hire, the organization, and their peers.

All this reduces employee turnover and ensures that the employee has a positive first impression of the organization. This means longer tenures, higher engagement, and increased loyalty.

What is onboarding software?

Now that that’s covered, let’s talk about the software.

Employee onboarding software streamlines and automates the process of welcoming new hires into the workplace. In short, you’re bringing new hires on board with software. This ensures a smooth transition for new employees, integrating them into the organization in the most efficient way possible.

Onboarding software typically includes features like document management, employee onboarding checklists, automated onboarding emails, and progress tracking.

How can employee onboarding software help your HR team?

Employee onboarding software can help your HR team by streamlining and automating the onboarding process. It simplifies the collection, verification and storage of employee information and paperwork, allows for quick and easy access both by the HR professional and the new employee, and ensures that all necessary steps are completed in a timely and efficient manner.

This helps HR to reduce administrative costs, save time and resources, and minimize errors. Additionally, it can help to create a positive onboarding experience for new hires, by providing an easy-to-use platform that can be tailored to their needs.

The main benefits of using employee onboarding software

There are numerous benefits of introducing employee onboarding software into your HR day-to-day work. They include:

1. Personalized experiences for new staff

No one likes to feel like a number or a cog in the machine – especially when they’re first hired. Part of onboarding is making the new employee feel welcome in their new role, and the capabilities of employee onboarding software make for a more streamlined, consistent and reliable onboarding process.

Team meetings and 1-1s are pre-scheduled, orientations are regularly presented, and dedicated workspaces are fully equipped ahead of the new hire’s first day.

2. Improve employee retention

A good onboarding experience makes your employees more loyal and increases your retention rate. For instance, Bamboo HR finds that employees are 18 times more likely to be highly committed to their organization when they have a highly effective onboarding.

And you know what? Just like a customer is more likely to stay with you because they’ve had a good experience, an employee is more likely to stick around when they’re feeling those positive vibes about the company. Plus, they’ll tell their friends and peers – all the better for your employer brand.

3. Streamline the entire onboarding process

A major benefit of pre-set onboarding schedules is that you can roll out a new onboarding plan for a new hire much more quickly than you would if you were manually implementing the processes one step at a time.

This is even more valuable when onboarding multiple hires at the same time, on an ongoing basis. Onboarding software helps you streamline the process and free up valuable bandwidth and resources for you and your teams.

4. Increase connection between new hires and their teams

Again from Bamboo HR: 91% of those who experienced great onboarding feel a strong connection with their company and colleagues. That’s compared with just 29% of those who didn’t have a great onboarding who feel the same way.

You want your employees to feel connected – when connected, they’re more engaged in their work because they like working together and they’ve bought into your company vision. A well-planned onboarding strategy sets the groundwork for that to happen – and software makes it much more so.

How to choose the best onboarding software for your business

Now that you know what onboarding software is and how it helps your business, you may be thinking about how to shop for one.

Not all onboarding softwares are built the same, and not all onboarding softwares are the perfect fit for any organization. There are a multitude of variables you need to think about before going all-in. Let’s get started on how to choose the best onboarding software for your business.

1. Determine your onboarding goals and objectives

You’ve likely already determined why you need onboarding software. But there are different softwares to meet different goals and objectives.

2. Define your goals and objectives

First, you want to define what you’re hoping to achieve and what technology and process gaps you’re hoping to fill. Also, think about your company size and expansion plans – how many new hires are you expecting to onboard over the next year, for instance?

3. Understand the complexity of your onboarding

And how complex is your onboarding – is it a series of 1-1s and team meetings, workstation setup, policy/procedure reviews, and other elements? Or does it run broader, longer and deeper than that – for instance, is travel involved? L&D and training sessions? Meetings with busy executives? Security clearances? Etc.?

4. Set your budget

Also, every company has a budget, and every budget has allocations for different company needs. What’s your hiring and HR budget, and how much of that can you reasonably spend on a quality onboarding software And again, consider how many onboards will be happening on a regular basis.

