Latest HR Trends: Meritocracy, Human Performance Metrics, Workplace utilization, Layoffs, Over-Hiring, HR priorities, Return-to-Office mandates

👋 Hello Everyone and Happy Sunday !

💥 Welcome back to the 36th edition of Weekly People Research! 📚

🙏 Thank you so much for all your inspiring and exciting comments last week - Your ideas are an incredible treasure for the understanding but also the application in companies of these ideas from research!

☕ Some of you have coffee while reading this newsletter, some have lunch,... in short, enjoy reading! 😄

💡 In this new edition, you will learn more about :

✔️Why inequality and merit-based decisions are deeply linked? A team of US researchers from Duke University - The Fuqua School of Business University of North Carolina at Chapel Hill found that people from across the political spectrum also are more likely to support programs that encourage socioeconomic diversity.

✔️Why global workplace usage shows workers need space to collaborate more than desks? XY Sense researchers found also that Conference rooms and smaller enclosed meeting areas are occupied during 67 percent of the workday.

✔️What are the priority objectives of HR Executives /CHROs for 2024? The Hackett Group Inc. researchers also found that Only 29% of HR organizations have a major 2024 initiative planned to be a strategic advisor to the business – the lowest among the top 10 priorities.

✔️Why should organizations focus on Human Performance metrics rather than Productivity metrics? Deloitte researchers also found that majority of employees agreed that their organization is in the early phase of the journey toward identifying better ways to measure worker performance and value beyond traditional productivity.

✔️Why are layoffs and hiring freezes actually the consequences of over-hiring and overstaffing and a sign of poor business health? The Josh Bersin Company and Glassdoor researchers found that overstaffing led to increased costs and also resulted in higher defect rates and material waste.

☝️ Finally you'll understand why Working From Home (WFH) is the best for both Mental and Physical Health. Gartner researchers also found that Return-To-Office (RTO) mandates are detrimental to high-performing employees.

These insights continue to evolve as we all learn more - as Dave Ulrich said wonderfully.

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

Merit-based Hiring is UNFAIR after learning about the impacts of socioeconomic disparities !

💡 Findings of researchers:

🔥 Inequality and merit-based decisions are deeply intertwined - Socioeconomic advantages and disadvantages early in life can have profound influences on educational achievement, test scores, work experiences, and more.

📣 While the majority of people continue to endorse merit-based procedures as fair, new findings show that it does not take much to change these perceptions.

💡 People are able to attach past inequalities to their evaluation of current meritocratic practices. Past inequalities end up shaping fairness perceptions of merit-based rules and their respective outcomes.

🚨 People from across the political spectrum also are more likely to support programs that encourage socioeconomic diversity after learning about the effects of social class and low income, according to a new interesting research published by a team of US researchers in American Psychological Association using data from 3,318 people across five online studies.

☝️ Recommendation of researchers:

Researchers conclude that learning about the presence of economic disparities in people’s backgrounds can affect judgments surrounding the fairness of meritocratic processes. Learning about past inequalities can make both liberals and conservatives update the perceived fairness of meritocracy, leading them to evaluate merit-based hiring and promotion processes as significantly less fair and to be more supportive of policies that foster social class diversity in organizations.

👉My personal View:

This very interesting research demonstrates that people who learned about a merit-based selection process including hiring and promotion view both the rules of the process and its outcomes as fair and just.

Additionally, these findings, as noted by the researchers, will help hiring managers learn about the effects of socioeconomic inequalities on access to opportunities and take into account a broader range of work experiences when evaluating different candidates.

🙏🏼 What were the HR expert opinions:

Dave Ulrich : Really interesting study of how biases show up in hiring processes. Perhaps making unconscious biases more transparent and conscious, may help hiring managers move past them. A fair hiring culture may increase when expectations are clear about both the behaviors and outcomes of the position under consideration.

Shiroz Hamid (CAHRI) : In fostering a workplace that champions both meritocracy and social responsibility, organization should make a conscious effort to level the playing field and ensure that opportunities are accessible to all, regardless of their background to rectify the historical inequities faced by various ethnic, racial, and gender groups. Implementing affirmative action, coupled with a judicious 'sunset clause,' reflects a commitment to constant self-assessment.

