Latest HR Trends: Burnout, Loneliness, Skill-based Talent Architecture, Human Sustainability, Finding and Retaining Talent, Work-centrality

👋 Hello Everyone and Happy Sunday !

💥 Welcome back to the 55th edition of Weekly People Research! 📚

🙏 Last week was once again highlighted by engaging discussions on talent, leadership, and the HR function. I am deeply grateful for the unwavering support and commitment that has been shown. A big Thank you!

📚 The book of the week: The Bezos Blueprint by Carmine Gallo

I thoroughly enjoyed reading it last week, and one sentence particularly inspired me: "You don't choose your passions; your passions choose you!" It's worth reading to grasp the concept of successful leadership, rather than focusing solely on Bezos.

We engaged in a discussion on the following exciting HR topics:

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

💡 In the latest edition, you will discover more about 📊:

✔️How have the reduced challenges in retaining and recruiting talent enabled HR leaders to concentrate on the approaching AI horizon? The Conference Board researchers found that the prevalence of hybrid work is relatively stable, with most HR leaders recognizing its considerable benefits.

✔️How does the strong association between burnout and a lack of feelings of inclusion impact the workplace environment? Boston Consulting Group (BCG) researchers have found that four key sentiments significantly affect employees' overall sense of inclusion. Regrettably, these crucial sentiments are precisely those with which employees report the least satisfaction.

✔️How has the pandemic influenced employees’ perception of jobs being primarily about financial compensation? CIPD researchers have identified seven dimensions of job quality that encompass significant subjective and objective aspects of work. Even with the evolving nature of work, the core principles of good work stay the same.

✔️How essential is sustainability in enhancing human capabilities to generate significant value for both individuals and businesses? Deloitte and Workplace Intelligence researchers indicates that a majority of C-suite executives concur that a lack of progress in human sustainability should prompt a change in leadership.

✔️How can organizations address the paradox where engaged employees generally feel less lonely, yet 25% of fully remote workers still experience loneliness? Gallup researchers shown that employees who are engaged are 64% less likely to experience loneliness compared to their disengaged counterparts.

✔️How can CHROs ensure that their investment in skill-based Talent Architecture translates into becoming highly effective business partners, despite the trend of reducing new hires? PwC researchers observed that leaders rely on performance management to ensure they are promoting behaviors that contribute to their bottom line.

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

*Talent: Challenges in retaining and recruiting talent

*Leadership: Link between Burnout and DEI

*Organization: Human Sustainability

*HR function: Loneliness, Skill-based Talent Architecture, Business partner

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

HR leaders have fewer challenges associated with Retaining and Recruiting Talent, allowing them to focus on the near-term AI horizon!

💡 Findings of researchers:

📢 79% of HR leaders report that hybrid work models are beneficial in attracting and retaining talent within their organizations.

📈 The voluntary turnover rate for on-site workers over the past six months has doubled compared to that of hybrid and fully remote workers.

💡 When examining organizations by type of worker, retention has become significantly less challenging both for organizations employing mostly professional and office workers and those employing mostly industry and manual services workers.

📉 The prevalence of hybrid work remains relatively stable, with the majority of HR leaders acknowledging its significant benefits.

A significant number of HR leaders in organizations with hybrid work models have reported numerous positive outcomes.

🦾 Regarding AI, half of the HR leaders concur that prioritizing experimentation with pilots and use cases is essential, according to a new interesting research published by The Conference Board using data 📊 from a survey of 216 Human Capital (HC) Leaders on April 2024.

☝️ Recommendation of researchers:

any HR leaders in organizations that have adopted hybrid work models report a variety of positive outcomes.

🏆 Work-life balance is at the forefront, with 87% of leaders acknowledging its beneficial impact.

Other positive effects are listed below:

✔️ Flexibility in where employees work

✔️ Job satisfaction

✔️ Ability to attract and retain workers

✔️ Employee Experience

✔️ Employee Well-being

✔️ Flexibility in when employees work

✔️ Reducing carbon footprints of the enterprise

✔️ Improving employee productivity

👉My personal View:

This groundbreaking research reveals that the difficulties in recruiting and retaining employees have markedly decreased for HR leaders. Consequently, they can now concentrate on short-term AI projects, explore various applications of AI, and consider reskilling their workforce to integrate this technology.

