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1、May 2023HR in an Uncertain EconomyFOCUSHR Leaders Monthlyon the WorkforceExecutive Sponsor Peter AykensEditor in Chief Jonah SheppManaging Editor Carolina ValenciaAssociate Editor Tess LawrenceContributing Editor Charlie BeekmanAuthorsSeyda Berger-Bcker Brent Cassell Rachel JuleyBhakti LaulDion Love
2、Kate McLaren-Poole Lisa MitchellHanne NiebergCaroline OgawaKhrystian Pereira Jonah SheppCarmen von RohrDesign Walter Baumann Tim Brown Mehar RoyEditor Mary EmbodyProject Managers Lauren AbelLindsay KumpfContentsEditors Note 3What It Takes to be A Strategic CHRO in Todays Business Environment 4How to
3、 Balance HR Cost Savings and Talent Investments in 2023 12Compensation Strategies for an Era of High Inflation 19Leverage Employee Preferences to Identify Total Rewards Trade-offs 26How to Build Candidate Trust During the Hiring Process 32Quant Corner:The Hidden Cost of Burnout 38CHROs Can Support D
4、EI Resilience in Economic Uncertainty 39Radical Adaptability in a Radically Volatile World:An Interview With Keith Ferrazzi 45Metrics of the Month:Trends in Job Postings and Cost-Saving Measures 49HR Leaders MonthlyAccess to Gartner Content CaveatSome content may not be available as part of your cur
5、rent Gartner subscription.Legal Caveat 2023 Gartner,Inc.and/or its affiliates.All rights reserved.Gartner is a registered trademark of Gartner,Inc.and its affiliates.This publication may not be reproduced or distributed in any form without Gartners prior written permission.It consists of the opinion
6、s of Gartners research organization,which should not be construed as statements of fact.While the information contained in this publication has been obtained from sources believed to be reliable,Gartner disclaims all warranties as to the accuracy,completeness or adequacy of such information.Although
7、 Gartner research may address legal and financial issues,Gartner does not provide legal or investment advice and its research should not be construed or used as such.Your access and use of this publication are governed by Gartners Usage Policy.Gartner prides itself on its reputation for independence
8、 and objectivity.Its research is produced independently by its research organization without input or influence from any third party.For further information,see“Guiding Principles on Independence and Objectivity.”Any third-party link herein is provided for your convenience and is not an endorsement
9、by Gartner.We have no control over third-party content and are not responsible for these websites,their content or their availablility.By clicking on any third-party link herein,you acknowledge that you have read and understand this disclaimer.791849HR Leaders Monthly|May 2023 2The problems that con
10、fronted the global economy in 2022 high inflation,supply chain disruptions,talent shortages and the ripple effects of the Russian invasion of Ukraine continue to affect organizations in 2023.The new year has brought new disruptions as well,from bank failures and political crises to the arrival of ge
11、nerative artificial intelligence.Organizations that had hoped to grow this year are now scaling back their ambitions and bracing for a possible recession,as rising interest rates,difficult talent markets and lagging digital transformations serve as anchors on potential growth.In times like these,HR
12、leaders find themselves under pressure to control costs,streamline processes and maximize the value their talent strategies create for their organizations.With fewer resources at their disposal,they must work even harder to secure critical investments in current and future talent needs.The good news
13、 is that CEOs and business leaders recognize the importance of talent in their future strategies and view the workforce as a top business priority for 2023.The challenge for HR leaders is to identify the talent investments that will most help the organization weather economic uncertainty and positio
14、n itself for future success,while remaining within its means.This journal is a timely resource for HR leaders trying to plan for the uncertain months and years ahead.Within it,CHROs will find guidance on how to improve their strategic leadership skills and gain a seat at the table where critical bus
15、iness decisions are made.We present budget and staffing benchmarks that HR leaders can use to identify where they can cut costs and where they must invest.We also consider the trade-offs organizations can make to keep their total rewards offerings competitive amid high inflation and limited budgets.
16、To help HR leaders navigate todays uniquely challenging talent market,we look at ways to build trust throughout the recruiting process to keep candidates engaged and improve the likelihood of successful hires.For organizations that have to lay off employees,we offer some solutions for rebuilding mor
17、ale and sustaining engagement among those who remain.Another article highlights the importance of remaining committed to diversity,equity and inclusion,even in an economic downturn,and shows how CHROs can continue to support these goals when resources are scarce.Finally,we hear from thought leader K
18、eith Ferrazzi about how HR leaders can make their workforces more resilient in a radically volatile world by embracing radical adaptability.While HR leaders cannot predict where the global economy will go in the next six months,they can plan for the challenges that may lie ahead and take steps to ma
19、ke their organizations more resilient to disruption.HR leaders should seize the opportunity provided by this economic uncertainty to demonstrate HRs strategic value and continue evolving the function to drive greater returns on talent investments.by Jonah SheppEditors NoteHR Leaders Monthly|May 2023
20、 3by Lisa MitchellWhat It Takes to Be aStrategic CHROEconomic pressures and disruptive market shifts increase the pressure on CHROs to lead strategically.CHROs can strengthen their strategic impact by developing their understanding of the business and creating flexible HR strategies that adapt to ev
21、olving business priorities.in Todays Business EnvironmentTo do so,they must take three key steps:1.Develop a comprehensive business understanding,including general acumen and knowledge of organization-specific profit and loss drivers,to better anticipate and respond to factors and trends that affect
22、 overall business and HR performance.2.Align HR strategy with the organizations business priorities to ensure HR strategies and initiatives effectively support overall business objectives and performance.3.Evaluate the flexibility and effectiveness of HRs strategy to ensure it can seamlessly adapt t
23、o volatile and uncertain economic conditions.In an uncertain global economy,CEOs are pressuring CHROs to look outside the HR function and take a strategic approach to solving complex organizational challenges.However,many CHROs have limited experience beyond HR or little formal education in business
24、 strategy.In fact,81%of current S&P 500 CHROs have primarily worked in the HR function throughout the majority of their careers,and only 16%of CHROs have MBA degrees.1 To help the CEO and board navigate unpredictable economic circumstances and strengthen the organizations ability to fulfill critical
25、 business priorities,CHROs must develop their capabilities as strategic business leaders.HR Leaders Monthly|May 2023 5Develop a Comprehensive Business UnderstandingCHROs who become well-versed in core business principles,the impacts of internal and external factors,and the organizations business obj
26、ectives will demonstrate to the CEO and C-suite that they understand the business of the organization.This understanding will increase their ability to participate in and influence business discussions.Most importantly,CHROs with a comprehensive business understanding will be well-equipped to strate
27、gically tailor HR processes,policies and day-to-day activities in ways that serve the organization and its customers and employees,leading to increased revenue and improved financial outcomes.CHROs can develop a comprehensive business understanding by:Building knowledge of the organizations products
28、,services and customers This step is fundamental to understanding how to meet customers needs.CHROs can build this knowledge by listening to quarterly investor calls,reviewing 10-K filings and profit and loss statements,and routinely meeting with business unit leaders to learn how HR can position th
29、e organizations talent to best serve its customers.Engaging in professional development opportunities CHROs should take advantage of formal and informal opportunities to further develop business understanding.Valuable professional development opportunities include reviewing industry-specific publica
30、tions,building a network of trusted peers and mentors,and participating in organized sessions with third-party experts to learn industry dynamics,competitive trends and best practices(see Figure 1).Developing an understanding of the internal and external factors that impact business A good way to le
31、arn about internal and external factors is to frequently check in with the organizations functional and business leaders.For example,R&D leaders can provide insight into new product development and what talent is needed,while strategy leaders can help CHROs gain awareness of current and future marke
32、t trends that are likely to impact the organization.Figure 1:Professional Development Opportunities for CHROsSource:Gartner Books/Journals Magazines Newsletters Podcasts Strategic HR CourseworkMedia Review Peers Internal Partners External Partners Professional AffiliationsNetwork&Mentorships Researc
33、h&Advisory Groups Executive Coaching Subject Matter Experts Former CHROsThird-Party ExpertsHR Leaders Monthly|May 2023 6Figure 2:Top 10 CEO Business Priorities,2022 and 2023Percentage of Respondents Including in Their Top Three Mentions,Coded Responsesn=410,all respondentsQ:To start,please tell us a
34、bout your organizations top five strategic business priorities for the next two years(2022/2023).Source:2021 and 2022 Gartner CEO and Senior Business Executive Survey60%30%0%q-8%p 32%q-5%q-5%q-27%p 43%p 26%p 292%q-24%p 77%GrowthTech-RelatedWorkforceCorporateFinancialCustomerProducts&ServicesEnvironm
35、entCostSalesUp From Fifth in 202051%34%31%29%20%15%15%9%9%6%Align HR Strategy With Business PrioritiesIn a survey of over 400 actively employed CEOs and other senior executive business leaders,more than 30%of CEOs identified the workforce as a leading business priority for 2022-2023,a 7-percentage-p
36、oint increase from 2021(see Figure 2).2 By aligning HR strategy with the organizations business priorities,CHROs will create programs and initiatives that best serve employees and the business.To achieve this goal,CHROs must first identify opportunities to align HR strategy to business priorities,th
37、en create the strategy and routinely assess progress.Identify Ways to Align HR Strategy With Business PrioritiesCHROs should take a continuous pulse of their organizations current and emerging business priorities and identify ways to best align HR strategy with them by:Routinely meeting with the CEO
38、 one-on-one in either a formal or informal setting to discuss their priorities and current strategy.Partnering with the CFO,for instance,by routinely reviewing financial updates and profit-and-loss statements,participating in regular business reviews,and discussing financial priorities and initiativ
39、es with the CFO and finance department to learn how financial factors impact the business.Reviewing quarterly market analysis reports and routinely discussing market research findings and their impact on business priorities with the organizations functional leaders.Create a Business-Aligned HR Strat
40、egyAfter identifying ways HR can best support business priorities,CHROs should use this HR Leaders Monthly|May 2023 7information to create a goal-aligned plan that supports business objectives(see Figure 3).Routinely Evaluate ProgressAfter creating a business-aligned HR plan,CHROs must routinely eva
41、luate progress toward each of HRs strategic goals by identifying,tracking and measuring key metrics to assess progress.One way to evaluate metrics is through use of Gartners HR Scorecard(see Figure 4).Evaluate the Effectiveness and Flexibility of HRs StrategyCHROs can help their organization minimiz
42、e the negative impacts of disruptions by ensuring Organizational Strategy:Expand in AsiaOrganizational Strategy:Sustain a Culture of Creative Risk TakingOrganizational Strategy:Become an Employer of Choice for the Worlds Best Talent HR Strategic Goal:maintain dynamic,forward-looking strategic workfo
43、rce plans to support growing talent needs.HR Strategic Goal:set expectations for leaders to model the right risk-taking behaviors,and reward them for doing so.HR Strategic Goal:tailor the employment value proposition brand for critical geographies and talent segments.Talent Planning Actions:_ _Leade
