But what is the difference between OKRs and KPIs? This article will explain the key differences, when to use each, and metrics to track when measuring each methodology.  

Contents
What is an OKR?
The benefits of setting OKRs
What is a KPI?
The benefits of setting KPIs
OKRs vs. KPIs: The main differences
Why use HR OKRs
Why use HR KPIs

What is an OKR?

• Objectives serve as ambitious, qualitative descriptions of what the organization aims to achieve
• Key Results are specific, measurable milestones indicating progress towards those objectives. 

This framework fosters alignment, accountability, and innovation within organizations, driving success across industries.

The benefits of setting OKRs

• Alignment: OKRs help align HR goals with the organization’s overall objectives, ensuring that HR initiatives contribute directly to the company’s success.
• Clarity: OKRs provide clarity on HR priorities and expectations, making it easier for you and your HR teams to understand what must be accomplished and how to measure success.
• Focus: By setting clear objectives and key results, OKRs help your HR teams prioritize tasks and initiatives, focusing efforts on the most impactful activities.
• Accountability: OKRs facilitate accountability within HR by establishing measurable outcomes and timelines for achieving them. This encourages you, the HR professional, to take ownership of your work and deliver results.
• Continuous improvement: OKRs promote a culture of constant improvement within HR by encouraging reflection and adjustment based on performance data. Your HR teams can use OKR results to identify areas for growth and refine their strategies over time.
• Employee engagement: When HR goals are aligned with the organization’s objectives, employees are more likely to feel engaged and motivated. OKRs provide a framework for communicating your HR priorities and creating a sense of purpose among employees.
• Transparency: OKRs promote transparency within HR and across the organization by clearly outlining goals and progress. This transparency builds trust and collaboration among team members and stakeholders.
• Adaptability: OKRs allow your HR teams to adapt quickly to changing business needs and market conditions. By regularly reviewing and adjusting objectives and key results, you can remain agile and responsive to new challenges and opportunities. 

HR tip

Sears implemented the OKR framework to boost performance. Initially, the company limited this to salaried employees, overlooking sales agents. After a year, with minimal OKR impact, it realized adjustments were necessary.

Sears achieved notable improvements by refocusing efforts on outbound call centers and emphasizing add-on sales metrics. Sales increased by 8.5% and hourly sales rose from $14.44 to $15.67.

What is a KPI?

A Key Performance Indicator (KPI) is a measurable value that gauges how effectively an organization is achieving its key objectives. 

• Key indicates the metric’s importance in relation to organizational goals.
• Performance emphasizes its role in assessing the effectiveness and execution of strategies
• Indicators highlight the measurable nature of these metrics, which provide valuable insights into progress.

KPIs are essential tools for decision-making, helping organizations (and HR teams) to track and optimize performance toward desired outcomes.

The benefits of setting KPIs

• Performance measurement: KPIs can provide you with quantifiable metrics to measure the effectiveness and efficiency of your HR initiatives, processes, and programs.
• Goal alignment: KPIs help align your HR activities with the goals and objectives of the organization.
  Data-driven decision-making: KPIs can provide you with actionable insights based on real-time data. This data will help you make informed decisions and prioritize initiatives that impact organizational performance most.
• Accountability: By setting clear KPIs, HR professionals and teams are held accountable for achieving specific outcomes. This builds a culture of responsibility and ownership within the department.
• Continuous improvement: KPIs serve as benchmarks for your performance. These benchmarks help you evaluate and refine your HR strategies and processes to improve your effectiveness over time.
• Resource optimization: KPIs help you to allocate resources more effectively by identifying areas of strength and weakness. This lets you focus resources where they are most needed to drive performance and results.
• Employee development: You can use KPIs to track and evaluate employee performance, identify areas for improvement, and establish individual and team development goals. This contributes to a culture of growth and development within the organization.
• Communication and transparency: Setting KPIs promotes transparency and open communication both within HR and across the organization by clearly defining expectations and goals. This creates collaboration and alignment toward common objectives.

OKRs vs. KPIs: The main differences

Why use HR OKRs

Here’s why implementing HR OKRs within the HR function is beneficial:

1. Aligns with organizational goals

OKRs help you align your HR objectives and initiatives with the company’s broader strategic goals. By setting clear objectives and defining key results contributing to these goals, you can focus your HR team’s efforts on activities that drive organizational success.

2. Provides focus and prioritization

OKRs provide you with a framework for prioritizing activities and allocating resources effectively. You can better direct your efforts toward the most critical initiatives by establishing ambitious yet achievable objectives and defining key results that measure progress.

3. Maintains accountability and measurement

OKRs create accountability within HR by establishing clear expectations and metrics for success. You can achieve your HR goals and optimize your HR team’s performance by regularly tracking progress against key results and holding individuals and teams accountable.

4. Encourages continuous improvement

OKRs promote a culture of continuous improvement within HR by encouraging reflection, learning, and adaptation. Regular reviews help you identify areas for improvement, refine strategies, and iterate approaches to achieve better results over time.

HR tip

Inject creativity into OKRs by encouraging cross-functional collaboration to spark innovation and develop a culture of collective ownership of shared goals.

How HR can use OKRs

There are many objectives that OKRs can help you to achieve. Some of these include: 

Improving recruitment and onboarding 

Setting clear OKRs for recruitment and onboarding helps your recruiters and talent acquisition team improve their work in these key areas. For instance, the goal might be to enhance the quality of new hires with specific targets like “boost candidate survey scores by 20%”, “raise new hire retention by 15% in the first year”, and “cut down the hiring process by 10 days”. 

This method focuses on attracting the best talent and making sure they settle in well, increasing their commitment and participation from the start. With OKRs, HR can use data and feedback to keep improving how they hire and welcome new employees.

Improving employee engagement and satisfaction

For instance, a goal could be “increase employee engagement and satisfaction,” with measurable outcomes like “boost employee engagement score by 25%”, “cut employee turnover by 20%”, and “start at least two workforce development programs.” 

By establishing these objectives, you can work towards fostering a positive culture that appreciates and rewards employees’ efforts. OKRs promote ongoing feedback, making employees feel valued and listened to, which boosts loyalty and productivity.

Developing Diversity, Inclusion, Equity and Belonging

Use OKRs to improve Diversity and Inclusion in the workplace. For example, an objective might be to “amplify diversity and inclusion in all departmental teams” with measurable outcomes such as “increase the representation of minority groups in management positions by 15%” and “achieve a 25% increase in employee perceptions of inclusivity”. 

By setting specific, actionable goals, HR can ensure that DEIB initiatives are not just token gestures but are integrated into the organization’s culture. 

6 examples of HR OKRs

Example 1:

• Objective: Improve employee engagement
• Key result 1: Increase employee engagement survey scores by 10%
• Key result 2: Reduce voluntary turnover rate by 5%
• Key result 3: Implement at least three employee recognition programs.

Example 2:

• Objective: Enhance diversity and inclusion
• Key result 1: Increase representation of underrepresented groups in leadership positions by 15%
• Key result 2: Achieve 100% participation in diversity and inclusion training programs
• Key Result 3: Implement unconscious bias training for all hiring managers.
  

Example 3:

• Objective: Strengthen talent acquisition
• Key result 1: Reduce time to fill vacant positions by 20%
• Key result 2: Improve candidate satisfaction scores by 15%
• Key result 3: Increase employee referral hires by 25%.
  

Example 4:

• Objective: Optimize performance management process
• Key result 1: Increase employee and organizational goal alignment by 20%
• Key result 2: Conduct quarterly performance check-ins with all employees
• Key result 3: Raise performance appraisal completion rates to 95%.
  

Example 5:

• Objective: Enhance employee development
• Key result 1: Increase participation in training and development programs by 30%
• Key result 2: Achieve 90% satisfaction rate in post-training surveys
• Key result 3: Implement a mentorship program for high-potential employees
  

Example 6:

• Objective: Improve HR operational efficiency
• Key result 1: Implement HR automation tools to reduce time spent on administrative tasks
• Key result 2: Streamline onboarding process to reduce onboarding time by 25%
• Key result 3: Increase self-service HR portal adoption rate to 80%.

HR tip

Learn to make data-driven decisions by upskilling yourself with an AIHR People Analytics Certificate Program. The self-paced program will teach you how to analyze HR data and build interactive HR dashboards and reports so you can measure and transform data into actionable insights. 

Why use HR KPs

KPIs can serve several purposes within HR:

1. Align with strategic objectives

KPIs help HR departments align initiatives and activities with the organization’s overall strategic objectives. By measuring specific metrics, such as talent acquisition, employee development, and retention, HR can ensure that its efforts contribute directly to achieving broader organizational goals.

2. Monitor key metrics

You can track critical workforce management and performance metrics with KPIs. These metrics may include employee engagement levels, turnover rates, diversity and inclusion metrics, training and development effectiveness, and HR operational efficiency. By measuring these key indicators, you can identify areas of strength and areas needing improvement. This enables you and the company to make informed decisions and take proactive measures to address issues as they arise.

3. Drive performance improvement

KPIs provide HR with insights into the performance and effectiveness of various HR programs, policies, and processes. By setting benchmarks and targets for key metrics, you can establish performance standards and identify opportunities for improvement. This enables HR to implement targeted interventions and strategies to enhance employee performance, engagement, and overall organizational effectiveness.

4. Improve decision-making 

KPIs serve as valuable tools for data-driven decision-making within HR. By analyzing KPI data, you can gain insights into trends, patterns, and areas of concern within the workforce. This enables HR to make informed decisions regarding talent management, resource allocation, strategic planning, and other critical HR initiatives, ultimately leading to better outcomes for the organization.

How HR can use KPIs

Measure performance

Use KPIs to measure the performance and effectiveness of your HR programs, initiatives, and processes. For example, KPIs related to recruitment and selection can help HR assess the efficiency of talent acquisition efforts. KPIs related to training and development can help gauge the impact of employee learning programs on skill development and performance improvement.

Set and monitor goals

Establish specific KPIs aligned with HR goals and objectives and use them to set performance targets and benchmarks. By monitoring KPIs regularly, you can track progress toward achieving these goals, identify areas of success and improvement, and adjust strategies and tactics to stay on track.

Identify trends and patterns

HR can analyze KPI data to identify trends, patterns, and insights related to workforce dynamics, employee behavior, and organizational performance. For example, KPIs related to employee engagement can help you identify drivers of engagement and areas of concern, helping you develop targeted interventions to improve morale and satisfaction.

Benchmarking and comparison

KPIs can be used to benchmark performance against industry standards and best practices or compare performance across different departments, teams, or time periods. This helps you identify areas of strength and areas needing improvement relative to peers or internal benchmarks.

Drive accountability and transparency

Promote accountability and transparency by establishing clear KPIs and communicating them to stakeholders. Employees and managers can then better understand expectations and performance standards, track progress toward goals, and take ownership of their contributions to success.

Assess the effectiveness of strategies and policies

KPIs help you to evaluate the effectiveness of existing HR strategies, programs, and policies. By measuring outcomes against predefined KPIs — such as recruitment effectiveness, training program success rates, and diversity and inclusion metrics — you can determine whether its initiatives are achieving the desired results. You can then identify what’s working and what requires improvement, leading to more targeted and effective interventions.

6 examples of HR KPIs

Example 1:

Employee turnover rate: Percentage of employees who leave the organization within a specific period, typically calculated annually.

Example 2:

Absenteeism rate: Percentage of scheduled work hours that employees are absent from work, often calculated monthly or quarterly.

Example 3:

Time to hire: Average number of days it takes to fill a vacant position from the time you post it until the organization hires a candidate.

Example 4:

Training program success rate: Percentage of employees who successfully complete training programs or courses within a given timeframe.

Example 5:

Employee engagement score: A composite measure of employee satisfaction, motivation, and commitment, often assessed through employee engagement surveys or other feedback mechanisms.

Example 6:

Diversity index: Measure of workforce diversity that considers factors such as gender, race, ethnicity, age, and other aspects of diversity, often expressed as a percentage or ratio.

To sum up

OKRs and KPIs are invaluable tools for driving organizational success. OKRs provide a structured methodology for defining clear objectives and measurable outcomes, guiding teams toward strategic goals. On the other hand, KPIs offer real-time insights into performance, enabling you to track progress and make data-driven decisions.

The post OKRs vs. KPIs: The Key Differences & Use (With Examples)  appeared first on AIHR.

The Skill Will Matrix provides a simple but powerful way for managers to customize their interactions to do both effectively. But what exactly is the Skill Will Matrix, and how can you use it to help your employees and your organization perform better?

Contents
What is the Skill Will Matrix?
The four quadrants of the Skill Will Matrix explained
History of the Skill Will Matrix
What is the difference between skill and will?
Applications of the Skill Will Matrix
How do you fill in a Skill Will Matrix?
Free Skill Will Matrix template
Fictional case study: New manager hire

What is the Skill Will Matrix?

The Skill Will Matrix is a tool that compares willingness to perform a task to the degree of skill employees have to perform the task well. This is plotted on a 2×2 quadrant. Each quadrant indicates how the manager should engage with or manage the employees that fall in that specific quadrant.

