HCM Reduces Turnover by Improving Experiences
When one of the most popular office-related comic strips around could successfully portray the head of human resources, or human capital management (HCM) as many would know it today, as a cat whose malice fairly echoed up and down the corporate halls, it's easy to see why the whole industry might be suffering from a bit of negative perception. However, recent changes in the field are increasingly calling on HCM leaders and staffers to look at new methods to retain the best employees, often by making employees want to stay.
The new word came from the 2016 Society for Human Resources Management / Globoforce Employee Recognition Survey, which revealed that 40 percent of HR / HCM professionals no longer recognize the performance review as the best measure—or even an accurate measure—of employee work. As a result, many are turning toward a combination of values-based reward and recognition programs backed up by active coaching techniques.
Issues of retention and turnover are a major problem for businesses right now, with engagement and recruitment following close behind. Retention is considered a “top challenge” by 46 percent of organizations, and 36 percent count engagement as an equal challenge. A strengthening job market is making many employees reconsider current positions, and thus businesses must rise to the challenge or risk losing those who make a business a continuing operation to begin with.
Thus, as explained by Globoforce's vice president of client strategy and consulting Derek Irvine, those employees who find “...a higher level of humanity at work” tend to not only perform better at work, but are also more likely to stay in that current spot. Employees with less-positive experiences are more than twice as likely to express an interest in leaving, with 44 percent of negative experience cases considering it against 21 percent of those who had positive experiences planning likewise.
Basically, a strengthening job market makes people consider just how green the grass on the other side of the fence is, and if the grass doesn't already look pretty green on the current side, those individuals are more likely to jump the fence for what are seen as greener pastures. That's why the performance review, a much more disconnected process, is departing the HCM field in many places in favor of more personal, connected approaches that attempt to improve the employee rather than threaten him or her with dismissal if seemingly arbitrary performance measures aren't met.
A strengthening job market changes a lot of approaches, and that's become quite clear in HCM. While some of these changes may only last until the job market weakens again, some may stick around, proving that this is a highly dynamic field.