And remember, if you can identify the tangible benefits of onboarding software, that may give you an opportunity for a larger budget. Consider the ROI on a new software in terms of increased retention and engagement.

What features should I look for in onboarding software?

Again, think about your company size, hiring plans, frequency and complexity of onboarding, and so on. While those factor in your choices, you also need to identify the onboarding software features that will most benefit your current strategy.

Those features can include:

1. Recruitment management

Yes, onboarding is part of recruitment. It’s what you could consider the overlap between the final stage of hiring and the beginning stage of employment.

A good onboarding software should have – or at least seamlessly integrate with – a good applicant tracking system or hiring software, so you can continue your recruitment management into the onboarding phase without skipping a beat.

2. Mobile integration

Not all onboarding has to be or even can be conducted in person or at specific workstations. Some of it can be done virtually or even on the go using a mobile or smartphone. Mobile capabilities can also benefit busy managers and executives who can catch up on processes with a quick check-in.

If that benefits your company, check if your onboarding software of choice has mobile capabilities.

3. Compatibility

If you’re like many small businesses, you have a multitude of softwares in your tech stack. Make sure that the onboarding software you’re choosing fits in neatly within your existing setup.

This means seamless integration and transfer of information from one system to another while maintaining a single source of truth.

4. Customization and flexibility

Every company is different, meaning a certain level of customization and flexibility in your software is crucial.

Don’t shoehorn yourself to one system’s predesigned process – keep your options open with a system that you can mold to your specific needs.

5. Data management & security

Managing the data of your employees – including salary, benefits, contact details and so on – is part of onboarding as well, since you need to get that information into the system.

Data has its legal considerations as well – particularly for privacy (such as GDPR in Europe).

6. User-friendly interface

Not every user of the software is going to be tech savvy – the older the worker, the less experienced or even willing they are to use tech in their lives, according to Pew Research.

Even within the same generations there will be early adopters and late users, but consistent and regular integration of new software in a company is crucial to its success. You want a smooth, user-friendly interface to ensure that everyone’s using it properly.

7. The implementation process

Successfully implementing your newly purchased onboarding software is crucial. You’ve already got the financial buy-in, the user buy-in, and the tech buy-in – now you have to put it all into action.

Many softwares stumble out of the gates because they’re not implemented or even utilized properly, and then they become a sunk cost. When you have a clear and executable implementation strategy, then you’re setting the groundwork for future success. Tip: utilize your chosen software’s support team as much as possible in the early going.

Onboarding software trends

Not only is onboarding software growing as a norm in the HR tech stack, the software itself is seeing trends of its very own.

1. Automation

For example, organizations continue to optimize and streamline their systems, and that means automation of onboarding processes is becoming an increasingly popular option as it saves time and resources.

Automation is already a feature – but it’s evolving all the time. Ultimately, it simplifies and streamlines many aspects of what was once a time-consuming and repetitive part of HR work.

2. Data and analytics

Insights gained from people and data analytics in onboarding is growing in value as they help organizations identify gaps in existing systems and opportunities for improvement in new employee management.

It can also be used to track the progress of newly hired workers and bring a tangible perspective to the onboarding journey.

3. Gamification

And why not make onboarding fun? Memory retention and subsequent performance is known to increase when it’s an enjoyable part of being a new employee.

So, why not gamify the onboarding process? This is increasing in popularity as it’s a great way to teach employees new skills and familiarize them with their responsibilities and make a fun and memorable experience at one of the most important stages in the employee lifecycle.

4. Cloud storage

Cloud-based solutions are rapidly becoming the norm in any work setup, especially in emerging startups and remote-first teams.

This makes for a flexible, cost-effective solution for small businesses and easy access to the onboarding process and its data from any location.

5. Mobile capabilities

Mobile-friendly platforms, as mentioned above, are also on the rise not only due to distributed teams but also multitasking. This makes for a more streamlined experience all around.

In conclusion

The value of onboarding is widely misunderstood – in many cases, it’s hard to pinpoint when onboarding goes wrong. When we reached out for onboarding horror stories, the responses didn’t exactly come flowing in – and that’s because employees don’t know what to expect with onboarding.