🙏🏼 What were the HR expert opinions:

Dave Ulrich Thank you for sharing the research. Robin Erickson PhD and her team continue to do outstanding work. I like your comment that the state of hybrid was has stabilized and each organization seems to have found their application of how hybrid work works tor them. I recognize the benefits for recruiting and caution the longer term possible risks of not having a relationship-based culture where personal connections bond people to each other. As others have shared, creating relationships in hybrid is possible, ,but requires some unique leadership skills. Evidently many of those companies surveyed had leaders who demonstrated these skills.

George Kemish LLM MCMI MIC MIoL Hybrid working models are certainly beneficial - not only in attracting and retaining talent. However, I am not sure that employers and employees utilize their 'in-office' time productively. We are still seeing posts where people highlight that employees do not see the need to go into the office. This appears to indicate that the thought-process of both the employee and employer are not aligned with the developmental needs of both. The employee will be picking up implicit learning (from customers, suppliers, AI, even through using their on innovation and creativity.

Munyaradzi Chikwanha The trend towards fewer challenges in terms of retention and recruitment is likely to continue as hybrid work models prove beneficial. These models not only help in attracting and retaining talent but also in enhancing work-life balance, job satisfaction, and employee well-being. The positive outcomes reported by HR leaders, such as improved flexibility, productivity, and reduced carbon footprints, support the sustainability of this trend.

Burnout is strongly associated with a lack of feelings of inclusion in the workplace!

💡 Findings of researchers:

Employees who are more burned out feel less included at work.

➡️ Burnout which has historically been considered a consequence of long hours, a physically demanding job, or a high-stress environment, is also highly correlated with low feelings of inclusion.

💪 Four sentiments significantly influence employees' overall feeling of inclusion.

❌ Unfortunately, these most important sentiments are also the ones where employees indicated the lowest levels of satisfaction.

When employees feel that these sentiments are positively addressed in their workplace, they feel more included and less burned out.

📈 Women, members of the LGBTQ+ community, people with disabilities, and deskless workers experienced up to 26% higher burnout, according to a new interesting research published by Boston Consulting Group (BCG) using data 📊 from a survey of 11,000 desk-based and frontline workers in eight countries.

☝️ Recommendation of researchers:

📌 Finally, researchers offered two recommendations for leaders aiming to enhance their employees' sense of inclusion:

✔️ Deeply understand your employees and design benefits that cater to their needs.

✔️ Foster leaders who understand the value of supportive and enriching environments.

👉My personal View:

The findings of this outstanding global study on the intriguing connection between burnout and diversity highlight the necessity for leaders to understand the employee experience and the effectiveness with which company leaders foster inclusive work environments for everyone, with a reliance on middle managers first.

🙏🏼 What were the HR expert opinions:

Dave Ulrich Again, BCG does very good research. Burnout occurs for many reasons and in unique ways for individuals. We have used the straightforward demand/ resource model below to show that when demands are balanced with resources (chart), the individual stays in balance. Thanks again for sharing this research that confirms these ideas.

Fatima Almustafa Once inclusion is part of any organizational value & culture, deploying “inclusion strategies” wouldn’t be considered as quick fix of burnout. Burnout can be a symptom of a cultural misalignment between teams and their strategic objectives as an organizations. Seeking to understand what led to burnout can help address these aspects across many layers (process design, hierarchy, org culture, rewards…etc). Inclusion shouldn’t also come at the cost of rejecting any unpopular decision for an org to survive and thrive. Some hard decisions has to be made at some point for the sake of keeping strategic focus intact - understanding what inclusion means for all levels can be a good starting point. Some leaders may falsely equate inclusion with time consuming practices to have everyone heard— while for team members it can be as simple as giving room for innovative ideas and redesigning some aspects of a process to better serve customers and stakeholders.

Ludo Verstraete Burnout is not only work related. What happened in one's childhood, can lead to burnout 20 years later. My own experience

Marc Lawn This, plus some of your other great content demonstrates clearly the ‘mismanagement dilemma’ many businesses find themselves in. Continuing to treat employees (consciously or otherwise) as a ‘financial liability’ is causing huge strain up and down the organization

Employees have come to view Job as being primarily about the money, a trend that has emerged since the pandemic!