44、rship Development Actions:_ _Recruiting Actions:_ _Recruiting Actions:_ _Rewards and Recognition Actions:_ _Diversity and Inclusion Actions:_ _Figure 3:Goal-Aligned PlanIllustrativeIntegration can be phased,with some activities being aligned immediately and others being aligned over time.The plan ma
45、ps multiple HR activities to specific high-level activities in support of each HR strategic goal.Source:GartnerHR strategy is flexible and easily adaptable to changes in the business environment,and talent is allocated in ways that best serve the organizations business priorities.To evaluate the fle
46、xibility and effectiveness of HRs strategy,CHROs must:1.Pressure-test the current HR strategy against a variety of risk scenarios to determine the organizations readiness to quickly pivot as needed.2.Build risk-mitigation measures into HRs strategy and operations to avoid derailing the organizations
47、 objectives during times of disruption.3.Routinely assess the organizations workforce plan to identify ways to effectively source or reallocate talent when needed.HR Leaders Monthly|May 2023 8ObjectivesMetricsCurrent StateTarget StateQuarterly PerformanceAction Steps/RecommendationsImplement an Effe
48、ctive Talent Management SystemPercentage of High-Potential Performers Hired Within Previous Two Years30%40%At Risk/MonitorDevelop an Integrated Talent Management Strategy Build Best-in-Class HR Functional ExpertiseRetention of Top HR Performers92.8%90%Acceptable PerformanceInvest in Learning and Dev
49、elopment Programs Targeting HIPOsPercentage of Internal vs.External HR Hires85%75%Deliver High-Quality Cost-Effective ServicesHR Cost per Employee$2,158$3,526Unacceptable PerformanceConsider Outsourcing Certain ServicesPercentage of Target State Achieved:_Target State Target State 90%Current StateTa
50、rget State 80%Current StateFigure 4:HR ScorecardIllustrativeSource:GartnerPressure-Test HRs Current Strategy Against Risk ScenariosCHROs must take a proactive,solutions-focused approach to prepare the organization for disruptions by routinely pressure-testing talent strategy against a variety of ris
51、k scenarios.Todays economic pressures are leading to three anchors on 2023 growth:higher interest rates,a difficult talent market and lagging digital transformation.CHROs should include these as risk scenarios when pressure-testing HR strategy.Build Risk-Mitigation Measures Into HR Strategy and Oper
52、ationsOrganizations that thrive in times of disruption do so by strategically building risk-mitigation measures into their strategy and operations.CHROs can build such measures into HR strategy by ensuring the organizations strategy and data management leaders implement a trigger-based planning proc
53、ess(similar to Nestls).This process should effectively evaluate relationships between talent strategy,internal and external triggers,resources available to the HR function and business outcomes.Routinely Assess Workforce PlansWorkforce planning plays a key role in ensuring the organization has the s
54、kills and talent it needs to succeed in the future.However,only 28%of CHROs surveyed in the 2021 Gartner CHRO Survey were very confident in their HR functions capability to successfully execute workforce planning,down from 50%in 2019.3 CHROs need to align the organizations workforce plans with the b
55、usiness strategy to ensure talent is effectively positioned to support the organizations business priorities.HR Leaders Monthly|May 2023 9Most organizations conduct strategic planning on a calendar basis.This approach can leave an organization less able to respond to threats and opportunities that o
56、ccur outside the routine planning cycle.To address this challenge,strategy leaders at Nestl use a trigger-based strategic planning process designed to respond to market developments as they emerge.Nestls process uses a list of internal and external triggers to prompt a strategic review and eliminate
57、 unnecessary time spent on strategic planning when there is no impetus for change(see Figure 5).Case in Point:Trigger-Based Strategic Planning NestlFigure 5:Trigger-Based Strategic FormulationSource:Adapted From NestlBusiness Performance MonitoringStrategy ReviewIdentify Triggers Trigger OccursScena
58、rio Planning to Identify AlternativesLaunch New StrategyAnalyze Prior Plans AssumptionsUpdate Strategic PlanHR Leaders Monthly|May 2023 10CategoryMetricsSource of InformationRelevance of skills Tenure(in each position within the organization)Number of unplanned redundancies Internal fill rates and i
59、nternal mobility rate(analyzed through redundancy moves and career interest moves)Percentages of the workforce with basic,working or expert knowledge of each identified critical skill or competency(as well as those with no knowledge)Workforce data Skills inventoryResponsiveness to skills evolution N
60、umber of new skills hired for in existing roles Number of expiring skills removed from job requirements Number of unplanned redundancies Number of new skills each employee gains a year Workforce data Skills inventory Job descriptions Learning and development(L&D)dashboard Workforce data Table 1:Metr
61、ics for Measuring Strategic AlignmentSource:GartnerTo assess how well the workforce plan is aligned with business strategy CHROs should:Determine the key workforce metrics(e.g.,costs,tenure,skills and competency levels)that impact financial outcomes.Create a structured reporting and review schedule
62、to examine the impacts of workforce metrics on business performance and inform human capital decision making.Table 1 provides a list of metrics organizations can use to measure the strategic alignment of their workforce plan.Importantly,when thinking about workforce plans,consider future HR needs an
63、d identify best ways to flex HR strategy.CHROs can lead this effort by partnering with the C-suite and data management leaders to predict future talent needs and examine the impacts of emerging trends and potential disruptors on business.CHROs should then act on this information by reallocating reso
64、urces in ways that effectively support emerging business priorities and initiatives.1 The Gartner CHRO Demographic Database is an individual-level dataset that contains a variety of demographic,role tenure and career path data for current and former CHROs of S&P 500 companies.The Gartner research te
65、am regularly updates this database by manually coding data from a range of publicly available sources.This research content contains estimates based on the February 24,2023 version of the database.2 The 2022 Gartner CEO and Senior Business Executive Survey was conducted to examine CEO and senior bus
66、iness executive views on current business issues as well as some areas of technology agenda impact.The survey was conducted from July 2021 through December 2021,with questions about the period from 2021 through 2023.One-quarter of the survey sample was collected in July and August 2021,and three-qua
67、rters was collected in October through December 2021.In total,410 actively employed CEOs and other senior executive business leaders qualified and participated.The research was collected via 382 online surveys and 28 telephone interviews.3 The 2021 Gartner CHRO Survey was conducted to collect benchm
68、arks from CHROs around how PM strategies have shifted in light of remote/hybrid work,on shared service utilization and effectiveness and workforce planning.The research was conducted online from 26 April 2021 through 21 July 2021;69 CHROs responded,representing various industries and geographies.HR
69、Leaders Monthly|May 2023 11by Seyda Berger-Bcker,Hanne Nieberg and Jonah SheppHow to Balance HR Cost Savings and Talent Investments in 2023Economic uncertainty is putting pressure on HR budgets in 2023,but businesses are still focused on growth.CHROs can use these benchmarks to see where their peers
70、 are finding opportunities to reduce costs by increasing efficiency,while preserving critical talent investments.HR Leaders Monthly|May 2023 12The continued focus on people is reflected in budget planning,as indicated by both finance and HR leaders.In December,49%of CFOs and finance leaders said the
71、y expected to increase spending on HR in 2023,while only 25%expected to decrease it.2 HR leaders expectations lined up almost exactly,with 47%saying they anticipated increasing spending in 2023 and 25%anticipating cuts.3 HR leaders are spending more cautiously in 2023 than 2022,but more robustly tha
72、n in 2021(see Figure 1).Despite concerns about the global economy slowing down,business leaders remained focused on growth going into 2023.Thirty-nine percent of CEOs and senior business executives we surveyed in mid-2022 identified growth among their top three strategic priorities for the coming tw
73、o years.1 Nearly as many(38%)identified the workforce,while 30%cited technology.1 Even in the face of high inflation,geopolitical uncertainty and the threat of a recession,they still expect to grow their businesses this year and see people and technology as the key levers for achieving this goal.Inc
74、reaseMaintainDecreaseEconomic ContextCOVID-19 Pandemic2021 Outlook2022 Outlook2023 OutlookPostpandemicTriple Squeezea100%50%0%34%34%32%66%22%12%47%28%25%Figure 1:HR Budget Outlook 2021-2023Percentage of HR Leadersn=204HR Leaders(2020)n=139HR Leaders(2021)n=154 HR Leaders(2022/2023)Source:2020/2021/2
75、022 Gartner HR Budget and Staffing Benchmarking Surveya Inflation,a competitive talent market and ongoing supply chain constraintsHR Leaders Monthly|May 2023 13Three Anchors on GrowthThis year,organizations are facing a growing number of obstacles,or anchors,that hold down growth,including:Higher in
76、terest rates Goods and services are more expensive,demand is lower throughout the economy and investors are increasingly impatient for returns on their investments.Lagging digital transformation Organizations are not seeing the returns they expected from major investments in digital transformation.E
77、ighty-one percent of boards say they have not made progress toward or achieved their digital business transformation goals.Hypercompetition for talent Recruiting,retaining and developing the right people has become extremely challenging.These anchors will be familiar to CHROs especially the third on
78、e,which affects them most directly but which they also have the most power to address in their strategic decision making.The causes of this extremely competitive talent market are numerous:Employees are burnt out and struggling with declining mental health.Employee expectations have shifted,with emp
79、loyees looking for a greater sense of purpose inside and outside their work environment.Meanwhile,skills needs are evolving rapidly,and top talent for critical roles is more costly and challenging to attract.To compete in this environment,CHROs need to maximize efficiency,balancing cost optimization
80、 with targeted talent investments that set the organization up for success.In our analysis of S&P 500 companies during the first year of the pandemic,we found organizations that balanced cost savings with dedicated talent investments outperformed those that focused on cost reduction alone.These orga
81、nizations revenue grew more slowly but steadily and sustainably throughout the crisis(see Figure 2).1Q203Q204Q202Q20Cost Savings Without Talent InvestmentsCost Savings With Talent Investments$1,000-$1,000$500-$500$0Figure 2:Average Revenue Growth of S&P 500 CompaniesUSD Millionsn=428 S&P 500 compani
82、es Source:GartnerNote:We studied the 2020 transcripts of S&P 500 companies,accessed through S&P Capital IQ.HR Leaders Monthly|May 2023 14Balance Spending and Savings:Reduce,Replace,RethinkHow can CHROs strike this balance?By identifying opportunities to reduce,replace and rethink current spending an
83、d redistribute these savings into growth areas:Reduce Decrease the number of processes,tools or services you provide by reducing service levels,canceling or postponing projects,or more drastic measures,such as headcount reductions,salary cuts or hiring freezes.These drastic measures should be a last
84、 resort,targeted at areas where theyre unavoidable.Replace Find less expensive or more efficient alternatives to current spending.For example,you can renegotiate terms with external vendors or even rearrange your external vendor portfolio.You can also move more transactional tasks toward shared serv
85、ices teams and outsource complete processes.Rethink Rethinking spending is more complex and often requires thorough evaluation and sometimes even upfront investments.Examples include redesigning the HR operating model,standardizing and centralizing processes,and implementing technology solutions to
86、automate processes or enable self-service.Most HR leaders are focusing their cost saving efforts this year on rethinking and replacing:pursuing greater efficiency through technology,revamping their operating model or shifting more tasks to shared services(see Figure 3).0%25%50%Improve Processes by E