Fatima Almustafa : Socioeconomic disadvantages impacts equality & standard of living. When the hiring approach factors in those parameters — the human should be at the heart of a system design.

Ahmad Shah Nejati : To establish a fair hiring culture amid socioeconomic disparities:1. Training: Conduct awareness programs on socioeconomic impacts and diversity training. 2. Transparent Policies: Clearly communicate merit-based policies, addressing past inequalities. 3. Holistic Evaluation: Consider diverse metrics for a comprehensive candidate assessment. 4. Diversity Programs: Implement initiatives promoting socioeconomic diversity.5. Inclusive Leadership: Foster leadership that champions fairness and impartiality.6. Regular Assessments: Continuously evaluate processes to identify and rectify biases.7. Communication and Education: Clearly communicate organizational commitment to fairness.8. Stakeholder Collaboration: Engage with external entities for diverse perspectives and insights.

Jan-Marek Pfau : In our Western world we tend to believe that success is a merit. It definitely is, however, there are other factors which contribute to success, socioeconomic disparity is one of them certainly. Others may also be any personality and character traits. I guess, not everything that unlike "us“ is a risk, the opposite May be the case, being different and able to cope with it helps diversity.

Layla Halabi : I think the key here is that it the perception of bias and not necessarily actual bias that is impacted by the socioeconomic disparities. As such, approaches like blind resume screening, skills-based assessments, and structured interviews can help but more than anything, we open and thoughtful dialogue to evolve our notions of merit and ability. I’ve seen a lot of organizations design and implement wonderful HR systems that fail due to lack of communication and involvement of the key stakeholders. As HR professionals we should remember that our systems and processes serve the employees, and NOT us (the HR department)!

Dara Bidwell, SHRM-CP : When I use the word obstacle, typically I mean a situation where there is struggle which could be overcome. In my HR experience, obstacles for the socioeconomic disadvantaged can be barriers. For me a flat tire on the way to work is an obstacle to arrive at work but for some it is a barrier to work. Absenteeism is a hot button issue in manufacturing particularly for entry level shop floor positions. In some instances a past barrier is not necessarily an indicator of future performance.

Jivan Dempsey FCIPD GMBPsS : Meritocracy starts early. Being categorized academically sets us up and sets us apart. I remember having an argument with my HRM lecturer on the principles prince underpinning many assessment techniques including IQ in my view based on old world imperialism and unconscious and some conscious bias. So what’s the solution he said? I couldn’t say.

The end of the Humble Desk: Employees need space to Collaborate more than they need desks !

💡 Findings of researchers:

The global workplace utilization is less than 30 percent - about half the pre-pandemic level - If we look at it another way, this means that more than 70% of desks are free during the week !

⚠️ Highly publicized discussions about RTO mandates failed to move the needle.

📈 Global office utilization rates continue to be highest midweek, with Mondays and especially Fridays showing far lower workplace utilization.

💥 In practice, many workers spent their days shifting among conference rooms, lounge space, private offices, and coffee areas.

⏱ Half of the desks in offices are utilized for less than one hour per day !

Conference rooms and smaller enclosed meeting areas are occupied during 67 percent of the workday, according to a new interesting research published by XY Sense using data 📊 from +34,000 office spaces, 9 countries.

☝️ Recommendation of researchers:

Finally researchers recommend below popular ways to leveraging the insights of this study:

✔️ Integrating real-time occupancy data into space management and meeting booking tools

✔️ Reducing overall workplace footprint

✔️ Rebalancing the ratio of individual to collaborative workspace

✔️Right-sizing collaboration spaces

✔️ Validating space types for hybrid offices

👉My personal View: This wonderful research found that the primary reasons people choose to come into the office are connection and relationships. Teams may be coming in to build relationships with colleagues and get work done together, but this research highlighted that not all collaboration spaces are equally popular. If your office has fewer smaller meeting spaces versus large conference rooms, it might be time to consider re-balancing these spaces.

🙏🏼 What were the HR expert opinions:

Dave Ulrich : This research affirms the value of being in person (connections, relationships... and add development, shared purpose, informal information sharing, etc. But, I really like the focus on office space. I was privileged to be on the board for Herman Miller for 16 years and came to fully appreciate the impact space and place on company culture and employee productivity. The integration of chairs, desks, storage, gathering rooms, personal work space, technology, and other furnishings create a productive and collaborative work environment. Knowledge - Herman Miller.