• Quadrant I: High Skill, High Will: This person has the skills and motivation needed to succeed at work.
  • Talent management strategy: Delegate tasks to these individuals, allowing them autonomy and the opportunity to lead projects, as they are likely to handle responsibilities effectively.
• Quadrant II: Low Skill, High Will: The employee doesn’t have all the skills they need to perform, but they have the motivation needed to improve.
  • Talent management strategy: Guide them by providing training and continuous learning opportunities to develop their skills.
• Quadrant III: Low Skill, Low Will: This worker lacks the skills needed to perform and the motivation to improve their skills.
  • Talent management strategy: Direct them with clear, structured tasks and close supervision to ensure compliance and encourage skill development.
• Quadrant IV: High Skill, Low Will: This person has the skills to perform in their role but lacks the motivation to do so.
  • Talent management strategy: Excite them by aligning tasks with their interests or career goals and recognizing their achievements to boost engagement.

According to the World of Work, “it is a 2×2 matrix that is often used by managers to assess individual performance. The matrix places “will” (willingness, enthusiasm and self-drive) on the vertical matrix and “skill” (core capability) on the horizontal. Willingness is related to motivation.”

In short, the the Skill Will Model enables managers to determine how to help every employee improve their performance. This, in turn, leads to a motivated, engaged workforce willing and able to help you achieve your business goals and desired results.

As an HR leader, you can teach managers how to use this matrix and what performance management strategies they can work with to engage their employees.

The four quadrants of the Skill Will Matrix explained

Let’s take a look at the four quadrants of the Skill Will Matrix, the characteristics of employees in each, and respective management strategies in more detail.

Quadrant I: High Skill, High Will

• Possesses the skill and will to perform
• Seeks new opportunities to grow
• Eager to learn and develop new skills
• High motivation and drive
• High performer and achiever

Talent management strategy: Delegate

An employee in this quadrant needs less of a coach and more of a mentor. Encourage and empower them to adopt a self-coaching approach, but always be available for them if they need advice or guidance. 

Quadrant II: Low Skill, High Will

• Has the desire to complete tasks but lacks the skills to do so
• High enthusiasm
• Strong desire to succeed and excel at work
• Tends to be new to a career or job level

Talent management strategy: Guide

Give this employee as many opportunities as possible to develop their skills and encourage them to take managed risks, which they can learn from. 

Quadrant III: Low Skill, Low Will

• Lacks the skills and motivation to perform
• May have failed before and be afraid to fail again
• Could be in the wrong role or be a poor fit for the team or organization
• May be reluctant to ask for help

Talent management strategy: Direct

Working with someone in this quadrant will require the most time and effort. Set clear expectations and deadlines and closely monitor their progress. Encourage them to reach out for help when they need it. 

Quadrant IV: High Skill, Low Will

• Possesses the skills to perform but lacks motivation
• May have reached a plateau
• May have had a recent manager/team change
• In need of a new challenge

Talent management strategy: Excite

Figure out what motivates this employee, then link this to their role to boost engagement. Work together to reduce anything in their role or working environment that is having a negative impact on their motivation. 

History of the Skill Will Matrix

Organizations have been using the Skill Will Matrix for several decades; a testament to its value to managers in overseeing the performance of their direct reports. Paul Hersey and Ken Blanchard derived this tool from the model of situational leadership they created in the 1970s.

As the term suggests, situational leadership involves management and leadership flexing their managerial and leadership style to match the specific situation and individual employees with which they are engaging.

It describes for types of leadership behaviors tailored to meet the varying readiness levels of followers:

• Directing: The leader provides specific instructions and closely supervises performance, ideal for followers who are enthusiastic but lack specific skills.
• Coaching: While still providing direction, the leader encourages two-way communication, offers support, and helps build the confidence and motivation of followers who are attempting to build their skills.
• Supporting: The leader facilitates and supports followers’ efforts towards task completion and shares responsibility for decision-making with them. This is suitable for followers who have developed abilities but lack commitment.
• Delegating: The leader offers less guidance, giving followers the responsibility for decisions and execution of the work. It’s best suited for followers who are highly competent and motivated.

The Situational Leadership Model is illustrated below, and if you compare it to the Skill Will Matrix above, you can see the similarities.

While this matrix is sometimes considered to be too simplistic, it can still guide you effectively in finding the best management approach for your employees.

What is the difference between skill and will?

‘Skill’ is the competence employees possess to function in their role effectively. People acquire and develop skills through learning and practice. Skills can also be measured in terms of proficiency levels – beginner, intermediate, advanced, and expert.

‘Will’ signifies the degree of motivation employees have to perform a task or function in a role. Several things can impact employees’ level of will – degree of skill, professional aspirations, team and organizational culture, and personal life. It is evident from these lists that managers need to be very engaged with their staff to know what skills their team possess, the levels of proficiency of each team member, and also understand the motivating drivers that impact their will.

According to ExecVision, “(s)kill is objective. You have concrete KPIs and best practices to measure against. Will, on the other hand, is more subjective, and can only be uncovered through one-to-one conversation and observation.” However, to minimize the subjectivity in determining ‘Will”, a personality assessment, like a Hogan Assessment, can be helpful in determining employees’ ‘bright-side,’ ‘dark-side’, and ‘motivations, values and preferences.’

Depending on where employees are plotted on the matrix based on their level of skill and will, a different performance management style will be used.

Applications of the Skill Will Matrix

Skill Will Matrixes may be most useful in times of organizational transition. The following organizational changes describe its usefulness:

Employee development and training

Identifying where employees fall on the Skill Will Matrix enables managers to tailor learning and development opportunities that cater to their individual needs. For example, an employee with high will and low skill may find technical training beneficial, while an employee with high skill and low will may benefit from motivational initiatives.

Performance management

The Skill WIll Matrix can help managers understand the root cause of performance issues by separating skill and motivational deficiencies. This allows interventions to be more targeted, for example, coaching and skill-building activities for those with low skill or motivation-boosting strategies for those with high skill but low will.  

M&A

After an acquisition and merger, a manager may find this useful to better manage and motivate merged team members.

New manager

A new manager is hired from outside the organization to manage a pre-existing team. The manager will find this tool valuable during the first few months of employment to better manage and understand the newly acquired team’s skills and work preferences. This helps prevent early mistakes in choosing the appropriate style of interaction and achieve quick wins.

Organizational restructure

There may be more job opportunities in some business units during an organizational restructure but fewer in others after the restructure. A Skill Will Matrix will help leaders make decisions that support new organizational objectives and retain key employees.

New team members

It takes time to learn the skills, work habits, and learning styles of a new team member. The Skill Will Matrix can give managers a headstart in understanding an employee’s strengths, motivations, and preferred styles of communication and leadership. 

Better leadership

Using this framework helps managers communicate with and develop their team using the appropriate talent management strategy (Guide, Delegate, Direct, or Excite). These conversations help to uncover employees’ hidden strengths, which enables managers to place them in a position where they can flourish. 

Agile projects

Selecting members for agile projects can be a challenging and sometimes competitive process. Combined with the Competency Matrix, the Skill Will Matrix can be adapted to help leadership quickly determine the most competent and motivated employees to build agile teams that deliver timely results.

How do you fill in a Skill Will Matrix?

Here are some key steps to follow when filling in a Skill WIll Matrix for an employee. HR can teach managers how to do this, so they can better support and lead their team.

• Identify criteria: Determine the specific criteria that will be used to measure skill and will in your employees. For example, to measure skill, you might look at technical ability, experience, or quality of past work. To measure will, you might look for ways to assess enthusiasm, commitment, and initiative at work. It’s important that these criteria are tailored to align with the specific roles and responsibilities within the team.

• Assess each employee: Once you’ve identified your criteria for skill and will, you can evaluate each team member against it. This evaluation should be as objective as possible, potentially incorporating performance data, project outcomes, feedback from peer reviews, self-assessments, and direct observations. Place each employee in one of the four quadrants on the Skill Will Matrix.

• Introduce calibration sessions: In these sessions, managers can discuss their assessments with peers or HR to ensure consistency and fairness in how criteria are applied. This helps in aligning the evaluations across different teams and departments, reducing bias.

• Plan development approaches: For each quadrant, decide on suitable talent management strategies that can help to develop that set of employees. For example, mentoring, setting goals, and increasing motivation.

• Review and adjust: As you work to develop your employees, review where they are placed in the matrix. The goal is to help each team member progress towards the High Skill, High Will quadrant, indicating they are both capable and motivated.

Fictional case study: New manager hire

Daphne recently joined an organization as the HR Manager and is managing a team of 4 employees. Shelly has been on the team for four years as the Recruiter. In her prior role, Shelly was an HR Generalist for four years at another organization. Max is the HR Coordinator. He joined the team 12 months ago, immediately after graduating with a BA in Business Administration. Khris is the Senior HR Generalist, and she has been on the team for six years. Then there is Stellar; she has been the Payroll Officer for 18 months.

After working with and observing the team for about two months, Daphne wants to better understand the team’s capacity and degree of motivation to do their jobs. HR advises her to use the Skill Will Matrix and take the following steps:

1. She reviews the team’s performance evaluations over the past three years.
2. She solicits feedback about the team’s performance and each person’s capabilities from key stakeholders.
3. She reviews each of their Hogan Assessment Results
4. She meets with team members individually to discuss the reviews, feedback from stakeholders, Hogan Assessment results, and listen as they express their own engagement drivers, aspirations, and challenges.

Completing the Skill Will Matrix

After Daphne concluded the above steps, she completed the Skill-Will Matrix as illustrated below:

• Khris – Quadrant I: High Skill, High Will
• Stellar – Quadrant II: Low Skill, High Will
• Max – Quadrant III: Low Skill, Low Will
• Shelly – Quadrant IV: High Skill, Low Will

Khris – High Skill and High Will (Delegate): Daphne learned that Khris was a high performer and ambitious, needing little assistance in her work. Khris had applied to the manager role Daphne assumed. However, she didn’t have the managerial experience. Daphne decided she would challenge, nurture and empower her. She assigns Khris as the peer coach and, on certain occasions, allows Khris to shadow her as she manages the team. Daphne realized that as the organization grew, Khris’ experience, motivations, and disposition made her a valuable member to the team and even to her. It would be a massive loss if Khris left the organization.

Shelly – High Skill but Low Will (Excite): Shelly is a potential detractor. Daphne needs to identify why her motivation is so low and find ways to excite and motivate her. What she learns is Shelly gets bored after she feels she has mastered a task. Shelly has changed jobs/organizations every 3-4 years. Daphne consults with the HR Director, and they both agree that the organization’s growth would soon necessitate HR Business Partners. Shelly would make a strong HR Business Partner given her high competence, experiences, and personality profile. They communicated this to Shelly, who was thrilled by the prospect of this new challenge. Daphne began crafting a 12-month HRBP development plan for her.

Stellar – High Will but Low Skill (Guide): She has a good attitude and has developed positive working relationships with the team and staff. However, Stellar needs extra guidance and performance coaching. She is easily distracted and doesn’t pay enough attention to details. This leads to recurring mistakes and complaints from the HR Director. To develop her core skills, Daphne comes up with a plan of action. She identifies payroll administration training for Stellar to attend. She also spends considerable time sitting with Stellar during the payroll preparation week to provide frequent feedback on the process. Daphne develops a checklist and procedural guidelines with clear rules to help Stellar be more attentive and accurate. These steps not only close Stellar skills’ gaps, but they also improve the employee experience and the HR Department’s image.

Max – Low Will and Low Skill (Direct): Unfortunately, Max is a low performer. Therefore, Daphne provides him with SMART goals, a work plan and has weekly check-in meetings with him. However, during the conversation with Max, prior to completing the Skill Will Matrix, Daphne learns that Max really wants to pursue a career in Marketing & Communications. He pursued the HR Coordinator role to gain work experience, earn an income and get into the organization. Daphne is privately discussing an exit strategy for Max with the HR Director. Though his role is a junior role, it is critical to providing HR service to all the employees and to the HR Department. It is essential to have someone with the right skill and will to consistently provide quality service.

Through this process, Daphne was able to customize the management of her team in a way that addressed their performance and motivational needs by empowering, exciting, guiding, and directing them.

Over to you

Simply put, the Skill Will Matrix is a valuable framework and a starting point for determining appropriate employee performance coaching techniques. This performance management tool helps you uncover and bridge the skills gaps, utilize your employees’ strengths, and motivate them based on their values and preferences.

The post A Complete Guide to the Skill Will Matrix [Free Template] appeared first on AIHR.

This is especially true in an HR field that is rapidly changing and requires new skills and competencies from HR leaders and their teams. Leadership books can be a great go-to source for any HR leader looking to embrace a continuous learning mindset.

This article provides a list of must-read leadership books designed with you, the HR leader, in mind.

1. A Cure for the Common Company (2023) by Richard Safeer, MD

Health and wellbeing expert Safeer wrote A Cure for the Common Company, to help business and HR leaders foster a healthier work environment and more resilient workforce.

Why you should read this book

Total wellbeing and resilience-building among employees remain top priorities for organizations, and HR is often charged with these tasks. In this book, Richard Safeer provides a step-by-step roadmap to creating a health and wellbeing culture that keeps people happier and more engaged.  

Topics covered

• The importance of shaping your wellbeing culture
• Strategies to help leaders build a solid cultural foundation to support their change efforts
• Challenging yourself, your team, and your workforce to live better lives. 

Also available as an audiobook.

2. Beyond Discomfort (2024) by Nadia Nagamootoo

Beyond Discomfort revolves around three attitudes Nagamootoo regularly encounters among leaders, which act as barriers to progress on DEIB.  

Why you should read this book 

The framework the author created around these three different mindsets allows HR and business leaders to reflect on their thoughts and behaviors. They can then challenge themselves and channel their discomfort into positive action.

