2024年的HRTech:GenAI、分析和技能技术In 2024, the field of Human Resources is experiencing a transformative shift with the integration of cutting-edge technologies such as Generative AI (GenAI), advanced analytics, and skills technology. This article by Dave Zielinski, featured on SHRM Online, delves into the evolving landscape of HR, highlighting the significant impact of these technologies on enhancing the employee experience, improving regulatory compliance, and revolutionizing talent management. Industry analysts and thought leaders share insights on the growing importance of GenAI in HR processes, the challenges of maintaining employee experience in cost-cutting scenarios, and the potential of predictive analytics in optimizing workforce planning.
接受SHRM Online采访的人力资源行业分析师、从业者和思想领袖表示,今年,人力资源职能部门将采用生成式人工智能 (GenAI),投资于提升员工体验的技术,并采用强大的预测分析和技能技术。
人力资源领导者将转向技术,这些技术不仅可以提高法规遵从性,还可以帮助其组织做出更好、更快的人才决策并重新定义工作方式。
有远见的公司将继续投资 EX
一些分析师预测,随着高管将注意力转向降低成本和提高效率,远离包容性、公平和多样性等问题,员工体验 (EX) 将在 2024 年出现“衰退”;灵活的工作安排;和员工心理健康。员工的工作选择将减少,雇主将收回一些影响力。
不过,尽管许多组织可能会在 2024 年减少或冻结 EX 支出,但专家对此类举措的后果提出警告。
JP Gownder 是 Forrester 的副总裁兼首席分析师。他在博文中写道,根据 Forrester 研究,66% 的技术决策者表示,他们将在 2024 年增加对 EX 或人力资源技术的投资,其中许多投资将旨在提高效率,而不是 EX 结果。
但逆流而上的领导者将在 2024 年获得实实在在的好处。
“通过开发成熟的 EX 计划,您的组织可以提高生产力、降低人员流失率并提高创造力,”Gownder 写道。
其他专家认为,足智多谋的人力资源领导者会在预算紧张的情况下找到投资 EX 的方法。
管理咨询公司光辉国际 (Korn Ferry) 首席人力资源官 (CHRO) 业务的高级客户合伙人丹·卡普兰 (Dan Kaplan) 表示:“人力资源部门将被迫在低迷的市场中保持参与度,甚至在成本削减和削减的整个过程中也不例外。” “这将是一场艰难的舞蹈,但最好的人力资源领导者会找到办法做到这一点。”
光辉国际 (Korn Ferry) 专门负责人力资源问题的高级客户合伙人胡安·巴勃罗·冈萨雷斯 (Juan Pablo Gonzalez) 表示,组织对 EX 的承诺在 2024 年不会减弱,但 EX 看起来会非常不同。
“EX 的本质可能会变得更加个性化,同时也会变得不那么个性化,”冈萨雷斯说。“例如,通过使用 Microsoft Office Copilot、Workday 和 Salesforce 等大型软件平台中已有的人工智能功能,雇主和员工已经改变了他们的 EX。正在发生的情况是,员工与技术的互动越来越多地取代了与人的互动,但与技术的互动已经变得更加适合员工的特定需求和情况。”
亚特兰大人力资源咨询公司 IA 的创始人兼管理负责人 Mark Stelzner 表示,虽然由于组织面临控制盈利的挑战,预算将在 2024 年重新分配,但良好的 EX 相关技术投资将继续为公司带来红利。
“我认为投资 EX 实际上会提高效率并降低成本,”Stelzner 说。“到 2024 年,我们可能会看到组织不断转向‘流程主导、技术支持’的理念。端到端流程的优化通常会导致诸如消除现有技术债务以及统一工具和技术等决策,以减少员工的困惑并优化个性化,从而减少集成良好的接触点。”
Gartner 专门研究人力资源技术的副总裁分析师 John Kostoulas 表示,做出更具战略性的采购决策和改善现有技术生态系统的治理是改善 EX 的两个关键。Gartner 最近的研究发现,60% 的人力资源领导者认为他们当前的技术阻碍而不是改善了员工体验。
Nucleus Research 专门负责员工体验的研究经理 Evelyn McMullen 表示,仅仅为了提高效率而不是 EX 结果而设计的技术投资可能被证明是短视的。她指出,改进的 EX 通常会带来更好的绩效并降低与营业额相关的成本。
麦克马伦说:“考虑到劳动力市场和求职者优势的不断波动,减少 EX 预算的风险尤其大。” “当控制权不可避免地回到求职者手中时,保留 EX 投资的组织将能够更好地捕获和留住最优秀的人才。”
GenAI 从实验转向加速采用
到 2024 年,通过更多地采用该技术,人力资源职能将从涉足 GenAI 转向更深的领域。
随着领导者制定更严格的 GenAI 治理计划以及使用该技术的风险开始降低,人力资源和招聘部门将越来越多地使用其 HRIS 平台中已有的 GenAI 工具来编写职位描述和面试指南、创建敬业度调查、开发培训课程、分析数据,并制定政策。
世界大型企业联合会 2023 年底对首席人力资源官的调查发现,61% 的首席人力资源官计划在 2024 年投资人工智能以简化人力资源流程。
分析师 Eser Rizaoglu 表示:“许多人力资源领导者的 GenAI 之旅仍处于起步阶段,但要么通过现有的人力资源技术提供商获得 GenAI 功能,要么到 2024 年中期购买新的 GenAI 工具。” Gartner 的人力资源研究和咨询实践。
Rizaoglu 表示,许多人力资源技术供应商仍在努力弄清楚如何充分利用 GenAI 的功能,同时平衡保护数据、确保有效治理和考虑道德因素的需求。他表示:“在实现这种精细的平衡之前,GenAI 能力在人力资源领域的大规模扩散将面临挑战。”