George Kemish LLM MCMI MIC MIoL : One of the main reasons for wanting people to attend a 'get together' is to pass on tacit knowledge (that has been gained through implicit learning (unstructured learning), held in the minds of individuals. Because tacit knowledge is not available through written work, it can be difficult to codify, making sharing in person essential. There is a view that you can only really access another's tacit knowledge when you know them and trust each other. Having a space whereby people can engage with each other can provide the right atmosphere to enhance the sharing of such knowledge. When making change in one area, it can often result in change in other areas within the organization - it may well be advantageous to invite people from other departments to take part in such discussions so that they can also provide input.

Dara Bidwell, SHRM-CP : From my personal experience there was no intentional thought into crafting the work environment and space to foster collaboration, instead we seemed to focus on "presenteeism".

Shiroz Hamid (CAHRI) : Much of the success in your career depends on how you build your social capital, which requires engaging and communicating with people at work. I firmly believe that discussions often remain strictly official when confined to office desks, whereas a more engaged and multifaceted exchange, blending personal and professional topics, occurs in lounge spaces, private offices, and coffee areas.

HR Executives/CHROs put Leadership, Culture and Talent at the top of their priority objectives for 2024!

💡 Findings of researchers:

❌ Only 29% of HR organizations have a major 2024 initiative planned to be a strategic advisor to the business – the lowest among the top 10 priorities

📣 CHRO must find a way to do more with less in 2024 : the HR workload is predicted to increase by 7%, reflecting broadening priorities, while head count and operating budget will decrease slightly. This creates productivity and efficiency gaps of 9% and 8% respectively.

🎯 A pressing need to equip managers to guide the organization through the challenges posed by continued business disruption and workplace transformation has made leadership the top HR issue for the second year in a row.

⏰ Digital World Class® HR organizations – those that perform in the top quartile in both business value and operational excellence – spend 27% more HR business partner time focused on organizational and leadership development.

🦾 HR organizations will be wise to explore Generative AI as part of this deliberate and sustainable cost management approach, according to a new interesting research published by The Hackett Group Inc. using data from their internal clients.

☝️ Recommendation of researchers:

Researchers believe that most HR teams can make meaningful progress toward achieving their priorities by focusing on seven below areas:

1️⃣ Transform leadership development

2️⃣ Create a compelling culture.

3️⃣ Understand HR priorities and limitations.

4️⃣ Align talent with business strategy

5️⃣ Redesign talent management.

6️⃣ Identify and close HR skill gaps.

7️⃣Use technology to improve efficiency, effectiveness and experience.

👉My personal View:

This interesting research shows that HR priorities change based on business priorities year after year and this year is no exception, but some changes in HR priorities from last year are surprising. Technology helps achieve many goals, so it's surprising that only 39% of HR organizations have a major technology improvement initiative in 2024. Likewise, it's concerning that only about a third have planned initiatives to address retention, lack of acquisition and skills. Let's stay attentive!

🙏🏼 What were the HR expert opinions:

Jos van Snippenberg : In practice, you notice that HR managers are well aware of the pressure they are under. There are increasingly requirements to ensure physical, mental, emotional, and spiritual fitness. I recognize the need to provide leadership in the organization with the right tools to effectively manage employees. It is becoming increasingly clear that the quality of connection determines how successful employees and teams perform. The connection that people have with the company, their daily work, and each other. Leadership struggles to understand what employees truly need to give their best. Tip in this regard: 👉 engage in conversation(s), 👉 ask reflective questions such as "what connects you to the values and mission of the company", "what energizes you in your work", "where is energy leaking", "what do you need to better perform", 👉 encourage employees to share insights with colleagues, this increases understanding, trust, and respect for each other. 👉 shape together with HR the right condition

Vicki Saunders : In order to achieve ‘Recruit and retain staff in key business positions and with critical skills (35%)’ a powerful EVP is imperative. Not having one is like not having a customer proposition at the center of your commercial strategy.