Topics covered 

• Real-life examples and insights to deepen your understanding of DEIB and its complexities
• New perspectives to better connect with your existing leadership values and beliefs 
• Practical tools and activities to develop and improve your DEIB practices. 

3. Built for People (2023) by Jessica Zwaan

In Built for People, Zwaan explains how you can transform your people function by applying the best elements of a product management approach to HR.

Why you should read this book 

The book shows HR practitioners and business leaders how to improve workforce and business performance by following three key steps:

• Developing people-centered ways of working 
• Using evidence-based decision-making
• Encouraging a culture of continuous feedback and iteration. 

Topics covered 

• The product management approach’s impact on HR, and how to execute it effectively
• The importance of testing and iteration and how to define metrics for success
• Tools, case studies, exercises, and advice from those who’ve already seen the benefits of product -management for their people operations.

4. Bring Your Human to Work (2018) by Erica Keswin

Bring Your Human to Work identifies the key practices of well-known human companies such as Lyft and SoulCycle. Keswin translates these into applicable advice that any business leader can use to build a ‘“human workplace.”

Why you should read this book

The author has over 20 years of experience working with top business leaders and executives to build companies that are real, aligned, and true to themselves. Her leadership lessons foster fairness, devotion, and joy in the workplace — all core elements of a successful business.

Topics covered

• Understanding your company’s role in the world beyond financial profit
• Running your meetings with a clear purpose
• Simply saying “thank you”.

Also available as an audiobook.

5. Dare to Un-Lead (2022) by Céline Schillinger

In Dare to Un-Lead, Schillinger explores how modern organizations can transform leadership from a top-down hegemony to one that enables people to lead together based on the concepts of liberty, equality and community. 

Why you should read this book

Dare to Un-Lead challenges how you may think and feel about the role of leadership in your life. It can be valuable — if not indispensable — for HR and business leaders to look at leadership through multiple lenses and constantly broaden their perspectives. 

Topics covered 

The author presents a series of evidence-based approaches to reinvent collective performance across organizations, stemming from her own experiences and analysis of leadership.  

6. HR Disrupted (2017) by Lucy Adams

HR Disrupted is a leadership classic that explores HR’s role of HR in the future.  This includes leading, managing, engaging and supporting people in a radically different way.

Why you should read this book 

The author introduces the EACH model, which encompasses treating Employees as Adults, Consumers, and Human Beings

Adams draws on her experience as an HR Director at BBC to demonstrate how to better manage people in an increasingly digital and disruptive business environment. 

Topics covered

In HR Disrupted, the author presents the following three pillars of disruptive HR:

• Treating employees as adults, not children
• Treating employees as consumers or customers rather than employing a one-size-fits-all approach
• Treating employees as human beings.

7. HR Like a Boss (2023) by John Bernatovicz

HR Like a Boss features real-life stories of HR practitioners who embody the characteristics of a so-called ‘boss,’ i.e., a skilled business leader.

Why you should read this book

In HR Like a Boss, Bernatovicz gives HR professionals the tools they need to help employees feel more connected to the company they work for and ensure the organization’s success. 

Topics covered

• The evolving role of HR
• HR as a strategic partner 
• Recruitment, performance management, engagement, and retention.

Also available as an audiobook.

8. HR Rising!! (2020) by Steve Browne

In HR Rising!!, bestselling author Steve Browne encourages HR practitioners to move beyond the mindset of simply being a support function. Browne encourages you to enter the role of intentional leadership.

Why you should read this book 

The author believes impactful leadership comes from people who are not confined solely to their job titles. Rather, the HR professionals’ ability to connect and interact with all employees puts them in the perfect position to lead and build meaningful change for their organizations. 

HR Rising!! highlights the aspects of your own professional experience that will help you start leading from where you are right now.

Topics covered

• The author’s formula of People + Processes = Results. 
• Fostering collaboration, developing credibility, and building trust.

9. Humanocracy (2020) by Gary Hamel and Michele Zanini

In Humanocracy, the authors present a detailed blueprint for creating organizations as inspired and ingenious as the people within them. 

Why you should read this book

We all know that organizations must become more human. The big question that the book addresses is ‘How?’. In Humanocrocy, Hamel and Zanini explain the DNA of human-centric organizations, providing a use case to help you get started.

Topics covered 

• How to equip everyone in your organization to be their best and do their best
• The building blocks for creating ‘Humanocracy’ within your company. 

Also available as an audiobook.

10. I, Human: AI, Automation, and the Quest to Reclaim What Makes Us Unique (2023) by Tomas Chamorro-Premuzic

I, Human tackles a question every HR and business leader should consider: Whether we will use AI to improve the way we work and live.

Why you should read this book

AI and automation will affect every organization to a certain extent. Technology can improve our lives, but it can also worsen our bad tendencies. It is up to us to adapt and determine how we want to live and work, and the time to do so is now. 

Topics covered 

I, Human is filled with insights about human behavior and our complicated relationship with technology. The book also touches on the (soft) skills we need to develop to thrive in the future.  

Also available as an audiobook.

11. Leading Below the Surface (2021) by LaTonya Wilkins

In Leading Below the Surface, culture leader LaTonya Wilkins challenges our thinking about traditional leadership standards and the countless DEIB initiatives that have failed to make a lasting impact. 

Why you should read this book 

Leading Below the Surface explores how certain highly rewarded behaviors are actually destroying companies, blocking us from creating genuinely diverse, equitable, and inclusive cultures of belonging. 

As an HR or business leader, you will learn how to take your DEIB efforts to the next level and create an authentic culture of belonging. 

Topics covered 

This book combines real-life anecdotes from Wilkins herself with actionable insights backed by interdisciplinary research. 

Also available as an audiobook.

12. Love + Work (2022) by Marcus Buckingham

In Love + Work, Marcus Buckingham aims to help you discover your best in work and life. 

Why you should read this book

Love + Work encourages HR leaders and managers to be compassionate towards the people in their organization, cultivate their potential, and help them reach the point where they love what they do. 

Topics covered 

This book will enable readers to:

• Choose the right role on their team
• Position themselves as a leader that people trust easily
• Make lasting changes for their team, company, family, or students.

Also available as an audiobook.

13. People Operations (2021) by Jay Fulcher, Kevin Marasco and Tracy Cote

People Operations guides leaders in small and medium-sized companies on how to stop spending too much time on HR admin and start focusing more on the people in their organization. 

Why you should read this book

If you’re an HR generalist or business owner in a small or medium-sized company, People Operations is a great book to read. It examines how to optimize HR, support employees, maximize workforce investment, and modernize your business. 

Topics covered

• Digitalizing legacy HR functions
• Using robots for tedious busywork
• Employing software to design and improve the employee experience.

Also available as an audiobook.

14. Redefining HR (2021) by Lars Schmidt

In his second book, Lars Schmidt examines the evolution of Human Resources and breaks down many of the fundamental components of modern HR and people operations.

Why you should read this book 

Redefining HR is a business book written to help companies build modern people teams. It provides a tangible framework of progressive ideas and practices for HR practitioners, people leaders, and business executives.

Topics covered 

• Diversity and inclusion
• People analytics 
• L&D and employee experience. 

The book also features global case studies.

15. Remote, Not Distant (2022) by Gustavo Razzetti

This book examines what makes some companies thrive, and others fail under a remote or hybrid work model.

Why you should read this book

Remote and hybrid work are here to stay, as many candidates and employees prefer. In Remote, Not Distant, Gustavo Razzetti reveals the secret of successful remote workplace cultures and provides actionable tools for senior (HR) leaders. 

Topics covered

Razzetti addresses the different areas crucial to effective remote and hybrid work, including:

• Culture
• Keeping teams connected
• Asynchronous communication.  

Also available as an audiobook.

16. Scaling People (2023) by Claire Hughes Johnson

Scaling People is a practical and empathetic guide to being an effective leader and manager in a high-growth environment. 

Effective leadership and management is crucial as remote and hybrid working becomes more prevalent. Johnson, former COO of Stripe, has firsthand experience in this area and shares her valuable insights and strategies for effectively scaling your team while maintaining a positive company culture.

Why you should read this book

Scaling People provides a detailed roadmap for every HR or business leader in a fast-growing company who may be wondering how to put in place the right operating structures and people systems to scale.

Topics covered

Johnson’s book includes numerous worksheets, templates, exercises, and example documents to help leaders, founders, and company builders scale.

Also available as an audiobook.

17. Strategic Human Resources Planning, 7th Edition (2019) by Mark Podolsky and Monica Belcourt

This is another classic on the list and one of the best leadership books for new leaders in the field of HR. 

Why you should read this book 

Successful HR planning is strategic and focuses on the organization’s unique needs. The Seventh Edition of Strategic Human Resources Planning highlights the importance of HR practitioners as business partners who are key in the organization’s strategic planning.

Topics covered

• The forecasting process
• IT for HR planning
• HR planning today.

18. Teams Unleashed (2019) by Phillip Sandahl and Alexis Phillips

Teams Unleashed offers a map for engaged, sustainable, and better team performance. 

Why you should read this book

Teams Unleashed offers a map for engaged, sustainable, and improved team performance, particularly for team and executive coaches, internal HR, OD and L&D professionals, and team leaders.

Topics covered

• The five core competencies for working effectively with teams
• Essential team coaching skills
• Exercises and activities to spark conversations that increase understanding and lead to new team norms.

Also available as an audiobook.

19. The Coaching Habit (2016) by Michael Bungay Stanier

In The Coaching Habit, the author aims to make coaching a habitual, informal part of your daily life. 

Why you should read this book 

Stanier has trained over 10,000 managers worldwide in practical, everyday coaching skills. In this book, he shares how you can develop coaching methods that unlock your people’s potential by saying less and asking more.

Topics covered 

• Combines insider information with research based on neuroscience and behavioral economics
• Provides interactive training tools that turn practical advice into practiced habits.  

Also available as an audiobook.

20. The Color of Emotional Intelligence (2023) by Farah Harris 

Author Farah Harris outlines how to elevate your emotional intelligence (EQ) to help with addressing inequities. 

Why you should read this book

Emotional intelligence is a crucial interpersonal skill needed for strong leadership in HR. In The Color of Emotional Intelligence, Harris teaches us, among other things, the fundamentals of EQ and how to use EQ to break barriers to equity. 

Topics covered

• Barriers to practicing EQ effectively
• Different types of stressors, including microaggressions
• Tools everyone can use to elevate their emotional intelligence. 

21. The Culture Code (2018) by Daniel Coyle 

The Culture Code explores where great culture comes from and how you can build and sustain it in your group (or company). 

Why you should read this book 

A healthy organizational culture drives engagement, productivity, and revenue growth. This book offers a roadmap for creating an environment where innovation flourishes, problems get solved, and expectations are exceeded.  

Topics covered 

• What makes organizations like the U.S. Navy’s SEAL Team Six and the San Antonio Spurs tick
• Three skills he identified that generate cohesion and cooperation
• How diverse groups learn to function with a single mind.

Also available as an audiobook.

22. The Culture Map (2014) by Erin Meyer

In The Culture Map, Erin Meyer provides a field-tested model for decoding how cultural differences impact international business. 

Why you should read this book 

The Culture Map is a must-read for HR leaders in organizations where people from different nationalities and cultural backgrounds work. It will help you understand how local culture impacts global interaction and provide valuable insights for working effectively and sensitively with people all over the world.

Topics covered

In The Culture Map, Erin combines a smart analytical framework with practical, actionable advice for working globally. 

Also available as an audiobook.

23. The Fearless Organization (2018) by Amy C. Edmondson

In The Fearless Organization, Edmondson explores the culture of psychological safety and provides a blueprint for bringing this to life. 

Why you should read this book

As an HR leader, you want to encourage a work atmosphere where people feel free to share their ideas and express themselves  — even when their opinions differ. This book helps you create this psychologically safe environment. 

Topics covered

• The connection between psychological safety and strong performance (using real-life examples from the public and private sectors)
• Practical steps leaders must take to ensure psychological safety that can help build and maintain a fearless organization.

Also available as an audiobook.

24. The New HR Leader’s First 100 Days (2017) by Alan Collins 

In The New HR Leader’s First 100 Days, Collins, former VP of HR at PepsiCo, shares his proven step-by-step approach for starting strong and accelerating your success in your new HR leader role.  

Why you should read this book

Like with many things, the foundation you create when you start as an HR leader determines your success — or the lack thereof — further down the road. Therefore, the first 100 days in your new role as an HR leader are critical.

Topics covered

• Strategies to take charge and get up to speed even before your first day
• How to make a positive and powerful first impression as a new HR leader
• Ten tips to select the early HR wins you need to make your mark and establish yourself.

25. The Squiggly Career (2020) by Helen Tupper and Sarah Ellis

Helen Tupper explains the ‘squiggly career’ — a career where people constantly jump between roles, industries, and locations. 

Why you should read this book 

Squiggly careers (or non-traditional career paths) are becoming more prevalent, and as a result, models like the career lattice are gaining traction in modern workspaces. This book provides insights into the changing shape of work as companies increasingly work with employees with squiggly careers.

Topics covered

• How to play to your “super” strengths
• How to build better support frameworks
• How to gain more confidence and explore future possibilities.

Also available as an audiobook.

26. Unapologetically Ambitious (2020) by Shellye Archambeau

Unapologetically Ambitious is a leadership book that offers a blueprint for achieving personal and professional goals. 

