April 09, 2019

2 Forces, that Should Scare Any HR Professional 

The need for change in HR is real. There are two main reasons why HR urgently needs to think differently; one is the competition from disruptive startups and another is a set of changing workplace-criteria by millennials and generation Z.

But don’t despair, there are 2 good ways HR can deal effectively with these two forces of change. Keep on reading and you’ll find out. 

  • Competition from startups

    It has been predicted that 3 out of 4 S&P 500-companies in 2022 will be companies that didn’t exist in 2012. We’ve seen Netflix disrupt the business of Blockbuster as they made it easier for the consumer to get on-demand access to entertainment. Uber disrupting the taxi-industry, Airbnb disrupting the hotel-industry, e-commerce companies disrupting offline retailers.  
    By now we all know the narrative about savvy startups bringing down industry giants, but according to before-mentioned statistic this is not something that will cease to happen. Thus, all departments across every company needs to buckle up and do their best to adapt to this new reality. A reality where “the old way of doing business” just won’t cut it anymore. It’s simply too slow.

  • Millennials and gen-Z 

    Millennials and gen-Z are soon taking over the labour market. Physiologically, these two generations are similar to the earlier generations - the brain hasn’t changed. However, circumstances have, thus millennials’ and gen-Z’s behavior in the workplace differs wastely from what we’ve seen before.
    A move up the hierarchy of needs has happened and focus is more on self-realisation and having a positive impact on the world. However, that doesn’t mean that these two generations don’t care about compensation packages. The financial crisis has certainly had an impact and especially gen-Z values stability.
    Furthermore, these two generations are extremely tech-savvy and demand both freedom, radical flexibility and purpose in their job. The classic career path as we know it is dying and need to be replaced with a more adaptable one, that recognises the desires of a new workforce.

    What does HR need to do to keep themselves at the top of their game?

  • Work better across the organisation and turn data into evidence on the bottomline 

    In many companies HR is still seen as a rather isolated support department. HR need to push for a role as a strategically important key part of any company. Both IT and marketing becomes essential in this effort. IT must exist to support best-in-class HR-processes and enable intelligence, rationality and effectiveness.
    Companies have already opened themselves up more to the surroundings and must proceed this way. Yet, there is often no consistency in the communication towards employees, customers and in the employer brand. The link to marketing becomes important here.

    Breaking down the walls and working more on a cross-functional level will solve one of the historically biggest problems for HR; how do we document effect on the bottom line? Data about employee satisfaction, engagement, talent acquisition as well as spill-over effects from good employer branding efforts leading to valuable information about consumers and society will clarify part of the effect on the bottomline. By gaining valuable data gathered from HR analytics, HR has the potential to really improve the company’s spending, productivity and operations for the better. 

  • The war for talent is over. Talent won. 

    As founder and CEO of Amazon, Jeff Bezos, said “the war for talent is over. Talent won.'' HR professionals have to realise that the market is dominated by talent and that they now have the upper hand within many different professions. Just think about a software developer, a skilled growth hacker or a brilliant product manager. There’s a huge demand and these profiles won’t settle for less. In 2019 companies can’t sit in their “ivory towers” and believe that they can pick and choose talent. Talent picks you.

    Treat talent exactly like they were your customers. Create an employee journey, that is designed to convert passive talent to engaged and motivated applicants eager to join your company. Don’t know how to start this? Call marketing and hear about their experiences creating customers journeys. Or even better call Talentree and let us help you design an amazing journey for your potential talent. 

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