Oct 11, 2022

- Advertisement - Bayern, Germany-based Persona, a developer of human resource management and recruitment platform for SMEs and startups, has published a report titled “The Great Re-Evaluation”. - Advertisement - The report discusses employees’ changing preferences for the workplace, how employers should, in turn, manage talent at a time of “great reappraisal” – and a reassessment of what the HR function must do to make this happen. should do. How to improve your open source security? Follow these three steps and be on the path to strong security practices. Show more Follow these three steps and be on the path to strong security practices. show less - Advertisement - Simply put, the great reappraisal is a period of introspection and reflection that many people are going through. It is time to reevaluate values, priorities and goals. For many, it was put off by the COVID-19 pandemic. With the world at a standstill, five days a week, a break from the 9 to 5 routine, people were forced to rethink their values ​​in work and life. “Today, 62 percent of employers across Europe are struggling to recruit the skilled talent they need, while employees are far more open to changing roles,” said the latest report from Persona. Here are some key points from Persona’s report. Image credit: Personio46% of employees are ready to jump According to the report, nearly half (46 percent) of workers in European SMEs are considering a job change in the next 12 months. Even if they don’t make the leap, it means many employees are not motivated at work, the report said. The report shows that those who have worked remotely in the past 12 months are more likely to look for a new job in the next 12 months than those who have worked in a hybrid or outdoor workplace. There is a risk that working remotely can lead to higher levels of job dissatisfaction or make it difficult for people to suddenly return to the office after enjoying more freedom. What do HR professionals have to say? Research shows that many HR professionals in small and medium-sized businesses are aware of the scale of the problem. Nearly two-fifths (38 percent) of HR decision makers expect more employees to leave their business in the next 6-12 months than usual, which will increase to more than half (54 percent) in the Netherlands. In Spain, only a quarter (25 percent) of employers are concerned about workers leaving. Surveys show that half (48 percent) of HR decision-makers feel that their leadership team doesn’t realize the scale of their current skill deficiencies, which can prevent 53 percent of leadership teams from tackling them effectively. . “90% of HRDMs in European SMEs report that their business suffers from skills shortages, retention or recruitment issues. And while recruitment is undeniably important, businesses need to better understand what retention entails – After all, fewer employees laying off means less hiring and the need for greater engagement levels. In addition, once lost productivity, recruiting and onboarding costs are accounted for, 33% of one’s annual salary is required to replace them. Can cost – meaning employee turnover can take a huge toll on a business’s bottom line. Employers’ priority should not be just to stop people from leaving. It’s also about maintaining a motivated, productive and engaged workforce And it has to be about keeping up,” says Pete Cooper, director of People Partnering at Personaio. Image credit: Personio the Great Re-Evaluation According to the report published by Persona, spending more time with family and having a better work-life balance has become more important for employees – even more so than salary. Also, more than half (57 percent) of employees place greater importance on working for an employer with a larger purpose beyond making money, which has become increasingly important among the younger generations. dissatisfied with your career progress Nearly a third (31 per cent) of employees feel they have missed a promotion within the past year, while almost one in four (37 per cent) employees feel the pandemic has put their careers to a halt. In addition, 27 percent of employees feel that working remotely holds them back in terms of career progress. Image credit: Personio Retention Strategies The top reasons for leaving given by employees in European SMEs are: stressful working environment. Lack of appreciation for the work they do. Lack of opportunities for career advancement. These are important areas for HR and their colleagues in leadership to help retain people in the business, the report said. Image credit: Personaaction to retain talent As a result, 96 percent of HR decision-makers say they are taking some action to help them maintain their current workforce. It contains: Improvement in benefits and pay Providing more recognition Appreciation of work Employees care about much more than just compensation. So while employers must ensure that their compensation packages are competitive, this is no longer enough. “Here, great quality exposure and career discussions are key. They not only uncover individual pull and push factors, but also help leaders identify overworked or frustrated employees and ensure that they There are opportunities for appreciation and career advancement,” says Ross Seychelle, Chief People Officer at Persona. Image Credits: PersonioPerformance Reviews Performance reviews are an important component in retaining talent. But the data shows that employees say performance reviews are neither appropriate nor frequent. The research also highlights that only 39 percent of employees have received regular feedback on their performance since the pandemic. performance review review “HR decision-makers in European SMEs tend to find that employees receive more feedback than they do, which indicates that there may be a broken link in the management chain,” the report said. While two-thirds (66 percent) of HR decision-makers say that formal reviews happen more than once a year, only two-fifths (43 percent) of employees say they get multiple formal reviews each year. However, a fifth (18 percent) of employees say that their performance is not formally reviewed by their manager – up to 25 percent among employees in Germany. 16 percent of European employees say they never get an informal response. Furthermore, the report shows that 56 per cent of HRDMs agree that performance review processes are biased towards employees working remotely as compared to employees visiting the office. Image Credits: PersonaHR Team Challenges Research also shows that budget constraints and too many administrators are the biggest factors preventing HR functions from supporting business success. About 59 percent of human resources report that they do not have enough time to manage people’s development as effectively as they would like. 55 percent of HRDMs disclosed that they are spending time on admin tasks, preventing them from devoting time to more strategic tasks. One in six (18 percent) cited a lack of human resource resources to perform strategic tasks as a significant factor, with the same number citing low organization morale or engagement and a lack of collaboration with the senior leadership team. hold them back. “HR teams are at the heart of this opportunity. They must reevaluate and reevaluate recruitment and retention strategies to ensure that these are fit for purpose in the post-pandemic talent market. This includes revisiting their existing performance review framework and making sure it identifies where their people have the most impact on their business, which is now doing hybrid or even fully remote working. are,” says Ross Seychelle. “But they can do this only if they are a strategic partner in the business and have access to the appropriate resources and budget needed to tackle these issues. Unless HR teams can be freed from admins and have access to a strong base of data that can fuel their strategic decisions, businesses will risk their success. At this critical moment, the future of European SMEs lies in the hands of their HR teams,” he adds. Want to know how HR across Europe are rethinking retention and performance management following the pandemic? GET THIS FREE STUDY BY PERSONIO NOW! Cyber ​​Security Scaleup How Integrity Conquered the World? Watch our interview with Paul Downs, Head of Sales at Integrity. Watch our interview with Paul Downs, Head of Sales at Integrity. show less