Why you should read this book 

While Archambeau’s book is primarily intended for women, her practical advice and guidance are valuable for any HR and business leader, regardless of their background or demographic.   

Topics covered

• Tackle imposter syndrome 
• Take risks
• Develop financial literacy 
• Integrate work, marriage, parenthood, and self-care.

Also available as an audiobook.

27. Bonus: HBR’s 10 Must Reads for HR Leaders Collection (5 books – 2019) from the HBR editors

Looking to get up to speed on core topics like leadership, strategy, change, managing people, and managing yourself? HBR’s 10 Must Reads for HR Leaders provides you with a collection of books delving into various essential leadership topics. 

Why you should read these books 

HBR’s 10 Must Reads for HR Leaders Collection presents groundbreaking ideas on cultivating a high-performance company culture, leading positive change, and leveraging the advantages of a diverse workforce.

Topics covered

The collection includes:

• HBR’s 10 Must Reads on Reinventing HR
• HBR’s 10 Must Reads on Change Management
• HBR’s 10 Must Reads on Building a Great Culture
• HBR’s 10 Must Reads on Diversity
• HBR’s 10 Must Reads on Managing People.

Over to you

As the role of HR continues to evolve, HR leaders need to play a more strategic role within the business. This requires you to equip yourself and your team with the skills and competencies needed to succeed. Constant learning can help you to stay abreast of best practices and innovative approaches.

The post 27 Best Leadership Books for HR Leaders [2024 Edition] appeared first on AIHR.

The 9/80 schedule offers a fresh take on the work week by lengthening weekends. This working model is gaining popularity as a strategy to improve the ultimate business trifecta: Productivity, employee satisfaction, and work-life balance.

Contents
What is a 9/80 schedule?
How does a 9/80 schedule work?
9/80 schedule versus 4-day workweek
What are the benefits and drawbacks of a 9/80 schedule?
What does a 9/80 schedule look like?
How HR can help implement the 9/80 schedule
Companies that use the 9/80 work schedule

What is a 9/80 schedule?

The 9/80 schedule upends the typical 9-5 work schedule of eight hours a day, five days a week, followed by two days off on weekends. Instead, it compresses workweeks, providing more free time for the same wages. Under a 9/80 schedule, employees work slightly longer days in exchange for every other Friday off.

9/80 schedules are calculated in two-week blocks. In week one, employees work a 9-hour day from Monday to Thursday and an 8-hour day on Fridays. In week two, they work nine hours from Monday to Thursday and get Fridays off. And then the routine repeats. This means they get two 3-day weekends every month, on average.

The backstory of how work scheduling come about is an interesting one. The automotive tycoon and manufacturing pioneer Henry Ford established the 40-hour work week back in 1926. It then became the legally mandated work week in the United States in 1940.

Since then, flexible and compressed schedules have been recognized under the banner of ‘alternative work schedules’ and are gaining popularity as a way to boost work-life balance without sacrificing productivity. These include the 9/80 and 4/10 schedules, also known as the 4-day work week.

How does a 9/80 schedule work?

A 9/80 schedule is a work schedule that condenses the standard 80 hours worked in two weeks into nine days instead of 10. This means staff get every other Friday off, all while keeping total work hours the same.

If you’re considering introducing a 9/80 schedule, here’s how HR can be the ultimate advocate for this new approach:

1. Be the communication champion: Clearly explain the new schedule to everyone. This includes details on the format, how payroll handles the 9/80 schedule, and the benefit of extra days off.
2. Help with scheduling: Support managers and employees in adjusting to their new workloads and ensure coverage is in place during the additional days off. Think of it as a scheduling puzzle you get to solve – and happy employees are your reward.
3. Provide guidance on maintaining productivity: Offer tips and resources on managing energy and staying focused during the longer 9-hour workdays.

9/80 schedule versus 4-day workweek: Which is better?

Both the 9/80 schedule and 4-day workweek aim to improve work-life balance by compressing more work hours into fewer days. But they achieve it in different ways:

• 9/80 schedule: Employees work for nine days (eight 9-hour days and one 8-hour day) over two weeks, totaling 80 hours. This translates into an extra day off every other week for extra recharge time.
• 4-day work week: Here, employees power through a compressed schedule, typically working four 10-hour days for a total of 40 hours. The reward? A three-day weekend every week, boosting morale and, hopefully, creativity.

The key is picking the option that best suits your company’s needs and your team’s preferences. For instance, a marketing agency might find the 4-day week perfect for their creative minds. It allows for focused work sprints followed by extended downtime to refresh and come back with even better ideas.

On the other hand, a manufacturing plant with strict production targets might benefit more from the 9/80 schedule — allowing it to maintain efficiency while still offering occasional long breaks to avoid burnout.

While the 4-day workweek is less complex from a scheduling and payroll perspective, both options can be successful if implemented carefully.

What are the benefits and drawbacks of a 9/80 schedule?

A 9/80 work schedule offers employers the potential benefits of greater productivity and employee satisfaction, but it’s not without its drawbacks. Let’s explore some pros and cons.

The pros:

• Enhanced productivity: We all struggle with distractions in our ‘always-on’ world. Longer, uninterrupted stretches in a 9/80 schedule could help employees focus on deep work tasks, potentially leading to more complex projects getting finished faster and overall productivity gains.
• Improved employee retention: Offering a work-life balance perk like a 9/80 schedule can make your company stand out. This can be a game-changer when it comes to attracting top talent and keeping your existing team happy by providing the freedom that comes with extra personal time.
• Reduced absenteeism and tardiness: This recent Gallup study confirms that having happy, engaged employees translates into an 81% reduction in absenteeism and a 14% increase in productivity. The 9/80 schedule, with its three-day weekends every other week, could contribute to a more positive and reliable workforce. Think of it as an investment in employee wellbeing and productivity.
• Improved employee work-life balance: For employees who handle 9-hour days with ease, the benefit of a 9/80 schedule lies in the extra day off. Reduced stress and a better work-life balance can lead to a happier, more engaged team, ultimately leading to higher outputs and retention prospects.
• Environmental benefits: Think about all that commuting avoided with an extra day off every other week. A 9/80 schedule can contribute to a smaller carbon footprint, which is a major plus for companies looking to build an environmentally conscious employer brand to attract top candidates.

The cons:

• Scheduling challenges: Let’s face it; a 9/80 schedule won’t suit every type of business. Coordinating meetings and ensuring team coverage, particularly in customer-facing roles, can become a juggling act, potentially disrupting workflows with employees having different days off every other week.
• Limited flexibility during workweeks: Employees might have less wiggle room during their nine-day stretches to handle appointments and personal needs. This could lead to some frustration.
• Increased risk of burnout: Not everyone thrives on longer workdays. While some might see a productivity boost, others may struggle with maintaining stamina and experience fatigue or burnout. This could ultimately cancel the initial productivity benefits and decrease overall morale and performance.
• Payroll and overtime complexity: The non-standard nature of a 9/80 schedule can be extremely challenging, especially with overtime and leave calculations. Be prepared to invest in new software or resources to ensure your compensation, overtime, and leave figures are accurate.

What does a 9/80 schedule look like?

Here’s a 9/80 schedule example:

Employees typically work four longer days from Monday to Thursday, nine hours each, followed by an 8-hour stint on Friday in the first week. Then, they power through four more 9-hour days in the second week but get the Friday off to recharge. And so, the two-week routine repeats itself.

9/80 schedule example

This is just a sample schedule. Your 9/80 schedule can be tailored to your specific business needs. For instance, the extra day off could fall on a different weekday, such as a Monday, to meet the needs of your company or team.

How HR can help implement the 9/80 schedule

A 9/80 work schedule can be a win-win for both your company and employees, but let’s be honest, not everyone will immediately take to a switch-up in routine.

Here’s how HR can ensure a smooth transition to a 9/80 schedule and prepare employees for the change:

1. Test it out first

Before diving headfirst into a company-wide launch, consider suggesting a pilot program for the 9/80 schedule. This lets you test the waters with a small, representative group of employees. It’s a great way to iron out any logistical kinks, identify potential scheduling challenges, gauge employee adoption, and track productivity metrics. This will enable HR to refine the program and ensure a smoother, more successful launch for everyone.

2. Cater for leave and payroll

Non-standard workweeks can lead to complications in your leave and payroll processes. Before launching a 9/80 program, make sure you have clear policies in place. This includes figuring out how sick leave and vacation will work — for instance, will it be based on 8-hour or 9-hour days? Also, check if your payroll system can handle the 9/80 structure.

3. Work on workload management

Partner with managers to ensure workloads are adjusted for the new schedule. This might mean helping them prioritize tasks, delegate effectively, and even build in some buffer time for breaks. By working together, you can help everyone feel supported and productive during their longer workdays.

4. Monitor for burnout

Long weeks can zap employee energy. HR can help by offering wellbeing resources. Think stress management workshops, time management tips, and resources to help them maintain a healthy work-life balance.

5. Set up team training

Before you pilot your new work schedule, develop brief training programs to educate managers on effectively scheduling their teams with the 9/80 model and provide pointers on addressing common employee concerns. Meanwhile, employees can be trained on time management strategies for longer workdays.

6. Build trust with open comms

Encourage employees to ask questions and share concerns before things get going. Stay receptive to feedback throughout the process — it’s the best way to refine a 9/80 work schedule program and make sure it works for everyone. By keeping this open dialogue going, you’ll build trust and get your team on board.

7. Be flexible

Consider offering some flexibility within your 9/80 structure. This could involve letting employees choose their ‘off’ Friday or allowing occasional adjustments to the schedule to accommodate personal needs. A little flexibility will go a long way in boosting morale and keeping your team happy.

8. Track and adapt

Throughout the pilot program and beyond, keep an eye on key metrics like productivity, absenteeism, and employee satisfaction to gauge the effectiveness of your 9/80 schedule – and be prepared to make adjustments as needed for maximum benefit.

HR tip

Check the pulse of your team with ‘stay’ interviews

Don’t wait for problems to surface. Be proactive about scheduling ‘stay’ interviews with employees before and during your 9/80 flex work schedule rollout. These one-on-one chats are a great way to get a feel for employee sentiment, preferences, and any potential concerns. By keeping the conversation flowing, you can proactively address issues and tailor your 9-hour workday programs to meet employee needs better.

Companies that use the 9/80 work schedule

1. Chevron

The global energy giant Chevron offers flexible work schedules, including the 9/80 schedules and 4/10 schedules (where employees work 10-hour days four days a week with one extra day off every week). Based on Chevron’s Glassdoor reviews, its 9/80 schedule is a hit with staff.

Learnings for HR: 

• Chevron offers its team the benefit of selecting one of two non-traditional work schedules to boost work-life balance. 
• The company does not allow off days to be banked and discourages the exchange of scheduled days off with scheduled days of work.

2. Shell

Long before COVID and the rise in the popularity of telecommuting and new flexible ways of working, Shell was offering alternative work schedules. This included the compressed 9/80 working week.

Learnings for HR:

• In addition to an ‘every other Friday off schedule,’ Shell also provides its team with flexible start and finish times.

3. Lockheed Martin

Defense contractor Lockheed Martin also offers the 9/80 schedule, providing its staff with the benefit of every other Friday off.

Learnings for HR:

• Lockheed Martin has leveraged its 9/80 scheduling to build its employer brand by publicizing the benefits of work-life balance as experienced by staff members in a video posted to its social media platforms.

The bottom line

The 9/80 work schedule can be a win-win for businesses and employees, but it has drawbacks. Piloting the program with a smaller team is a smart way to gauge its impact on your workforce and helps HR to smooth out scheduling, payroll, and other challenges.

Ultimately, the success of any 9/80 schedule relies on striking the right balance between maintaining productivity and employee satisfaction.

The post What Is a 9/80 Schedule? Your (2024) Explainer Guide appeared first on AIHR.

A WeSpire study revealed that Gen Z workers were the first to prioritize purpose over salary. They must see the connection between their actions and the broader social impact. 75% of respondents surveyed believed that work should have a greater meaning than just bringing home the bacon. They are looking for positive, purposeful, and significant roles. 

Contents
What is a purpose statement?
The role of HR in developing a company purpose statement
How to write a purpose statement
5 actionable steps for HR when crafting a purpose statement
Sample company purpose statement
21 company purpose statement examples

What is a purpose statement? 

Purpose statements are the core beliefs guiding the organization’s decision-making and culture. It is a powerful tool for attracting and retaining talent. Candidates are drawn to companies that stand for something bigger than themselves.

A strong purpose statement resonates with potential employees, which helps in creating a robust workforce. It also helps build customer loyalty. Customers support brands that share their values. A compelling purpose statement can foster loyalty with customers who trust companies that align with their beliefs. 

Company vs. personal purpose statements

Personal purpose statements

• A personal purpose statement is your internal compass
• More subjective and reflects the unique motivations and aspirations of a person. 
• Mainly written for yourself, explaining your life goals and motivations.

Company purpose statements

• A company purpose statement is the guiding principle of the entire organization. 
• Broader and consider the impact on a large scale, like solving environmental problems or promoting social justice. 
• Targeted at employees, customers, and investors to inspire and build trust with stakeholders.

Purpose statement vs. mission statement: The difference

The role of HR in developing a company purpose statement 

HR forges a strong connection between employees, leadership, and the company’s purpose, ensuring it drives the organization’s success.