💡 Findings of researchers:

A "good work" is fundamental to individual wellbeing, supports a strong, fair society, and creates motivated workers, productive organizations and a strong economy.

📈 The sentiment that a job is solely about financial compensation has been increasingly prevalent among employees since 2023, and this trend has continued to escalate into 2024.

🎯 The concept of 'work centrality'—the importance of work in people's lives—has undergone a significant shift.

📉 People were also less likely to say they would work harder than they need to help their employer, down from 57% to 51%.

👉 The rise in remote work has not affected various work quality metrics, like autonomy, indicating that the essence of the job and the treatment we receive at work are more significant factors than our work location, according to a new interesting research published by CIPD using data 📊 from a survey of 5,496 UK workers, collected between 8 January and 15 February 2024.

☝️ Recommendation of researchers:

📍 Finally, researchers provided three recommendations for organizations to foster engagement, commitment, and motivation among employees, emphasizing the need for positive behavior from staff at all organizational levels:

✔️ Providing employees with the resources to do their job properly, such as supervisor and colleague support and feedback, helps prevent the demands of their job from becoming overwhelming.

✔️ Employers should provide their staff with sufficient support to ensure they feel cared for and valued in their jobs. This will probably enhance their sense of belonging to the organization and result in them feeling more involved and dedicated.

✔️ Jobs need to be clearly defined so employees have an acute understanding of their role expectations. Employees need to fully utilize and be sufficiently challenged by their skills to find their work meaningful.

👉My personal View:

This outstanding research published by CIPD which takes a large sample of people across the UK sheds light on how employees feel about work and I really like the seven dimensions of a 'good job'. There are also reassuring indicators that the vast majority of employees believe they contribute valuable work at the organizational level. And as researchers demonstrate, despite changes in the workplace, the fundamentals of good work remain constant today.

🙏🏼 What were the HR expert opinions:

Dave Ulrich Thanks for sharing this thoughtful research from a viable source and good data set. I agree with you that the fundamentals of "good" work (resources, supportive boss, task clarity) seem consistent and similar. The increase in attention to compensation is interesting. I would be interested to dig into the data to see the types of workers (e.,g hybrid vs in office; seniority, gender, etc.) where compensation matters most. I think that workers where work is more a transaction than a mission would lean into compensation. The willingness to work harder might discover the same pattern. And, I wonder what the correlation is between interest in compensation and willing to work hard (probably negative). My overall takeaway is that leaders need to pay continuing attention to their employee wants and needs so that they can help employees flourish at work who in turn create value for customers and investors. Thanks again for sourcing research based insights that help me think and learn.

Mikhail Lvovskii I think the results pretty vividly depict the shift in employees' mind about what work means in their lives. - less fear to lose jobs because of sharing honest opinion - no need to pretend you work hard when it's just about money - clear parallel to low engagement levels globally- jobs considered as short -term "lending" of capabilities in return of money for living. The fact around half consider job "only for money" is speaking loud about absence of relatable Purpose, inspiring Vision and meaningful work content. It's partially about change of people focus, but to the big extent about leaders who are unable to create engaging atmosphere at work.

Clare Langley Interesting research bringing together some emerging trends in how people see work. I think this reflects well the shift in attitude to work as being a part of, rather than the center of, people’s lives. This will require and increasingly non-traditional approach to people management and work structures: working time and flexible/agile contracts (and yes, well-regulated zero hours contracts where those make sense); a shift to capabilities and skills over structures; more focus on outcomes rather than inputs (or time) and a more individual employee experience. I don’t believe that the wish for purpose os new, but the view that this and money can and should go alongside each other is a change in emphasis.

Mark Holdaway This is super research and seems to support my own adhoc evidence that has been telling me for a while now, that larger corporations are making fundamental mistakes in understanding the modified motivators of individuals. I still sense many companies believe their brand is enough to pull workers in to their center of gravity. Where in reality, people increasingly are asking beyond the salary and benefits, what’s in it for me? Where’s my self-actualization and autonomy?