The flip side is first impressions are essential to success. If there’s a good onboarding process in your company, you’re setting the right tone and laying down the groundwork for your new employee to excel at their job. They may not know exactly what it is if it goes wrong or right – but they will know the results (they tune out and look for other jobs or they’re more engaged and dedicated to this job). And your company will know, too.

Employee onboarding software is a huge part of that. Do your homework, shop wisely, and reap the rewards.

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However, let’s take a moment to review and understand what employee engagement truly entails.

What is employee engagement?

Employee engagement is more than just job satisfaction. It’s about an employee’s passion and commitment to their work and their company’s mission.

Engaged employees are invested in their roles and are motivated to go above and beyond their job duties. They feel a sense of belonging and purpose, which drives their productivity and performance.

HR professionals are responsible for creating an environment that promotes engagement, from hiring the right people to implementing policies that encourage employee involvement and recognition.

What employee engagement is not

Employee engagement is not the same as employee satisfaction.

A satisfied employee may be happy with their job and workplace conditions, but that doesn’t necessarily mean they’re engaged. Engagement goes beyond satisfaction; it involves a deep emotional commitment and a willingness to put in extra effort for the success of the company.

Benefits of good employee engagement

Engaged employees are more productive, more customer-focused, and more likely to stay with the company.

According to a 2022 Gallup report, 32% of employees in the U.S. and 23% worldwide are engaged in their work. However, in best-practice organizations, this figure rises to 72%.

Companies with a highly engaged workforce show a 41% reduction in absenteeism, 28% less shrinkage, and a 41% reduction in quality defects.

Organizations should pay attention to this and make more efforts to increase their employee engagement rates.

But how can you increase these rates for your organization? Let’s delve into some good examples.

Good examples of employee engagement

Companies like Google and Microsoft are renowned for their high levels of engaged workforce.

They achieve this by fostering a positive work culture, offering opportunities for growth, and recognizing employee contributions.

For instance, Google’s ‘20% time’ policy, which allows employees to spend 20% of their time on personal projects, has led to innovations like Gmail and Google News.

Microsoft has a program called “Hackathon” which is the largest private hacking event in the world. Employees from all over the globe come together to create and innovate, working on projects they’re passionate about.

This event fosters a sense of engagement and camaraderie among employees.

Workable, also, participates in this program giving employees the opportunity to express themselves and increase their productivity.

Related: Top employee engagement ideas to achieve success

Best practices for employee engagement

Several factors are responsible for a highly engaged workforce, including overall satisfaction, clear expectations, availability of equipment, opportunities to do what one does best, recognition, care and encouragement at work, mission/purpose, commitment to quality work, talking about progress, and opportunities for learning and growing.

Best practices include:

• regular communication
• recognition of employee achievements
• providing opportunities for professional development
• promoting work-life balance

It’s also crucial to gather and act on employee feedback, ensuring that employees feel heard and valued.

Understanding and implementing effective employee engagement strategies is crucial for any organization’s success.

Related:

Related: Team engagement ideas at work to boost productivity

As HR professionals, it’s our responsibility to create a work environment that fosters engagement, driving productivity, and business growth.

Let’s continue to learn, adapt, and innovate in our approach to create a highly engaged workforce.

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Let’s start by defining what HCM means: it’s a strategic way of managing employees that acknowledges their worth as a crucial driver of competitive edge. It’s about attracting, nurturing, and managing talent to open up their full potential and empower them to contribute individually and collectively to the success of your business.

So, it makes sense to invest resources in your human capital management strategy. Your teams will be high performing and engaged – and you’ll see fewer people leave, and your overall work culture will become a place where people want to work.

Also, smart HCM can help your business adapt more swiftly to shifting market dynamics, ensuring you have the right people with the right skills in the right roles. And when you align your HCM with your overall objectives and values, you can cultivate a culture of perpetual improvement and growth.

