This blog post has been written by Amer Haleem, Country Manager, Productized Services, Hay Group India
The global business environment is evolving at an extremely rapid pace. Yes, you knew that already. So, you’d probably also be aware of the megatrends that are causing this change and ways for businesses to deal with them. Hmm. Now, I can picture a few blank expressions.
We all know that the world is changing. But, what requires focus are the six powerful megatrends that are transforming the global business environment- especially if we want to keep up with this change and use it to optimize our growth. Here, I hope to provide you with a little insight on that.
The big challenge
First up, the biggest overall challenge. Achieving and maintaining engagement. Over the years, Hay Group’s in-depth analysis has already established that business success does depend on an engaged and enabled workforce. The organizations, which focus on this factor, achieve 4.5 times the revenue growth of those organizations that pay no attention to engagement and enablement. Now, there is little doubt that every organization would want to aim for that sort of growth. This is why we now see CEOs prioritizing engagement. However, in the present scenario, achieving and maintaining engagement is a very big challenge.
The megatrends- what makes them important
Now, to meet this challenge to keep your workforce engaged, you have to be mindful of the megatrends that I spoke of earlier. I am stressing on the significance of these megatrends, as they are fundamentally changing how people work, and what they want from their employer.
To get to the facts straight, our new research identifies five key challenges that companies face to sustain performance now and in the future. Companies are failing to put the right people strategies in place to meet critical business challenges and our data from over five million employees globally, suggests that these are the five key challenges that businesses will be facing over the next fifteen years:-
Oh, another big revelation- overcoming all of these challenges will depend on an engaged and enabled workforce.
As the engagement game changes, what can you do to keep up? With these emerging megatrends, companies need to re strategize, to ensure that valuable talent does not walk away. Here, I will focus solely on the “transparency” megatrend and help you stride through this one with ease.
The transparency challenge
Presently, digital technology has fostered a climate of transparency. Not only can businesses be held to account more easily, social media has made it easier for people to promote their skills and find new jobs. Organizations therefore need to be open and honest about how they reward, manage and develop their people. However, our research shows a dangerous lack of clarity around reward and development. Less than half of employees (45%) feel that there is a clear and transparent connection between their performance and their pay, and 43% feel that better performance won’t lead to opportunities to progress.
Clearly, every employees’ dream of ‘the transparent organization’ is a stark contrast to reality. So, here are some things that you can do to keep up with your workforce’s expectation:-
- Assign responsibility for transparency
- Work with reward colleagues to compare your pay scales
- Develop a clear reward proposition
- Create career paths that allow people to reach their potential
- Review your performance management framework
- Use your employee survey
- Monitor external forums in addition to internal sources like the employee survey
- Establish and monitor real-time, internal feedback channels
- Assess your leaders’ internal communications
It’s no easy task to put all of these measures in place. But, since this is one of the key challenges of the future- the right time to start is now!
To know more about these key megatrends and ways to deal with them, download our new e-report- Engaging Hearts and Minds.