As organisations continue to map out their recovery from COVID-19, it’s a timely reminder of just how critical an underlying strategy is to business success – albeit one that can flex as circumstances change. The same applies to the HR function.
Strategic human resource management involves a future-oriented process of developing and implementing HR programs that address and solve business problems and directly contribute to major long-term business objectives. A business without a strategic HR function is akin to a boat without a rudder. That rudder will be needed in the months ahead as new challenges present themselves.
To cite just one example, a survey of 6000 workers by Randstad UK found that 69% of them were feeling confident about moving to a new role in the next few months, with 24% planning to change in the first half of 2022. Randstad said it would normally expect up to 11% of workers to move jobs annually.
While the reignited war for talent and the much-heralded Great Resignation is impacting most businesses, it is employers with shift-based, roster-driven (or “deskless”) workforces who are most vulnerable. Restrictions on the freedom of movement due to Brexit and COVID-19, ongoing health concerns, burnout, and – in some industries – poor pay and conditions, are continuing to take their toll on employee attraction, engagement, and retention.
Now is the time to ensure a strategic approach to HR is being taken. To address this issue, Humanforce has produced a whitepaper, titled “Strategic Human Resource Management: A Guide for Deskless Workforce Leaders”. The whitepaper outlines why a strategic approach to HR is critical, how to turn a strategy into an action plan, and the role of long-term strategies in an agile world. Below is a taster of what to expect.
New expectations from the C-suite
Any HR strategy will be shaped by the current priorities and projected future direction of a business. While HR-related issues have always been high on CEO agendas, the events of the past three years have brought these issues into even sharper focus.
Gartner’s 2022 CEO Survey of 400 global senior business leaders revealed the most radical shift in business priorities since the global financial crisis (GFC). It’s no surprise to see ‘workforce-related issues’ (cited by 31% of respondents) such as talent retention, hiring, and diversity, equity and inclusion (DEI) placing ahead of financial issues such as profitability, cash flow and capital funding, and corporate initiatives, such as mergers and acquisitions, and restructuring. Of particular concern was talent shortages. 49% of CEOs agreed with the statement that “it is very difficult for us to find and hire the kind of people we need in our business”.
For employers of deskless workers, workforce planning is perhaps the most important component of HR’s role, and this will be a foundational piece of any HR strategy. Workforce planning is not just about ensuring future business plans can be achieved; it will also incorporate more granular information about the workforce skills, capabilities and knowledge required to execute those plans. For employers in the retail, hospitality, healthcare, child care, events & stadia, and logistics industries, plus others, the pandemic exposed flaws in long-term workforce planning for deskless workers.
A strategic workforce plan will help you answer the following questions:
- What are the workforce implications of our organisation’s short- and long-term strategy? Will we have the right resources? If not, how can we get them?
- How do we optimise workforce schedules to meet compliance and fair scheduling needs while ensuring that we operate within budget and hit business targets?
- How do we plan for the right number and types of workforce resources to hit projected business targets?
Effective strategic workforce planning will also help leaders to: identify workforce risks in the short, medium and long-term; fill out current and projected talent gaps; map out critical skills for current and future roles; and prevent attrition by providing employees with development opportunities and career pathways.
New expectations from workers
The pandemic sparked a massive shift in expectations relating to the employee experience (EX), which is best defined as every touchpoint an employee has with their employer. It encompasses an organisation’s workspace, culture, benefits and technology. A positive EX can lead to more engaged and more productive employees.
Not only have HR leaders had to rethink talent acquisition strategies, they’ve also had to reimagine the overarching EX. Here are some elements of the EX to consider when building out a strategic HR plan and function:
1. Anywhere, anytime access
Being deskless no longer means being disconnected. Mobile apps now make it easier for workers to check their rosters, bid on shifts, communicate with their managers and stay informed of company news and other important information such as health and safety updates. Mobile apps also provide access to services and resources that can bolster and enhance the EX, such as onboarding, online learning, and other employee benefits.
2. Employee empowerment
Empowering workers and giving them the tools to self-manage is critical for frontline workers in care industries, for example, where achieving work-life balance can be difficult. Providing workers with self-service functionality to help them build shift patterns that suit their circumstances, and giving them access to information such as hours worked and what they will be paid, can bolster engagement. Such tools also reduce the admin burden on employers.
3. Holistic benefits
Work flexibility is often not an option for deskless workers, so they need backup for taking care of families and support for balancing finances. In addition to expanding wellbeing benefits to cover physical, mental and financial wellbeing, employers should consider offering predictable work schedules and on-demand pay options that enable employees to use their outstanding earnings at any time rather than having to wait until payday.
4. Coaching and professional development
Training and development are critical to attract new entrants to deskless industries, upskill the current workforce and provide stronger career pathways for staff. HR leaders should identify whether the organisation has the capabilities and skills it needs to achieve its business goals, and then ensure training is delivered in different modes – online, in-person / instructor-led, or a mix of both.
Tips and questions to ask
Given the dramatic changes that have recently shaped how, where and when we work, it’s tempting to only look at short-term horizons when future-planning. However, building an agile mindset into everything HR does can ensure that long-term planning and strategising need not be sacrificed. Here are some tips and questions to ask when building out your HR strategy:
Define the human capital strategy and the HR practices and initiatives that will support that strategy
- Be clear on the short and long-term strategy of your business. What are the talent implications?
- Are you aware of any emerging trends that will impact future business strategy?
- How will unexpected or unforeseen developments be handled?
Clarify where you currently stand
- What is the current state of HR capabilities in the business? A gap analysis may help with this understanding and enable you to strengthen the team.
- How do you determine which HR initiatives or strategies are hitting the mark? It’s important to have clearly defined metrics associated with each strategic objective.
Prioritise
- Budgets and resources are finite, so how can items be prioritised? A HR strategy framework can help with this process. For example, if high employee turnover is the issue, gather data to determine why this is the case and build out scenarios that may improve this issue. Would more defined career pathways help? Is the turnover related to manager competency? Are you underpaying employees?
Understand what’s required to execute the strategy
- A HR strategy can never be realised in isolation. What is required to obtain senior leadership buy-in?
- What other essentials are required for strategy execution? Consider budget, having skilled HR professionals onboard, and appropriate digital technology to enhance not just the EX but to streamline and automate HR processes.
- Can performance incentives be connected to the execution of the strategy? People will work harder if their goals and incentives are aligned.
Monitor and adapt the HR strategy
- How can HR metrics and analytics be used to act as “triggers” for when a revisit of the strategy is required?