The building blocks of human capital management

So, what’s involved in a successful human capital management strategy? The primary nuts and bolts of HCM include:

1. Recruitment and hiring

What you’re looking to do here: Lure and pick the cream of the crop to meet organizational needs.

Recruitment and hiring are crucial components of HCM, as they involve pinpointing and selecting top talent to meet organizational needs. Successful recruitment strategies require identifying the skills, knowledge, and experience needed for each role and crafting targeted recruitment campaigns to draw in the right candidates.

Hiring decisions should be grounded in a thorough evaluation of each candidate’s qualifications and compatibility with the organization’s culture and values. You’re committing as a company in the long term to whoever you’ve decided to hire – so you want to make the right decision if you want to see that role really succeed.

2. Compensation and benefits

What you’re looking to do here: Offer enticing and fair compensation and benefits packages to attract and keep employees.

Compensation and benefits play a vital role in HCM, as they help attract and retain top talent. Organizations should aim to provide competitive and fair compensation packages that align with industry benchmarks and reflect the value of each employee’s contributions. This includes researching local compensation markets and understanding what employees (and candidates) really value in return for the work they’re doing.

Benefits packages should also cater to the needs of employees and their immediate families, encompassing healthcare, retirement, and other perks. The options for benefits are practically limitless, and you can absolutely be creative here. The key is what attracts and retains your stars.

3. Performance management

What you’re looking to do here: Set clear expectations and goals, giving regular feedback and coaching, and assessing performance to drive constant improvement.

Performance management is another pivotal aspect of HCM, involving the setting of clear expectations and goals, regular feedback and coaching, and performance evaluation to drive ongoing improvement. When employees know how they’re doing and what they’re expected to do, and can see the results of their work, they’ll perform better.

Effective performance management strategies entail setting SMART (specific, measurable, achievable, relevant, and time-bound) goals, providing consistent feedback and coaching, and carrying out periodic performance evaluations.

4. Learning and development

What you’re looking to do here: Invest in employee training and development to enhance skills and knowledge and promote career growth.

Learning and development are also indispensable components of HCM, as they involve investing in employee training and development to enhance skills and knowledge and promote career growth. It’s actually growing in importance for many jobseekers – and should be a cornerstone of your HCM strategy especially as businesses become more agile in fast-evolving environments.

Successful learning and development strategies involve identifying employee development needs, crafting targeted training programs, and offering opportunities for continuous learning and skill-building.

5. Succession planning

What you’re looking to do here: Spot and groom future leaders while ensuring continuity of key roles and responsibilities.

Succession planning is the final key ingredient of HCM, involving the identification and development of future leaders and ensuring continuity of critical roles and responsibilities.

Effective succession planning strategies entail pinpointing vital roles and competencies, designing targeted development programs for high-potential employees, and ensuring that key roles are filled by qualified and capable leaders. When you get stuck in a situation where your best workers turn out to be poor managers (the Peter Principle, in short), that means you haven’t got your succession planning strategy really nailed down.

By integrating these key components into a comprehensive approach to HCM, organizations can create a culture of excellence and continuous improvement that drives organizational success and growth.

Harnessing technology in human capital management

Clearly, in what we’ll call the “age of AI”, technology is a must in any form of management, and HCM is no exception. Here are three ways in which technology helps you manage human capital:

1. HR software and tools

Technology can be a great enabler of HCM. HR software and tools can help automate manual processes, streamline data management, and improve communication and collaboration.

Cloud-based HR systems can provide centralized access to employee data, making it easier to manage performance, compensation, and benefits. They can also enable employees to complete administrative tasks, such as requesting time off, updating personal information, and accessing training materials, through self-service portals.

2. Data-driven decision making

Data analytics can provide valuable insights into employee performance, engagement, and satisfaction. By leveraging data, organizations can make informed decisions about workforce planning, training and development, and compensation and benefits.

They can also identify trends and patterns in employee behavior, such as turnover rates, and develop targeted strategies to address issues and improve outcomes.