87、xtending the Use of HR TechnologyLeverage New/Emerging HR TechnologyTransform the HR Operating Model/Run an HR TransformationTransfer More Tasks to External Providers(Outsourcing Offshoring)Reduce HR Service Delivery to the BusinessWe Are Not Planning To Save CostsReduction in ForceReallocate Capaci
88、ties to High-Priority HR ServicesTransfer More Tasks to Shared Services48%32%29%29%28%14%9%7%4%Figure 3:Most Common HR Cost Saving Measures Planned for 2023Percentage of HR leadersn=203 HR leaders Q.How do you plan to save cost in the HR function over the next year?Source:2022 Budget and Efficiency
89、SurveyHR Leaders Monthly|May 2023 15Use Budget and Staffing Benchmarks to Identify Cost Saving OpportunitiesCHROs can gauge their functions efficiency by two key metrics:spend per employee and HR staff per employee.Our survey of HR leaders,representing a wide range of industries,found HR functions o
90、n average spend$2,524 per employee per year.3 In terms of staffing,the average HR function employs 57 full-time employees(FTEs)per employee in the organization.3 Since 71%of HR spend goes toward HR people,the first place most CHROs should look to identify efficiencies and cost savings is in where th
91、ey are allocating their staff.3Like most benchmarks,these should not be taken at face value.Every organization is different,and these metrics will vary by industry,size of the organization,maturity of the HR function and many other variables.For example,our survey found manufacturing businesses had
92、leaner HR functions,with each FTE serving 75 employees on average,while organizations in the banking and financial services sector reported an average of 43 HR FTEs per employee.3 Average HR spend also differs extensively among industries,from$4,185 per employee per year in banking and financial ser
93、vices,to$2,022 in manufacturing and$1,900 in retail.3In general,the most efficient HR functions tend to be organizations with high levels of HR tech support,which enables automated and standardized HR processes and increased employee and manager self-service opportunities.They also tend to have low
94、organizational complexity and geographical dispersion as well as a business that neither requires nor is accustomed to a high-touch HR approach.Hence,CHROs must look at their own HR efficiency ratios through the lens of those efficiency drivers.Another key benchmark is how spending and staffing is a
95、llocated among various HR processes.As Figure 4 shows,staffing and recruiting currently take up the largest allocations of median HR spend($425 per employee)and Staffing and RecruitingTotal RewardsLearning and DevelopmentHR TechnologyEmployee RelationsHR AdministrationPayrollTalent ManagementOrganiz
96、ational DevelopmentDiversity,Equity and InclusionTalent AnalyticsHR Activity Area Spend per Employee per Year(Median)Number of HR FTE per 1,000 Employees(Median)3.331.231.020.781.512.221.360.820.710.40.38$425$213$188$184$180$167$148$147$124$56$45$500$250$0024Figure 4:HR Spend and Staffing Allocation
97、s by Activity Arean=42-181 HR leadersSource:2023 Gartner Budget&Efficiency Benchmarking SurveyHR Leaders Monthly|May 2023 16staff(3.33 FTEs per 1,000 employees)this year.3 Considering the hypercompetitive talent market and CEOs continued focus on growth,HR leaders are understandably devoting many re
98、sources to recruiting;finding efficiencies in this area is challenging.The next-highest shares of HR budgets are allocated to total rewards and learning and development,which also tracks with a highly competitive talent environment as organizations compete for talent through pay and benefits as well
99、 as growth opportunities.However,opportunities for increased efficiency might be found in transactional processes such as HR administration,employee relations and payroll,which together make up an even larger proportion of HR staff commitments than recruiting.Organizations are allocating significant
100、ly more staff to these activities this year than they did in 2022.Remote work,vaccine mandates,increased turnover and other disruptive changes have certainly added to the workload in these areas in recent years.However,HR functions can reduce the number of FTEs needed for these tasks by moving them
101、to shared services teams and providing the right technology support.Even as they seek to optimize costs,CHROs should also be cognizant of areas where they may be underinvesting.For instance,our survey found diversity,equity and inclusion(DEI)and talent analytics received the lowest allocations of HR
102、 spending and staff.Robust HR analytics enable organizations to monitor critical talent indicators such as turnover,performance and employee experience and help their leaders improve workforce management,which can ultimately save the organization money by reducing attrition,for example.DEI,meanwhile
103、,is still a priority for boards,business leaders and employees.If organizations treat it as a“nice to have”element and a target for budget cuts,they could experience negative consequences for talent outcomes down the road.Many HR functions are likely underinvesting here,and CHROs should not neglect
104、DEI as a potential target for strategic investment.CHROs can use Gartners HR Budget&Efficiency Benchmarks to more precisely compare their current spending and staffing against their peers.As they implement plans for 2023 and look to 2024,CHROs can use these benchmarks to identify opportunities for c
105、ost savings and greater efficiency,as well as critical talent investments that will better position their organizations to weather economic headwinds.1 The 2022 Gartner CEO and Senior Business Executive Survey was conducted to examine CEO and senior business executive views on current business issue
106、s,as well as some areas of technology agenda impact.The survey was conducted from July 2021 through December 2021,with questions about the period from 2021 through 2023.One-quarter of the survey sample was collected in July and August 2021,and three-quarters was collected in October through December
107、 2021.In total,410 actively employed CEOs and other senior executive business leaders qualified and participated.The research was collected via 382 online surveys and 28 telephone interviews.A mid-2022 update of this annual survey was conducted June through July 2022.In total,110 CEOs and other busi
108、ness leaders were qualified and surveyed.The sample mix by role was CEOs(n=95);CFOs(n=10);COOs or other C-level executives(n=3);and chairs,presidents or board directors(n=2).Disclaimer:Results of this survey do not represent global findings or the market as a whole,but reflect the sentiments of the
109、respondents and companies surveyed.2 Gartner Expected Budget Changes in 2023 Survey.This study was conducted to understand how budgets and spending are changing in 2023.The research was conducted online during November and December 2022 among 301 respondents across multiple industries and geographie
110、s.Respondents were CFOs or other senior finance leaders(including heads of FP&A,controllers and finance transformation leaders).Disclaimer:Results of this study do not represent global findings or the market as a whole but reflect sentiment of the respondents and companies surveyed.3 The 2022 Gartne
111、r HR Budget and Efficiency Survey is an always-on survey with biannual benchmark updates.The current published benchmark was last updated with data collected through 31 October 2022,and contains data from the prior 18 months.All data is collected from Gartner clients.HR Leaders Monthly|May 2023 17So
112、urce:Gartner 2023 Gartner,Inc.and/or its affiliates.All rights reserved.CM_GBS_2154099HR Transformation ToolkitHR transformation is more urgent now than ever before,as talent becomes an even greater driver of competitive advantage.Its critical for success in a world with new cost pressures,hybrid wo
113、rk models and ever-evolving employee expectations.This toolkit provides actionable resources to support a successful HR transformation,including:World-class leadershipDownload Your HR Transformation Toolkit Modern HR operating model Future-proof HR team competenciesHR technology enablementby Brent C
114、assellCompensation Strategies for an Era of High InflationDespite increasing merit pay in 2023,employers still cant keep up with rising inflation and employee expectations.To attract and retain talent in a tight labor market,total rewards leaders must consider alternate compensation vehicles,focus o
115、n the entire EVP and embrace pay transparency.HR Leaders Monthly|May 2023 19Total rewards leaders plan to increase merit pay for core contributors by a median figure of 3.5%in 2023.1 This percentage is well above historical averages but still below both their employees expectations(6.2%),and current
116、 rates of inflation(6.0%in the U.S.and 9.9%in the EU).2,3,4 This discrepancy will be a disappointment for most employees,82%of whom think their organization should increase their salaries to match inflation.5 As a result,many will see their real earnings decrease and may conclude that the best and p
117、erhaps only way to keep pace with persistently high rates of inflation is to seek employment elsewhere.Indeed,employees now estimate they can earn 11.0%more by switching jobs,and Gartner research has shown they might actually be underestimating their increased earning potential.2,6 Not surprisingly,
118、the current economic environment creates considerable confusion for employees.While total rewards leaders and compensation professionals may grasp the subtle differences between different compensation vehicles(e.g.,cost-of-living adjustments(COLAs),merit pay increases,one-time stipends,spot bonuses)
119、,many of their employees do not.Employees have expressed their frustration in engagement surveys and town hall meetings and by asking their managers to meet or exceed the competing offers theyve received elsewhere.Some total rewards leaders believe these challenges are temporary and hypothesize that
120、 employees will prioritize stability in the event of a recession.However,unemployment remains at or near historic lows(3.6%in the U.S.,3.7%in the U.K.,and 3.5%in Australia),with no signs that the trend is weakening.7,8,9In conversations with Gartner clients this summer and fall,we identified at leas
121、t three compensation strategies total rewards leaders can pursue to attract and retain the talent they need in the volumes they require:Utilizing alternate compensation vehicles Expanding focus to the entire employee value proposition(EVP)Embracing pay transparency Use Alternate Compensation Vehicle
122、sThe most common approaches to adjusting employee compensation in response to inflation are to increase pay but not match inflation(45%),and offer one-off bonuses(16%)(see Figure 1).10 Interestingly,the adoption of one-off bonuses to counteract the increased cost of living has been somewhat controve
123、rsial.At some companies,such as ExxonMobil and Lowes,they were well-received.11,12 At others,employees saw them as insufficient.Rolls-Royce,for example,offered employees an inflation bonus last year,but the Figure 1:Approaches to Adjusting Compensation to Account for InflationPercentage of HR Leader
124、s;Multiple Responses Permittedn=92 HR leadersQ:Please select the item that best describes how your organization has adjusted(or plans to adjust)employee compensation or provided other benefits in the context of increasing inflation(accounting for cost-of-living adjustment,not merit increment).Select
125、 all that apply.Source:Attracting Talent and Improving the Employee Experience Amid Uncertainty(September 2022)Increase Pay but Not Match InflationIncrease Work Flexibility to Reduce Commuting CostsWe Have Not Yet Decided the Criteria for Salary and Benefit AdjustmentsMatch Other Job Offers They Hav
126、e ReceivedWe Have Not Made and Will Not Make Any ChangesIncrease Salary Adjustment CyclesMatch Pay Increase to InflationOther Offer One-Off Bonuses50%25%0%45%24%22%14%14%11%3%4%16%HR Leaders Monthly|May 2023 20employees union rejected it.13 The union later negotiated larger,more permanent increases
127、to factory workers base pay.14In addition,we have seen increased adoption of alternate approaches to variable composition.From 2019 to 2022,weve seen a marked increase in companies offering retention bonuses,spot bonuses and team incentives from 2019 to 2022(see Figure 2).While we dont know for cert
128、ain if companies are diversifying their approach to variable compensation in response to inflation specifically,several clients have told us this was a contributing factor.Meanwhile,some organizations have responded by increasing salaries only for certain hard-to-fill critical roles,but this action
129、has led to Figure 2:Organizations Employing Variable Compensation Vehicles,2022 and 2019Percentage of Organizations n=149 HR leaders worldwide(2022);74 HR leaders worldwide(2019)Q:Please select the item that best describes how your organization has adjusted(or plans to adjust)employee compensation o
130、r provided other benefits in the context of increasing inflation(accounting for cost-of-living adjustment,not merit increment).Select all that apply.Source:2022 Gartner Compensation and Benefits Benchmarking Survey;2019 Gartner Incentives Benchmarking Survey Retention BonusSpot BonusProject BonusTea