Ronald HANNES Many thanks for sharing these insightful findings. Here are some additional views and experiences:- There has indeed been a shift in what employees want in and around a job.- In a first instance they look for purpose and values within the company they are employed in.- A lot of employees are still ambitious, but not at every cost.- It's most essential that managers manage expectations; share transparent communication around purpose and give context of the bigger picture, and especially how the individual employee talents fit into this (inclusion).- When employees realize that additional competencies and skills they can learn on the job are also extremely useful to grow as a person as a whole, they surely are willing to invest in themselves... and automatically in the organization. Conclusion: managing expectations, giving context, continuous dialogue and perspective will help a lot to increase engagement and performance.

Human Capabilities require Sustainability to significantly create value for People and Business!

💡 Findings of researchers:

Employees who are engaged and trust their leaders are more than twice as likely to report that their company is making progress in human sustainability compared to those who are disengaged and lack trust in their leadership.

➡️ For the third consecutive year, research indicate that individuals continue to face challenges with their well-being.

📈 More than 70% of C-suite executives agree that if their company is not progressing in human sustainability, there should be a change in leadership.

Advancing a human sustainability agenda necessitates the identification and bridging of gaps between leadership perception and employee experience as an essential initial step, according to a new interesting research published by Deloitte in collaboration with Workplace Intelligence using data 📊 from a survey of 3,150 C-suite executives, managers, and workers across four countries.

☝️ Recommendation of researchers:

📌 Researchers have finally determined that employees believe organizations can implement the following actions to foster human sustainability:

✔️ A training program focused on human sustainability

✔️ Seeing examples of how others are advancing human sustainability

✔️ Having a clear window into their company’s metrics around human sustainability

✔️ Support from external subject matter experts (for example, consultants)

✔️ Support from internal specialists (for example, sustainability or well-being teams)

👉My personal View:

This research provides valuable insights, showing that human sustainability can assist organizations in attracting and retaining a diverse workforce. It can also aid in the development and engagement of employees, ultimately transforming organizations into more fulfilling and productive workplaces.

To achieve these outcomes, as emphasized by researchers, companies must move beyond extractive, transactional thinking regarding workers and focus on creating greater value for them and all stakeholders within the wider human ecosystem.

🙏🏼 What were the HR expert opinions:

Andrew Lang Great advice! It’s clear that to thrive in the future, companies must shift from a purely transactional approach to one that genuinely values and supports their workforce.

Jos van Snippenberg Relevant research. It is clear that the gap between executives' opinions and employees' experiences is still very large. As the research shows, and as is evident in many companies, the increasing responsibilities and tasks of managers weaken their real connection with employees. This could explain the disconnect in human sustainability. Human sustainability requires CEOs and GMs to claim this domain and embed it in the DNA of the organization. To keep this on the strategic agenda, HR has an important role to play in accelerating and anchoring this commitment.

Reema Purohit Human sustainability is indeed the key to creating significant value for both people and businesses. It's inspiring to see the emphasis on employee engagement and trust in leadership for driving progress in this area

Kathie Vu This is an exciting research! Thanks for sharing. I believe there is a strong link between human sustainability and talent attraction, engagement and retention and hence, business value creation. Shifting from transactional to transformative approaches in managing human resources is not just ethically imperative but also a strategic move to ensure long-term organizational success and resilience. It must start with right HR Leadership and trust-based work culture.

Engaged employees tend to feel less lonely; however, 25% of Fully Remote workers still report experiencing loneliness!

💡 Findings of researchers:

20% of employees worldwide experience loneliness on a daily basis.

📉 Engaged employees were 64% less likely to be lonely than those who are not engaged and employees who say they have a best friend at work are 21% less likely to be lonely.

📈 Loneliness is more prevalent among employees younger than age 35 than it is for those aged 35 and older.

The risk of mortality among people who lacked community and social ties was two times greater than that of people who had many social contacts, according to a new interesting research published by Gallup using data 📊 from a survey of 19,846 employees working in US companies and members of the Gallup Panel conducted between Feb 6-16, 2024.

☝️ Recommendation of researchers:

📍 Finally researchers conclude that employers should provide appropriate benefits and flexibility to enhance employee well-being, without neglecting their profound impact on employees' life satisfaction.

👉My personal View:

This wonderful research has demonstrated that loneliness should be taken as seriously by managers and organizations as other factors that detrimentally impact the employee experience, such as stress, anger, worry, or sadness, beginning with onboarding.