Here’s how Human Resources plays a role in developing the organization’s purpose statement: 

1. Aligning employee and company motivations and aspirations: HR interacts with employees. Through staff surveys and meetings, they gather insights into their motivations and aspirations and how these align with the company’s potential purpose. 
2. Aligning company culture and purpose: HR ensures that the purpose statement reflects the company’s values and how it resonates with the culture. 
3. Promoting holistic insights across the organization: HR can organize discussions with staff from different ranks and departments, customers, partners, and other stakeholders to gain a holistic view of the company’s purpose.
4. Communicating the organization’s purpose: HR plays a vital role in communicating the company’s purpose to the employees. This ensures that everyone understands how their work contributes to the company’s bigger purpose, fostering employee engagement.
5. The purpose statement guides policy and initiative development: HR can use the company’s purpose to guide policies, programs, and initiatives. 
6. Creating attractive talent acquisition strategies: A clear purpose statement can be a powerful tool in attracting talent who share the employer’s values and aspirations. HR can use the purpose statement when creating recruitment and employer branding strategies. 

How to write a purpose statement

To create a purpose statement that truly reflects your organization, consider the following elements: 

Values

These are the fundamental beliefs that shape your company’s culture. They influence the way employees work together and decide. Think about how they shape your organization’s identity and purpose and ensure they are reflected in your mission statement. 

For instance, if collaboration and innovation are your company’s core principles, your purpose statement should match these values and communicate how they drive your organization’s purpose.

Stakeholders

These are the people and groups with a significant interest in your business, such as your staff, clients, shareholders, vendors, and local communities. Consider their perspectives, needs, and expectations to ensure alignment when formulating your purpose statement. 

For example, a statement highlighting customer satisfaction and social responsibility will help build stronger relationships with customers and communities, ultimately nurturing trust and loyalty.

Long-term goals

Your purpose statement should align with your company’s goals and aspirations. Explain how your goals coincide with your anticipated results, impact, and legacy. 

For instance, if you desire to become a global leader in sustainability technology, your purpose statement should highlight your commitment to sustainability, innovation, and global impact. 

Impact

Consider your organization’s financial success and the wider societal and environmental effects it wants to achieve. Recognize important social, environmental, and economic issues and explain how your goals aim to tackle them. 

For example, a purpose statement for a healthcare organization may emphasize advancing medical research to cure cancer, focusing on its broader societal impact beyond giving healthcare services.

Authenticity

Your purpose statement must be sincere, transparent, and aligned with the organization’s values, culture, and actions. It should accurately represent the organization’s leaders and employees’ true intentions and beliefs. 

When creating a purpose statement, it’s important to avoid generic statements. Being authentic builds credibility with stakeholders, improving engagement and commitment to the organization’s purpose.

5 actionable steps for HR when crafting a purpose statement

1. Build a team and collaborate

Crafting a company’s purpose statement is a team effort that should involve different groups of stakeholders. So, it’s imperative to build a cross-functional team to brainstorm ideas. Encourage open dialogues and active participation from staff of all levels. Assemble a representative individual or team from various departments, e.g., Sales, Marketing, Operations, Finance, IT, etc. 

HR can employ various techniques to facilitate collaboration, such as design thinking workshops, brainstorming sessions, or virtual idea-sharing platforms. 

2. Research and analyze

Survey or interview employees, customers, potential suppliers, and community members. Ask questions about understanding the company culture and mission and identifying impact and contributions: 

• What values do you believe are essential to our company?
• Which values do you think define our company culture the most?
• What do you think is the primary purpose of our organization?
• In what ways do you believe our company contributes to the wellbeing of our customers, communities, and stakeholders?
• How do you envision our company making a difference in the future?
• Where do you see our company in the next 5–10 years?
• What are your aspirations for the future of our organization?

By gathering and analyzing this data, HR gains valuable insights to inform the development of a purpose statement that resonates with stakeholders and aligns with market trends.

HR tip

You can also analyze industry trends and competitor purpose statements to inspire your own and consider how yours differs.

3. Crafting the purpose statement 

Keep your statement concise and clear. It should focus on the organization’s reason for existence and ensure it aligns with its mission, values, and strategic objectives. It should also authentically reflect the organization’s values and resonate with internal and external stakeholders.

Based on your analysis and research, you may have many complex ideas, so HR professionals must simplify them with simple and impactful language. Use storytelling techniques to make your purpose statement engaging and memorable. 

HR tip

Aim for a short and clear company purpose statement. Ideally, it should be around 1–2 sentences that are easy to understand and remember. 
Avoid jargon and complex sentences. 

4. Ask for feedback and finalize your purpose statement 

Share the draft with the team and broader stakeholders. Solicit feedback from the employees, managers, customers, and other stakeholders. This will identify gaps and clarify any misunderstandings. It will also confirm that the purpose statement is inclusive and relevant to all stakeholders. 

Based on their feedback, refine your statement to ensure clarity, conciseness, and inspiration. Remember to have the company’s leadership team review and approve it. 

5. Create a communication plan

Once finalized, develop a comprehensive communication plan to roll out the purpose statement internally and externally effectively. Present the statement to employees via town hall meetings, intranet announcements, and integration into training and onboarding materials.

Externally, work with marketing to integrate the purpose statement into your company website, marketing materials, and social media presence.

Sample company purpose statement

“To empower individuals and communities to thrive by providing innovative solutions and exceptional service, guided by our commitment to integrity, diversity, and sustainability.”

In this example, the purpose statement articulates the organization’s commitment to empowerment, innovation, and service excellence. It emphasizes integrity, diversity, and sustainability values, reflecting the organization’s ethical stance and long-term vision for positive impact.

21 company purpose statement examples 

1. Intel: We create world-changing technology that improves the life of every person on the planet.
2. Boston Consulting Group: Unlocking the potential of those who advance the world
3. Novartis: Reimagine medicine to improve and extend people’s lives 
4. Unilever: Make sustainable living commonplace 
5. Walmart: We aim to build a better world — helping people live better and renew the planet while building thriving, resilient communities. For us, this means working to create opportunity, make a more sustainable future, advance diversity, equity, and inclusion, and bring communities closer together.
6. Pfizer: Deliver breakthroughs that change patients’ lives. R&D is at the heart of fulfilling Pfizer’s purpose as we work to translate advanced science and technologies into the therapies that matter most.
7. McDonald’s: Feed and foster communities
8. Goldman Sachs: We aspire to be the world’s most exceptional financial institution, united by our shared values of partnership, client service, integrity, and excellence.
9. Coca-Cola: To refresh the world and make a difference.
10. Vodafone: To connect for a better future
11. Sony: Fill the world with emotion through the power of creativity and technology 
12. United Airlines: Connecting People. Uniting the World” drives our decision-making, supported by our core values – Safety, Caring, Dependability, and Efficiency. In action, that means doing the right thing for our planet, our passengers, and our people.
13. Mondelez: We empower people to snack right
14. DHL: Connecting people, improving lives 
15. Ford: To help build a better world, where every person is free to move and pursue their dreams.
16. Nike: Move the world forward through the power of sport
17. HSBC: Opening up a world of opportunity. We’re here to use our unique expertise, capabilities, breadth and perspectives to open up new kinds of opportunity for our customers. We’re bringing together the people, ideas, and capital that nurture progress and growth, helping to create a better world – for our customers, our people, our investors, our communities, and the planet we all share.
18. De Beers Group: Make life brilliant 
19. Mckinsey and Company: To help create positive, enduring change in the world.
20. Mastercard: Connecting Everyone to Priceless Possibilities
21. Visa: To uplift everyone, everywhere by being the best way to pay and be paid

To sum up

Writing your company’s purpose statement is an investment in your organization’s future. It serves as a guiding light, attracting talent who share your vision and inspiring employees to bring their best selves to work every day.

A clear, concise statement that captures your “why” will resonate with your target audience, building trust and loyalty. Remember, your purpose statement is a living document. As your company grows and evolves, review and refine it to ensure it continues to reflect your core values and the positive impact you strive to make in the world.

The post How To Write a Company Purpose Statement (+ 21 Real Company Examples) appeared first on AIHR.

Contents
What is a work-from-home policy?
Why have a work-from-home policy
What to include in your work-from-home policy
Work-from-home policy examples
Work-from-home policy template
14 HR best practices when developing a work-from-home policy

Download our free work-from-home-policy template in Word:

What is a work-from-home (WFH) policy?

Welcome to the future of the (hybrid) office. According to Gallup, eight in 10 remote-capable employees expect to work hybrid or fully remote, with 60% wanting to work off-site for part of the week and almost 30% not wanting to return to the office at all.

Deloitte’s statistics reveal a similar pattern:

• 29% of remote-capable employees are fully remote today
• 40% of remote-capable employees have shifted from working entirely on-site to either a hybrid or exclusively remote work arrangement.

This shift is not only the result of digitization and the pandemic. Many employees have found that they like the flexibility of hybrid work, and 46% of respondents in a Workmonitor report by Randstad said they would quit if their jobs did not support work-life balance.

The challenge is that working remotely, or even hybrid, is not the same as working from the office, and traditional policies may not always accommodate these differences. To meet the needs of a hybrid or remote workforce while maintaining consistency, strong company culture, and productivity, it’s essential to have a work-from-home policy that outlines how the company allows its employees to work from locations outside the traditional office environment (typically their homes). 

This type of policy specifies who is eligible to work from home, often based on the nature of their job or on a case-by-case basis. It sets expectations for working hours, clarifying if the remote work arrangement adheres to standard business hours or if there is flexibility to accommodate different schedules.

Why have a work-from-home policy

Like all company policies and procedures, a WFH policy provides clear guidelines and expectations for employees. In the context of remote work, this is crucial for maintaining consistency, efficiency, and productivity when the workplace extends beyond the traditional office setting. It ensures that employees understand their responsibilities, work hours, and the methods of communication they should use. This helps in adopting discipline and a sense of normalcy, even when working remotely.

As an HR professional, it’s important to remember that a well-defined WFH policy can lead to improved employee satisfaction and work-life balance. Allowing employees to work from home can reduce commute times and provide a more flexible schedule, accommodating personal commitments and leading to a better balance between work and personal life.

In terms of productivity, many companies find that employees are more productive when they have control over their working environment. Without the usual office distractions and with the ability to create a personalized workspace, individuals find they can focus better and be more efficient with their time.

However, as with all business practices, a work-from-home policy is only effective if it is designed with the organization and employees’ needs in mind and is managed and measured.

What to include in your work-from-home policy

HR should consider various factors to ensure a comprehensive and clear policy when constructing work-from-home policy guidelines. 

Some key considerations you should include:

• Eligibility: A clear definition of which employees and job scopes are covered by the policy and under what circumstances it applies. This includes which roles are eligible for remote work and the extent to which they can work from home.
• Request process: A process for employees to request work-from-home arrangements, including any necessary approvals from management.
• Communication and scheduling: Communication channels, flexibility of work hours, and where, when, and how employees should collaborate and connect.
• Performance evaluation: How performance and outputs will be measured.

Importantly, a hybrid work-from-home policy will include a range of policies within the overarching policy. By its very nature, a work-from-home policy is not one-size-fits-all, and yet it is the foundation for transparency and consistency. The various ‘sub’ policies within your work-from-home policy will, therefore, meet employees’ different needs.

Here are a few policies you could include:

1. Hybrid work-from-home policy: Outline how the hybrid model operates, with specifics on how many days are expected in-office versus at home. For more detailed guidelines, read our article on developing a hybrid work schedule.

2. Work-from-home internet outage policy: Establish a protocol for what employees should do in case of an Internet outage, including any expectations for communication and a timeframe for resolving the issue.

3. Work-from-home security policy: Emphasize the importance of information security and specify the measures employees must take to protect company data. This includes using secure connections, company-approved devices, and adhering to IT security policies.

4. Work-from-home stipend policy: If applicable, define a stipend policy to cover the costs of home office setup or ongoing expenses that employees might incur when they work from home.

5. Work-from-home reimbursement policy: Provide details on what costs the company will reimburse, the process for submitting expenses, and any limits on reimbursable amounts.

6. Work-from-home equipment policy: Clarify if the company will provide the necessary equipment (computers, phones, ergonomic furniture) and how equipment support and maintenance will be handled.

7. Work hours and flexibility: Define core working hours during which all employees are expected to be available while also providing flexibility to accommodate personal obligations and varying time zones.

8. Performance management and productivity tracking: Outline how performance will be assessed. For example, is productivity based on output and completion of objectives or hours logged? What regular digital productivity tracking tools are in use?

9. Communication protocols: Determine expected response times during work hours and the use of company-approved platforms for all work-related discussions and file sharing.

10. Professional development: Outline how employees working from home will have equal access to professional development opportunities and training resources, ensuring remote work does not hinder career growth and skill advancement. Also, discuss the expectations on remote employees in terms of their development.

Work-from-home policy examples

Example 1. Atlassian blazes a trail in work-from-home

Dubbed Atlassian’s ‘Team Anywhere’ initiative, Atlassian has been a distributed company since its first US office opened in 2005. The company has redefined the concept of a distributed workforce by offering flexibility and autonomy in work locations, whether it’s from home or in-office. 

Team Anywhere emphasizes asynchronous communication and reserves real-time meetings for key activities like project kick-offs and brainstorming. They strive for progress over perfection, continually adapting their approach based on feedback and learning. The goal is to merge remote working strengths with in-person interaction benefits for a balanced solution.