131、m-Based Incentive55%49%46%18%20%37%9%1%60%30%0%20222019other employees feeling left out.Others have shifted their strategies for particularly hard-hit demographics,such as millennials.Several total rewards leaders reported this generation was more cash-conscious than others and millennials responded
132、 more positively to more immediate rewards such as sign-on bonuses and tuition reimbursement than longer-term rewards like retirement savings.Finally,in terms of COLAs,as of September 2022,33%of organizations planned to make increases to account for inflation,28%said they would not make any changes,
133、and the remaining 39%were undecided.10 Among those that had decided to make changes,the average planned adjustment was 2.1%.HR Leaders Monthly|May 2023 21Expand Focus to the Entire EVPCompensation is the most common reason employees give for why they would consider taking or leaving a job,but it is
134、far from the only reason.These include noncash benefits like vacation time and health insurance,as well as location flexibility and work-life harmonization(see Figure 3).When inflation makes real compensation increases impracticable,TR leaders can entice employees with these drivers instead.For exam
135、ple,a recent webinar poll showed 24%of organizations have increased work flexibility to reduce commuting costs.10 Suppose,employees could save$30 per day on transportation and food when working from home.If their employer increases the number of days they can work remotely from two to three per week
136、,the company could then claim to be saving each employee around$1,440 per year.The employees effectively obtain a financial benefit though they may not think of it in those terms at little or no cost to their employer.Figure 3:Top Drivers of Employee Attraction and AttritionPercentage of Employees;S
137、elect Top Fiven=18,010 employees globallySource:Gartner Global Labor Market Survey 3Q 2022Note:Percentages represent number of employees selecting item as among their top five most important attraction/attrition drivers.CompensationVacation/Holiday BenefitsHealth BenefitsRetirement BenefitsOrganizat
138、ional StabilityEmployer RecognitionLocationWork-Life HarmonizationFuture Career OpportunityProfessional DevelopmentEthics/IntegrityCo-Worker QualityManager Quality48%34%30%25%23%24%26%44%37%21%13%13%10%14%17%17%15%15%15%15%16%32%14%14%18%12%50%25%0%Holistic Well-BeingRadical FlexibilityPersonal Deve
139、lopmentShared PurposeDeeper ConnectionsAttractionAttritionHR Leaders Monthly|May 2023 22Organizations Compensation PhilosophyFormula for How Salaries Are DeterminedSalary Ranges Only in Job Postings in Geographies Where RequiredSalary Ranges and Job Levels for Each Employees Current RoleDistribution
140、 Statistics for Salaries Within RolesNone of the AboveOtherSalary Ranges and Job Levels for All RolesSalary Ranges in All Job Postings38%30%26%23%7%0%1%22%23%40%20%0%Figure 4:Transparency Strategies Organizations Plan to Implement in 2023Percentage of HR Leadersn=73 HR leaders worldwideQ:Which of th
141、e following strategies is your organization planning on implementing in 2023 to improve and maintain pay transparency?Select all that apply.Source:Strategies to Attract and Retain Talent in Times of Economic Volatility(19 October)Others have expanded their holistic well-being programs,offering new p
142、rograms such as fitness competitions and well-being apps.Still others have made greater efforts to market their talent mobility programs,positioning themselves as great places to learn and grow.Gartners employee preferences data shows employees value some nonmonetary benefits as highly as compensati
143、on.Paid time off,for example,is as important to employees as a change in base pay.15In addition to offering new rewards,many organizations are investing more in communicating their existing programs.Some clients have created a“Did You Know?”program to highlight underused benefits,such as retirement
144、savings plans and certain well-being offerings.Others have rolled out more holistic total rewards statements,sharing additional details on the total value of pay as well as the cash value of benefits that employees sometimes take for granted,such as health insurance and disability benefits.Embrace P
145、ay TransparencyEven before the recent run of high inflation,many organizations were implementing pay transparency strategies,driven by legislative changes in the U.S.,Europe and Australia,as well as the increased availability of pay information online and changing attitudes regarding public discussi
146、ons of pay.In fact,seven out of 10 employees have talked to friends,family or colleagues about their pay in the past year.6 In response,many organizations are planning to communicate more transparently about matters such as their compensation philosophy,the formula for how salaries are determined an
147、d salary ranges for job postings(see Figure 4).HR Leaders Monthly|May 2023 231 The 2022 Gartner Compensation Planning and Benefits Benchmarking Survey(n=149 HR leaders)was run in 3Q22 among 174 total rewards leaders from various geographies,industries and functions.2 The 2023 Gartner Global Labor Ma
148、rket Survey(1Q23)(n=18,002 global employees)is fielded monthly across 40 different countries in 15 languages.Responses are then aggregated by the Gartner HR practice research team to generate quarterly findings.3 U.S.Inflation Calculator.4 European Union Inflation Rate,YC.5 The 2022 Gartner Rewards
149、Communications Employee Survey was conducted online from 29 September to 21 November 2022.The research was conducted online and includes responses from 3,445 full-time global employees who were randomized across three groups to examine various total rewards statements and definitions of pay concepts
150、 to better understand perceived value of employee total compensation.6 The 2022 Gartner Total Rewards Pay Equity and Transparency Employee Survey was conducted to understand various aspects of organizations approach to pay equity and communications design.The research was conducted online from 14 Ap
151、ril to 19 May 2022 among 3,523 employees,with representation from various geographies,industries and functions.7 The Employment Situation March 2023,U.S.Bureau of Labor Statistics.8 U.K.Unemployment Rate,YC.9 Employment and Unemployment,Australian Bureau of Statistics.10 The Gartner Attracting Talen
152、t and Improving the Employee Experience Amid Uncertainty Webinar Poll(September 2022)surveyed over 240 HR leaders across a spectrum of industries.Most were based in North America,although the perspectives and practices they shared were developed to support their global organizations(92 HR participan
153、ts responded to this survey question).11 Exxons U.S.Workers Get Inflation-Busting Pay Hike as Profit Hits Record,Bloomberg.12 Lowes Becomes Latest Employer to Give Workers Inflation Bonuses,Washington Post.13 Rolls-Royce Latest Pay Offer to Workers Rejected by British Union,Reuters.14 Rolls-Royce Wo
154、rkers Secure 10%Pay Rise and 2,000 Bonus,The Guardian.15 The Gartner Total Rewards Employee Preferences Survey was conducted on three separate occasions:2019,2021 and 2022.Each year,Gartner surveyed 10,000 employees about their preferences for total rewards compensation offerings.Employees were loca
155、ted in North America,South America,Europe,Asia and Africa.They represented over 20 different industries in addition to varying organization sizes and employment types(e.g.,hourly,salary).Using a conjoint survey technique,respondents were asked to repeatedly choose between different total rewards com
156、pensation packages.The results give us unique insight on employees underlying total rewards preferences,particularly in comparison to one another.While HR leaders disagree about the right level of pay transparency,we have seen greater appetite among organizations in U.S.states that require companies
157、 to post salary ranges in job postings(including California,Colorado,New Jersey and New York).Companies that have recently revamped their salary structures also offer more transparency.However,pay transparency can be more than a matter of regulatory compliance.When deployed correctly,it can have a s
158、izable positive impact on engagement,performance and intent to stay.Persistently high rates of inflation represent a significant challenge for TR leaders.If they fail to meet the expectations of their employees,they will experience higher rates of attrition.If they pay too much,they risk creating pa
159、y inequities and increasing the risk of future layoffs.In response,the most successful TR leaders will think more creatively about compensation vehicles like spot bonuses,focus on other elements of the EVP and embrace pay transparency as not only a regulatory requirement but also a retention strateg
160、y.HR Leaders Monthly|May 2023 24 2023 Gartner,Inc.and/or its affiliates.All rights reserved.CM_GBS_2271804Forty-seven percent of HR leaders plan to increase their 2023 budgets,with recruiting and HR technology as the top two areas where they are planning to increase investments.Download the 2023 HR
161、Budget and Efficiency Benchmarks research to:Identify potential areas of overinvestment or underinvestment Pinpoint areas to adjust spend or optimize HR functional cost Inform your budgeting processDownload Report 2023 HR Budget and Efficiency Benchmarksby Rachel JuleyLeverage Employee Preferences t
162、o Identify Total Rewards Trade-offsContinued economic headwinds in 2023 and beyond will challenge total rewards leaders to find trade-offs within their current suite of offerings that manage costs without harming the organizations talent objectives or access to critical talent segments.This research
163、 suggests a three-step process to identify these trade-offs:1.Begin by conducting an internal analysis to refine your understanding of how current rewards offerings support organizational talent objectives and critical talent segments.2.Use Gartners total rewards employee preferences information to
164、examine the impact of different rewards offerings relative to their organizational cost through a data-driven perspective on what critical talent segments want and areas where employees are sensitive to change.3.Bring all these elements together into a simple,organization-specific decision-making mo
165、del that considers utilization,employee preferences,relevance to talent objectives and importance to critical segments to determine which total rewards investments to maintain,prioritize or revise.Refine Talent Objectives and Identify Critical Talent SegmentsTo begin considering potential trade-offs
166、,total rewards leaders should conduct an internal analysis in line with annual strategic planning efforts,to investigate how rewards support(or can support)organizational talent objectives and critical talent segments.This analysis should answer questions such as:What are the organizations talent ob
167、jectives,and how are they linked to broader business goals,such as enhancing innovation,increasing customer retention or driving operational excellence?Which talent segments are critical to supporting organizational goals and business operations?Which roles need to be prioritized because they are ha
168、rd to find or hard to fill?HR Leaders Monthly|May 2023 27 What rewards offerings provide a differentiated or compelling package that supports the retention and attraction of critical talent?Which rewards offerings are the most and least used by employees?Why?To answer these questions,total rewards l
169、eaders should gather quantitative and qualitative data that is organization-specific and can be evaluated in combination with Gartners total rewards Table 1:Illustrative Data Sources and Key FindingsSource:Gartner(May 2023)SourceKey FindingsExit Interviews Reasons for leaving related to compensation
170、,benefits,time off or other rewards elements:Lack of competitiveness Missing elements Feedback on elements that should be offered but are not Percentage of high-potential employees or hard-to-fill positions associated with those reasons for leaving Likelihood of considering future employment with th
171、e organizationPulse or Engagement Surveys Level of satisfaction with compensation,benefits,time off or other rewards elements Feedback on elements that should be offered but are not Likelihood of recommending employer to prospective candidates,based on total rewards package(if applicable)Recruitment
172、 or Candidate Surveys Reasons for declining offers related to compensation,benefits,time off or other rewards elements Percentage of candidates opting out of the process or declining offers due to total rewards Feedback from candidate surveys Feedback from talent acquisition partners regarding total
173、 rewards in comparison to competitorsFeedback From Leadership Stakeholders Projected growth or decline in the business Emerging or changing business priorities and/or increasing complexity in the business landscape with implications for total rewardsemployee preferences data.Table 1 provides an over
