Talent Edge Weekly - Issue #106

Covers building an agile HR function, the first 100 days of a new CHRO role, determining remote or in-person work, the future of work, and compensation best practices.

Welcome to this week’s issue of Talent Edge Weekly—the weekly newsletter for human resources practitioners, bringing together insights about work, the workplace, and the workforce from various sources.

If you find value in this issue or any of its resources, please share them with your network by using the social media icons at the top of the newsletter.

Have a great week, and I look forward to sharing more ideas in next week’s Edge!

Brian 

Brian Heger is a human resources practitioner with a Fortune 150 organization and has responsibilities for Strategic Talent and Workforce Planning. To connect with Brian on Linkedin, click here.

THIS WEEK'S CONTENT

  • Building an Agile HR Function: Four Pathways to Success | The Conference Board | A 16-page paper that helps determine which of four pathways can enable a firm to achieve agile HR based on two considerations.

  • First 100 Days: A Guide for New-to-Role Heads of HR | Gartner | Discusses nine steps for a quick, successful transition to a CHRO role. Includes advice from heads of HR.

  • What’s the Optimal Workplace for Your Organization? | Harvard Business Review | Covers how the size and growth of a firm can help determine whether in-person, hybrid, or remote options are best for an organization.

  • Work Will Never Be the Same—Savvy Business Leaders Are Adapting to Change That’s Already Here | BCG | Provides firms with a framework for enabling the future of work (which is now) by examining four areas: how we work, how we lead, how we organize, and what we need.

  • 2022 Compensation Best Practices Report | Payscale | A 61-page report on compensation management practices ranging from base pay increases, variable pay and benefits, remote work and geographic pay, and pay transparency. 

THIS WEEK'S EDGE

Podcast: Telling Your Human Capital Story | The Conference Board (TCB) | A 30-minute podcast where Rebecca Ray (EVP of Human Capital) and Steve Odland (President and CEO)—both of TCB— discuss aspects of TCB’s report, Telling Your Human Capital Story.

    THIS WEEK'S EDGE

    As HR leaders drive functional efficiency and effectiveness, this 16-page paper offers ways to accelerate the transition to an “Agile HR” operating model through one of four pathways—ranging from agile experimentation to full agile transformation. “Agile HR seeks to minimize waste and optimize the flow of value to its customers by organizing the HR function in multidisciplinary, empowered teams. These teams continuously align with changing business needs by sensing and adapting through open communication while operating in short cycles.” As illustrated in the 2x2 matrix on page 13, choosing the best pathway depends on two considerations: 1) the business need for greater speed and flexibility to design and deliver HR solutions and 2) the function’s readiness for change in terms of culture, leadership, and skills. Case studies are provided for the four pathways, such as one on Bayer, in which the firm enabled agile HR by changing its operating model—shown on page 11. Changes to its operating model include reducing the number of HR Business Partners (but with more of a strategic focus) and integrating Centers of Excellence teams as a part of a new HR Solutions team. Other ideas are discussed that can help determine the best pathway forward.

    Hundreds of Chief Human Resources Officer (CHRO) appointments have been made over the past few months. And it is encouraging to see that many of these appointments are of first-time CHROs. Given the criticality of this transition, it is essential that these new HR leaders effectively plan and execute their transitions so they can gain early momentum that positions them for long-term success. This Gartner reference covers nine steps for accelerating a successful transition of new CHROs. The steps range from accelerating your listening tour, solidifying your working relationship with your CEO, and building effective relationships with key board members, to name a few. Regarding the board, CHROs have an opportunity to expand talent discussions with board members beyond traditional topics, such as succession and compensation. And now that many boards have a renewed interest in talent and workplace issues fueled by the pandemic, CHROs are positioned to help boards play a more prominent role in responding to these issues. As HR leaders determine which topics they cover with their boards, I am resharing this Deloitte reference that includes fourteen questions that boards ask concerning the workforce, such as: Does the way we work promote and support individual physical and mental well-being? How and is it measured? 

    Many employers continue to decide whether in-person, hybrid, or remote work options will work best for their organizations. What makes these decisions difficult are the myriad factors to consider, such as what workers prefer and what organizations feel they need to drive performance. This article provides firms with a framework for identifying which of four work models is optimal for their knowledge-driven organization. For organizations to derive the best model, the authors suggest answering two questions: 1) What is our strategy for future growth (e.g., innovation, efficiency), and 2) What is the size of the organization we need right now? The size component is vital since it can present challenges for coordinating work activities at scale. Using the two dimensions (strategy and size), four work models are represented by a 2x2 illustration. The models include 1) stand-alone office or campus, 2) hybrid with flexible space, 3) coworking environment and 4) fully remote. The benefits and tradeoffs of each model are discussed. While not mentioned in the article, firms should also evaluate which type of work tasks and activities can be performed remotely without a loss of productivity. Against this backdrop, I am resharing a McKinsey article that analyzes over 2,000 work activities in more than 800 occupations to determine which activities and occupations have the greatest potential for remote work.  

    The events of the past two years have brought attention to workplace topics, such as hybrid work, employee wellness, and diversity, to name a few. And while these topics are often viewed as standalone issues, leaders responsible for driving workforce strategy must consider and plan these factors holistically. To help distill various workplace activities and initiatives into a holistic view, this BCG article provides a framework for organizing four deeply connected areas related to workplace strategies, including 1) how we work, 2) how we lead, 3) how we organize, and 4) what we need? For example, “how we work” taps into things such as new work models, digitization and artificial intelligence, removal of inefficiencies, and prioritization of what matters most, to name a few. Using categories such as these provides a way for organizing, integrating, communicating, and deploying various talent strategies and initiatives. For another helpful BCG resource, check out its 40-page report that organizes 32 HR and people practices across nine clusters (see Exhibit 2 on p.6). This framework provides another way of organizing various HR and talent practices.

    Although workers increasingly value aspects of the non-financial components of a firms' employer value proposition, organizations realize that compensation is still important to attracting, engaging, and retaining talent. This 61-page report provides data and insights on compensation management practices ranging from base pay increases, variable pay and benefits, remote work and geographic pay, and pay transparency. The study was conducted between November 2021 to January 2022 and is based on almost 6,000 responses. A few insights include 1) Salary increases: the percentage of organizations giving more than 3 percent (44%) is 13% higher than the average over the last six years. 2) Pay Transparency: 68% of organizations share pay ranges with prospective candidates, mostly through the job advertisement (22%) or the initial phone screening (21%). 3) Pay Equity: 66% of organizations say a pay equity analysis is a planned initiative in 2022—a 20% increase over last year. 4) Pay Strategy for Remote Workers: Only 18% of organizations have a pay strategy that encompasses remote workers, although an additional 24% of surveyed firms are working on developing one. Regarding how employers are handling salary adjustments of workers that move to lower cost-of-living areas, a small sample (n=26) from Gartner’s research shows four approaches firms are using: a) Case-by-case (46%), b) One-Time Pay Increase/Reduction (31%), c) No Adjustment (23%), and d) Gradual Adjustment of Merit Increases (8%). Firms can use these resources as they reevaluate their compensation strategy and practices. 

    MOST SHARED RESOURCE FROM LAST WEEK

    12 HR Metrics Every CHRO Should Know | Visier | A 15-page paper that provides a definition, example, and summary of why 12 HR metrics are important. I include a bonus resource on 100 people analytics questions HR leaders can ask to determine which metrics matter most.

    TWEET OF THE WEEK

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