Our Stockholm Panel Discussion with Max Paping, Dr Fermin Diez, Uwe Kilian, Dr Ben Shenoy, and Rainer Soder explored the evolution of Reward, highlighting the growing recognition of the need for change and the importance of focusing on the future despite slow progress. They also discussed AI’s impact and technological advancements on governance and pay equity and the need for accurate data to inform decisions and improve employee experience.
The speakers emphasised the importance of adapting to changing employee expectations, simplifying and personalising employee rewards systems, and balancing personality with practical realities of HR management. Several key themes emerged around the integration of HR practices and the role of technology in enhancing employee engagement and retention. Comparing how well companies understand their consumers versus their employees was a significant insight. As Dr Fermin Diez pointed out, companies invest heavily in understanding their consumers but often need to improve in understanding their own workforce.
Understanding Employee Needs: Beyond Monetary Compensation
Max shared an anecdote about a former CEO who believed money was the primary motivator for employees. However, the consensus was that employees value a range of factors beyond just salary. To truly understand these needs, gathering data through employee surveys, conjoint analysis, and focus groups is crucial. This data can help counterbalance the strong opinions of decision-makers who may oversimplify employee motivations.
Leveraging Existing Data: The Challenge of Structured Transfer
Rainer emphasised that organisations already possess a wealth of information from exit interviews, surveys, and other sources. The challenge lies in structuring and transferring this information effectively. Moreover, Max noted that asking employees for their preferences can create expectations, which must be managed carefully.
The Skill Gap in Data Analysis
Uwe highlighted a gap in skills necessary to analyse the new data sources available. Companies need to learn how to utilise this data to develop solutions that benefit both the company and individual employees. This is particularly important as different employees have different preferences and needs.
The Marketing Analogy: Segmentation and Personalisation
The Stockholm Panel Discussion frequently returned to the analogy of marketing. Marketing departments don’t assume they know what consumers want; they conduct thorough research. HR departments need to adopt a similar approach. They must avoid assumptions and instead rely on data to understand employee needs.
The Cycle of Data-Driven Decision Making
Dr Ben Shenoy introduced the concept of a cyclical process: asking questions, gathering data, analysing it, and then using it to inform decisions. This cycle should be repeated continuously to adapt and improve HR strategies.
Future Trends in Employee Expectations
The Stockholm Panel Discussion also touched on the future of rewards and how younger generations might have different expectations from older employees. Rainer mentioned flexibility as a key expectation, including remote work options and non-traditional career paths. Psychological safety and mental well-being were also highlighted as crucial areas for HR to address.
Personalised Work Experiences: The Inevitable Shift
Fermin noted that HR will need to emulate the broader societal trend towards personalisation, seen in services like Netflix. Employees increasingly expect personalised work experiences, and current compensation models must adapt to this reality. Younger generations do not just drive this shift but is a broader change in societal expectations.
The Inertia of Large Organisation
The Stockholm Panel Discussion acknowledged the inertia within large organisations. Uwe pointed out that the fear of failure is more pronounced in big corporations due to the higher stakes. On the other hand, smaller companies can experiment more freely and might lead the way in adopting new HR practices.
Balancing Technological Integration and Human Interaction
Max and Rainer highlighted the importance of balancing technological integration with human interaction. While technology can enhance the employee experience, it must be implemented thoughtfully to avoid alienating employees. The goal is to create a seamless, personalised experience that aligns with employees’ expectations.
Learning from Smaller Companies
Finally, the panel agreed that HR professionals in large corporations should look to smaller companies and startups for innovative ideas. These smaller entities can serve as testing grounds for new HR practices, which can be scaled up for larger organisations.
Conclusion
The roundtable discussion underscored the need for a marketing mindset in HR, emphasising data-driven decision-making and personalised employee experiences. As companies navigate these changes, integrating technology and the willingness to challenge long-held assumptions will be crucial in creating a more engaged and satisfied workforce.
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