Stelzner 表示,虽然去年 GenAI 带来了兴奋并刺激了人力资源领域的实验,但“冷酷的现实”是许多组织仍然没有准备好全力投入。
“到 2024 年,GenAI 采用率的任何增长都可能是渐进式的,包括更好地利用聊天机器人、增强员工沟通的个性化、更加关注人才招聘领域的可能性以及系统升级和实施测试的自动化。”他说。
埃森哲进行的研究发现,GenAI 有潜力改变组织 40% 的工作时间。“这并不意味着 40% 的工作岗位将会消失,而是反映了工作方式的转变,”负责该公司人力资源转型和交付实践的埃森哲董事总经理迈克尔·本亚明 (Michael Benyamin) 表示。“技术将取代一些任务,让员工在工作中变得更有生产力、更具创造力和效率。人工智能是人类能力的倍增器。”
随着 GenAI 开始增强或转变更多的工作角色,人力资源和学习领导者将需要创建敏捷的学习计划,以重新培训员工使用快速发展的 GenAI 工具的技能。许多工人几乎没有接受过如何使用该技术的培训。
Salesforce 于 2023 年进行的一项调查发现,62% 的员工表示他们缺乏有效、安全使用 GenAI 的技能。波士顿咨询集团的另一项研究发现,尽管该技术有望从根本上重塑他们的工作方式,但只有 14% 的一线员工接受过与人工智能相关的技能提升。
Benyamin 表示,随着 GenAI 在工作场所变得越来越普遍,人力资源部门必须帮助制定负责任和道德的人工智能使用政策,并制定培训计划来解决偏见、歧视、数据保护和适当数据使用等问题。
更加关注变革管理,提高新人力资源软件的采用率
专家认为,许多人力资源领导者将寻求通过采用变革管理策略来提高 2024 年技术投资的回报,例如确保员工使用新采用的技术解决方案。
人力资源面临的一项持续挑战是管理云技术供应商源源不断的更新和新功能,导致许多人力资源软件即服务 (SaaS) 许可证闲置。位于加利福尼亚州帕洛阿尔托的 SaaS 智能平台 Productiv 于 2023 年进行的一项研究发现,组织中 53% 的 SaaS 许可证总体未使用。
位于阿拉巴马州亨茨维尔的人力资源咨询和研究公司 Lighthouse Research 的首席研究官本·尤班克斯 (Ben Eubanks) 表示,许多组织低估了如何确保员工在新的人力资源平台和应用程序推出后定期使用它们。
“人力资源和人才技术不是‘按下开关就可以开始’类型的解决方案,”尤班克斯说。“但许多雇主仍然这么认为,并低估了采用该技术所需的行为改变。”
重新思考员工敬业度调查
更多的人力资源和执行团队将重新考虑如何创建敬业度调查以及分发调查的频率,以减少“调查疲劳”。
ServiceNow 高级副总裁兼员工工作流程产品总经理 Gretchen Alarcon 表示,随着组织继续努力寻找“秘方”,让员工在 2024 年更频繁地重返办公室,人力资源领导者将需要使用更有意义的方法测量工具。
她说:“组织将利用员工的声音调查和反馈来分析在办公室花费的时间与员工情绪和生产力的关系。” “这将使领导者能够根据数据而不是假设做出决策,这样他们就可以根据员工的需求、行为和提高生产力的因素来调整重返办公室 [RTO] 策略。”
从改进的技能技术中获益
转向基于技能的招聘和晋升策略的人力资源和招聘领导者将受益于技术的发展,例如使用人工智能和机器学习自动创建、组织和更新员工技能数据库的技能本体,从而显着减少体力工作量人力资源部要求。
下一代本体论和其他新兴技能技术可以使人力资源领导者更轻松地识别组织中的技能差距,然后相应地调整招聘或学习和发展计划。虽然市场上没有真正的端到端技能技术解决方案,但许多人力资源领导者正在将人工智能驱动的点解决方案结合在一起,以创建有效的技能数据库和评估工具。
“到 2024 年,随着组织采用技能智能技术,他们将开始认识到,这不是拥有最大的技能数据库,而是一个不断更新的丰富且互联的技能数据库,”Alarcon 说。她补充说,此类数据库使公司能够了解人才缺口是否是由于缺乏合适的人才或缺乏技能造成的,以及他们是否需要为未来培养、购买或借用人才。
预测分析工具变得更加强大
人力资源从业者和分析师认为,人力资源部门将受益于日益强大的预测分析工具,这些工具将改善劳动力规划和数据驱动的决策。
光辉国际 (Korn Ferry) 的冈萨雷斯 (Gonzalez) 表示:“凭借更大的数据集和改进的算法,人力资源部门应该能够采取一些措施,例如缓和过去几年的招聘盛衰周期。” 例如,冈萨雷斯表示,雇主不会雇佣数千名员工,然后在六个月后解雇其中一半,而是能够更好地预测在合理的时间内他们需要的员工数量和类型。他说:“然后他们可以雇用和培养一支更稳定的员工队伍,以造福所有组织利益相关者。”
Stelzner 认为,许多人力资源部门由于没有充分发挥数据分析的潜力而错失了机会。他说,如果未能投资分析人力资源数据所需的工具和技能,可能会导致洞察力缺失,并阻碍人力资源战略与更广泛的业务目标保持一致的能力。
“从历史上看,人力资源部门也一直在努力解决数据的准确性问题,”斯特尔兹纳说。“这会影响该职能部门依靠报告和数据分析来通知和支持其决策的能力。更糟糕的是,企业的其他部门已经接受过培训,预计人力资源系统会提供有问题的数据,因此在数据清理、报告和分析方面还有很多工作要做,以重新获得整个企业的可信度。”
Dave Zielinski 是 Skiwood Communications 的负责人,这是一家位于明尼阿波利斯的商业写作和编辑公司。
作者:Dave Zielinski
Employee Experience
2024年01月09日
Employee Experience
2023 Recap: A Turbulent Year with Significant M&A Changes in the HR Technology Market
Our annual reporting on M&A in the HR technology space is one of our most popular pieces of content year after year (see our 2022 version here). We look at some of the many announcements that happen over the course of the year, flag some key ones, and identify any big trends that seem to appear across the landscape.