174、view of potential data sources and illustrative key findings that may be associated with each.Determine What Employees Value Most Following the internal analysis,total rewards leaders should explore Gartners total rewards employee preferences data to benchmark which HR Leaders Monthly|May 2023 28Fig
175、ure 1:The Global Preferences BenchmarkSensitivity Scoren=10,000Source:2022 Gartner Total Rewards Employee Preferences SurveyNote:Core medical,event-driven medical and dental/vision are U.S.only;financial benefits are U.S.and EMEA only.Financial refers to life insurance and disability benefits.Time O
176、ffEvent-Driven MedicalFinancialaCore MedicalWork-LifeDental/VisionWell-BeingFamilyEmployee Preferences for Compensation CategoriesEmployee Preferences for Benefits Categories0.751.5000.520.970.410.520.670.200.460.61rewards employees are most likely to value(see Note 1).Figure 1 provides an overview
177、of the 2022 Gartner Total Rewards Employee Preferences Survey outcomes for both compensation and benefits categories.To establish a baseline,employee preferences are compared to how sensitive an employee is to a change in base pay(sensitivity score of 1.0).For example,the category of base pay compet
178、itiveness has a score of 1.27,demonstrating that employees are more sensitive to this category than they are to a change in base pay.On the other hand,employees are less sensitive to short-term incentives,with a score of 0.74.1After reviewing these top line results,total rewards leaders can begin to
179、 evaluate the key categories within a rewards package that employees find most valuable and compare these results to the current level of investment within their organizations rewards package.Total rewards leaders can also use the Total Rewards Employee Preferences Tool to further examine employee p
180、references by different demographic cuts(gender,generation,level,education,HIPO status,etc.)that most closely match their workforce.While this information provides a high-level perspective on employee preferences,total rewards leaders can use it in conjunction with their internal analysis to make de
181、cisions appropriate to their organizations unique circumstances.Base-Pay CompetitivenessPromotion and RecognitionShort-Term IncentivesLong-Term Incentives0.751.5001.270.940.740.71HR Leaders Monthly|May 2023 29Create a Decision-Making ModelFollowing the internal analysis and examination of employee p
182、references,total rewards leaders should combine the information into a decision-making model(see Figure 2).As total rewards leaders analyze opportunities for efficiency,cost savings,consolidation or expansion,they will likely discover:Resources that can be divested with minimal impact Benefits or to
183、tal rewards vendor relationships that can be revised or sunset in the next fiscal year Savings or efficiencies that can be achieved through program optimization or policy changes Ways of allocating constrained budgets toward the highest-impact offeringsTable 2 provides an illustrative example of wha
184、t this analysis might look like.Once complete,this decision-making model can be leveraged in short-term planning for 2023 and long-term planning for 2024 and beyond with Source:GartnerHighRevise(Adjust to create efficiencies or drive optimization)Invest(Expand budget or offerings)LowSunset(Eliminate
185、 or divest resources to higher-level priorities)Prioritize(Protect budget dollars or offerings)LowHighDegree of Relevance to Critical Talent SegmentsDegree of Alignment With Talent ObjectivesFigure 2:Decision-Making Model for Total Rewards Trade-OffsTable 2:Illustrative Decision-Making ModelOffering
186、UtilizationEmployee Preferences ScoreDegree of Alignment With Talent ObjectivesDegree of Relevance to Critical Talent SegmentsResultPaid Time Off80%1.59HighHighInvestRewards&Recognition60%0.94HighModeratePrioritizeTuition Reimbursement20%0.41ModerateModerateRevise(Identify Efficiencies)Telemedicine2
187、0%0.34ModerateLowRevise(Drive Optimization)Vendor Apps and Digital Well-Being Tools10%0.09LowLowSunset(Divest Resources)Source:GartnerHR Leaders Monthly|May 2023 30respect to compensation,benefits,well-being and other areas of the total rewards package.However,total rewards leaders should establish
188、triggers to revisit these decisions if business or economic conditions shift,such as:Sudden changes in organizational financial performance Market disruptions Turnover of critical talent New legislationConclusionTotal rewards leaders facing continued economic headwinds can immediately begin to addre
189、ss this challenge by utilizing a systematic,talent-centric approach to analyze their current suite of offerings and identify opportunities that support efficiency or cost-savings objectives.By leveraging an internal decision-making model that includes a line of sight to Gartners total rewards employ
190、ee preferences data,total rewards leaders will be better equipped to make trade-offs without unintentionally jeopardizing the organizations talent objectives.As a result,the organization can achieve a more cost-effective and compelling total rewards strategy.Note:To establish employee preferences,Ga
191、rtner uses a research methodology that requires employees to actively select the total rewards packages of greatest value from various packages presented to them.These packages are all designed differently,forcing them to make trade-offs.This approach provides a more realistic assessment of individu
192、al preferences than traditional survey data.The analysis tests both compensation and benefit categories,with multiple attributes within each category.1 The 2022 Gartner Total Rewards Employee Preferences Survey was conducted to assess employee preferences for rewards throughout the rewards portfolio
193、.The research was conducted online from 24 August 2022 to 30 September 2022 among 10,080 respondents from various geographies,industries and functions.Upcoming Virtual EventsGartner regularly hosts virtual events across a variety of Human Resource topics.These webinars present an opportunity for you
194、 to gain insights from our research experts on making better decisions for your function and organization.Help Your Employees and Organization Navigate CrisesThe Gartner 2023 HR Benchmarks and Investment TrendsConnect Your HR Technology Strategy to Transformational Business OutcomesStrategies for HR
195、 Transformation Success in an Uncertain EnvironmentHow to Identify,Fix and Prevent Change FatigueHR Leaders Monthly|May 2023 31by Carmen von RohrHow to Build Candidate Trust During the Hiring ProcessJob candidates today have low trust in prospective employers.To attract and retain talent in a low-tr
196、ust labor market,recruiting leaders must understand who candidates trust most to provide critical information and design interactions that optimize the delivery of messages.HR Leaders Monthly|May 2023 32organizations to be honest with them during the hiring process,and commitment to accepted offers
197、hangs in the balance.Forty-four percent of candidates have accepted an offer but then decided not to start the position.4 Yet trust is key to attracting,engaging and retaining talent in a competitive,candidate-powered labor market.Employees with high organizational trust express an 11%higher intent
198、to stay and show 39%higher engagement than those with low trust.5 They also put 6.35 times as much discretionary effort into their jobs.1 For recruiting leaders who are hiring talent from sectors or segments that have recently experienced mass layoffs,trust may be even more salient.Some research has
199、 found that employees who have gone through a layoff are 65%more likely than those who have not been laid off to quit their next job;trust is a critical lever to combat this attrition risk.6Trust is low among employees today.Only 36%of employees report high trust in their organizations,less than one
200、-third feel they are paid fairly,and only 44%agree that their organizations commitment to diversity,equity and inclusion is authentic.1,2,3 Several factors may be contributing to low levels of trust,including:Employee burnout and feelings of underappreciation at work Past breaches of trust,such as p
201、andemic-related layoffs or poor responses to social issues Technology that disrupts human connection in the workplaceIn this climate,candidates are approaching companies and job opportunities with some skepticism.Only 54%of candidates say they trust HR Leaders Monthly|May 2023 33The Messenger Matter
202、sAs the candidate experience is the first impression potential employees have of an organization,it presents a critical opportunity to start building trust.Today,few organizations are taking full advantage of this opportunity,which requires recruiting leaders to consider not only what information ca
203、ndidates receive but also who delivers it and how.During the hiring process,many companies rely on overworked recruiters to impart all or most of the key information about the company and job opportunity to candidates.Yet candidates often trust recruiters less than hiring managers or current employe
204、es as sources of information.For example,candidates trust hiring managers most to explain the potential career path for a role,and they trust current employees most to tell them about the company culture.4 Instead of overrelying on recruiters,companies can build candidate trust by creating connectio
205、ns between candidates and the stakeholders they trust most.Thirty-seven percent of candidates say they choose jobs primarily based on the connection they feel with people in the hiring process.Once recruiting leaders understand who candidates trust most to provide which information,they can design t
206、he hiring process to support interactions that provide candidates with key messages from the most trusted individuals.Hiring managers,current employees and recruiters all have a role to play(see Figure 1).Enable Managers to Build Candidate TrustResearch finds that hiring managers are candidates most
207、 trusted source of information about most aspects of the company and role.4 To obtain the greatest value from hiring managers trustworthiness,recruiting leaders should equip them to:Send proactive outreach to prospects with personalized,credible messages.To start the process of building trust before
208、 the candidate applies,recruiting leaders should equip hiring RecruitersCurrent EmployeesHiring ManagersCandidate TrustFigure 1:Sources of Candidate TrustSource:GartnerHR Leaders Monthly|May 2023 34managers to engage prospects.Provide hiring managers with templates that help them personalize and bui
209、ld credibility into outreach messages.For example,hiring managers can personalize messages by showing an interest in getting to know candidates and their career ambitions better.They can demonstrate credibility by mentioning a specific job opportunity and explaining it in detail.Focus candidate inte
210、rviews on aspects of the role where manager trust is at a premium.Because candidate time with hiring managers is so limited,encourage them to spend that time discussing the types of information candidates are more likely to trust when they hear it from hiring managers(see Figure 2).This includes rol
211、e-specific information such as desired skills for the role,the type of work involved and the outcomes that need to be achieved.Hiring managers are also much more trusted to discuss the flexibility of the role and its potential career path.Connect with new hires between their offer acceptance and sta
212、rt date to share additional information.This connection is an opportunity to begin establishing a positive relationship between the hiring manager and the new hire before the starting date.Research shows hiring managers are most likely to email or call candidates to share a personal welcome during t
213、his time.7 Hiring managers can build trust at this stage by using personal forms of communication,such as short video calls,sharing a welcome from the rest of the team,previewing current team projects,and offering to answer questions.Involve Current Employees to Build Candidate TrustCandidates,espec
214、ially at the entry level,trust current employees most with certain types of information the companys culture,the culture Figure 2:Aspects of EVP Where Candidate Trust in Managers Is at a PremiumPercentage of Candidates Selecting Source They Trust Most for Each Type of Informationn=3,621 candidatesSo
215、urce:2022 Gartner Candidate SurveyNote:Work Model of the Role refers to whether the role is onsite,hybrid,remote,etc.The Outcomes You Need To Achieve in the JobPotential Career Path(s)for the RoleSkills They Want You To HaveCharacteristics of Someone Who Would Be Successful in the RoleSkills You Wou
216、ld Develop in the RoleThe Flexibility of the RoleWork Model of the RoleType of Work the Position Involves50%25%0%43%43%40%38%38%37%37%34%16%14%15%15%17%17%16%19%19%21%21%19%19%18%18%18%Hiring ManagerOther EmployeesRecruiterHR Leaders Monthly|May 2023 35of the team that the role is a part of,and the
