Good morning!
HR leaders are taking on more responsibilities than ever. They’re dealing with burnt out employees, demanding Gen Z workers, and they’re often responsible for rolling out AI within their own workforce. But none of those concerns even crack the top five on their list.
Ineffective leadership is the top worry for U.S. HR and risk executives this year, according to a new report from Mercer, an HR consulting firm. That’s followed by improper rewards decision making, which includes employer choices on anything provided to staffers like compensation packages or PTO benefits. Increasing health and benefits costs came in third, while worries over a lack of cybersecurity came in fourth place, misconduct placed fifth, and tech skills shortages was sixth.
“Employee trust with their leadership has eroded since the pandemic,” Stephanie Brunermer, principal of global research and solutions for Mercer, tells Coins2Day. She adds that executives often faltered when it came to steering their workforces through global crises.“So some of that trend around trust, following your organization and believing in them, are leading HR and risk professionals to say: ‘We need to make sure that we address this head-on through our leadership.’”
When it comes to rewards decision-making, everything from wages, to flexible schedules, retirement savings plans, and childcare are chief priorities for workers, according to Jennifer Calhoun, a senior health partner for Mercer. But most companies must pick and choose which ones to prioritize, and HR professionals need to be prudent when they decide where to spend their employee budgets. Each organization is different and there is no “one-size-fits-all” rewards package that bosses should follow, but she adds that the stakes are high.
“Benefits are [employees’] entire relationship with an organization. It’s everything,” she says.
Calhoun says rising health and benefit costs are due to macroeconomic headwinds and increased employer care expectations from workers. “People are utilizing health care more post-pandemic under private plans. And in most markets around the globe, we’re seeing pretty significant inflation,” she says.
Acknowledging their worries is one step in the right direction, but Calhoun says the next step is for HR leaders and risk managers to strategize solutions together. The good news is that 97% of respondents say CHROs and risk-focused executives are already working as a team. As more problems arise, this collaboration will be essential to effectively lead their workforces and businesses.
“The call to action is HR and risk can now work together to evaluate what are the common themes, diagnoses, and shared resources,” she says. “They should not work in isolation anymore.”
Emma Burleigh
[email protected]
Around the Table
A round-up of the most important HR headlines.
A union representing Samsung employees is gearing up for its first-ever strike against the company after management failed to reach a compromise in pay raise negotiations. Wall Street Journal
After acquiring a stake in Buzzfeed, former Republican presidential candidate Ramaswamy urged the media company to fire staffers and bring on conservative commentators to “challenge” readers. The Guardian
Siemens Energy may cut 4,100 jobs in its Gamesa wind turbine group, and is in discussion with labor representatives on unit restructuring amid slumping sales of onshore turbines. Bloomberg
Watercooler
Everything you need to know from Coins2Day .
Ironic. About 20% of the U.K.’s Office for National Statistics, which tracks the economy and labor market, left the organization in the past year due to RTO policies and an increased demand for their skills. —Ryan Hogg
Optimizing art. Netflix’s co-CEO says that AI won’t replace Hollywood’s creative talent, but those who don’t adopt the new tech may fall behind their savvy counterparts. —Paolo Confino
Back to school. U.K.’s education sector is having a moment—teachers, lecturers, and learning assistants are among the roles most highly sought-after by Gen Z due to their flexible summers and job security. —Orianna Rosa Royle
Concessions. According to a new report, workers looking to make upwards of $250,000 will have to go into the office, as high-paying job listings with remote schedules dropped 60% this past year. —Jane Thier