Related: 10 formulas to help calculate the ROI of HR initiatives

3. Remote work and virtual collaboration

Remote work and virtual collaboration are now staples in the post-COVID work world. Embracing these approaches can help organizations attract and retain talent, while also enabling employees to achieve work-life balance and reduce commuting times.

To make remote work and virtual collaboration effective, organizations need to provide the necessary tools and resources, such as laptops, internet access, and video conferencing software. They also need to establish clear communication protocols and set expectations around responsiveness and availability.

AI is a common denominator in all these. The proliferation of AI tools out there means there’s no limit to the technology you can use and how much it can support you in your work – not simply in automating tasks but also helping you gain valuable insight in areas such as people analytics.

Measuring the impact of human capital management

Finally, your work does not happen in a vacuum. And you aren’t just doing this work for work’s sake. You need to deliver – and you need to show results. There are points where you need to sit down and look at tangible, measurable data points so you can identify areas in need of improvement and areas in which you are succeeding, so you can continue to improve your human capital management strategy.

(And, of course, you’ll have an opportunity to showcase your value as a human capital ‘manager’ to the higher-ups – always a good thing!).

Let’s look at some areas where you can measure outcomes:

1. KPIs

Measuring the effectiveness of HCM practices is essential to ensure optimal results. Key performance indicators (KPIs) can help organizations track progress and identify areas for improvement.

Some common KPIs for HCM include:

• Employee turnover rate
• Employee satisfaction and engagement levels
• Training and development participation rates
• Time-to-hire and time-to-fill metrics
• Revenue per employee

2. Employee satisfaction and retention

Surveys and assessments can provide valuable insight into employee satisfaction and retention rates. By collecting feedback from employees, organizations can identify areas that need improvement and take action to address issues and promote engagement and retention.

Assessments can also measure the effectiveness of specific training programs and provide feedback to trainers and HR leaders on how to improve.

3. ROI

Finally, it’s essential to evaluate the return on investment (ROI) of HCM practices themselves. By measuring the impact of investments in employee development, compensation, and benefits, organizations can make informed decisions about where to allocate resources and prioritize initiatives.

ROI calculations can be complex, but they provide a valuable tool for measuring the effectiveness of HCM practices and identifying areas for improvement.

Max out your HCM – and your business potential

You don’t just hire people, put them in their work stations and hope to see them succeed. Beyond that is an area that requires higher-level strategy, and that’s human capital management.

It’s a critical aspect of organizational success. You’re focused on attracting, developing and managing employees towards the company’s north star which usually involves innovation, growth, discovery, and results.

And again, that stuff doesn’t happen on its own. You manage all that capital with training programs, cultural establishment, technology usage, and so on.

Follow the quick guidelines above and your organization will be well on its way to unlocking the full potential of its human capital and achieving long-term success.

The post What is human capital management – and how do you strategize it? appeared first on Recruiting Resources: How to Recruit and Hire Better.

Almost 50.6 million people left their jobs in 2022, making the understanding of attrition of staff more valuable than ever.

In this article, we will explore the concept of attrition, delve into its causes and impacts, and discuss potential solutions to address this crucial issue.

What causes attrition?

Several factors contribute to attrition, and understanding these can help organizations devise effective retention strategies. Reports from Payscale, LinkedIn, and Glassdoor & Indeed found that compensation was the main reason behind employee turnover.

Let’s go deeper to the causes of attrition.

Career advancement

Employees may leave an organization in search of better growth opportunities or a higher salary in another company. Career development may be of higher importance in an organization as it impacts the lifespan of their employees.

Work-life balance

A poor work-life balance can lead to employee burnout and dissatisfaction, ultimately prompting them to seek employment elsewhere. The stress that employees suffer every day at work can drive them to search for a new job with a better work-life balance and more respect for their time.

Lack of recognition

When employees feel undervalued or unappreciated, they are more likely to look for opportunities where their contributions are recognized. Feeling engaged with their workplace will boost their creativity and help the company thrive.

