Today Millennials — those born between 1981 and 2000 — represent only about 34% of the global workforce. By 2025 they’ll account for 75%. That’s a massive shift in a very short amount of time. But that’s not the only change happening. This is the first time in history there are five generations working side-by-side, creating a diverse workforce with a huge variance in workplace habits and needs. Recently, 60% of CEOs surveyed by PricewaterhouseCoopers indicated that this multigenerational workforce will have a transformative impact on business in the near future.
For businesses prepared to manage their increasingly diverse workforce, this transformation can be productive — and profitable. So, how ready is your HR department? Here are some tips to help make the transition.
You’re either ready, or you aren’t. There’s no in-between.
HR professionals will be key players in readying your organization for these seismic shifts. Your HR department must be ready for significant changes — like how to attract, hire, incentivize, and retain employees. They’ll also need new ways to measure and reward productivity, manage absences, and create a culture that resonates with this new generation.
Hiring, and managing, five generations adds incredible complexity to HR policies.
Your oldest employees — who are characterized by a strong sense of loyalty — are getting ready to retire. Suddenly Baby Boomers, Gen Xers and Millennials will be competing for recognition and responsibility. With so many different work styles, professional values, and personal goals to juggle, your HR department will be challenged to attract, retain, and maximize a diverse workforce. You will also need to consider how to both find and keep top talent from an increasingly mobile and global candidate pool.
It’s all about collaboration.
Collaboration between chief human resource officers (CHROs) and chief financial officers (CFOs) is not only a hallmark of high-performing organizations — it’s becoming the necessary norm. That’s due to the financial, and people, data-sharing required to manage an evolving multigenerational workforce profitably. After all, almost every facet of employee performance is linked to financial and business success. So CHROs and CFOs have to work on combined strategies for adapting employee lifecycle management.
The talent market is only getting tighter and tougher.
Talent is scarce. Labor costs are rising. Which means HR leaders need new ways to attract and keep, top talent. With enhanced hiring tools, sophisticated analytics and a comprehensive strategy that addresses today’s and tomorrow’s challenges, your HR team can rise to the occasion. Why analytics? Because they allow HR leaders to use data-driven strategies to make smarter decisions about whom to hire, how much to pay, and the best time to hire, and to identify best-fit employees, and gauge performance.
Your employees need to be engaged and enabled.
Shifting demographics within the workforce have had a significant impact on the ability of organizations to create an engaged workforce. The traditional HR focus on initiatives and incentives to promote engagement are becoming less and less effective. Today’s workforce isn’t one-size-fits-all. Each generation of employees has its own triggers for engagement, and your plan needs to adapt to all of them. Yet, despite employees’ generational differences, they universally want to be on a focused path with clear goals and to be part of a winning team. Implementing human capital management tools that automate, streamline, and improve workforce management processes helps drive this critical engagement.
Never take your eye off compliance.
Compliance requirements for U.S. organizations have been changing at a rapid pace in recent years, particularly with regard to how employees are classified and paid, how benefits are administered, and the number of hours employees work. That’s why the CHROs and other HR leaders must partner with their organization’s compliance, auditing, and legal functions. Otherwise, it’s a sure bet that a weak compliance program will become a serious liability. Luckily, technology solutions can help HR keep pace with changing legislative, union, and industry regulations to make this adherence and management easier and more accurate.
Technology has already played a significant role in shaping the HR function to become more efficient. Now is the time to leverage this technology further for HR to become more effective, fully capitalizing on today’s changing workforce landscape.
At MicroAccounting, we’re committed to your company’s success. To learn more about Sage HRMS, Workforce Go!, and our other human capital resources, call us today at 855-876-3773.
Want to know more about human capital management technologies and how they can help your HR team prepare for the coming workforce changes? Click here to read the ebook The Reinvention of HR.