2023 was no different than recent years. It’s a perennial “trend” from the “experts” in the space that “we will see more consolidation.” That statement is about as safe as saying that summer in Texas will be hot this year. Shocker.
What’s most exciting for us at Lighthouse is that many of these companies that are succeeding and shaking up the industry are also winners in the HR Tech Awards program (now accepting 2024 submissions), a clear indication that the judges in our program see significant value in what these firms are bringing to the market for their clients.
If you’re an employer looking for the right technology so support your organization, don’t hesitate to reach out for our insights.
Overall HR Tech M&A Trends and Insights
A considerable amount of consolidation in the services space, which is a bit tangential to this analysis of HR technology but significant for the larger market.
For instance, Arthur Gallagher & Co. acquired Buck in the benefits consulting and administration services space. We’re starting to see some of these benefits companies using their data in creative ways to identify health trends, provide analytics back to employers on their workforce, etc.
WilsonHCG picked up Personify in the recruitment process outsourcing industry. Our 2023 RPO research is some of the most compelling in the world when it comes to RPO buyer insights and behaviors.
Engage PEO acquired Zamp. Relatively small in the bigger scheme of things, but we’re planning some PEO research in 2024 to explore how PEO is evolving so we’re watching the space closely.
Also seeing some interesting crossover as services companies buy technology firms to scale and differentiate their services as well as technology companies buying service providers to reach more clients and bring more data into their solutions. AI-based solutions require a lot of data to train the models, and if it’s structured properly, services companies are sitting on a ton of data that can be a competitive advantage.
In the past month we’ve met with two different companies that started as services firms and built a technology that could take their intellectual property and scale it to more customers via a platform. The challenge with that is that services companies make money when they touch customer accounts and support them, but product/technology companies make money when they don’t have to touch customer accounts. It’s a difficult transition to make.
Let’s take a look at some of the announcements over the last year.
Key 2023 HR Technology Mergers and Acquisitions
Talent Acquisition and Hiring
Radancy, a global leader in recruiting with its Radancy Talent Cloud, acquired Brazen, a hiring event and communication platform and Ascendify, an enterprise-focused recruiting CRM.
Lightcast, a labor market insights company created by the merger of Emsi and Burning Glass, acquired Gazelle, a provider of B2B intelligence.
LiveHire, an HR Tech Award-winning hiring platform, acquired Arrived Workforce Connections to support growth in candidate reach and direct sourcing.
Clovers acquired Talvista to bring two inclusive hiring solutions under one roof.
Fama, an innovator in social media background screening and HR Tech Award-winning company, acquired Social Intelligence.
Spark Hire, a video interviewing solution, acquired Chally, an assessment solution. Video-only screening providers are trailing off in favor of video + assessment solutions that can provide a more full (and unbiased) picture of what candidates are about. Spark Hire also merged with/acquired Comeet, an ATS solution.
Veritone (Pandologic AI-driven programmatic recruiting solution) acquired Broadbean, a legacy recruiting technology provider. Intrigued by the depth and breadth of data this might offer to train the Veritone AI solutions under the hood.
Appcast, a leader in programmatic recruiting technology, acquired Bayard Advertising.
Hirevue acquired Modern Hire, an HR Tech Award-winning provider of video interview and hiring assessment solutions for enterprise employers.
Fountain, a high-volume hiring and onboarding solution, acquired Clevy.
Talent Management and Employee Experience
Engagedly, an HR Tech Award-winning company, acquired theEMPLOYEEapp for enabling client communications with frontline workers.
Neobrain, a global skills insights and intelligence provider, acquired Flashbrand to establish a US presence and bring its popular technology to North America.
Mitratech, an HR Tech Award-winning company and leader in employer compliance solutions, acquired Trakstar (talent acquisition and development) and Circa (DEI and OFCCP compliance).
Simpplr, an internal communication and work hub, acquired Socrates.ai, one of the industry’s most compelling intelligent chatbot solutions for employee experience and navigation, to increase the ease of which employees find, access, and act on information.
Edenred acquired Reward Gateway, a rewards and recognition provider.
Perceptyx acquired Humu, the “intelligent nudges” company made famous by its founder, former Google HR leader Lazlo Bock. Intrigued to see this functionality in the Perceptyx ecosystem.
Peoplelogic, an HR Tech Award-winning firm, picked up Plai to enhance its features across performance management and the overall employee experience.
Core HR/HCM/Compensation
Salary.com, an HR Tech Award-winning company, acquired CompXL to scale its enterprise compensation management functionality across merit increases, bonus allocations, and other rewards.
Paycor, an HR Tech Award-winning SMB HR, payroll, and talent solution, acquired Verb for microlearning support.
ADP, a leader in payroll and HR solutions, acquired Sora, a low-code workflow automation tool.
Deltek, the global leader in payroll and finance solutions for government contractors, acquired Replicon, a workforce management system.
When I Work, an HR Tech Award-winning company for its workforce management solution, acquired Lean Financial to incorporate earned wage access into the solution.
UKG acquired Immedis, a global payroll solution, to enable more seamless payroll in countries around the world.