Company culture and engagement

Unhealthy company culture, lack of employee engagement initiatives, or a toxic work environment can contribute to attrition. Employees want to feel safe and informed about their organization in order to work more effectively and achieve their goals.

The impacts of attrition

Attrition can have several significant impacts on organizations. It can increase the costs, harm productivity and impact your organization at all.

Let’s take a closer look at the impacts:

Higher costs

The cost of replacing an employee can be substantial. The Society for Human Resource Management (SHRM) suggests that the average cost of replacing an employee is six to nine months of that employee’s salary. This includes expenses related to recruitment, onboarding, training, and lost productivity.

Loss of productivity

When an experienced employee leaves, it takes time for the replacement to get up to speed, leading to a temporary decrease in productivity. It will take some time for a new employee to reach the same level of productivity as their predecessor, which is important.

Negative impact on morale

Frequent turnover within a company can have detrimental effects on employee morale and overall stability. When employees witness a constant stream of departures, it can create a sense of uncertainty and unease.

This can result in decreased motivation and productivity among the remaining employees, as they may feel disengaged and demotivated due to the lack of continuity and trust within the organization.

Loss of institutional knowledge

Employees who have been with the company for a long time often possess valuable knowledge and expertise about the organization. When they leave, this institutional knowledge may be lost, which can hinder business operations and decision-making.

Managing attrition

To combat attrition and retain talented employees, organizations can consider implementing the following strategies:

Focus on employee engagement
Engaged employees are more likely to stay with an organization. Encourage open communication, create opportunities for professional growth, and recognize and reward employees’ contributions.

Improve work-life balance
Foster a healthy work-life balance by promoting flexible work arrangements, providing support for personal well-being, and encouraging employees to take time off when needed.

Invest in learning and development
Offer opportunities for training and skill development to help employees grow both personally and professionally within the organization.

Enhance company culture
Foster a positive and inclusive company culture that values diversity and promotes respect, collaboration, and psychological safety.

Conduct stay interviews
Regularly engage in conversations with employees to understand their needs, concerns, and aspirations. This can help identify areas for improvement and mitigate potential attrition risks.

By understanding the causes, impacts, and potential solutions related to attrition, organizations can proactively address this issue and create a conducive environment that promotes employee retention and growth.

What is positive attrition?

Positive attrition is when an employee’s departure benefits the organization.

This typically involves individuals who underperform, make frequent errors, struggle with collaboration, or deliver poor customer service. Their excessive use of leave time can also be a factor.

Their exit can improve productivity and workplace atmosphere, making it a positive change for the company.

How to calculate employee attrition rates

The attrition rate is a measure of employee turnover within an organization over a specified period. High attrition can indicate workplace issues, but how can you calculate it?

This is an easy step-by-step calculation to quickly find out your attrition rate.

• Note the initial number of employees.
• Record the number of employees who left and were hired during the period.
• Add the number of employees who left to the number of new hires to get the ending number of employees.
• Calculate the employee average by adding the starting and ending numbers and dividing by two.
• Divide the number of employees who left by the employee average to get the attrition rate in decimal form.
• Multiply the decimal by 100 to convert the attrition rate to a percentage.

Ready to practice?

Let’s say you had 50 employees initially, and 5 were fired or left the organization.

You managed to hire 3 more, so 50-5 (+3) equals 48.

To calculate the average number of employees, we add the starting and ending numbers (50+48=98) and divide by 2 (98/2=49).

Now that we have this number, all we need to do is divide the number of employees who left by the employee average (5/49=0.102) and multiply the result by 100 to find the percentage of attrition rate (0.102×100=10.2%).

Paying attention to the onboarding process and employee satisfaction throughout their years of working for you can help decrease attrition rates and enhance your employer brand.

On the other hand, managing attrition can be helpful in creating a future that will support your organization and the well-being of your employees.

The post What is employee attrition? appeared first on Recruiting Resources: How to Recruit and Hire Better.

These two roles are crucial in a data-driven company’s hierarchy. But, when comparing Data Analyst vs. Data Scientist, we’ll find that their roles and responsibilities are not always clear. Let’s dig into their similarities and differences by starting with a definition of a Data Analyst and Data Scientist.

