Walking the Tightrope — Balancing New Employee Demands & Business Goals

CHROs know that a great work environment can lead to higher employee performance, engagement and retention. But between resource constraints and demands for new and improved benefits, how and when do you compromise as an HR leader? CHROs in the Atlanta community got together to discuss how to strike a balance between workforce strategy and business needs, while not compromising on a strong organizational culture. 

The New Social Contract

Chief People Officer Janice Burns of Degreed kicked off the discussion by talking about the momentous change that has influenced the world of work – not only the pandemic, which accelerated the shift, but also trends in the economy, technology, demographics and more. The outcome of all of this change is a development she called “the new social contract” between employers and employees. 

Up to today, the social contract – or the set of expectations between employees and employers – had been the same for years. For example, employees were expected to achieve company goals in a productive and efficient manner, while employers were expected to provide competitive and fair compensation and health and welfare benefits. In another interesting example in light of the past two years, employees were expected to spend their time at a specific location dictated by the employer, and the employer would establish working hours, a dress code, and perhaps offer some flexibility.

Now, as Janice explained, this contract has been transformed — and has become more complex. Instead of compensation, it’s about total rewards and financial security. Instead of offering health and welfare benefits, it’s about the total well-being of employees. The work environment, whether virtual or physical, should help promote connectivity among employees, which in turn supports well-being and productivity. This new social contract, she noted, touches all aspects of people-related topics, including an organization’s culture, mission, values and purpose.

She posed a question to the group for their discussion — how does this new contract between employees and employers impact the role of HR and HR leaders? Are CHROs experiencing these new expectations, and if so, how can they be balanced with the needs of the business? 
 

Key Takeaways from Discussion Groups

The small groups started off by discussing the various factors driving this change to the social contract with work. One of the primary reasons is that most CHROs are experiencing staffing issues and challenges with filling roles. They are also noticing changes in employee expectations around culture, the work environment, and their learning and development.

• Time and attendance are big factors. Employees are no longer willing to accept the hours and the location set by the employer. Employees understand the value of their time, and most HR leaders are making some kind of accommodation in terms of a flexible schedule or location.
• Expectations have changed when it comes to career development. CHROs observed that younger generations expect to be promoted much quicker through the organization. Employees are looking at their trajectories and whether organizations are setting them up for success.
• Explore ways to understand culture and sentiment. One of the fundamental aspects of the role of HR is to understand the culture and how employees are feeling about it. One CHRO shared a best practice in conducting an employee “anniversary survey.” Instead of surveying employees all at the same time, individuals receive the survey on their work anniversaries, as he noted, “at a time when employees might be evaluating things.” He shared that there were several questions related to culture, and while the answers are anonymous, they are tied to leaders. The leaders and managers can see a dashboard of results and identify any red flag areas, especially pertaining to culture.

by CHROs, for CHROs

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