The findings of this research indicate that work diminishes the experience of loneliness. While not all mental health concerns stem from work, it is a significant factor in life satisfaction and daily emotional states.

🙏🏼 What were the HR expert opinions:

Dave Ulrich Great research. We have said that mental health includes depression from the past; anxiety for the future; and loneliness in the present. The loneliness epidemic is real and this research confirms it. There is quite a bit of research on social isolation and mortality. Helping employees feel less lonely is one of the challenges of managers and peers.

Dr. Bhanukumar Parmar This is a critical research, Thanks for sharing. Loneliness deserves attention alongside other well-being factors. I’ve witnessed the impact of loneliness on employee well-being firsthand. Ideally - Its all about - Care, Connections, Collaboration.

Jos van Snippenberg Shocking numbers and very valuable Gallup study. These outcomes represent what we see in society as well, Gen Z experience a high level of loneliness. The key question is if we try combatting loneliness or that we mobilize Gen Z to believe in themselves, feel valued and belong. I often bring in Maxwell Maltz theory in.

CHROs are reducing new hires and instead investing in skill-based Talent Architecture, not all are proving to be highly effective business partners!

💡 Findings of researchers:

Majority of CHROs are developing leadership teams with effective capabilities

📉The trend of reduced hiring after the pandemic surge is evident across various industries, coinciding with HR leaders' efforts to optimize workforce expenses beyond mere headcount reduction.

⚖️CHROs are navigating a delicate balance. They are tasked with optimizing costs in the present while investing in the skills required for the future. They prioritize collaboration with other leaders to achieve greater results.

👉 HR leaders are revamping performance processes to maximize organizational effectiveness, focusing on enhancing workforce performance through more efficient real-time feedback, according to a new interesting research published by PwC using data 📊 from a survey of 673 executives and board members from Fortune 1000 and private companies (81 were CHROs) fielded May 15 to May 22, 2024.

☝️ Recommendation of researchers:

Finally researchers provide six recommendations for CHROs to become strategic business partner:

✔️ Don’t just be a transactional player.

✔️ Invest in our future leaders.

✔️ Don’t just tighten the purse strings.

✔️ Use technology to match the right skills to the right job.

✔️ Evaluate your performance management process.

✔️ Make feedback a two-way conversation.

👉My personal View:

This interesting study by PWC, which utilized a notable group of executives, has shed light on prevailing boardroom trends: a decrease in hiring and an increase in cost optimization. The focus on skill investment and performance management indicates that CHROs are now prioritizing the development of their existing workforce over new recruitment efforts.

🙏🏼 What were the HR expert opinions:

Dave Ulrich PWC consistently does thoughtful and relevant research. These findings remind me that getting the right person in the right job with the right skills at the right time is both science (with rigorous methods and tools) and art (using human judgment to make decisions). In general, we have found that going "outside" for new hires works best when the external candidate might have 30% or more skills than internal candidates, so that internal candidates are delighted to work with and learn from their new boss. This research confirms the value of more often promoting from within when employees can acquire the skills required for the future job. Talent Advantage (this research focus) is one part of the human capability logic required to be a business partner. We would also include a focus on stakeholder value through human capability (talent + organization, leadership, and HR).

Samoual Hassan As organizations navigate post-pandemic challenges, they’re not only optimizing costs but also focusing on building capable leaders. This strategic approach involves new types of formal training to enhance leadership skills within teams.

George Kemish LLM MCMI MIC MIoL When looking at a skills based architecture, there is a need for organizations to carry out a 'skills audit' - most business leaders do not have a realistic view of the knowledge, skills and experience already available, but not utilized, in their organizations. Secondly, there needs to be a move to enhancing capability through good management of human performance - thereby encouraging the innovation and creativity necessary to create growth (for the employee and the organization) and value to all stakeholders.

Namita Gopinathan,MBA The organization must thoroughly assess the potential challenges and unintended consequences of reduced hiring and intensive upskilling strategies. With fewer new hires and a strong emphasis on upskilling current employees, there is a risk of burnout and stagnation if employees perceive limited opportunities for career advancement or feel overwhelmed by increased expectations. This situation could lead to decreased productivity and potentially higher turnover rates, which are critical factors for CHROs to effectively manage alongside their strategic objectives.

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

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Nicolas BEHBAHANI

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