Learning and Talent Development
This year we’re unveiling our new Learning Tech Awards program to focus more deeply on the sophisticated and robust technologies supporting talent development, employee growth, and skills intelligence across the industry. If you operate in this space, you won’t want to miss it.
Docebo, a leader in the global LMS market, acquired Edugo.ai to increase its AI capabilities.
Go1, a leader in global learning content, acquired Blinkist and Anders Pink.
LMS365 acquired performance management solution Weekly10.
The Bottom Line
In spite of the continuing challenges from an economic perspective, 2024 is poised to have some interesting activity. Election years are always a bit unpredictable, and many new providers are emerging to tackle today’s most pressing talent and workforce challenges. Stay on top of the latest by following our ongoing research and insights across the HR technology market.
Curious what we do at Lighthouse?
We work with employers by providing research and advisory services around 1) the complicated HR technology landscape, 2) the talent trends and practices that matter most to the modern workforce, and 3) executive presentations to internal teams on how the market is changing in their industry or demographic.
We work with solution providers and vendors that want to sell more product and serve more customers. We use a combination of advisory, industry insights, market intelligence, and custom research to support our partners.
HR Tech Awards opens for submissions on January 3rd: learn about benefits of participation
Ben Eubanks
Ben Eubanks is the Chief Research Officer at Lighthouse Research & Advisory. He is an author, speaker, and researcher with a passion for telling stories and making complex topics easy to understand.
His latest book Talent Scarcity answers the question every business leader has asked in recent years: “Where are all the people, and how do we get them back to work?” It shares practical and strategic recruiting and retention ideas and case studies for every employer.
His first book, Artificial Intelligence for HR, is the world’s most-cited resource on AI applications for hiring, development, and employee experience.
Ben has more than 10 years of experience both as an HR/recruiting executive as well as a researcher on workplace topics. His work is practical, relevant, and valued by practitioners from F100 firms to SMB organizations across the globe.
He has spoken to tens of thousands of HR professionals across the globe and enjoys sharing about technology, talent practices, and more. His speaking credits include the SHRM Annual Conference, Seminarium International, PeopleMatters Dubai and India, and over 100 other notable events.
Contact Ben
Employee Experience
2024年01月05日
Employee Experience
Top 10 HR and People Analytics Themes of 2023
As we near the end of another successful year here at Insight222, we want to reflect on the top themes that have emerged in our content.
From data-driven insights to real-world examples, our team has worked meticulously to deliver informative and persuasive articles that aim to enhance the HR and people analytics function. And we have seen some exciting changes and advancements in the field this year.
So, without further ado, here are the top themes that have taken front stage in our content during 2023.
Psychological Safety in the Workplace
Psychological safety in the workplace has been proven time and time again that without it, a team cannot thrive. In fact, we like to think of it as the epitome of successful teams.
Therefore, it's no surprise that this theme carries over from last year. Some of our most popular blogs discuss measuring psychological safety in the workplace, understanding how organisational culture impacts it and exploring how companies like Microsoft are transforming their organisational culture to prioritise psychological safety and promote a positive work environment.
Behavioural Science in HR
(Source: People Analytics Trends 2021)
The integration of behavioural science into HR and people analytics practices has been gaining traction for the past few years, and this year was no exception. With the changing nature of skills and roles in HR, the need for understanding human behaviour and decision-making has become increasingly important in driving impactful business outcomes.
With this, our article on exploring the role of behavioural science in HR and how it can be leveraged to improve employee engagement, performance, and productivity was one of our most popular reads of 2023.
How AI is Changing the HR Landscape
No discussion about the future of work is complete without considering the role of artificial intelligence (AI).
(Source: The Impact of GPT and Generative AI Models on People Analytics (Interview with Andrew Marritt))
AI has been incorporated into HR for some time now. We have been using it to automate routine tasks, streamline recruitment processes and improve HR analytics. However, with the birth of generative AI models like Chat-GPT, it is an understatement to say that AI has revolutionised every aspect of HR. Better yet, it's safe to say that it has and will continue to revolutionise every business function within an organisation.
From utilising AI in people analytics to how it is transforming the HR landscape, our articles on the impact of Chat-GPT and generative AI models and how AI is changing HR analytics have been among the most popular reads of this year. And for good reason - with the potential to improve decision-making, streamline processes, and enhance employee experience, AI is a topic every HR and people analytics professional should pay attention to.
The Impact of Analytics on HR
Our Insight222 research has shown time and time again that organisations that invest in people analytics drive better business outcomes, which is why, this year, we continued to dig deeper into this topic by exploring the New Model for People Analytics.
With the rise of digital transformation and the increasing importance of data in driving strategic business decisions, our articles on using statistics to drive actionable outcomes, why people analytics is so important for HR, and how social capital can be measured have been highly sought-after reads.
Upskilling the HR Function and Building Data Literacy at Scale
Considering the previous points, it's understandable that upskilling the HR function and building data literacy at scale have emerged as key themes this year. To fully leverage the benefits of AI and data analytics, HR professionals must develop a strong understanding of data and how it can be used to drive strategic decision-making.
As such, in July, we released our research, Upskilling the HR Profession: Building Data Literacy at Scale, which outlines the skills and competencies that HR professionals need to succeed in the digital age. It also highlights how HR leaders need to build an effective skill-based workforce planning capability.
(Source: Measuring the ROI of Employee Training and Development)
Interestingly, this research has also sparked discussions on who holds the responsibility for scaling data literacy across HR, which we explore in our article Who Holds the Responsibility for Scaling Data Literacy Across HR?
Measuring the ROI of Employee Development
Building upon the theme of upskilling and data literacy, it's important to also focus on measuring the ROI of employee development. As professionals in the HR sector, we know all too well that investing in employee training and development is crucial for an organisation's long-term success.