217、diversity of the team.4 Recruiting leaders should equip current employees to:Meet and interact with prospective new colleagues.Candidates at all levels but especially entry level will benefit from conversations with current employees.Entry-level candidates are much more likely than their mid or seni
218、or-level counterparts to trust other employees most with cultural and diversity information.They are also more likely than other candidates to trust current employees answers to questions about work-life balance and the management style of their prospective manager(see Figure 3).Demonstrate to the c
219、andidate how they experience the organizational culture in their day-to-day jobs.Video testimonials are one way to share employee views with candidates,but organizations should also consider options such as video calls or in-person“colleague previews”in which candidates can meet one or two potential
220、 future colleagues.Two-way conversations between candidates and current employees can allow candidates to ask more specific questions,receive more authentic responses and begin establishing trusting relationships in the organization.Position Recruiters to Build Candidate TrustCandidates trust recrui
221、ters reasonably well with certain kinds of information,such as compensation and benefits,the organizations well-being efforts and social values,and its investments in diversity,equity and inclusion.But recruiters are also a point of risk.Sixteen percent of candidates who withdrew from a position aft
222、er accepting an offer say they did so because of a negative interaction with a recruiter,compared to 8%who did so because of a negative interaction with the hiring manager.4 To build trust-based connections with candidates,recruiters should:Figure 3:Aspects of EVP Where Candidate Trust in Employees
223、Is at a Premium,by Candidate LevelPercentage of Candidates Selecting Other Employees As the Source They Trust Most for Each Type of Informationn=3,621 candidatesSource:2022 Gartner Candidate SurveyEntry-LevelMid-LevelSeniorWork-Life Balance of the RoleManagement Style of Your Potential ManagerDivers
224、ity of the TeamCulture of the Team the Role Is Part OfCompany Culture50%25%0%29%29%30%31%33%24%22%23%23%24%35%36%37%40%40%HR Leaders Monthly|May 2023 361 The 2021 Gartner Executive Leader Communications Survey was conducted to explore employees and managers attitudes and behaviors related to executi
225、ve communications,including which message elements and leader characteristics are most effective at increasing trust in the organization.The research was conducted online during September 2021,among 1,041 respondents from the United States,Canada,the United Kingdom,Western Europe,Australia,India and
226、 Singapore.Respondents were screened for employment status(i.e.,part time vs.full time),organization size(i.e.,greater than 500 employees),job level(i.e.,directors and below)and whether they recently received communications from their organizations senior leaders.Disclaimer:Results of this study do
227、not represent global findings or the market but reflect sentiment of the respondents and companies surveyed.2 The 2022 Gartner Total Rewards Pay Equity and Transparency Employee Survey was conducted to understand various aspects of organizations approach to pay equity and communications design.The r
228、esearch was conducted online from 14 April 2022 through 19 May 2022 among 3,523 employees,with representation from various geographies,industries and functions.3 Gartner U.S.Election Employee Sentiment Survey(June 2020)(n=600 employees,127 of whom were Black/African American):This monthly survey was
229、 conducted to understand how employees felt about issues surrounding the 2020 U.S.election for president.Each monthly survey included around 500 respondents from various industries and geographies within the U.S.The surveys were conducted online.4 The 2022 Gartner Candidate Survey was conducted onli
230、ne from 6 May to 7 June 2022.A total of 3,621 candidates(including 1,452 who had started a new job)from 14 countries,23 industries and 20 functions were polled on their experiences and behaviors during the hiring process.Respondents were required to have met the following criteria to qualify:(a)appl
231、ied for one or more job(s)in the past 12 months,(b)were contacted by at least one organization to complete an assignment or participate in an interview in the past 12 months and,(c)worked at an organization of 1,000 or more employees.5 The 2021 Gartner Hybrid Work Employee Survey was conducted in De
232、cember 2020,with over 4,000 employees representing various geographies,industries and functions.6 Hiring Still Outpaces Tech Layoffs,But Cuts Leave Scars,TechTarget.7 The 2022 Gartner Hiring Manager Survey was conducted in November 2022 and polled 3,032 hiring managers who had hired within the last
233、12 months.Respondents were asked about details of their last hire,trends on candidate acceptance,details on bonus and compensation changes and hiring experiences,and recruiter and talent advisor actions.Respondents were distributed over 14 countries and 23 industries.Actively listen for opportunitie
234、s to align candidates goals with company values or the role.Recruiters know to take the time to listen to a candidates needs,but aligning their goals with company values has additional benefits.For example,if a candidate talks about being burned out and expresses disappointment with their current or
235、ganizations support for employee well-being,the recruiter can take the opportunity to explain the companys approach to well-being.Active listening also enables the recruiter to convey information about specific candidate goals to hiring managers,who can then address these concerns during interviews.
236、Give honest,relevant feedback that addresses the candidates performance and fit.Feedback reinforces trust because it demonstrates respect for candidates and their time,but its trust-building power is undermined when feedback is vague,generic or seems insincere.Recruiters should offer honest feedback
237、 about the candidates alignment to the role and company.For example,if a recruiter discovers a mismatch between a candidates skills development goals and the skills development associated with the role,they should be forthcoming about the mismatch.For some candidates,this feedback might lead to disc
238、ussions about other potential roles at the company that could be a better fit.ConclusionTrust is built slowly,over time,and can be quickly lost.In an environment where employee and candidate trust is already low,organizations should take the opportunity to begin building trust during the candidate e
239、xperience.Trust can be built by creating interactions in which hiring managers,employees and recruiters each play a specific part in sharing valuable information.These interactions ensure candidates are getting the information they need from the sources they trust most.They also create more opportun
240、ities for them to experience the kind of personal connection that drives candidate conversion.In turn,a successful hiring process built on a foundation of trust sets new hires up for success in the organization,improving the likelihood that they will stay and thrive.HR Leaders Monthly|May 2023 37A r
241、ecent survey of HR leaders found that only about half are confident in their organizations ability to meet or exceed 2023 revenue goals.1 With an uncertain economy and the looming threat of recession,layoffs and cost-cutting may seem like quick fixes for the bottom line,but the knock-on effects of s
242、uch drastic measures can be counterproductive.The expectation to do more with less can lead to employee burnout,which imposes significant costs to the organization.First and foremost,HR leaders should strive to maximize the number of employees who are performing optimally:consistently giving their b
243、est effort in a way that is sustainable for the coming year.Promoting strong and sustainable individual performance is not only critical to achieving organizational performance targets but can also have a direct impact on the organizations finances.1 2023 Gartner Achieving High Performance and CHRO
244、Priorities Survey,n=139 HR Leaders.2 2023 Gartner Achieving High Performance Employee Survey,n=2,280 remote-capable employees.3 U.S.Bureau of Labor Statistics:Median Weekly Earnings of Full-Time and Salaried Workers(2022).Cost of one hour per day of lost productivity calculated from median weekly ea
245、rnings of$1,059 x.125=$132.40 per employee per week.4 Calculated using the Gartner Turnover Cost Calculator,which measures the average cost of replacing one employee at$19,771;an average turnover rate of 18%based on the 2023 Gartner HR Turnover Benchmark;and data from the 2022 Gartner New Talent Lan
246、dscape and Career Pathing Survey showing that 45%of employees who left their jobs did so because they felt burnt outBy Kate McLaren-PooleCosts of Lost Productivity and Attrition Due to Burnout Annual Cost in Millions for an Organization With 10,000 EmployeesSource:2022 Gartner New Talent Landscape a
247、nd Career Pathing Survey;2023 Gartner HR Turnover Benchmark;U.S.Bureau of Labor StatisticsThe Hidden Cost of BurnoutEmployees who fall outside of the optimal performance category(those who are not giving their best effort,cannot sustain their effort,or both)make up 59%of the workforce.2 Just one hou
248、r per day of lost productivity per employee can cost an organization with 10,000 employees nearly$69 million per year in salary expenses for little to no contribution.3 On top of that,based on the average cost of replacing one employee and average attrition rates,an organization with 10,000 employee
249、s could spend$16 million per year to replace employees who quit due to burnout.4 As they work to mitigate the financial impact of economic headwinds HR leaders can realize significant cost savings from increasing the number of employees performing optimally,protecting the organization against burnou
250、t and attrition.Quant CornerCost of One Hour of Lost Productivity per Employee per DayCost of Attrition Due to Burnout$80$40$0Millions$16$69HR Leaders Monthly|May 2023 38by Khrystian PereiraCHROs Can Support DEI Resilience During Economic UncertaintyBuilding DEI support among leadership stakeholders
251、,driving accountability and transparency,and building an inclusive culture framework can help CHROs ensure DEI resilience through economic uncertainty.HR Leaders Monthly|May 2023 39Cost Optimizationefforts through economic volatility to ensure its resilience and sustainability,since 49%of DEI leader
252、s report directly to them.1 CHROs can help DEI leaders navigate uncertain economic terrain by building support among leadership stakeholders for DEI initiatives,promoting underrepresented talent development and retention,and driving accountability and Since the early days of the COVID-19 pandemic,CH
253、ROs have had to make tough decisions regarding workforce planning,HR budgeting,leadership development,succession planning,flexible work policies and crisis management because of economic volatility.Economic pressures continue to make balancing cost optimization and DEI investments a difficult task(s
254、ee Figure 1).Although 89%of DEI leaders report having their own budgets,1 they are often small and are particularly vulnerable during times of economic volatility.Despite high social focus on DEI issues in 2021 and 2022,only 36%of HR leaders reported increasing their DEI budgets in 2022.2 In 2023,wh
255、en organizations face rising interest rates and other economic headwinds,DEI budgets are even more vulnerable,as DEI is a lower priority for many executives.A recent survey of directors found DEI was their fifteenth priority area out of 19.3 CHROs can support DEI Resilient DEI functions tackle socia
256、l,political and economic changes in the environment without foregoing the commitment and actions necessary to support underrepresented groups.Source:GartnerSocial and Political PressureShifting Employee Expectations Declining Employee Mental Health Hypercompetition for TalentHigher Interest RatesCHR
257、ODEI InvestmentsFigure 1:External Pressures in CHRO Decision MakingHR Leaders Monthly|May 2023 40transparency in the organization.Having an inclusive culture is the basis for ensuring DEI resilience(see Figure 2).Organizations that embed DEI principles in their processes may find cultivating resilie
258、nt DEI functions is easier.Build Support Among Leadership StakeholdersTo create a resilient DEI function,CHROs should cultivate relationships throughout the organization to influence and shape the strategic decisions and outcomes they cannot drive themselves.Despite heightened attention to DEI in re
259、cent years,executive stakeholders might shift attention from or deprioritize DEI efforts during economic volatility.Senior leadership commitment to DEI is integral to navigating uncertainty.CHROs can build support among leadership stakeholders by:Ensuring the CEO understands the strategic importance
