The traditional role of a Human Resources department was to help the company manage and retain its workforce. In decades, past, it was a department sees for its role in management and compliance, the roles and duties of HR look very different today.
Keeping up with changes in a business environment can be done by looking inward. There are plenty of lessons a CEO can learn from the ways HR departments have grown, adapted, and changed over the last few decades.
Companies Shouldn’t Expect to Keep Employees Forever
Since 2014, the average employee tenure in the U.S. has gone down from 4.6 years to 4.1 years. The Bureau of Labor Statistics also reports that these numbers are lower among younger employees than older ones. While just 10% of baby boomers expect to stay in a new position for two years or less, that number jumps to 41% in millennials. Consequently, the millennial generation makes up 35% of the American Workforce. HR teams and CEOs should understand that younger workers crave change and continually plan for their future.
Low Employee Engagement is an Organizational Problem
Some leaders make the mistake of believing that employee engagement is a term coined by HR departments. The truth is, if employees feel disengaged from their role, they will also lack passion and commitment to the organization. While HR might be a good place to start gaining a better perspective on the issues, approach employee engagement as an organizational initiative.
Employee Motivations Have Changed
Human resources used to be a department to manage employees and their output. It was seen as a department that played gatekeeper to rules, regulations, and productivity. As technology and automation have developed, this is no longer the root value of HR. Instead of managing people as a company’s resource, companies must focus on providing resources for their employees.
More than ever, employees seek out companies with a reputation for good company culture. They look for engaging environments that male them feel fulfilled as an employee, rather than simply filling their timesheet and heading back home. It’s the main concept behind the idea of working to live instead of living to work. While CEOs and HR employees still handle the traditional roles of hiring, firing, benefits, and PTO, there should also be discussions on motivation and employee development within the company.
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