Dave Ulrich : This research delights me. When I see a list of "priorities" I keep looking for patterns that make a list into an integrated framework. We have articulated "human capability" (our term for talent + leadership + organization + HR) as an integrated framework (called typology, classification, taxonomy) for the lengthy list of 38 "HR" initiatives. This integrated framework allows for the HR profession to aggregate knowledge, provide actionable insights, and turn information into actions. Your work inspires me on how to think and what topics to pursue.

Gemma Atkinson : With an estimated 7% more to do (which feels right and light) prioritization is going to need to be key. What do we double down on and what do we pause and park

Kelly Duplantis, SHRM-CP : While HR executives anticipate a modest 4% increase in technology spending for 2024, it's important to consider the broader spectrum of technology beyond just HR systems.

Enrique Alvarez Ruano, Ph.D. : Looking at the 10 priorities makes me think of the importance for HR executives of always keeping a dynamic balance between: Hard issues (Performance, processes, business objectives, tech,...)and soft issues(leadership development, relationships, culture,...)

Kiran Nar : As part of enabling leaders to be more effective and aligning workforce planning and strategy I think it is important to focus on redesigning jobs to support wellbeing, productivity and the way work has evolved significantly over the years.

Organizations should focus on Human Performance metrics rather than Productivity metrics!

💡 Findings of researchers:

In an era of human-centered work, new sources of data and AI can help organizations shift from measuring employee productivity to measuring human performance.

🎯 Leaders should leverage the connection between human and business outcomes to increase the likelihood of success in both these industries.

🎉 Employees and leaders largely agree that new sources of data have positively impacted both business and worker outcomes

❌ But employees are less confident than leaders that their organizations are using data in a responsible way.

🔥 A majority of employees agreed that their organization is in the early phase of the journey toward identifying better ways to measure worker performance and value beyond traditional productivity, according to a new interesting research published by Deloitte Deloitte Insights using data from a survey polled 14,000 business and human resources leaders across many industries and sectors in 95 countries and in collaboration with Oxford Economics.

☝️ Recommendation of researchers:

Researchers recommend some steps organizations can take now to lay the foundation for a shift toward human performance metrics:

✔️Co-create metrics and solutions with workers:

✔️ Measure what you should, not just what you can.

✔️Implement these practices in your performance management approach.

✔️Integrate new metrics into the processes of other areas of the talent life cycle.

✔️Establish responsible data and AI practices.

✔️Plan now to address tensions around the use of emerging technologies.

👉My personal View:

This exciting research demonstrates that organizations must abandon old ways of understanding productivity to embrace a new paradigm of human performance. The few recommendations from researchers using Human Centricity are also very inspiring.

🙏🏼 What were the HR expert opinions:

Dave Ulrich : Wonderful research that shows the relationship between people and business. Connecting people metrics with stakeholder value (for strategy, customers, investors, and communities) shows a "talent advantage". This logic moves talent from an internal focus on initiatives to a stakeholder value focus on results.

Ahmad Al Mahri : I believe there is misperception around employees being looked at by most organizations as another cost to the business instead of seeing them as a competitive advantage for the business. Once that mindset is changed, the business will strive and reach new heights. This goes in line with your findings which confirms that the only way to success is to focus on Human performance metrics instead of productivity metrics that are normally used for machines and systems as not humans.

Shiroz Hamid (CAHRI) : This research reinforces the idea that for productivity to be sustainable, organizations must give equal importance to human outcomes alongside business outcomes. This balanced approach leads to not only higher productivity but also greater employee satisfaction and long-term success for the organization as a whole.

George Kemish LLM MCMI MIC MIoL : Productivity means very little if human performance fails to meet the needs of organizational development. All employees are individuals and likely to be at different stages of development. If human performance is to be effective, people need to be set meaningful work that encourages development and their performance should be assessed on their individual performance in completing their tasks (getting away from the old practices of comparing one person against another). It may be that productivity can also be assessed through individualized development. However, this means that management need to have an understanding of individual needs as well as providing the support necessary (i.e. mentoring) for individuals to succeed

Adam Treitler : This insight aligns perfectly with a progressive approach to workplace dynamics. By solely prioritizing productivity, we risk dehumanizing employees, reducing them to mere cogs in a machine focused on singular outputs, without considering their well-being or the larger context of their contributions.