260、 and value-add of DEI efforts in navigating uncertainty for the organization.CHROs must communicate the importance of diverse points of view to innovation,collaboration and engagement.They can also discuss economic,legal and reputational risks that can arise from the deprioritization of DEI,in addit
261、ion to the impact a lack of diversity can have on employee morale and productivity.Making the business case to the CFO to avoid budgetary constraints on the DEI function that could cancel the progress already made.Otherwise,cost-cutting measures may result in a lower representation of women and peop
262、le of color,fewer accommodations for people with disabilities,and other support for marginalized groups.To build a compelling case,CHROs should use data,highlight risks,emphasize the importance of a diverse customer base and share success stories of underrepresented employees who have added value to
263、 the organization.Drive Transparency and Accountability Healthy DEI functions require transparency and accountability to promote trust,even when the information is not what employees want to hear.HR leaders may reduce DEI reporting during economic volatility,especially when dealing with budget cuts.
264、Wherever possible,leaders should be transparent about limited budgets,metrics,difficult decisions and the organizations strategy for enduring economic hardship.CHROs can also share less sensitive information and recommit to DEI during this time.To ensure employees trust the organizations commitment
265、to DEI,CHROs can:Continuously express the importance of DEI to the health of the organization.CHROs and other executive leaders can make statements that support DEI initiatives,participate in employee resource groups(ERGs)to understand how the economic downturn affects certain groups,and create two-
266、way channels to discuss employees concerns about the economy.Set clear and measurable DEI metrics to assess the organizations DEI goals.When investing in every aspect of DEI is not possible,CHROs can use data to make informed decisions about Figure 2:Steps to DEI Resilience in Economic VolatilitySou
267、rce:GartnerBe Transparent and AccountableBuild Support Among Leadership StakeholdersFoster an Inclusive CultureHR Leaders Monthly|May 2023 41where to invest resources for DEI initiatives.For example,employee surveys can help identify and target parts of the business where these investments would hav
268、e the greatest impact.Report on DEI metrics regularly to ensure the organization remains accountable for its DEI efforts,even when the economy is volatile.Reporting should be accessible to all employees and stakeholders.Involve employees in decision making around DEI initiatives to make them feel in
269、vested in the companys DEI efforts and improve inclusion.To support DEI resilience when the economy is volatile,CHROs can lead efforts to be transparent and accountable to maintain employee trust in the organizations DEI efforts.When underrepresented employees have trust in the organizations commitm
270、ent to DEI,they will be more willing to stay and weather economic uncertainty with the organization,further increasing DEI resilience.Foster an Inclusive CultureAn inclusive culture with DEI principles embedded throughout the organization is vital to cultivate a resilient DEI function ideally before
271、 the economy turns volatile.CHROs may find making a case for DEI during an economic downturn is easier when DEI principles are already part of the fabric of the organization.If a formalized DEI framework does not yet exist,CHROs can partner with the DEI function to develop a framework that allows ev
272、ery employee to actively build inclusion and sustain it,even through economic uncertainty.An effective DEI framework includes efforts for communication sharing,empathy building and continuous development.DEI frameworks allow leaders and employees to feel a sense of purpose and creates a space to sup
273、port DEI in an intentional way that does not feel additive.Having an inclusion framework in place may enable CHROs to make a stronger case for DEI during economic slumps when CEOs and CFOs must make tough budgetary decisions.Developing a DEI framework is a low-cost activity that can jump-start a cul
274、ture of inclusion and generate a return on investment in the form of improved employee engagement and retention.Economic volatility is not a reason to scale back DEI efforts.On the contrary,it is vital for organizations to double down on DEI priorities to manage attrition,engagement and team perform
275、ance.CHROs should work closely with other leaders to develop strategies that align with the organizations DEI values.This strategy involves communicating transparently and authentically with employees,customers and other stakeholders to maintain trust and confidence in the organization.Promote Under
276、represented Talent Development and Retention One of the challenges organizations face during economic volatility is the likelihood that employees may leave in search of job security.Retention is particularly challenging for underrepresented groups,who may already face additional barriers to advancem
277、ent.Focusing on retaining underrepresented talent can enable CHROs to save their organizations money in the long run by avoiding the costs associated with higher turnover.CHROs can improve retention of underrepresented talent at little cost to the organization by ensuring these employees have equita
278、ble access to development opportunities and do not experience systemic barriers to advancing in their careers.For example,they can:Provide opportunities for professional development,including mentoring and coaching.CHROs should work with HR partners to ensure the participation of mentors and mentees
279、 from various demographics,tenures and levels of seniority.Refocus the employee value proposition in line with Gartners human deal framework,centered on deeper connections,radical flexibility,personal growth,holistic well-being and shared purpose.Be sure to gauge how underrepresented talent may resp
280、ond differently to attributes of the human deal and adjust the value proposition for these employees as needed.Provide clear career paths and opportunities for advancement within the organization.Ensure the organization provides upskilling opportunities that are accessible to everyone,regardless of
281、location or ability.HR Leaders Monthly|May 2023 42Case in Point:LEAD Framework for DEIPJM InterconnectionPJM Interconnection created the LEAD framework as a North Star for DEI by embedding it throughout the organization to ensure resilience.The framework establishes behaviors that leaders,managers a
282、nd individual contributors can demonstrate to bring DEI to the workplace so everyone contributes to and benefits from a culture of belonging,collaboration and innovation.The four pillars of the framework are Listening,Empathy,Allyship and Development(see Figure 3).To ensure the resilience of the DEI
283、 function,DEI partners with ERGs,the communications team,people services,HRBPs and the L&D team to embed the LEAD principles.Furthermore,executive team members and senior leaders serve as mentors and DEI champions for their divisions.The listening pillar ensures employees have dedicated opportunitie
284、s to share thoughts on DEI-related topics and their experiences.This includes“Safe Space Conversations,”a form of employee-led listening session where employees are encouraged to share their perspectives on a variety of topics.The empathy pillar aims to cultivate a sense of belonging for all employe
285、es in the organization through connections,such as“Diversity Stories,”which employees write to share their experience with DEI and how it has impacted their lives.The allyship pillar builds awareness for DEI and provides opportunities for everyone to share what they learn,including“Diversity Moments
286、”two to three minutes at the top of a meeting for anyone to share something they know or have learned related to DEI.The development pillar emphasizes continuous learning and builds connections to expand diverse networks,through initiatives like“ERG Mentoring Circles,”through which the DEI function
287、pairs executive team members with three or four mentees on six-month rotations.The LEAD framework gives PJM a common language and purpose to work toward as well as a foundation to go deeper every day,even through environmental changes.3 The 2023 Gartner Board of Directors Talent Survey was conducted
288、 to understand boards relationship with the CHRO,critical talent issues that are important to boards,and how boards are managing CEO and C-suite succession.The research was conducted online from 6 February through 1 March 2023.The survey contains responses from 200 boards of directors from various g
289、eographies and industries.”1 The 2023 Gartner Diversity,Equity and Inclusion Functional Benchmarking Survey is a global survey of 153 DEI leaders,conducted from 6 February to 20 March 2023 to understand DEI leaders backgrounds and priorities,how they are managing their functions,partnerships with ot
290、her functions,and other benchmarking data about DEI functions.2 The 2022 Gartner HR Budget and Efficiency Survey is an always-on survey with twice annual benchmark updates.The current published benchmark was last updated with data collected through 31 October 2022 and contains data from the prior 18
291、 months.All data is collected from Gartner clients.Figure 3:PJM Interconnections LEAD Framework for DEIHR Leaders Monthly|May 2023 43 2023 Gartner,Inc.and/or its affiliates.All rights reserved.EVTM_967_2244047Gartner ReimagineHR Conference 2023Choose Your Region 11 12 September 2023 London,U.K.Save
292、the date23 25 October 2023 Orlando,FL4 5 December 2023 Sydney,AustraliaHR Leaders Monthly|May 2023 44Keith Ferrazzi argues that the leaders whove succeeded in this radically volatile world have responded with radical adaptability.He encourages HR leaders to embrace practices like foresight,co-elevat
293、ion and inclusion to build a resilient workforce.by Caroline OgawaRadical Adaptability in a Radically Volatile WorldHR Leaders Monthly|May 2023 45Keith Ferrazzi believes HR leaders have the opportunity to shape a new path forward for organizations looking to rapidly reimagine work while maintaining
294、workforce resilience.He recently joined our Gartner Talent Angle podcast to detail his methodology for radically adaptive leadership and share practices from the leaders and organizations who successfully navigated the uncertainty of the past few years.The following insights are excerpted from that
295、conversation.Listen to the full interview at Talent Angle Podcast:Competing in the New World of Work With Keith Ferrazzi.What pressures are organizations facing today,and whats the source of that pressure?We just lived through three years of massive volatility with a massive need for agility.We have
296、 been clinging to ways of working that worked for the industrial era for decades,but they havent been working for us for a while.The reality is that in the last few decades,we have changed the way we work.Back in the nineties we moved to matrix-based organizations,where we could truly run global org
297、anizations,not multiregional organizations.That matrix way of working does not work in congruence with an old way of thinking about authority,control or org charts,and yet were clinging to it,which has created great disruption that we havent known how to handle.Its eroded shareholder value.Now,all o
298、f a sudden during the pandemic,we have an opportunity to use this as an inflection point to reinvent t Back to ContentsKeith Ferrazzi is an entrepreneur,philanthropist and renowned global thought leader in the future of work and leadership.As founder and chairman of Ferrazzi Greenlight and its resea
299、rch institute,Go Forward to Work,he works with some of the worlds most prominent organizations to maximize team performance and achieve extraordinary outcomes.Formerly,he was the chief marketing officer of Deloitte and Starwood Hotels.Keith is a No.1 New York Times bestselling author of“Whos Got You
300、r Back,”“Never Eat Alone,”and“Leading Without Authority.”His 20-year history of coaching C-suite executive teams has made him an agent of transformation and among the worlds greatest and most sought-after coaches.HR Leaders Monthly|May 2023 46Central to your book is your concept of radical adaptabil
301、ity.Why did you choose to call this a new leadership methodology versus a model or a mindset?For whatever reason,Ive always been a very practical thinker.I dont care about policies.I want practices.I want to know very specifically what were going to tell people to do differently.I dont care if youre
302、 two days,three days in the office.Thats irrelevant to me.What matters is how your team collaborates differently in this new world.What are the very distinct practices?Thats what we call methodology.At the beginning of the pandemic,we asked our executives,“Has leadership changed?”Everybody said,“No.
