Each year, we recognize International Human Resources Day in May. Originating as a way to recognize the effort and contributions of HR professionals, this day highlights the importance of effective human resource management in fostering a satisfied and productive workforce. It is an appropriate time to reflect on the critical role Human Resources plays within every organization.
HR is an often overlooked and under celebrated entity in portfolio companies. However, a strong HR approach that follows the Total Rewards framework improves recruitment and employee retention, inspires a productive workplace culture, and supports company goals through growth and transition.
International Human Resources Day
International Human Resources Day falls on May 20th every year. It’s a positive reminder to company leaders that a continual investment in your HR department is an investment in the company’s success. It’s also a good time to consider an HR assessment to ensure your company remains efficient, effective, and competitive when it comes to human resources.
The theme for this year’s International HR Day is AI and technology. While evaluating your HR operations, consider how technology is used in your companies and how you can better leverage HR technology going forward. Successful HR teams have a lot in common. 2.6x are likely to be using performance management software and other automated platforms. Of these who are exceeding their goals, 82% are confident in connecting their work to business outcomes.
10 Human Resource Trends and Statistics in 2024
It’s been a chaotic year. Yet in the face of so much uncertainty Growth Operators find that HR teams serve as the rock for employees and the office of the CEO and CFO executives to lean on. In looking at some of the biggest trends and concerns facing HR leaders, as reported by Forbes magazine, it’s clear that a holistic approach to HR is key to the growth and success of companies. Let’s look at some of the challenges leaders face:
1. Improving Leadership is a Priority for HR in 2024
Effective and sustainable leadership fosters loyalty and productivity within companies. Your future depends on developing strong leaders who will guide your teams to greater growth.
2. 45% of Employees are Burned Out by Organizational Changes
Unstable organizations that continually change direction or leadership have a difficult time retaining employees. Providing stability and mitigating change fatigue are key to keeping talent happy and productive within your company. Research shows that it can take 4-12 months for employees to adjust to layoffs, and leadership changes.
3. 44% of Companies Do Not Provide Compelling Career Paths
Only one in four employees feels confident in their current role. The rest tend to browse roles at other companies. To combat this, HR departments need to develop clear job descriptions, develop employee skills, and outline career paths to keep employees happy and engaged.
4. 50% of Employees Won’t Apply to a Company with a Bad Reputation
Employee satisfaction directly impacts a company’s reputation. Bad reviews from unhappy employees can tarnish your image and make your company less appealing to top talent looking for true career growth rather than just a paycheck.
5. 30% of New Hires Leave Within 90 Days
88% of employees say they did not feel positive about their onboarding process. Without a clear job description, a thorough onboarding process, and devoted leadership, employees quickly become discontent. HR departments need to look beyond recruitment to retain and develop new hires.
6. Companies with Highly Engaged Employees are 21% More Profitable
Satisfaction goes beyond cultivating a pleasant workplace. It directly impacts your bottom line. Invest in your people and see the return in growth.
7. It Costs 33% of an Employee’s Salary to Replace Them
Another reason to invest in your people. Keeping employees happy and productive saves you considerable expense.
8. 90% of Fortune 500 Companies Have DEI Groups
A solid diversity, equity, and inclusion strategy attracts a stronger and more diverse workforce. With 76% of employees stating that a diverse workplace is important, leaders need to make their companies attractive to a wider talent pool.
9. 36% of HR Professionals Say They Don’t Have Adequate Technology
Pairing your leaders with the right technology can have a significant impact on their efficiency and capabilities. HR technology has become a key player in making companies more productive.
10. 43% of HR Leaders Report Not Having a Future of Work Strategy
Without a clear plan and stakeholder investment, companies will flounder rather than thrive. While the pandemic upended how we work, it’s crucial to recalibrate and align HR with a strong vision for the future.
How a Total Rewards Program Helps
Total Reward strategies provide benefits that go beyond traditional compensation strategies to attract and retain top-tier talent. By using Total Rewards, companies show where their values lay and demonstrate their commitment to their employees.
The Total Rewards model can be particularly effective in addressing the unique HR challenges portfolio companies face such as aligning diverse cultures after a merger, scaling operations, or managing high employee turnover. For example, tailored development opportunities can help integrate and align employees from different corporate backgrounds, while flexible work-life policies can be attractive in high-pressure environments. A well focused Total Rewards program will help your company retain top talent.
HR Assessment and Transformation: Leveraging External HR Expertise
Given the complexities of managing human resources in high-growth environments, utilizing external HR expertise offers measurable benefits. External consultants and fractional HR executives, like those from Growth Operators, can provide the specialized knowledge and experience needed to identify gaps and implement effective HR strategies using Growth Operators nextLEVEL performance services.
Using a nextLEVEL HR assessment and following transformation methodologies allows organizations to take HR teams to the next level and maximize the value of your most important assets. Growth Operators nextLEVEL assessment creates a comprehensive scorecard of your HR functions and measures it against best practices. Based on your unique data, we design a custom plan that identifies underlying issues and innovative solutions that may not be apparent to internal teams.
Issues a Growth Pro can help with include:
Organizational Design
Employee Engagement
HRIS, Payroll and Compliance
HR technology
Compensation Packaging
Training and Development
Benefits and Compensation
Recruiting and Staffing
Total Rewards Statements
Do More with Your HR
Let’s acknowledge the indispensable role of HR professionals. For private equity and venture capital firms looking to advance the HR strategies within their companies, Growth Operators is ready to help. With a robust Total Rewards program and nextLEVEL assessment, you’re investing in high performance and engagement in tandem to create a harmonious cycle. Contact Growth Operators today.