But with senior executives increasingly asking (and expecting) HR to demonstrate the value of these investments, our article on measuring the ROI of employee training and development has been one of the most popular reads this year.
Delivering Greater Value for the Business Through People Analytics
At its core, people analytics is about delivering greater value for the business. Our 2022 research, Impacting Business Value: Leading Companies in People Analytics, is a testament to this. Leading Companies (organisations that drive the most business impact through people analytics) have consistently shown better financial performance, higher employee engagement and retention rates, and overall greater success compared to their less data-driven counterparts.
This is why, in 2023, we have seen a surge of interest in articles on delivering greater value for the organisation with people analytics and the growing influence of people analytics in strategic business decisions.
And this trend will only continue as more and more organisations recognise the importance of incorporating data-driven insights into their decision-making processes.
Challenges to Building Data Literacy
If there is one thing we have identified as a common theme this year, it's the challenges of building data literacy within HR. From understanding the technical aspects of data analysis to gaining buy-in from senior leadership, organisations face various hurdles when trying to build a culture of data literacy.
(Source: Insight222 Research: Upskilling the HR Profession: Building Data Literacy at Scale)
However, as we continue to uncover the value that analytics brings to HR and the business as a whole, these challenges will become easier to overcome. And with more resources and tools available to support data literacy efforts within organisations, we are confident that this theme will evolve in 2024.
Evolving the HR Practice
In all, as we wrap up another year, it's clear that people analytics and data-driven HR practices have become even more ingrained in our work. From the importance of psychological safety and behavioural science to the impact of AI, measuring ROI, and delivering greater value to the business - these are just a few key themes that have shaped our content this year.
However, as we move forward, HR professionals must continue developing their data literacy and upskilling themselves to drive the success of their organisations further.
To that end, we look forward to seeing how these themes will evolve and shape the future of HR in the coming years.
Manpreet RandhawaDecember 18, 2023
How to Strategically Plan a Budget for HR in 2024The article discusses strategies for planning an HR budget for 2024, emphasizing the need for advanced HR technology and digital tools to enhance employee experience. It highlights the importance of focusing on talent retention due to high attrition rates in Asia and adapting to changes in the workforce market. The article stresses compliance with labor law changes and the need for a data-driven approach to budgeting. It outlines key budget components, including recruitment, training, salaries, HR technology, and employee well-being, to ensure a comprehensive plan for organizational growth and success.
As companies brace themselves for 2024, many HR teams are busy preparing comprehensive budgets for the coming year. Fortunately, with a host of cutting-edge HR technology and digital tools available, companies can plan a budget with more resources at their fingertips to better plan for the year ahead, significantly enhancing the overall employee experience.
In terms of a direction for 2024, companies are encouraged to channel more efforts towards talent retention, given the high attrition rates across Asia. In an effort to further empower their workforce and improve organisational culture, having the right HR tech is also a crucial consideration.
On that note, let’s look at how to create your 2024 HR budget and what to include in it.
What’s Most Important in Your 2024 Budget Plan
Keeping up with recent advancements for your workforce:
Understand how the talent market in 2023 will differ from 2024’s and plan for your manpower accordingly.
Consider if there has been a new shift towards or an increased use of AI tools to enhance both employee experience and candidate experience. According to analytics and advisory company Gallup, higher employee engagement translates to increased profitability – 23% more, according to their research.
Compare the workforce flexibility levels in your company with that of the overall job market – bearing in mind that there is a greater inclination towards a more flexible workforce, in terms of temporary and contract vs. permanent staffing.
Consider any increase in costs due to inflation, as salary (and potentially benefit) increments will have to be made accordingly.
A greater focus on talent retention:
To be able to maintain a robust and healthy workforce means to prioritise talent retention. With high employee attrition rates and talent retention being a top HR challenge in 2023, a key focus for businesses should be on how to retain their workforce better in 2024.
After conducting a thorough review internally, consider looking into programmes, practices and systems that can improve employee satisfaction, provide stronger employee assistance programmes and support, as well as streamline the overall HR experience for your employees.
Remaining compliant with labour law changes:
Given that 2023 has been a year with many labour law developments across various countries in APAC – such as Malaysia’s massive overhaul of its Employment Act and Singapore’s introduction of the COMPASS framework for Employment Pass applications – it is highly crucial for companies to remain compliant with upcoming labour law changes in all locations, particularly those with a presence in multiple countries.
Compliance can come in the form of adhering to minimum wage hikes, new tax brackets, increased number of leave, and so on – all of which can incur additional costs and would need to be accounted for in the HR budget. Additionally, remaining compliant with labour laws ensures there are minimal legal and financial repercussions, leading to a more prudent budget.
How Do You Prepare an HR Budget?
When you plan a budget for HR, some crucial pointers to have in mind when listing down what to include are:
Building a Strategy for Smart Expansion: Consider your company’s expansion plans for 2024 – if any. Coming up with a solid plan if you want to expand in 2024 is crucial, and you can consider a low-cost and minimal-risk option such as an employer of record. According to an article by Yahoo! Finance, in 2023, the worldwide EOR market reached a value of USD 1890.29 million and is projected to grow at a compound annual growth rate (CAGR) of 12.07% over the forecast period, ultimately reaching USD 3745.43 million by 2030.
For companies with multiple locations, when revising the budget, HR will look at which locations are now more mature and stable compared to last year to allocate the budget more evenly.
Investing in The Right Software and HR Tech: Get acquainted with the latest AI trends in hiring and find out how the right tools can enhance your journey of finding the right people to join your workforce.