Alex Killick : There's not only a 'know- do' gap but also 'say - do' gap where leaders words and actions are incongruent, then this will also have an impact on what they say and what we do - creating a potential performance chasm. My thesis is that you start but trying to catch people doing a good job and the individual and the business performance will follow. 2. Clarity of expectation and clarity of focus is key - it is important that we measure what counts rather than simply measuring what we can count.

Ken Roseboom : Provocative article that deserves more thought. Focusing only on business outcomes can be likened to driving the bus until it is out of fuel and passengers. It may seem like a leap of faith to focus on the noted human outcomes, but the data says otherwise.

Jos van Snippenberg : Over the years, the focus on productivity improvement has been taken to extremes. Despite the introduction of human-centered leadership, the thirst for economic growth remains so great that many companies are not fit for "humans". Change only occurs when a new strand is laid in the DNA of the organization. I call this the way you connect with people as an organization to pursue an ambition. "Mutual value creation". Companies that connect with people and commit to creating the right conditions for human growth and flourishing.

Layoffs and Hiring Freezes are actually the consequences of Over-hiring and Overstaffing and signal poor business health!

💡 Findings of researchers:

Hiring more people will make the company grow is a flawed assumption!

🔥 With more and more layoffs making headlines, job security remains a priority for employees.

📈 This overstaffing led to increased costs and also resulted in higher defect rates and material waste, as more people on the line did not necessarily equate to more efficiency or better quality.

✂️ Hiring freezes are a less common topic than layoffs, but they were higher in 2023, up 81% year-over-year and signal a poor business health to employees.

🔎 Ongoing Layoffs are still a growing concern for employees and have targeted layers of middle management as companies attempt to reduce bureaucracy and increase efficiency, putting more strain on middle managers, according to the latest research published by Glassdoor using January data 📊 from The Glassdoor Employee Confidence Index.

☝️ Recommendation of researchers:

When organizations rush to hire they force the recruiters to bring in “bodies” and not focus on fit. The result is what Josh call it the “diminishing productivity of each hire.” Each additional person organizations hire slows down the others already in place...

When a company hires quickly the shear volume of onboarding and new people forces managers to slow down, staff to slow down, and many existing processes to slow down. And that means each additional “new hire” reduces productivity overall.

👉My personal View:

These two interesting studies demonstrate the origin of two important but natural processes: right-sizing and Freeze hiring, the role of HR is critical in supporting employees but also the business. Since these processes directly impact employee engagement, it is crucial that leaders take into account and fully understand these processes.

🙏🏼 What were the HR expert opinions:

Dave Ulrich : Thanks for the interesting views on the cycle of hiring and firing. This is not a new challenge. We identified lessons learned from managing in a downturn that may be applied to today's circumstances. It is helpful to learn from previous experiences to manage today's challenges.

George Kemish LLM MCMI MIC MIoL : We are seeing this when there is an excessive turnover in staff as well. As far as overstaffing is concerned, this can be for a number of reasons including: Loss of market-share due to poor leadership (losing sight of change in the external marketplace) or lack of organizational agility. It can also come down to poor staffing reviews or taking on extra staff to undertake change that is unsuccessful.

Teresa R. : It’s particularly useful for organizations that are scaling up. The usual growth pains. It’s also about knowing and understanding the skills and capabilities organizations have at their disposal, or can be developed internally rather than hiring in. Additionally, this impacts on the employer value proposition and reputation.

Jelena Joksovic : When we sum up in the end, it all comes down to leaders not having a Vision and Big Picture Thinking. All the great leaders know that you You start with the foundation and building from within. Over staffing for growth and then laying off is not a solution. Every leader should ask themselves ‘what things are going to be like ahead of us’.

Jos van Snippenberg : I experience that announcing a hiring freeze or reorganization breaks down everything you've built. Trust in the organization plummets miles away. It takes years to repair this. Not to mention when management regularly implements these actions. Companies that are part of an investment firm often struggle with this. From the moment a freeze is announced, the vast majority of employees switch to "safe" mode. They take little to no risk, do what is necessary, and certainly won't offer "visible" resistance to what is being initiated. However, behind the scenes, many actions limiting productivity do take place. Strategic workforce planning, coupled with a well-thought-out budget plan, prevents future trouble.