303、”Within two months,the answer was,“Yes.”It was very clear that there were four fundamental attributes that needed to change in a radically volatile world,which is what generated this principle of radical adaptability.One of those attributes is foresight.What was wonderful about the pandemic was that
304、 it forced us all to be finely attuned to what was going on around us,and not just head down in the same way we were thinking in the past.We practiced what I called crisis agile.We were constantly looking around corners.What is it thats changed today?What was interesting was we no longer outsourced
305、foresight to some strategic planning department;it was everyones job to be highly attuned.It was all of our jobs to bring the insights of what we were seeing around corners into the team and assess that as a team to figure out what the next sprint looked like.Thats so powerful.Rick Ambrose at Lockhe
306、ed Martin had a monthly process inside of his executive team where once a month they got together and said,“What are we seeing that is a risk or an opportunity for us?”Everybody had a different lens on the world,from a competitive,environmental or technological perspective,to determine the risks and
307、 opportunities.They dont address these issues in their monthly meetings.They identify critical issues and decide what needs to go to a different meeting for planning.Someone on that team identified this virus in China in December,and they decided to move that to an observation,and then to a planning
308、 discussion.Lockheed Martin went fully virtual the way we work with brand new rules and assumptions,discarding old myths of working around collaboration,where we think meetings are collaboration.Were aiming to leverage this incredible inflection point as an opportunity,not to go back to old work way
309、s,but to go forward to work.Youve written that the pandemic triggered a speed of innovation and execution that we hadnt seen before.Are there any particular attributes that make this moment different from prior opportunities for leaders to rethink their organization?For the first time in my decades
310、of work with organizations,leaders are humble.They dont know the answer.While you might have a few leaders that are still clinging to the belief that,“We just need to get back to old ways of working,”I would say thats a rarity.There are leaders now who are saying,“How is it that we work in this new
311、world?Weve just made policies that say were two or three days in the office.”The reality is that hybrid work,with new tools and new policy assumptions around where you work,opens up a curiosity.It opens an opportunity to say,“Im going to give you a roadmap or a pathway to manage the hybrid environme
312、nt that is going to make our ways of working better than they were prior to 2019.”Thats your opportunity.Dont say that youre reinventing the ways of work.Just say that you are providing a roadmap for world-class hybrid strategy.And by doing so,you can reinvent the ways of work under the cloak of a s
313、olution to a problem everybodys struggling with right now.HR Leaders Monthly|May 2023 47in February a full month before the rest of the United States even considered it.That happened because of a preexisting process.Fewer than 15%of companies in the United States predicted and acted on their predict
314、ions around the pandemic,and yet these businesses had operations in China.Bringing foresight and agility into your week-to-week,month-to-month practices is a critical element of the radically adaptable methodology.Many organizations are justifiably very proud of the resilience of their teams while a
315、lso worrying about the cost,as teams are feeling burnt out or unhealthy.Do you believe you can have the upside of crisis agile the foresight and agility without the health consequencesThe teams that thrived spent dedicated time on what was going on personally and professionally with each member of t
316、he team.It wasnt something that happened only serendipitously;they had active curation.They had monthly meetings where they would go around as a team and ask,“What is most important right now that youre struggling with personally and professionally that we can support?”That shared vulnerability.Duri
317、ng the pandemic,the relationship strength for teams decreased if they didnt institute specifically relational elevating practices,like personal,professional check-ins where they share the sweet and sour.Teams that didnt have these distinct practices declined in relationship strength.If resilience wa
318、s handled by walking down the hallway and seeing somebodys eyes and knowing that they looked like they were distraught,that was an old way of organically and serendipitously managing another persons energy.But in this new world,you need a specific practice called an energy check-in,where once a mont
319、h everybody reports their energy from zero to five.Then if anybody puts a zero,one,or a two,you spend the time in the meeting saying,“Are you okay?Is there anything the team can do to support you?”When we saw a team that was highly resilient,they were co-elevating.They were pushing each other higher
320、.They were sharing each others energy.They were responsible for building relationships proactively,and that built resilience in the team.Many leaders believe we need to get employees back in the workplace because collaboration,innovation and relationship building can only happen if we are together i
321、n place.What do you say to those folks?Most executive teams are split on this.I just had a call this morning with a CEO of a large healthcare company who said,“Prior to the pandemic,we had intimacy.We had connection.We just had our first physical sales meeting.I was bumping into one person after ano
322、ther who were reporting that they had major setbacks during the pandemic a divorce,a move,a child in trouble.We didnt know about it during the pandemic.”They pointed at remote work as the culprit.I pointed to them as the culprit because they didnt exercise some of the practices that I mentioned earl
323、ier,like monthly energy checks.Those are the times when we open up an environment where people can be open and honest,with the intention of wanting to have each others backs once we hear the answers.Those teams that had those practices didnt suffer the same feeling.The answer is if you have an execu
324、tive who thinks that the old way is the only way,then youve got to give them an experience of a new way for them to come over.Otherwise,theyre just going to keep believing what they believed.Youve got to give them an experience of a new way of working,not just your ideas against their ideas.HR Leade
325、rs Monthly|May 2023 48Trends in Job Postings and Cost-Saving MeasuresIn Aprils Benchmark with Gartner webcast,we polled over 200 HR leaders on their organizations response to global economic uncertainty.Only 28%percent reported an increase in job postings compared to the average of the previous thre
326、e months,and Figure 1:How have your organizations job postings changed this month compared to the average of the last three months?(Select one)Percentage of HR LeadersMetrics of the Montha further 28%said they had not changed(see Figure 1).Between February and April,we saw a steady reduction in the
327、number of organizations increasing job postings.This data may be an early sign that the labor market is cooling off,but the overall picture is more complex.n=116(April 2023),122(March 2023),105(February 2023)Source:Benchmark With Gartner:Emerging Issues,Skills Gaps and Talent Competition(26 April);B
328、enchmark With Gartner:Persistent Talent Shortages,Sustaining DEI and Other Emerging Issues(22 March);Benchmark With Gartner:Fair Pay,Well Being and Other Emerging Issues(22 February)by Bhakti Laul and Dion Love2%10%20%14%10%28%16%5%11%24%12%11%18%20%6%11%23%8%7%22%24%Increased by More Than 20%Increa
329、sed by 1-9%Increased by 10-19%No ChangeDecreased by 10-19%Decreased by 1-9%Decreased by More Than 20%April 2023March 2023February 2023HR Leaders Monthly|May 2023 49Metrics of the MonthOrganizations are considering a variety of cost saving measures to mitigate the impact of economic uncertainty(see F
330、igure 2).The most common measures being considered for the next three months include slowing down hiring(51%),reducing HR budgets(25%)and hiring freezes(24%).Fewer are considering laying off employees or reducing their recruiting budgets.Our survey also found that quit rates and levels of contingent
331、 workers are holding steady,while most participants still expect competition for talent to increase,not decrease,in the coming three months.Overall,the data suggests that HR leaders are preparing for potential headwinds,but it is too early to identify a sustained cooldown in the labor market.Figure
332、2:Which of the following talent cost saving measures do you ANTICIPATE your organization taking in the next three months?(Select all that apply)Percentage of HR Leadersn=119(April 2023),104(March 2023),101(February 2023)Source:Benchmark With Gartner:Emerging Issues,Skills Gaps and Talent Competition
333、(26 April);Benchmark With Gartner:Persistent Talent Shortages,Sustaining DEI and Other Emerging Issues(22 March);Benchmark With Gartner:Fair Pay,Well Being and Other Emerging Issues(22 February)Slow Hiring for RolesFreeze Hiring for RolesDecrease Overall HR BudgetLay Off EmployeesWe Do Not Anticipate Taking Any Cost-Savings StepsDecrease Recruiting BudgetOtherApril 2023March 2023February 202351%25