Compare your HR practices to other pros in the industry. Take the quiz now!
Take our quiz to find out how your future plans compare to what others are doing.
How are HR leaders preparing for the future?
Change and uncertainty have become recurring themes in the world of HR, and 2018 looks to be no different. Which HR challenge is causing you the most anxiety?
45% agree. There’s widespread concern that recruiting and hiring is getting more difficult.
With the current unemployment rate below 5%, it’s no wonder recruiting and hiring has become a major struggle for many organizations. To combat the challenge, companies are turning to analytics to identify gaps in their recruiting process.
45% are in the same boat. Retaining the best and the brightest is mission critical for many organizations.
Everyone mentions winning the war for talent, but some companies are ignoring the war for keeping talent. You’re only as good as the people you have in place to support your business and if you’re not investing in their development, your chances of retaining them decrease significantly.
33% of your peers say compliance will continue to be an issue in 2018 and beyond.
The more things change, the more they stay the same. Compliance will continue to be a difficult burden for many organizations to carry. That’s why it’s critical to have a partner in your corner to help navigate complex tax, healthcare and wage and hour laws that create the most anxiety.
Recruiting and retaining the best talent topped the list of HR challenges impacting your peers. If you’re feeling good about where you stand, give yourself a big pat on the back. Many companies are struggling to reach your level of confidence, but before you get too comfortable and grow stagnant, make it a priority to continuously evaluate your approach to recruiting and retention.
Looking ahead, what’s the #1 thing your team will do to win the war for talent in the next five years?
47% expect to use data and metrics to find quality candidates.
Data analytics provides a modern way for organizations to get deeper insights into their recruiting data and bring valuable information to stakeholders around key metrics like candidate pipeline, time to hire and offer acceptance rates. Many organizations believe that data-driven decision making will help solve the recruiting and hiring challenge.
36% of respondents point to employee referrals as critical to solving the recruiting and hiring challenge.
Referrals are a great way to ensure you’re in recruiting mode event if you don’t have a position open, and an important first step of the recruiting process should be leveraging current employees to fill the opening. An employee referral program allows you to build a talent pipeline while incentivizing your employees for introducing you to talented people who are more likely to remain at your company.
Only 26% of HR practitioners plan to use artificial intelligence to make hiring decisions.
Artificial hiring intelligence is still in its infancy, but some companies are using it to help reduce unconscious bias during hiring and to speed up the process by narrowing the field of applicants. Even if artificial intelligence continues to grow, it won’t replace personal interactions needed to determine if a candidate is a culture fit.
HR teams are investing heavily in recruiting data and analytics as a competitive differentiator to win the war for talent. Tracking key performance indicators (KPIs) throughout the recruiting process is critical to find great talent in this competitive market. If you’re lacking critical data to optimize your recruiting efforts, learn how Paycor’s Perform ATS can elevate your performance.
What is your company’s current approach to performance management?
51% of organizations track performance via annual reviews.
While annual performance reviews were the most popular choice, we’re seeing a shift in the way many organizations provide feedback to their people. Employees crave more communication, a deeper understanding of how their position aligns to company goals, and more companies are recognizing the importance of more frequent touch bases.
You’re part of a growing group to adopt a more frequent review process. 40% of organizations are now conducting quarterly employee reviews.
Quarterly performance reviews are quickly becoming the norm and it’s creating more motivated employees. Many companies are following suit and shifting their mindset to recognize the impact more frequent communication has on engagement and retention. Give yourself a round of applause for being on the cutting edge of performance management.
Only 28% are evaluating performance on a monthly basis.
Monthly reviews enable employees and managers to ensure that long-term objectives are being met, and they also afford managers the opportunity to learn about roadblocks and break down barriers preventing employees from reaching their goals. One struggle many are looking to overcome is how much communication is too much?
The annual performance appraisal was once the law of the land, and very few, if any, organizations strayed. But that mindset has changed over the last few years. More frequent communication with employees has shown to increase morale, engagement and productivity. Is your organization ready to take the leap?
What do you think your company’s approach to performance management will be in five years?
38% expect to hold more frequent reviews.
Once seen as a trend, quarterly/monthly employee reviews have become the standard – and for good reason. They boost morale and create more productive and engaged employees.
33% will incorporate 360-degree feedback into the review process.
A growing number of organizations will implement 360-degree feedback as part of the performance evaluation. Not only does it allow employees to see how their performance is viewed by others, not just their manager, but it helps teams work more effectively together.
16% expect to wipe out numerical ratings.
Numerical ratings are generally disliked by employees because let’s face it: they’re subjective. Plus, ratings scales can be confusing and managers can tend to focus more on the numbers than on providing quality feedback. In the future, look for numerical ratings to undergo significant change.
29% believe performance management at their organization will remain status quo.
Maybe your organization has taken the necessary steps to improve your performance management process. Or, you could be comfortable with the way you’re doing things currently. In either case, continue to keep your pulse on what’s trending so you’re not left behind as the HR industry evolves.
Ok, last question. Which HR function are you most heavily investing in to prepare for the future?
You and your peers are on the same page. 40% believe that strong investments will be made to help win the war for talent.
As talent becomes tougher to find, organizations can’t afford to sit back and accept status quo. Investing in an applicant tracking system can make yesterday’s processes more efficient and effective.
36% of HR pros believe more focus will be given to managing performance.
HR of tomorrow will be focused on developing and retaining people and less about core, administrative functions. Organizations that are adopting a more people-centric approach are paving the way for success in the next five years and beyond.
Merely mining HR data is no longer enough. It has become an operational business imperative for today's organizations to extract actionable insights informed by data.
Investing in HR data is the new norm, and 31% believe it will continue over the next 5 years.
There are two primary battles HR teams will face in the coming years. The war for landing top talent and the war for keeping the best employees. Organizations are preparing to overcome these challenges by doubling down and creating recruiting and retention strategies that focus heavily on investing in people. If your HR team is not prioritizing these two areas, you could be falling behind.
Do you think your organization will achieve its’ business objectives in 2018?
You’re right on par. 58% believe 2018 will be a good year.
Employee morale is trending in a positive direction and many organizations are feeling confident about the outlook for their company over the next 12 months. But with anything, there’s still work to be done. Focusing on engaging and retaining your people will set your company up for success in the coming year.
You’re not alone in feeling some uncertainty. 36% are only somewhat confident that they’ll achieve business objectives.
Lingering compliance changes continues to cause overall uncertainty, and a shortage of qualified talent is challenging companies to work harder to meet expectations.
You’re in the minority. 6% find it unlikely that they’ll meet business objectives.
Take a step back and analyze what’s holding you back from meeting business objectives. Asking tough questions will allow you to identify gaps that are preventing you from accomplishing your goals.
94% of companies surveyed feel pretty confident about their company’s outlook over the next 12 months. If you don’t have a good pulse on where your organization stands, take some time to learn from leaders about what’s on their mind as 2018 approaches.
Paycor modernizes every aspect of people management, from the way you recruit, onboard and develop people to the way you pay them, retain them and build a company culture. Experience our powerful platform and see how we can help you accomplish your people management goals.
Now that you’ve compared your HR practices to other pros in the industry, where could you use technology and support to help accomplish your future goals?