Example 2. The EY work-from-home difference

EY’s work from home mandate is that “Work is what you do, not where you go.” According to EY’s website, the company’s remote working policy was developed before the lockdown and is still in place today.

EY’s policy encourages working from home, although its offices remain open, primarily to assist its employees when they face issues like power or internet disruptions. EY has also introduced an app for employees to log visits to the office or clients and has set up a ‘click and collect’ service for those needing to acquire tech accessories or other essentials.

Work-from-home policy template

14 HR best practices when developing a work-from-home policy

To make the most of your work-from-home policy, follow these tried-and-tested best practices:

1. Provide training: Offer comprehensive training on digital tools and platforms that facilitate remote work, ensuring that all employees use them comfortably and efficiently.
2. Encourage regular check-ins: Encourage regular check-ins between managers and their teams, possibly through daily or weekly virtual meetings, to keep everyone aligned and informed.
3. Prioritize cybersecurity: Provide extensive training on cybersecurity best practices to all employees to protect sensitive company information.
4. Encourage work-life balance: Encourage employees to maintain regular work hours and to take breaks throughout the day to avoid burnout and maintain work-life balance.
5. Organize social events: Create virtual social events, like online coffee breaks or team games, to maintain morale and a sense of community among remote workers.
6. Develop clear communication protocols: Ensure that team members remain connected and collaborative.
7. Implement virtual project management tools: Help track progress on tasks and projects.
8. Establish clear performance metrics: Align metrics with remote work outputs rather than time spent in the office.
9. Enable a good home office setup: Provide ergonomic guidance and support for setting up a home office to help reduce the risk of strain and injury.
10. Provide support: Offer mental health support, such as access to counseling or mindfulness resources, acknowledging that remote work can sometimes lead to feelings of isolation.
11. Encourage a culture of trust and autonomy: Train managers on managing remote employees to help avoid micromanagement, which can be counterproductive in a remote setting.
12. Help managers to lead by example: Ensure leaders model healthy work-from-home behaviors to set a standard within the organization.
13. Offer reimbursements or subsidies: Reimburse or subsidize home office expenses to alleviate any financial burdens on employees.
14. Review and revise: Review and revise the work-from-home policy regularly to adapt to changing circumstances and feedback from employees.

Implementing these practices can help ensure a smooth transition to remote work and contribute to the sustainability and success of work-from-home programs.

To sum up

The implementation of a comprehensive work-from-home policy is crucial for modern organizations aiming to stay competitive. This policy is the foundation for clear communication, efficient operation, and sustained employee engagement, regardless of geographical boundaries.

By considering factors such as eligibility, communication protocols, and performance tracking, companies can foster a productive and flexible work environment that aligns with the goals of both the organization and its employees. Ultimately, a well-designed WFH policy enhances operational efficiency and supports a healthier, more balanced approach to work.

The post What To Include in Your Work-From-Home Policy (Plus Free Template) appeared first on AIHR.

Despite your professional reservations, you know you will hire him because he’s the CEO’s son.

Contents
What is nepotism in the workplace?
Is nepotism in the workplace illegal?
Impact of nepotism in the workplace
Examples of nepotism in the workplace
Spotting the signs of toxic nepotism
How HR can handle nepotism in the workplace

What is nepotism in the workplace?

Nepotism in the workplace is when people in power give jobs or promotions to their friends or family members instead of making decisions based on merit. It takes many forms, from overt job offers to more discreet forms of favoritism. While commonly seen in family-owned businesses where hiring relatives is not unusual, nepotism also happens in larger corporations and governmental organizations.

Interestingly, a new study found that Gen Z employees are most likely to benefit from career nepotism — even if they disapprove of it. More than two-thirds of Gen Z have secured job offers through nepotism. The survey of 2,000 workers found 42% said they’d won a role or job offer through nepotism.

The consequences are profound, often leading to lower morale, higher turnover among non-related staff, and a drop in innovation because the most qualified individuals aren’t selected for the role. When it’s part of the organizational culture, HR professionals face specific challenges in dealing with it.

Is nepotism in the workplace illegal? 

In the U.S., nepotism in the workplace is not generally illegal in the private sector unless it leads to discrimination or breaches of a specific contract. Nepotism becomes a legal issue if it conflicts with anti-discrimination laws or company-specific policies that forbid such practices. This is especially relevant in publicly traded companies under regulations like the Sarbanes-Oxley Act, which requires the disclosure of conflicts of interest to stakeholders.

However, there are more explicit restrictions against nepotism in the public sector. Federal laws, such as 5 U.S. Code § 3110, prohibit public officials from employing or promoting relatives in agencies they have authority over. This law specifies a wide range of familial relationships that fall under its purview, from immediate family members to more extended relatives like cousins and in-laws.

State laws vary significantly. Some have stringent anti-nepotism laws, particularly concerning public employment and the conduct of elected officials. For instance, Kansas and Kentucky have specific statutes that prevent public officials from hiring or advocating for the employment of family members. Ohio also has robust ethics laws that prohibit public officials or employees from participating in the hiring process of family members and restrict their involvement in any employment decisions affecting those relatives​.

These laws aim to maintain fairness and uphold merit-based hiring in the public sector. They align with both legal mandates and ethical principles to eliminate conflicts of interest and ensure every candidate has an equal chance during the hiring process.

The impact of nepotism in the workplace

The impact of nepotism can be significant in the workplace. When left unchecked, nepotism can:

• Reduce employee morale and motivation: When family members or friends are favored for promotions or hiring, it can demoralize other employees who feel their hard work and qualifications are overlooked. This perception can lead to decreased job satisfaction and commitment among staff, reducing overall workplace morale.
• Be perceived as unfair and increase workplace conflicts: Nepotism can create an environment of perceived injustice, where employees feel the playing field is not level. This can lead to resentment and disputes between employees and management and among the employees themselves, potentially disrupting teamwork and collaboration. 
• Decrease productivity and efficiency: When positions are filled based on relationships rather than skills or experience, it may result in less competent job performance. This can negatively impact the productivity and efficiency of the team or the entire organization, as less qualified individuals may struggle with job responsibilities they are not equipped to handle. 
• Result in talent drain: High potential employees who perceive a ceiling to their growth within an organization due to nepotistic practices may seek opportunities elsewhere. This talent drain can leave the organization with less skilled individuals, impacting innovation and the ability to compete in the market. 
• Damage the organizational reputation: Public knowledge of nepotistic practices can tarnish an organization’s reputation, making it harder to attract skilled professionals. It could also potentially impact relationships with clients, investors, and partners who may see such practices as indicative of poor management or ethical standards. 
• Increase legal risks: In certain jurisdictions, especially within public sector jobs or in companies with specific policies against nepotism, engaging in such practices can lead to legal challenges and sanctions, further harming the organization’s standing and operational capability.

HR tip

Implement a formal recusal process
Require employees, especially those in supervisory roles, to formally withdraw from decision-making activities – on hiring, promotions, and salary adjustments – where their personal relationships could influence the outcome. Develop clear guidelines on identifying and documenting potential conflicts of interest and provide training to all employees to reinforce the importance of this process.

Examples of nepotism in the workplace

There are several ways that nepotism can occur: 

Promotion over merit

When family members or friends of leadership are promoted over more qualified candidates. This can lead to leadership gaps, decreased employee morale, and reduced organizational effectiveness. 

For instance, the CEO’s niece receives a managerial position despite having significantly less experience than other applicants.

Exclusive job opportunities

Job openings are sometimes not publicly posted or shared only within a specific network. This gives an unfair advantage to those within the leader’s personal circle. 

An example would be a high-level position that is filled before it is advertised externally, where the chosen candidate is a close friend of the executive. This limits opportunities for existing employees and external candidates who may be more skilled and suitable for the role.

Unequal distribution of benefits

Family members or close friends in the organization may receive unjustifiable benefits such as higher salaries, better office spaces, or more flexible working conditions compared to their colleagues at similar levels. 

This inequality can breed resentment among employees and create a divided workplace culture.

Bias in performance evaluations

Relatives or friends might receive favorable performance evaluations that don’t reflect their actual contributions or achievements. 

For example, a department head might overlook mistakes made by a relative and instead highlight their strengths. This then leads to skewed performance reviews that can affect salary increases, bonuses, and career progression.

Protection from disciplinary action

Family members or friends may be shielded from disciplinary actions that others in similar positions would normally face. 

For instance, if a relative of a senior manager violates company policies, they might face lesser consequences or none at all, which undermines the integrity of workplace policies and can lead to legal and ethical issues.

Spotting the signs of toxic nepotism

Here’s a checklist you can use to spot the signs of toxic nepotism:

1. Unusual hiring practices: Watch for hiring processes that skip standard procedures or transparency. If candidates are hired without proper interviews or without the job being openly advertised, it could indicate nepotism.
2. Unfair performance evaluations: Look out for inconsistencies in how performance reviews are conducted and documented. If certain employees always receive positive reviews despite their average or below-average performance, or if they are frequently excused from meeting key performance indicators, it might suggest nepotism.
3. Resistance to standard oversight: Notice if certain managers or employees frequently bypass normal channels for approval or oversight, especially in staffing decisions or project assignments. This could be a sign that decisions are being made based on personal relationships rather than professional merit.
4. Disproportionate rewards and recognition: Track how rewards, raises, and promotions are distributed. A red flag should be raised when promotions and bonuses are regularly given to less qualified individuals who have personal ties to management.
5. Complaints from employees: Pay attention to employee’s feedback, whether through formal surveys or informal conversations. Frequent mentions of unfair treatment or dissatisfaction with management’s impartiality can be indicative of deeper issues related to nepotism.
6. High turnover in specific departments: High turnover rates in certain teams or under specific leaders can indicate a toxic environment, possibly fueled by nepotistic practices. Investigate the reasons behind why employees leave, focusing on any patterns that suggest dissatisfaction related to unfair treatment.

HR tip

Develop an onboarding program for family members
Create a targeted onboarding program for family members of existing employees. Focus on educating new hires about the company’s principles of meritocracy and the ethical guidelines surrounding professional conduct. Include a module specifically designed to address potential conflicts of interest and the expectations for professional behavior. Assigning a mentor who is not directly connected to the family member can provide unbiased support and guidance, helping integrate the new employee into the company culture equitably.

How HR can handle nepotism in the workplace 

Here are several strategic actions HR can undertake to manage and mitigate the impact of nepotism effectively:

• Step 1: Creating clear anti-nepotism policies: Develop and implement comprehensive policies that clearly define what constitutes nepotism and the consequences of engaging in it. Include guidelines for hiring, promotions, and any other areas where nepotistic practices might arise. Ensure these policies are included in the employee handbook and that all employees are aware of them.
• Step 2: Fostering open communication: Encourage a culture where employees feel safe to report any suspicions of nepotism without fear of retaliation. This could involve setting up anonymous feedback systems or having a designated ombudsperson handle such complaints.
• Step 3: Transparency in HR processes: Maintain transparency in all HR processes, particularly hiring, promotions, and performance evaluations. Publicize job postings internally and externally to ensure fairness, and openly communicate the criteria and processes used for making these decisions.
• Step 4: Training for managers and executives: Provide training sessions for all managerial and executive positions on the effects of nepotism and the importance of maintaining fairness and meritocracy in all decision-making processes. Cover how to handle personal relationships professionally within the organization.
• Step 5: Regular audits of HR practices: Conduct regular audits of HR practices to ensure compliance with established policies and to detect any irregularities that might suggest nepotism. This can help identify issues before they become systemic problems.
• Step 6: Conflict of interest declarations: Require employees and management to declare any potential conflicts of interest, including those involving family members or close friends. This helps HR monitor situations where nepotism could occur and take preventative measures.

To sum up

• Negative impacts of nepotism: Nepotism can lead to a range of adverse outcomes, including reduced employee morale, decreased productivity, and a perception of unfairness within the organization. These factors can diminish workplace harmony and efficiency.
• HR’s role in addressing nepotism: HR plays a crucial role in mitigating the effects of nepotism through clear policies, transparent HR processes, and training. This helps to cultivate a fair work environment and maintain organizational integrity.
• Establishing formal recusal processes: Implementing a formal recusal process helps manage conflicts of interest effectively. By requiring employees to step aside from decision-making when personal relationships might influence outcomes, your organization can uphold fairness and impartiality in critical processes such as hiring and promotions.
• Effective onboarding for relatives: Specialized onboarding programs for family members of existing employees can prevent potential biases and reinforce the company’s commitment to meritocracy. This includes comprehensive training on the company’s ethics and professional conduct expectations and unbiased mentorship to support their integration into the company culture.

The post Nepotism in the Workplace: Identify 6 Toxic Signs appeared first on AIHR.

In this article, we explore the drivers of HR reputation, its influence on our credibility, and the actions required to move forward.

Contents
Why does HR have a bad reputation?
Should we care about the HR reputation?
How to establish credibility to improve HR’s reputation

Why does HR have a bad reputation?

Reputation is the beliefs and opinions others hold based on past behaviors or experiences. For HR, reputation refers to employees’ perception of their satisfaction with HR services, how HR is positioned in the organization, the skills and abilities of HR professionals, and the trust in the HR team.

Four realities currently influence HR’s reputation:

Reality 1: A lot of people have had a lousy HR experience in the past

The unfortunate reality is that many employees have had a less-than-stellar experience with HR at some point in their careers. Whether this has been due to a lack of feedback during a recruitment process, an administrative error when changing employee details leading to lack of payment, or not feeling adequately supported through HR advice.

