The business case for HR and healthy people practices

Talent Attraction, the recruitment experience and the candidate journey:

Investing in the recruitment process reaps rewards. Forward-looking companies / CEOs who prioritise their organisation’s ability to hire amazing people routinely outperform their competitors in the marketplace.

According to The Boston Consulting Group, the best hiring organisations have more than three times the revenue growth than the poorest in any given industry.

Stats to highlight include:

·        The quality of the recruitment process can impact not only your ability to attract high-quality talent but also your bottom line. After a bad recruitment experience, 50% of candidates won’t purchase from or recommend a company.

·        Demand outstrips supply in almost every country on earth.

·        40% of employers globally are having trouble filling positions (Manpower Group 2016 Talent Shortage Survey).

·        1 million less employees than the F5000 needs to hit its revenue goals.

·        75% of organisations experienced recruitment difficulties in the last year and 10% had trouble recruiting for more than 50% of their roles (CIPD Resourcing and talent planning survey 2017).

·        68% of job applicants abandon job applications due to time and complexity (https://www.icims.com)

·        Bad hiring experiences negatively impact a company’s brand and reputation. Bad candidate experiences cost Virgin Media £4.4m annually! This resulted in Virgin Media turning candidate experience into a company-wide priority (https://business.linkedin.com/talent-solutions)

·        5% of candidates never hear back from a company after sending in an application.

·        60% of candidates say they've gone for interviews and never heard back from the company.

·        42% of disgruntled candidates will not apply for a position at the company again.

·        22% will tell others not to apply to the company and 9% will ask others to boycott that particular company.

Selection:

·        Sometimes, it is not the lack of available talent that is the stumbling block. In the candidate-scarce IT market, 60% of hiring managers reported that evaluating skills was their number one challenge, as opposed to lack of talent (HackerRank 2018 Developer Skills)

Diversity:

Diversity management supports profit, innovation, and competitive advance.

·        Racially and ethnically diverse teams are 35% more likely to have financial returns above their respective national industry medians.

·        Companies in the top quartile for gender diversity were 15% more likely to have financial returns above their respective national industry medians. (http://www.mckinsey.com/business-functions/organization/our-insights/why-diversity-matters).

·        75% of women who lack confidence at work say it's because of work relationships, lack of supportive environments, and no growth and development opportunities.

Generational differences for recruitment and retention:

·        What are the top 3 reasons to leave a job (according to LinkedIn)?

·        Millennials: improved compensation and benefits, more advancement and more of a challenge

·        Gen X: more of a challenge, improved compensation and benefits, and more advancement

·        Baby Boomers: more of a challenge, improved fit for skills and interests, and to make more of an impact

 Mental Health and cost of stress, absenteeism, and low morale:

With 1 in 4 people experiencing a mental health problem of some kind each year in England, it is important to consider the implications.

·        We are 12% more productive when in a positive mood (https://warwick.ac.uk/fac/soc/economics/staff/dsgroi/impact/hp_briefing.pdf) (www.smf.co.uk)

·        As of 2019, Mental health is the number one cause of sickness absence in the workplace, with back pain number 2.

·        9 out of 10 people with mental health problems 'discriminated at work' (https://www.mentalhealth.org.uk/a-to-z/s/stigma-and-discrimination)

·        1 in 6 people report experiencing a common mental health problem (like anxiety and depression) in any given week in England (https://www.mind.org.uk/information-support/types-of-mental-health-problems/statistics-and-facts-about-mental-health/how-common-are-mental-health-problems/#References)

·        On average, lonely workers say they think about quitting their job more than twice as often as non-lonely workers (Cigna)

Costs Associated with Turnover and Replacement:

Only 15% of businesses report their organisation calculates the cost of labour turnover and yet the figures

·        The cost of employee turnover is estimated at 40-400% of an employee's annual salary, a considerable financial impact on your business as the UK average turnover rate is approximately 15% a year (https://www.monster.co.uk/advertise-a-job/hr-resources/workforce-management-and-planning/staff-retention/what-is-the-ideal-employee-turnover-rate/).

·        Hard costs of turnover include hiring and training costs, and productivity losses. The hard costs of turnover can reach 150% of the employee’s annual salary, with replacement costs being 2.5 times the employee’s annual salary.

·        Soft costs of turnover include lost time and reduced morale. This can lead to uncertainty and further increase turnover. (jumpstart-hr.com/the-true-cost-of-employee-turnover).

·        In contrast, great hires can motivate and inspire future hires to join companies, supporting growth and innovation.

·        Replacement costs can be 250% of the employee’s annual salary. (Resourcing and Talent Management Paperback, 2014, Stephen Taylor).

Engagement and retention:

What is it about an organisation that makes an employee want to stay?

·        90% of workers said they are more likely to stay at a company that takes and acts on feedback (Achievers)

·        Employees who are very satisfied w/ benefits are almost 4x more likely to be very satisfied with their jobs (MetLife)

·        26% of employees feel being undervalued and underappreciated is the highest barrier to engagement (Achievers)

·        In 2020, 35% of employees planned to look for a new job, 33% were not planning to look for a new job, and 32% were undecided (Achievers)

·        71% of employees would quit if another employer offered them flexible scheduling in a new job (ExecuSearch)

Training and Development vs. Compensation and benefits:

·        Money remains the number one motivator for 67% of job seekers and employees looking elsewhere for career opportunities (Glassdoor)

·        32% of workers looking to change jobs in 2019, cited low pay or a lack of benefits (15%)

·        Employees who are very satisfied w/ benefits are almost 4x more likely to be very satisfied with their jobs (MetLife)

When asked to rank the three non-traditional benefits that are most important – regardless of whether or not they’re actually offered at work – employees ranked Education benefits (65%) far above wellness benefits (17%) .

1.      Education benefits also ranked higher than,

2.      Workplace training (21%),

3.      Paid family leave (25%), and

4.      Life or disability insurance (11%) (Bright Horizons)

·        71% of Fortune 500 companies have formal mentorship programs (ATD)

·        Companies rated highly on compensation and benefits saw 56% lower attrition (LinkedIn)

·        Companies rated highly on employee training saw 53% lower attrition (LinkedIn)

·        82% of employees say a lack of progression would influence the decision to leave their jobs (CareerAddict.com)

On-boarding and Induction:

·        54% of people are likely to leave their job as a result of poor onboarding experience.

·        More than 30% of new starters have had a poor onboarding experience (Webonboarding Survey, 2017)

·        20% have left a role due to a poor onboarding experience (Webonboarding Survey, 2017)

Cliques in the workplace:

·        74% of people would not be more likely to leave their current employer if their best friend left (Cigna)

Flexible working:

Flexible working has been pushed to the forefront by the COVID pandemic, with companies and employees alike realising the value of having different arrangements. Companies rated highly on flexible work arrangements saw 137% higher headcount growth (LinkedIn). However, more than 50% of organizations lack formal processes for return-to-work and stay-at-work programs (The Standard)

• See our blog on flexible working here: https://www.dandhrassociates.com/how-prepared-are-you-for-any-surge-in-requests-for-flexible-working