Integration Options for Different Business Sizes: Speaking of knowing what works for your company size, if you’re a regional company, you’d likely work with a payroll outsourcing provider to streamline your regional payroll. Revisit your current service to see if its integration capabilities are still suited to your business – depending on if your headcount has been expanded or downsized recently.
A Data-Driven 2024 budget: A budget that is tailored heavily based on data allows for better foresight, less errors and allows you to make better informed decisions for your businesses. A report by McKinsey Global Institute shows that data-driven organisations are likely to be 19 times more profitable, and 6 times more likely to retain those customers. You can use data from previous budgets to get insights on what to do differently this time.
What are the must-haves in your HR budget?
If you’re wondering what a complete 2024 budget should entail, the following list can serve as a general checklist of what to cover:
Recruitment and hiring
Hiring Agency / Job advertisements
Employee assistance programmes
Interviews, screening candidates and background checks
HCM software management
Onboarding procedures
Employee relocations
Recruitment marketing
Talent retention
Outplacement Services (if required)
Visas and work permits
Training and development
Employee Certifications
Trainer/expert/consultant fees
Addressing skills gaps
Learning systems
Salaries and other benefits
Employee salaries
Overtime pay
Payroll system management and maintenance
Insurance & healthcare
Other statutory contributions
Retirement plans
Paid time off
Employee bonuses
HR Technology
HR Information Systems
Payroll Outsourcing Systems and Integration costs
HR Vendor
HR Team Upskilling
HR Certifications
Workshop and Training budgets for HR team
Diversity and Inclusion
Increase in diversity hiring
Implementation of inclusive hiring practices
Employee safety and well-being
Employee health
Security at work
Physical and mental employee well-being
Others
Employee/employer appraisals and surveys
Upkeep of recreational areas in the office
Company trips
Fitness facilities
Safety trainings
Some resources to use when you plan a budget for HR:
Having a wealth of handy information can help you plan a budget more efficiently. If you’re looking for resources on the latest HR developments across idea, here are a few you might want to look at.
Resources
Guide to Hiring in Asia – A compilation of in-depth guides for various countries across Asia on how to compliantly hire employees in each country.
APAC Labour Law Insider – Quarterly updates on HR legislations across 17 locations in Asia.
China Labour Law Updates – Monthly updates on China’s labour laws.
Labour Law and Compliance Workshop Webinars – Complimentary webinars on labour law updates across various locations in Asia.
Templates and Checklists
HR Onboarding Checklist Template
Payroll Request For Payroll Template (RFP) Template
Handover List Template
Layoff Planning Checklist
China Personal Information Protection Law HR Compliance Checklist
Out of Office Message Template
In conclusion, having an HR budget is essential for companies as it provides a structured financial plan to effectively manage and optimise their most valuable asset – their workforce. It ensures that resources are allocated for hiring, training, and retaining employees, ultimately contributing to organisational success and growth.
Looking for a HR provider that can offer you HR outsourcing, advisory and HR tech services? At Links, we look forward to providing you with complete HR solutions to drive your organisation. Contact us today for more information!
Employee Experience
2023年11月28日
Employee Experience
AIHR:Measuring Employee Experience: A Practical Guide for 2024
Keeping your employees engaged, motivated, and satisfied throughout their journey with your organization is key to business success. Measuring employee experience allows HR professionals to understand how their workforce feels and ensure the team remains fulfilled.
In this article, we’ll explore how to measure employee experience, evaluate the results, and turn them into meaningful action.
Contents
What is employee experience (EX)?
Why measure employee experience?
How to measure employee experience
Best practices for measuring employee experience
FAQ
What is employee experience (EX)?
Employee experience (EX), in its simplest form, is how employees perceive their stay at your organization from when they apply for a job to after they leave.
It encompasses various dimensions – ranging from the physical workspace and technological tools being used to the organizational culture, professional growth opportunities made available, and social interactions they have with colleagues or superiors.
It’s more than just a collection of daily experiences at work; EX profoundly shapes an employee’s perceptions about their employer and impacts their decision to stay or leave.
DIVE DEEPEREmployee Experience vs. Employee Engagement: 4 Differences To Know
Why measure employee experience?
87% of employee experience experts say that a great employee experience helps retain and attract talent. However, only 51% of employees feel that their organization is delivering on the experience they promised.
By measuring employee experience, you can uncover and fix issues and discrepancies to reap the benefits of a satisfied and engaged workforce.
Let’s break down the reasons why you should measure employee experience.
Enhanced productivity and performance
Research shows that superior employee experience (EX) may lead to enhanced productivity.
Employees who feel satisfied, empowered, and valued are more motivated to perform at their highest level. They significantly contribute to organizational goals, which can result in an over 50% increase in revenue.
By focusing on optimizing the employee journey – from end to end – companies can foster a work environment that stimulates both individual and team performance.
LEARN MORE23 Key Employee Experience Statistics You Should Know in 2024
Retaining talent
Monitoring and enhancing EX levels significantly contributes to improving retention rates. Employees who resonate with their company culture and find meaning in their work stay longer in their organizations.
Examining facets like workplace habits or preferences provides employers invaluable insights related to employee experience – which ultimately feeds into long-term staff retention strategies.
Making informed decisions related to HR practices
A robust method of measuring employee experience offers in-depth insights into how employees perceive things such as career development opportunities or even intricate details like office seating arrangements.
This helps HR shape policies and practices strategically and make smarter decisions that maximize the workforce potential while actively minimizing discontentment factors.
Enhanced customer experience
A happier workforce equals happier customers. Companies with great employee experience report 2X as high customer satisfaction levels compared to businesses scoring low on employee experience.
A well-executed EX strategy will aid your organization in delivering higher standards of service, creating a ripple effect that extends far beyond merely measuring employee experience for internal benefit.