Some of the criticism is warranted. Similar to functions dealing with clients or customers, HR had to professionalize how it provides services to employees and the underpinning processes and technologies to drive a good experience. However, this is only half of the story.  

HR professionals often get blamed for things that go wrong beyond our control or, even worse, not our responsibility. The fact that HR is seen as a custodian for practices such as performance, talent, and rewards does not imply that HR is the sole decision-maker in executing these practices. Often, the challenge is more related to line managers not being equipped to run people processes effectively, leading to blame being put at the door of HR.

Reality 2: People enter HR from various backgrounds, leading to a lack of baseline skill

HR professionals enter the profession from diverse backgrounds. As much as this is beneficial for the diversity of skills, there is not necessarily a consistent baseline of skills at junior levels of HR teams. This poses a challenge regarding the consistency of HR competence when compared to professions such as accounting, where formal standards and practices guide career development,

Several HR professionals enter from social sciences and education, bringing strengths related to practices such as learning and development. Yet, the basic knowledge of the HR value chain is not there.

Our State of HR report also found that some individuals move into HR later in their careers, bringing a wealth of business knowledge yet lacking basic HR expertise.

“HR has a little bit of an image problem. What really surprised me is how people get into the HR profession. It’s a lot later on average than in other functions such as, say, admin or finance or marketing, or any of the other big corporate functions. People seem to really stumble into HR, so those entries aren’t necessarily as planned as you think”.

Dr Lisa Simon, Chief Economist at Revelio Labs

Reality 3: HR is under-resourced with people and systems

HR is often expected to drive impact while not receiving adequate investment and resources to execute. HR is the function that receives the least investment, with HR headcount not proactively prioritized and lagging business growth.

Organizations also often do not invest in HR technologies to support transactional work, leading to many manual processes being executed with too few resources. This can lead to slow responses, high levels of burnout in HR professionals, and dissatisfaction with HR delivery within the wider organization.

“As organizations grow, the problems grow more than proportionally. Now, you have to worry about workforce planning retraining. So, this requires organizational skills at a much larger level. But what we see is that once companies hit a certain threshold, the HR team is not growing at the levels that you would expect, given the challenges that they face.”

Dr Hakki Ozdenoren, Senior Economist @ Revelio Labs

“We need to look at what HR needs to deliver — what are those skills? Sometimes, you need more of a particular skill, depending on where the organization is at. What was interesting for me from the investment conversation is seeing how HR compares to other functions. If you look at marketing and administration, HR is always the smallest little slither of the pie chart.”

Dr Marna van der Merwe, HR Subject Matter Expert at AIHR

Reality 4: The current perception of HR stems from its history as an admin function

When discussing HR reputation, we also need to consider the history of the function and its origins.

Even though HR today has evolved into a very different contributor than 100 years ago as part of the labor movement, many individuals still hold on to the “hiring and firing” perception of HR.  HR is often seen as representative of line management and as the “No” people in the room, acting more as a hindrance than an organizational enabler.

When reviewing these realities, feeling despondent as an HR professional is tempting. HR professionals often grudgingly accept these realities, and they do little to eradicate these misperceptions. Instead, they become numb to the criticism and usually see it as part of the job.

Given this mindset, it begs the question: Should we be concerned about the reputation of HR? Is the nature of the HR role one that will never be seen in a positive light?

Should we care about the HR reputation?

Stakeholders are selfish about their needs and less concerned about HR’s value to the broader organization.

For example, line managers are pushing HR to recruit faster for their roles, which might mean less focus on a critical candidate evaluation. Employees want HR to be responsive to their queries, while this inevitably means that they are not attending to others. Executives want HR to focus on culture, engagement, and talent succession without necessarily playing their part in shaping these practices.

These expectations position HR between a rock and a hard place. Pleasing one stakeholder inevitably leads to disappointing another. In many instances, HR is a thankless profession – never receiving recognition for a job well done but receiving criticism when things don’t go according to plan.

HR professionals must let go of the idea that positive feedback is the only success metric. Many HR teams measure their success through high levels of satisfaction with HR services, the achievement of positive eNPS scores, and positive stakeholder feedback.

However, the real success of HR should be measured differently and in line with the business outcomes and impact, not against the subjective perceptions of various stakeholders.

Strive for credibility not affirmation

We would argue that HR needs to strive for credibility rather than affirmation. Ulrich coined the term “Credible Activist” as one of the essential qualities of successful HR professionals. Let’s break this definition down:

• “Credible” refers to an individual who can be trusted, has influence over critical stakeholders, and earns credibility through their ability to contribute and add value to their stakeholders.  
• “Activist” refers to the ability to proactively advocate for their stakeholders’ requirements while keeping the business’s overall intent in mind.

The balance between credibility and activism is essential, as a lack of activism leads to HR professionals who have a lot of knowledge yet cannot translate it into real value. Inversely, without credibility, activism leads to HRBPs not being taken seriously, even though they might have good ideas.

As you can see, nothing in this definition is about HR being “liked” or that a positive rating from a business leader measures our value. Building credibility is highly dependent on managing the perceptions and reputation of HR within the organization, leading back to our initial challenge – HR has a bad reputation.

How to establish credibility to improve HR’s reputation

HR needs to take several actions to establish credibility and improve the reputation of their function.

1. Shift stakeholder expectations of value

Stakeholders perceive HR based on their previous experiences with the function, and how HR has historically been positioned within the organization. More than 60% of business leaders still see the role of HR as administrative, with many not being educated to expect something different from HR today.

The top priority for HR must be to clarify stakeholder expectations of the function and align the value HR offers with business outcomes.

2. Legitimize the HR function within the business

For HR to change the perceptions of the past, the function needs to be legitimized. Legitimization means the positioning, power, and authority of HR within the organization. Not including HR in crucial strategic decisions or excluding HR from business activities creates a perception that HR is only there for reactive administrative work.

As a starting point, HR needs to work with the business to clarify the HR mandate and positioning within the organization. This could require education on new HR capabilities that the business might not have been exposed to, as well as demonstrating other case studies of how HR has contributed to similar organizations.

Even though this is difficult, the HR leader needs to have a candid conversation with the CEO about the role of HR, its mandate of operations, and how it should be positioned within the business. This can only happen if there is an existing relationship between these parties — if not, then building a relationship of trust should be the first step towards legitimizing the business.

3. Set clear standards and target experiences of HR solutions and products

Employees act more like consumers and evaluate HR products and services similarly. HR needs to set transparent service standards about the employee experience that are reasonable to expect.

Utilizing data to demonstrate how HR is meeting its commitments is also important. Here, stakeholder feedback and satisfaction metrics can be valuable. However, they must be measured against a benchmark of set criteria, not individual employee opinion.

The business and HR should agree upon acceptable standards. HR should also benchmark their processes and practices against the market.

4. Share HR success stories and visibly show progress

HR professionals are too humble about their contributions and rely on others to ratify their value.

As an output of setting clear expectations, organizations also need to give HR “permission” to share its impact and not be afraid to claim their contribution. In the past, there has been a narrative that HR is in the background, and its contributions are less visible and deemed less important than those of other teams.

Several factors influence HR results, but using data and metrics, both quantitative and qualitative, can enable HR to drive informed conversations on the function’s performance.

5. Build the skills and competencies to equip HR professionals to deliver

While the expectations of HR are changing, the skill set has not necessarily evolved. 

Skills related to data literacy and digital agility are still lacking, and many HR professionals still report higher confidence in interpersonal than business-related skills. Requirements for HR skills are not clearly articulated, often leading to a mismatch between available skills and the organization’s requirements.

At AIHR, we believe that HR professionals need to be T-shaped and build both breadth and depth of skills to be effective in the future world of work.

6. Balance the investment in HR with the desired impact

Similar to any other business function, if HR is expected to drive strategic value, execute at scale, and provide services to a complex workforce, it requires the right structure, skills, and systems investment to make that a reality.  

As a first step, HR can establish the same financial discipline as any other business function by collaborating with finance to gain a deeper understanding of financial forecasts, budgets, and operational costs. Creating a baseline and demonstrating the spending and impact of HR is essential for facilitating robust conversations about future investments.

HR also needs to work with the business to develop robust business cases where investment is required. For example, when considering implementing an ERP system, the business case should clearly show the required return on investment and the anticipated savings or value gains and provide a clear financial roadmap to obtain these investments.

Over to you

We can no longer ignore HR’s bad reputation. HR leaders need to take action by becoming credible activists for the profession, being respected for their contribution, and educating stakeholders on the role and impact of modern HR practices.

As the role and scope of HR continue to change, organizations need to ensure that they clarify expectations and set HR teams up for success.

The post HR Has a Bad Reputation: 6 Actions To Improve HR Credibility appeared first on AIHR.

Contents
What is organizational restructuring?
The role of HR in organizational restructuring
Types of organizational restructuring
7 organizational restructuring strategies for HR
Organizational restructuring examples
Organizational restructuring plan template
Organizational restructuring announcement letter
9 steps HR should take in organizational restructuring

What is organizational restructuring?

Organizational restructuring is a strategic process aimed at enhancing efficiency, adapting to new market demands, or improving competitiveness. It can significantly alter a company’s structure, strategy, and operations.

The process includes realigning departments, redefining roles and responsibilities, and sometimes downsizing to improve efficiency and effectiveness. It’s not just a cost-cutting measure but a strategic decision to improve overall productivity and long-term sustainability.

Organizations may decide to restructure for various reasons:

•  Responding to economic pressures: Economic downturns or shifts in market conditions can necessitate changes in how a company operates to maintain its competitiveness.
• Mergers or acquisitions: Combining different cultures, systems, and processes from multiple organizations can require thoughtful restructuring to achieve seamless integration.
• Continuous improvement initiatives: Ongoing efforts to enhance processes and reduce inefficiencies often call for periodic restructuring to align with best practices and technological advancements.
• Leadership changes: New leaders may bring different strategic visions that necessitate changes in organizational structure to support new directions and initiatives.

The role of HR in organizational restructuring

HR plays an important role in reshaping the organizational model to align with new business strategies and objectives. HR is involved in managing the operational aspects of restructuring and supporting the organization’s strategic vision.

Here are HR’s key responsibilities and roles during corporate restructuring:

1. Overseeing staff reduction processes: HR is responsible for planning and executing staff reductions in a manner that is legally compliant and handled ethically. This includes determining severance packages, conducting exit interviews, and ensuring that the process is transparent and respectful to affected employees.
2. Managing communication strategies: Effective communication is vital during restructuring. HR must develop a communication strategy that keeps all stakeholders informed throughout the process. This involves regular updates about the restructuring plans, timelines, and potential impact on employees. Clear and consistent communication helps manage the uncertainty and anxiety typically associated with organizational changes.
3. Redeployment and retraining of employees: As part of restructuring, HR may need to redeploy employees to different roles that better suit the new organizational structure. This often requires retraining employees to equip them with the necessary skills for their new roles. HR must assess the skills gaps and implement training programs to ensure a smooth transition.
4. Facilitating post-restructuring culture shifts: After restructuring, there is often a need for a shift in organizational culture to align with the new business direction. HR plays a crucial role in driving this cultural change, fostering a culture that supports the organization’s strategic goals. This includes reinforcing new values, behaviors, and ways of working that support the revamped organizational model.
5. Monitoring employee morale and engagement: Throughout the restructuring process, HR needs to monitor and address changes in employee morale and engagement. This includes conducting employee engagement surveys, setting up feedback mechanisms, and implementing initiatives to maintain or improve employee engagement during the transitional period.
6. Strategic workforce planning: HR must align the workforce plan with the future needs of the business. This involves analyzing current workforce capabilities, forecasting future needs, and developing a plan to close the gap between the current state and future requirements. This strategic planning is crucial for ensuring that the organization has the right talent in place to achieve its objectives post-restructuring.

HR tip

During times of change, maintaining or increasing employee engagement is essential. Engage employees through involvement in decision-making where appropriate, recognize and celebrate milestones and successes, and provide clear pathways for feedback. This not only helps retain talent but also smooths the transition by making employees feel valued and involved in the process.

Types of organizational restructuring

Legal restructuring

This involves changing the company’s legal structure to meet regulatory requirements, optimize tax strategies, or better align with business strategies. Legal restructuring may include forming, merging, or dissolving company entities.

Functional restructuring

This targets the functions within an organization, such as sales, marketing, or production. The aim is to enhance efficiency by reallocating resources, merging similar functions, or even outsourcing certain functional tasks.

Strategic restructuring

Strategic restructuring involves rethinking and realigning the company’s strategic goals to adapt to market changes, technological advancements, or changes in consumer behavior. It may require pivoting to new markets, products, or service offerings.

Cost restructuring

Here, the focus is on reducing expenses to improve financial health. Techniques can include streamlining operations, reducing the workforce, renegotiating contracts, and cutting non-essential costs.

Divestment

This type of restructuring involves selling off parts of the organization to raise capital, exit non-core businesses, or simplify the organizational structure. Divestments help the company to focus on its core competencies.

Mergers and acquisitions (M&A)

M&A involves either merging with or acquiring another company to enhance competitive positioning, enter new markets, or gain new technologies. This can radically transform the company’s operations, market presence, and strategic direction.

Portfolio restructuring

This is about reviewing and adjusting the mix of businesses or investments a company holds. The aim is to optimize the investment portfolio’s performance in line with the company’s strategic objectives.

