HR departments have to help executives manage new expectations
Workers — current workers, former workers, wannabe workers — got most of the attention as the workplace evolved during the depths of the pandemic and the sputtering, lurching recovery that followed. That’s understandable, given the way a changed economy hurt some workers and empowered others.
So what’s ahead for human resources professionals trying to help their companies’ executives deal with the differences, manage employees who can just as easily work from Bismarck as from Birmingham and still maintain a healthy corporate culture that attracts top talent? It’s an interesting time to work in HR.
Ashley Self, director of learning and people development at the electrical products wholesaler Mayer, cites the loss of in-person time with employees brought on by the pandemic and the continued remote working afterward. “That means fewer opportunities to sit down face-to-face and hear their concerns,” said Self, a 1995 marketing graduate. “Video technology has been embraced much more so than pre-pandemic and that has helped to some degree, but there have still been fewer opportunities to have those unplanned but often beneficial conversations with each other.”
Merely lamenting that reality is not enough for managers whose companies confront the consequences of it. An article from the consulting firm Gartner notes that with reduced opportunities for “spontaneous in-person interactions in the workplace, managers need to be more intentional in establishing and developing relationships with their team members.” HR professionals need to provide managers “with the proper tools to become human leaders and manage employees’ career perceptions, well-being and connection to organizational culture.”
For those who are back in the office, sometimes not eagerly, the transition hasn’t always been smooth. Seeing a colleague on a small Zoom rectangle isn’t the same as seeing that person beside your desk and for many the idea of working in your pajamas instead of a skirt or a suit still has a lot of appeal. “After going fully remote, for some it has been hard to return to the office and all the structure that surrounds the office,” Self said.
Having people back in the office really matters to some executives, whether it should or not. For them, there’s a reassurance in seeing employees at work, but that may not always be the best course for the company or its employees. After all, if the work is done well, on time and on budget, how much does it matter where or, for that matter, when the work is done?
“Having led global teams for over 20 years, I have known for quite some time that managing a remote workforce, monitoring performance, building culture, setting expectations, motivating teams, etc., is achievable,” said Cindy Taylor, COO of the consulting firm EnSignis and a 1981 industrial management graduate. “However, this method of working has traditionally been constrained by those who need to physically see individuals to know they are working.”
That attitude may not be sustainable in an environment in which Taylor says workers and prospective workers “remain in the driver’s seat for where they work, where they play, where they find community and personal value and satisfaction from their corporate role.” Remote and hybrid work “has significantly and forever changed the role of HR professionals,” she said, pushing them into “new and changing hiring practices, management practices, reward and recognition practices, salary and compensation models, and learning and development tools and techniques.”
Location remains an important component in recruiting and retaining talent, although the question now is likely to be the location of the employee, not the employer. “Location can’t cease to be a consideration for all jobs, but for many jobs it has already become so,” Self said. “If a person is working from home full time, does it matter where home is? In some cases it does.”
Companies need to establish guidelines on issues such as how often an employee is expected to be in the office and who pays for travel costs, he said.
In addition to the challenges, remote and hybrid work also create opportunities for HR professionals in attracting and retaining workers. “For many, geographical constraints for hiring are lifted, as the skills required can now be sought and acquired on a global scale,” Taylor said. “This opens up new channels for talent acquisition that were not possible or practical in traditional HR practices.”
The option to offer remote or hybrid work really isn’t an option for some employers looking for new talent. It’s an expectation. “Where this option did not exist, or was a perk, in traditional operations, it is now a primary requirement,” Taylor said. “Many individuals, especially in the technology field, will not change jobs if they are required to be on-site. This mindset, created as a result of the pandemic, is one of the biggest challenges facing HR.”
In addition, the pool of potential workers has changed from its pre-pandemic state, in part because many retirees have decided not to remain retirees. Pandemic-prompted retirements had a decided impact, but that impact is easing. According to an analysis of Labor Department data by the employment firm Indeed, by mid-2022 about 1.5 million retirees had re-entered the U.S. labor market.
These workers often have a lot to offer an employer, notably experience, reliability and a willingness to consider part-time work.
Of course, not all work can be done remotely. Cars aren’t built from your home office and medical procedures generally require the presence of a physician. “I have seen some data that suggests that almost 40% of jobs in the U.S. could be fully remote,” Self said. “That leaves more than 60% of the workforce reporting to the office, job site, warehouse, factory, hospital, etc. Location will always be a consideration for much of the workforce.”
And what about compensation? Should there be some sort of pay differential based on the location of the employee or the employer or, once again, is productivity, not proximity, the more important issue?
“Compensation is shifting toward value-based vs. geography-based for roles,” Taylor said. “We are seeing compensation demands increase for remote roles across the U.S., as well as global resources in non-U.S. countries that have been traditionally lower compensated staff.”
It’s often about more than money in designing compensation packages — for both parties. Higher pay increases the cost of doing business and potentially the costs that are passed along to consumers or clients. As a result, Taylor said, “HR staff and executives across the globe are looking at creative packages to attract employees that keep compensation manageable, but offer other benefits such as 100% remote, health benefits, non-standard work hours, etc., to interest top talent.”
“Organizations and institutions that prioritize the associate experience, including listening and engagement — largely falling within HR teams — will ultimately become better positioned to attract and retain talent,” said Harbert MBA grad Glenn Scott, a former vice president of human resources at the food company Rich’s.
Clear communication becomes particularly important. “We are so new in this type of calculation that it’s hard to draw trends yet,” said Scott, who recently became vice president of direct store delivery in the company’s in-store bakery and deli direct chains division. “I think the best way to approach it is complete transparency to employees in how their pay and benefits are structured and how that might change with a difference in location.”
“Wages have certainly jumped,” Self said, “but I wonder whether some workers will choose lower compensation for great flexibility in the future, especially those who have come to love working remotely, but are being asked to return to the office.”
Some no doubt will. Others just as certainly will not. Striking that balance is one more challenge for HR professionals in the workplace of 2022 and beyond.
—Jim Earnhardt