Dr. Bhanukumar Parmar : Focus on Business Growth, (2) Quality over Quantity, (3) Industry Collaboration (Buy, Build, Borrow), (4) Change Age Old Assumption - "More Hiring equals More Growth" (5) Life Long Learning.

Kailash Raghuvanshi : Even if you keep the human aspect aside, and think only from business performance perspective, the important questions are - was there any retrospective done? what happened to the leaders who were responsible/accountable for these bad decisions resulting in organization loss and more issues - were they trained/coached, or reprimanded/fired, or promoted?

Return-To-Office Mandates are detrimental for High-performing employees while Working-From-Home is beneficial for their Mental and Physical Health !

💡 Findings of researchers:

Working from home at least one day per week might have an impact on mental and physical health BUT Return-to-office mandates come with very high costs in terms of attracting and retaining talent!

I think we can summarize the latest findings from researchers on remote work like this.

✔️ On average, they want more work-from-home days per week than their employers offer. They also exercise on work-from-home days more often than on days they go into work so working from home at least one day per week might have an impact on mental and physical health.

❌ When organizations implement rigid return to office (RTO) mandates, high-performers, women and millennials are the most likely to quit their job, according to two new interesting research published by a team of US researchers and Gartner researchers using data 📊 from a survey of 2,080 knowledge worker employees from May through June 2023 and a sample includes respondents to the January 2024 Survey of Working Arrangements and Attitudes (SWAA).

☝️ Recommendation of researchers:

Researchers recommend four best practices HR leaders should consider if their organizations seek to formalize in-office work requirements:

1. Motivate employees to return to the office rather than mandate.
2. Consider policies that focus on-site attendance per year, not per week.
3. Enable employees to shape the RTO policy.
4. Provide a clear reason behind requirements for working on-site.

👉My personal View:

These two interesting studies demonstrate that the personalization approach for remote work is the best solution which both leaves the freedom to employee to choose remote working days and allows the employee to perform because an employee who is in good health and feels well performs better. It is no secret today that working from home provides flexibility and that all employees like it so hybrid work will still remain as THE work model that perfectly combines all the desires of employees and companies.

🙏🏼 What were the HR expert opinions:

Dave Ulrich : More research confirming personalization of the hybrid work model. Pros and cons have been discussed extensively. What I find most fascinating about this research is the reduced variance in how WFH/hybrid works. The s-curve picture shows that over time variability of an idea reduces as the idea moves from experiment to being institutionalized. My sense is the hybrid/WFH ideas are far along the s-curve and the institutionalization of work flexibility and workforce personalization is occurring. See great work on s-curves by Whitney Johnson

Nelly Lund : If you want people back in the office, prove it's worth their time. How does in-office work substantively improve employees' lives? 'Collaboration', 'management exposure', and free coffee aren't enough anymore. I heard this too many times: “I go and sit on calls next to others doing the same thing” or “zero place for actual focus work, just the open space”. Where's the value? Flexibility has become non-negotiable for many. So if an office mandate exists, what workstyle flexibility is offered to offset the hassle? But stop guessing what matters. Ask your people what makes the office a win for them.

Svetlana Kruglova (RS) : Agree on flexibility. People need to come to the office for staff/team meetings, brainstorming, welcoming newcomers, and simply if they want to. Based on my experience, people want to do it, if office conditions (good desk, office equipment) are better than at home, some come because of socializing - and food!

Jos van Snippenberg : The most common mistake is to “force” people to work at the office. There is in my opinion a balance between a “need” and “nice to” work at the office. How a company can stimulate working at the office is simple. Give employees a reason to, by finding that inner spark to work together.

Kailash Raghuvanshi : RTO is a symptom, the root cause is lack-of or reduced TRUST between employers and employees, both sides having their viewpoints.

George Kemish LLM MCMI MIC MIoL : I am reading a book called "The Nowhere Office" by Julia Hobsbawm. One of the interesting items in the book was the description of the back office for the D-Day Normandy landings, which was literally on the beach, and the planning surrounding this office prior to D-Day. She says, "The office of D-Day proved of course that the office is not so much a place as a system." There will always be work to be done in a defined physical location, but perhaps it is time to re-think our perception of an office.

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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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