What is a Data Analyst?

A Data Analyst is a professional responsible for interpreting data, using statistical techniques, to help companies make better business decisions. They perform tasks such as data cleaning, performing analysis, creating data reports and visualizations, and providing sectors of the company with specific data-based insights.

What is a Data Scientist?

A Data Scientist is a professional who uses scientific methods, algorithms, machine learning, and artificial intelligence to extract knowledge and insights from structured and unstructured data. They not only analyze data but also use their findings to predict future trends and events.

Who is higher: Data Analyst or Data Scientist?

Generally, a Data Scientist is considered higher in the hierarchy compared to a Data Analyst. This is largely due to the complexity of tasks and advanced skills required for data science roles, which often involve predictive modeling and machine learning algorithms. However, this may vary depending on the organizational structure and specific needs of the company.

What is the difference between a Data Analyst and Data Scientist?

If we want to explain the difference between a Data Analyst and a Data Scientist in one sentence, we’d say that Data Analysts are in charge of interpreting and visualizing past data, while Data Scientists not only interpret past data but also predict future trends using complex machine learning models. But, this doesn’t mean that Data Analysts are only focused on past events, or that Data Scientists solely look towards the future.

Both of them have high-level responsibilities that can greatly influence the success of a business. Data Analysts rely on Data Scientists to develop advanced models and techniques for analysis, while Data Scientists often depend on Data Analysts for thorough data cleaning and preparation, and for transforming their complex models into understandable insights for the rest of the organization.

To better understand their differences, let’s compare these two roles side-by side:

Data Analyst vs. Data Scientist

Related resources:

• Data Analyst job description
• Data analyst interview questions & answers
• Data Scientist job description
• Data Scientist interview questions and answers

The post Data Analyst vs. Data Scientist: What’s the difference? appeared first on Recruiting Resources: How to Recruit and Hire Better.

To understand better what nurse practitioner vs. doctor means, we should first look into each profession. So what is a nurse practitioner? Nurse Practitioners (NP) are highly trained Nurses who act as primary caregivers and they’re able to diagnose conditions, prescribe medications and suggest treatments to patients. Doctors, or Physicians, have a greater scope of practice than NPs. They diagnose illnesses and prescribe medicine and treatments, but they can also perform surgeries. While both Nurse Practitioners and Doctors are advanced healthcare professionals, Doctors have higher authority than Nurse Practitioners in many areas (e.g. California).

Educational differences

To become a Nurse Practitioner, you need to first obtain a degree in Nursing, become a Registered Nurse (RN) and get a postgraduate degree (often a PhD).

Doctors can hold either of the two degrees available in the US: Doctor of Medicine (MD) or Doctor of Osteopathic Medicine (DO) having graduated from medical programs and completed a residency. Their studies and formal training last longer than those of NPs.

NPs and Doctors are licensed by distinct regulatory bodies.

Specializations

Nurse Practitioners can be specialized in various areas. The most common specializations include family health, neonatal care, adult-gerontological care, mental health, oncology and pediatric or women’s health.

Doctors can have these specializations and more, such as allergology, immunology, dermatology, cardiology, etc.

Practice authority

Doctors have full practice authority – meaning they can practice medicine according to their training and expertise without any supervision or restriction as long as they have a valid license.

NPs have full practice authority in some states, but reduced or restricted practice in others (for example, they need to have a collaborative agreement with Doctors to prescribe medications). NPs work under supervising physicians in many cases.

There’s a number of areas (e.g. Oklahoma) where Nurse Practitioners push for getting full practice authority to help alleviate growing health problems in the population. While the necessity to expand authority for NPs is controversial, there’s evidence that they can give high-quality care to patients, just like doctors would.

Related Job Descriptions:

• Nurse
• Registered Nurse
• Physician

Want more definitions? See our complete library of HR Terms.

The post What is the difference between doctor and nurse practitioner? appeared first on Recruiting Resources: How to Recruit and Hire Better.