Cultural restructuring

Although less tangible, cultural restructuring is crucial and involves changing the corporate culture to support new organizational directions or structures. This might be necessary after mergers, during leadership changes, or when trying to innovate corporate practices.

Each type of restructuring is based on specific internal needs and external conditions, and often, multiple types are implemented concurrently to achieve comprehensive transformation.

7 organizational restructuring strategies for HR

Here are seven strategic frameworks and actions HR needs to implement:

1. Staffing considerations

Strategic framework: Effective staffing during restructuring involves assessing current and future organizational needs, identifying gaps, and making adjustments to the workforce accordingly.

 2. Change management

Strategic framework: Change management is essential for helping employees navigate the restructuring process smoothly and effectively.

3. Communication with employees

Strategic framework: Clear, consistent, and transparent communication is crucial to maintaining trust and morale during periods of significant change.

4. Legal and compliance considerations

Strategic framework: Ensuring compliance with legal standards and internal policies is critical to mitigate risks associated with restructuring.

5. Talent and performance management

 Strategic framework: Managing talent effectively involves aligning employee skills and performance with the new strategic goals of the organization.

6. Cultural shift management

Strategic framework: Cultural adjustments are often necessary to align with new organizational structures and strategies.

7. Employee support programs

Strategic framework: Supporting employees through transitions with appropriate programs helps reduce turnover and maintain morale.

Organizational restructuring examples

Example 1. The Wall Street Journal

The WSJ, a flagship publication of Dow Jones, underwent a significant reorganization in 2017 to shift towards a more digital-focused strategy.

From an HR standpoint, this restructuring was handled with a strong emphasis on minimizing layoffs. Instead of reducing its workforce, WSJ reallocated existing employees to new roles suitable for a digital environment.

This strategy involved asking employees to apply for newly defined positions, allowing the company to maintain a stable headcount while aligning its workforce with technological advancements and market needs.

This approach helped in retaining talent and ensured that the existing employees were part of the transition, supporting a smoother cultural shift towards digital operations​.

Example 2. Hulu

Hulu’s reorganization in 2023 was driven by its need to support rapid growth and expand its streaming content.

The restructuring led to the creation of new key management positions, including a Chief Technology Officer and Chief Data Officer, to align with its strategic priorities.

Hulu’s HR approach focused on both scaling up by hiring new tech and product employees and streamlining operations to enhance efficiency. This dual focus helped Hulu manage its existing workforce effectively during the transition and attract new talent to support its expansion plans.

The restructuring was part of a broader strategy to make Hulu more attractive to potential buyers and investors, particularly during a time when it was considered a valuable asset in Disney’s bid to purchase 21st Century Fox​.

HR tip

Keep all employees informed throughout the restructuring process. Transparent communication prevents rumors, reduces anxiety, and builds trust. Ensure that messages are clear and consistent, detailing what changes are occurring, why they are needed, and how they will impact the various team members.

Organizational restructuring plan template

Organizational restructuring announcement letter template

The announcement letter is critical in the early stages of organizational restructuring. It will set the tone and expectations for the changes ahead.

9 HR steps HR to take in organizational restructuring

These are nine steps HR can take in organizational restructuring:

• Step 1: Conduct a workforce analysis: Begin by assessing the current workforce capabilities, identifying skills gaps, and forecasting future needs. This helps determine which roles need to be filled, retained, or redefined to align with the new organizational goals.
• Step 2: Develop a redeployment strategy: Plan for moving employees to new roles or departments where their skills are most needed. Consider the potential for internal mobility and career progression, which can help retain talent and maintain morale.
• Step 3: Implement a retraining program: Provide training and development opportunities to help employees adapt to new roles. This includes upskilling and reskilling programs tailored to the organization’s strategic directions and the workforce’s specific needs.
• Step 4: Support leadership development: Equip leaders with the necessary skills and knowledge to guide their teams through the transition. This involves training leaders on change management, communication, and leadership in a changing environment to ensure they can effectively support their teams.
• Step 5: Manage outplacement services: For eliminated positions, provide support such as counseling, resume workshops, and job search assistance. This shows a commitment to the welfare of outgoing employees, preserving the company’s reputation, and supporting community employment.
• Step 6: Monitor employee wellbeing: Implement initiatives that support employee mental health and morale during the transition. This could include wellness programs, open forums for feedback, and regular communication to keep the workforce engaged and informed.
• Step 7: Evaluate the restructuring impact: Regularly review the outcomes of the restructuring against the initial objectives. This ongoing evaluation helps HR adjust strategies as needed, ensuring the restructuring achieves its goals without adversely impacting the organization or its people.
• Step 8: Facilitate continuous communication: Throughout the restructuring process, maintain clear and open lines of communication. Inform employees about the reasons for the changes, the expected outcomes, and how they will be affected. Transparency is key to maintaining trust and commitment during periods of change.
• Step 9: Strengthen organizational culture: Post-restructuring, focus on reinforcing a positive organizational culture that aligns with the new business model. This involves promoting values that support the new strategic direction and encouraging behaviors that foster innovation and collaboration.

To sum up

Companies undertake corporate restructuring to improve efficiency, adapt to new market conditions, or achieve specific business objectives. Changing the organizational structure may include altering reporting relationships, redistributing responsibilities, and consolidating or dividing departments. The goal is to optimize workflow, enhance communication, and better align resources with the company’s strategic goals. These changes often lead to shifts in job roles, the introduction of new technologies, or modifying operational practices.

For HR, organizational restructuring presents challenges and opportunities. HR is pivotal in managing the change process, ensuring smooth transitions while minimizing disruption to operations and employee morale. This involves clear communication about the reasons for changes, the expected outcomes, and the impacts on staff. HR must also handle practical aspects like redefining job descriptions, overseeing training programs for new skills, and possibly managing layoffs or reassignments. Effectively, HR’s role is critical in maintaining stability and cultivating a positive work environment during the upheaval of restructuring.

The post Organizational Restructuring: 7 Strategies for HR (Plus Free Template) appeared first on AIHR.

This article will discuss the basic and advanced education requirements for an HR specialist. You’ll also find out the five steps you can take to determine the best HR education path to advance and future-proof your career. 

Contents
What is an HR specialist?
Basic education requirements for HR specialists
Advanced education requirements
Determining the best HR education path for you

What is an HR specialist?

A human resources specialist is in an entry-level role and is responsible for specific HR functions, such as recruitment, training and development, compensation and benefits, rewards, and employee relations. Their daily tasks most likely include some other HR activities, but their main focus is on their specialization. 

You’ll most often find HR specialists in large organizations and consulting firms. These companies usually have multiple HR specialists responsible for the same expertise. 

Basic education requirements for HR specialists

Now that you know what an HR specialist does and the skills they need, let’s discuss the basic education requirements for this role. 

1. Formal education 

Most organizations require a Bachelor’s Degree in HR or related fields (such as business administration, organizational psychology, economics, or business management). Degrees in these fields cover a broad range of topics, including organizational behavior, employee and labor relations, compensation and benefits, and HR information systems. 

However, this is not a hard requirement. People who enter the HR field often don’t have formal tertiary education and HR experience. In fact, according to our latest report on the State of HR, 92% of HR professionals moved into HR from a different job—often as a second, third, or fourth job. Most have experience in humanities, social sciences, or administration before entering HR. 

2. HR Certification 

Completing HR certificate programs and getting certified can help you gain crucial HR skills needed to succeed as an HR specialist. You’ll be up-to-date with the latest trends, laws, and best practices in human resources. 

These certifications also give you the professional credibility you need to advance your career, demonstrating your commitment to develop yourself continuously. Additionally, as a certified HR specialist, you have the leverage to demand higher compensation from the company you are working for or want to work for. 

3. Internships and other work experience

Participating in HR internships can help you build a robust foundation for your future career as an HR specialist. You will gain practical insights into the day-to-day operations of an HR department, including recruitment, training, employee relations, and compliance with labor law. An internship also allows you to build professional networks within the HR community. These relationships can be valuable when you’re looking for a new job or seeking mentorship. 

HR internships and other work experience can also help you understand different organizational cultures and dynamics. This is vital for the field of HR, as it will help you effectively navigate and shape the workplace environment. 

Advanced education requirements

According to our research, many HR professionals transition into the function from admin and non-business roles. This makes it challenging for them to provide value to the organization because they lack core skills like business acumen, data analytics, or digital dexterity. For example, only 64% of HR professionals feel confident in translating strategy and aligning priorities. 

That’s why it’s important to develop the right knowledge and skills if you want to become a successful HR specialist. These include expertise in your area of specialization and mastery of core HR competencies — business acumen, data literacy, digital agility, people advocacy, and execution excellence. Striking the right balance between core and specialized HR competencies allows you to be more effective at what you do, stay ahead of industry trends, and offer more value to the business. 

One of the best ways to do so is by taking HR certificate programs and getting yourself certified and recertified. This allows you to stay up to date with the latest HR practices and technologies and reinforce the foundational skills you need to succeed in your role. As a certified HR specialist, you will be well-equipped to navigate the complexities of modern HR, adapt to changing business needs and employee expectations, and contribute to the success and growth of your organization.  

Did you know?

All of AIHR’s certificate programs are accredited by the Society for Human Resources Management (SHRM), the HR Certification Institute (HRCI), the Human Resources Professionals Association (HRPA), and the Chartered Professionals in Human Resources (CPHR). If you’re a member of our partner organizations, you can receive credits from these institutions when you complete our programs. 

Determining the best HR education path for you

Many aspects of your HR education can happen organically and without prior planning from experiences, challenges, and growth within your existing role. You can pick up new skills from on-the-job training, collaborate with colleagues from other departments, or adapt to sudden changes in the technological landscape. 

While these unplanned opportunities can significantly enhance your skill set, it’s still necessary to proactively map your learning trajectory. A structured approach to your professional development ensures that your learning is comprehensive, strategic, and in line with your career goals and the organization’s needs. Here are five steps you can take to determine the best HR education path for you: 

1. Assess personal career goals and interest

Conduct a thorough self-assessment to understand your career ambitions, strengths, weaknesses, and areas of interest within human resources. A self-assessment can include: 

• Reflect on career goals: What do you want to achieve as an HR specialist? Which area do you want to specialize in? Setting clear, achievable goals will help guide your career path. It’s also good to think about where you see yourself in five, ten, or even twenty years. 
• Assess strengths and weaknesses: Review previous performance evaluations, feedback from colleagues, and recognitions you’ve received. This information can highlight your natural talents and areas where you excel. You’ll also be able to identify areas of improvement to focus your learning efforts. 
• Explore interests: Consider which aspects of HR you find most engaging and fulfilling, considering your personal interests and values. For example, if you’re passionate about creating inclusive work environments, Diversity and Inclusion can be a rewarding career path. 

2. Map out your career path 

To determine your education trajectory, consider your ideal HR career path. This gives you a good understanding of where you want to be in the future and which skills you need to gain to get there. You can visualize your HR career trajectory using AIHR’s career mapping tool. 

Simply enter your current role and the roles you want to move into to get a detailed career path. The tool also provides details on salary, the total hours of learning you need to invest, and how many years it can take you to move into a new role.

3. Identify the knowledge and skills you need 

Think about the knowledge and skills you need to advance in your career path. This focused approach ensures your learning efforts are aligned with your career objectives to maximize the impact of your professional development. 

HR tip: How to identify the right knowledge and skills

• Conduct a role analysis: Review current listings of your desired roles to understand the qualifications, skills, and experiences an employer wants. 
• Benchmark against industry leaders: identify and follow HR thought leaders and influencers to understand emerging trends and in-demand skills. Don’t forget to engage with professional HR associations like SHRM to keep up with important areas in the industry. 
• Assess current skill level and gaps: Examine where you excel, where you need improvement, and which skills or knowledge you’re missing to move into a new role in your career path.

4. Enroll in certificate programs to fill your skills gaps 

Enroll in HR certificate programs that address the skills and knowledge gaps you’ve identified. Certificate programs also provide practical, up-to-date information on HR practices and trends. For example, if you lack the skills to develop a talent acquisition strategy, programs such as AIHR’s Strategic Talent Acquisition Certificate Program can help you fill your skill gap. 

When choosing a program, you need to think about:

• The time you have available: If your schedule is unpredictable, a self-paced online program can give you the flexibility you need. But if you can commit to a schedule, instructor-led courses are a good option for a more structured learning experience.
• Your learning preferences: Do you prefer the interactive environment of an offline classroom or the convenience and flexibility of online learning? Also, think about whether you prefer learning through video lectures, reading materials, or interactive discussions. 
• The resources the program offers: Look for programs that provide additional features like coaching, an HR community, or a resource library. These can enhance your learning experience and offer value beyond the course content itself. 
• Your budget: Compare the cost of different programs, including tuition, reading materials, exam fees, etc. The best program is the one that offers the best value for your investment. To offset the cost, look into financial aid, scholarship, or employer reimbursement options. 

5. Prioritize continuous learning 

Make ongoing learning and development a priority to stay relevant in HR. You can pursue further certifications, attend workshops and conferences, participate in webinars, and stay informed about HR trends. Having a continuous learning mindset helps you stay adaptable and forward-thinking in your HR career.  

To sum up

HR specialists are a rewarding career option that allows you to make an impact on both the organization and its employees. To become one, you will need to dedicate yourself to continuously upskilling and developing your work experience. This is how you can stay relevant, effective, and successful in your career. 

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