Australian Defence Bank collaborated with the employee and customer experience management platform Insync to measure and improve EX and CX.
Investing in their employees has helped them build a motivated workforce and get outstanding business results. Not only are they in the top 10% for employee engagement compared to other financial organizations, but they have also achieved record deposit growth in transaction and savings account balances.
Innovation, growth, and improved organizational performance
As we’ve already alluded to, keeping your finger on the pulse of EX can set the scene for broader innovation and growth within an organization.
Employee experience goes hand in hand with employee engagement, which helps foster an innovative culture and a passionate commitment to ongoing improvement—an infallible recipe to drive the company performance northward.
To sum it up, measuring employee experience isn’t simply good practice, but it can bring numerous strategic benefits that make a profound impact on organizations and their competitive standing in the market.
How to measure employee experience
Employee experience is a multifaceted and intangible concept, which is not easy to quantify at first sight. Successfully measuring it involves defining relevant employee experience metrics and methods of measurement to collect the data.
Let’s take a closer look.
1. Define and track employee experience metrics
Employee experience metrics allow organizations to gain insight into the wellbeing, satisfaction, and productivity of their teams. The following metrics serve as good indicators of the employee experience levels at your organization:
Retention rates
Retention rates signify how many employees remained within the company over a specified period. A high employee retention rate generally implies positive experiences at work, while low rates indicate potential problems or dissatisfactions among staff.
Intent to stay
This metric shows how many employees foresee themselves staying with an organization over a lengthy period. It can provide insights into the workforce’s commitment level and their perception of future opportunities within the company.
Number of employee referrals
The number of referrals from existing staff suggests how highly they rate working within the organization. The higher this figure is, the more positive opinions workers hold about their employee experience, and that’s why they’re willing to recommend you as an employer.
Productivity metrics
Productivity indicators such as performance ratings or meeting project deadlines can reveal a lot about how efficiently an employee works. High productivity levels generally imply a supportive environment that propels the team towards achieving set objectives.
Employee Net Promoter Score (eNPS)
The eNPS asks employees on a scale from 0-10 whether they would recommend their place of work to others – typically friends or family members. The data gleaned helps appraise the overall employee experience levels.
Employee Experience Index
The Employee Experience Index score takes into account an array of factors influencing the overall workplace atmosphere, like engagement levels, empowerment feelings, job fulfillment factors, and key performance indicator achievement. It provides a holistic overview of what it might be like working for your organization.
The exact dimensions of the Employee Experience Index depend on how an organization defines it. Two well-known Employee Experience Index systems have been developed by IBM and Forrester.
2. Administer surveys
Once you know what insights you’re hoping to gain, you can start collecting data. Surveys are an indispensable tool for measuring employee experience.
There are a couple of types of surveys that you can utilize.
Employee experience surveys
Employee experience surveys provide an avenue for employees to confidentially share views about their workplace, its leadership practices, and its culture. Organizations typically conduct employee experience surveys annually, bi-annually, or quarterly.
Including both quantitative and qualitative questions in your survey will provide you with comprehensive data on your respondents’ perspectives.
Quantitative questions, usually closed-ended, help gather structured data that you can do a statistical analysis of, revealing patterns and trends in responses.
On the other hand, qualitative questions, typically open-ended, elicit descriptive and narrative responses that dive deeper into the nuances and complexities of participants’ experiences and feelings. These responses shed light on the ‘why’ and ‘how’ behind the numbers, uncovering the underlying motivations, beliefs, and emotions that drive behaviors and opinions.
By incorporating both types of questions, you can capture the breadth of information and the depth of insights.
Employee experience survey questions examples
Next to the eNPS question “On a scale from 1 to 10, how likely are you to recommend our organization as a place to work to your friends and family?”, examples of quantitative employee experience survey questions include:
On a scale of 1 to 10, with 1 being “Not at all” and 10 being “Extremely”:
How satisfied are you with the opportunities for professional development within the company?
How confident do you feel in your current role and responsibilities?
How supported do you feel by your direct supervisor or manager?
Qualitative questions you can consider covering in your survey are:
In your opinion, what 2-3 changes could be made to improve the overall work environment and culture?
What aspects of our company’s culture do you value the most?
If you could recommend one thing to improve team collaboration, what would it be and why?
Pulse surveys
Pulse surveys are short, frequent surveys designed to quickly capture employee feedback and continuously gauge overall sentiment about their workplace experience.
Focusing on a few key questions, they are less burdensome for employees, leading to higher response rates. These surveys can help organizations zoom in on current events or specific workplace issues that impact employee experience.
However, regularly collecting data can lead to an abundance of information. Organizations must have the capacity and tools to analyze and act on this data to prevent it from becoming overwhelming or underutilized.
It’s crucial to use pulse surveys strategically and in combination with other feedback mechanisms to ensure a comprehensive understanding of the employee experience.
New hire surveys
New hire surveys help you capture insights about one of the most crucial “moments that matter” in an employee’s journey: their onboarding. This initial phase sets the tone for an employee’s tenure with the company, shaping their perceptions, expectations, and overall sentiment toward the organization.
You can glean valuable feedback about the effectiveness of your onboarding processes, the clarity of role expectations, and the cultural immersion experience.
This feedback not only provides a snapshot of the new employees’ experience but also offers actionable insights for organizations to refine their onboarding processes so that they create a positive and lasting first impression.
3. Conduct qualitative interviews
One-on-one dialogues with employees afford a deeper understanding of the intricacies at play regarding the overall employee experience.
By conducting employee interviews, you can complement and enrich your survey data. They provide you with an excellent opportunity to ask open-ended questions and give your employees space to express their opinions and perceptions.
Two common types of interviews to gather qualitative data are stay interviews and exit interviews.
Stay interviews
These discussions aim to find out why employees opt to remain with an organization. HR professionals can then identify the positive aspects of their working experiences that should be reinforced or replicated.
Exit interviews
Exit interviews help you assess why employees leave your organization and how they see their time spent working for you. These discussions allow you to better understand the challenges our employees face at work, providing insights into potential corrective measures.
By adopting these varied approaches blending both quantitative and qualitative employee experience measurement methods, businesses can effectively gauge worker sentiments – thereby improving employee experiences and driving organizational success.
Best practices for measuring employee experience
Measuring employee experience effectively goes beyond defining relevant metrics and conducting surveys and interviews.
To get a comprehensive view of employee experience at your organization and put your findings into action, you need to follow these five best practices.
Setting clear objectives
Begin with a set of distinct objectives that align with your company’s overall business strategy. This is crucial for accurately evaluating the employee experience.
Why exactly do you want to assess employee experience? Are you aiming to increase productivity or retention rates or encourage higher creativity levels across teams?
Your end goals play an indispensable role in determining which part of the employee journey needs focus and what type of feedback you need from the employees.
Conducting research across different employee groups
When you’re measuring employee experience, you need to recognize diversity within your workforce. That helps you accurately capture different facets of the work experiences of diverse groups in your organization.
Make sure to survey or interview employees from diverse backgrounds, different job levels, departments, and lengths of service to understand the unique challenges they might face.
Dell Technologies partnered with an employee experience measurement platform Voxxify to design a hybrid work plan for one of their European offices. Over 60% of employees responded to the survey, providing more than 2,100 individual comments.
The analysis results helped identify four areas of focus. These included updating the handbook for managers and employees for hybrid work considerations, defining the value of coming into the office, supporting employees’ mental wellness, and optimizing facilities and technology to enhance the work environment.
The office now sees occupancy rates of 60% or more on Tuesdays through Thursdays, and the success of the measurement effort has led to plans to repeat it annually.
Overcoming survey fatigue and ensuring participation
It may be tempting to send surveys left and right for comprehensive data collection when measuring employee experience. However, you should really avoid doing so. Survey fatigue can quickly pile up, draining previously enthusiastic participants’ eagerness to provide valuable insights.
To keep engagement high and maximize response rates, make sure your surveys are succinct yet thorough. Carefully plan your survey schedule to not overwhelm your team. For example, you can send out a comprehensive survey quarterly or bi-annually, with a couple of shorter pulse surveys in between.
It also helps to effectively communicate the purpose behind these assessments, so employees see them not as tasks but as avenues towards improving their work lives. You can, for instance, share examples of initiatives you implemented based on employee feedback.
Guaranteeing confidentiality
Nothing squashes honesty quicker than a sense of insecurity surrounding responses’ anonymity, which makes maintaining confidentiality critical to effective employee experience measurement.
If you use external applications for gathering feedback, emphasize their confidentiality features.
You should also invest in fostering an environment where employees feel they can honestly express thoughts and concerns without fear of retribution. Doing so will not only amplify trust but also provide you with more authentic data to work on.
Acting on employee feedback
Once you’ve gathered and analyzed employee feedback, it’s time to take action. Prioritize high-impact initiatives and create a plan for how to implement these.
Employees need to believe that their input sparks real change; otherwise, they might lose engagement in such processes altogether. Recognize employee contributions and communicate plans about future improvements based on their input clearly. Transparency here fosters a sense of responsibility among the staff and improves morale during periods of change.
Ultimately, measuring employee experience is a cyclical process. It starts from setting clear objectives leading up each step to enacting feedback-led changes and then identifying newer areas for improvement continuously.
Key takeaway
Staying on top of your employees’ experiences at work allows companies to detect dissatisfaction early enough and tackle issues before they develop into bigger problems. It’s a great way to improve HR practices and design employee experience that promotes productivity, talent retention rates, and ultimately a better workplace environment.
Relevant employee experience metrics help you quantify the concept and solidify your measurement process. Surveys and qualitative interviews give voice to your employees, offering rich insights into the workers’ perceptions of the workplace.
However, it’s the organization’s responsiveness to feedback that significantly impacts the effectiveness of measuring employee experience. It is key to not just listen but also take action based on employees’ feedback for positive changes.
FAQ
What are the most important employee experience metrics to measure?
When it comes to measuring employee experience, key metrics that organizations use include:
– Retention rates: Your business’s retention rates can reveal much about employees’ willingness to commit long-term to an organization.
– Intent to stay: Beyond just assessing current employee tenure, discerning whether staff members aspire to stay with the company for the foreseeable future is a valuable indicator of how they perceive their journey at your organization.
– Employee Net Promoter Score (eNPS): This quantifies how likely employees would recommend their workplace to others – a telling sign of overall satisfaction and positive employee experience.
A combination of several employee experience metrics paints a nuanced picture of overall employee experience in any organization.
Are surveys the best way to measure employee experience?
Surveys play an instrumental role in gauging overall employee experience levels—all thanks to their ability for large-scale data collection and sentiment analysis. They also provide insights into potential pain points and highlight areas for improvement according to actual employee sentiments.
However, while valuable, relying solely on surveys can lead to limited insights. Conducting different types of interviews, like stay and exit interviews, helps complement the survey data with deeper insights.
What is the Employee Experience Index?
The Employee Experience Index is a metric that aims to give a comprehensive view of employees’ experience. Essentially, it helps you gauge the overall ‘health’ of organizational culture and environment.
IBM’s Employee Experience Index assesses employee experience on five core dimensions: Belonging, Purpose, Achievement, Happiness, and Vigor.
The Employee Experience Index from Forrester evaluates three elements of EX: Empower, Inspire, and Enable.