Month: July 2023

In the 21st-century economy, skill development is not a luxury but a necessity

As we reflect on the recent World Youth Skills Day, a significant trend in the global professional sphere warrants our attention – the rising importance and demand for soft skills. These skills, often undervalued, are non-technical abilities that involve emotional intelligence and human interaction such as communication, problem-solving, leadership, and empathy. As workplaces continue to digitise and automate, these human-centric skills have gained immense significance, proving to be just as crucial, if not more, than technical proficiency.

Jayanthi Yeshwant Kumar, Chairman, Ad Astra Consultants, says, “In a world increasingly driven by technology, soft skills remain our unique human advantage. They are critical for communication, leadership, and problem-solving across industries. By nurturing these skills alongside AI advancements, organisations can create a harmonious environment where humans and technology work together, driving productivity, innovation, and overall success.”

From an employee’s perspective, today’s workplace can often be tricky to navigate. With evolving technology, employees are always on the lookout to learn new tools. Add to that, changing team dynamics and working with people from different cultures give rise to a challenging environment. It’s in these instances that soft skills become crucial. Being able to communicate clearly, adjust quickly to situations, and understand different perspectives helps employees handle these challenges, create a positive work environment, and grow in their careers.

This trend is not an overnight development. It’s a shift that has been taking shape over time. A survey by McKinsey reported that the focus on empathy and interpersonal skills doubled in 2020. Moreover, leadership and management skills took a front seat in most companies’ priorities, rising ten percentage points yearly, from 40% to 50%. A Deloitte report made a striking projection, stating that “soft skill-intensive occupations will account for two-thirds of all jobs by 2030” and that hiring employees with more soft skills could increase revenue by more than $90,000.

Some of the soft skills include empathy, emotional intelligence, kindness, adaptability, integrity, optimism, self-motivation, and resilience. These are attributes that machines and algorithms, despite their efficiency, can’t replicate, making them invaluable in the workplace.

Rohan Rajiv, Director of Product Management at LinkedIn, stated in an interview that “foundational soft skills have become even more important, given the rise of remote and autonomous work, and are growing in importance across industries, levels and work environments. These were featured in 78% of jobs posted globally over the last three months.”

The prominence of soft skills isn’t just a fad – it’s a paradigm shift in how we view career growth and success. A study involving Harvard University, the Carnegie Foundation, and Stanford Research Center found that 85% of career success is attributed to well-developed soft skills, leaving just 15% to hard skills, including technical knowledge.

With the rise of remote work and digital collaborations, these skills are becoming increasingly critical in maintaining efficient communication and effective teamwork. Moreover, in an era where information is abundant, the ability to critically think, creatively problem-solve, and navigate complex interpersonal dynamics is a distinct advantage.

There’s no denying that the value of soft skills has been recognised worldwide. A staggering 80% of respondents in a survey by LinkedIn’s Global Talent Trends Report agreed that soft skills are increasingly important in today’s business world. Further emphasising the significance, 92% agreed that human capabilities and soft skills matter as much or even more than hard skills, and 89% pointed out that when a hire doesn’t work out, it’s usually due to a lack of soft skills.

The projected growth of the global soft skills training market supports these findings. The market is estimated to grow at a CAGR of 34.62% between 2022 and 2027, adding a market size of USD 119.22 billion according to a study conducted by Technavio. This growth will be primarily driven by the increased adoption of affordable and efficient e-learning solutions, providing accessible soft skills training worldwide.

Reflecting on these figures and insights, it’s apparent that the professional landscape is changing. As Deloitte’s report projected, “soft skill-intensive occupations will account for two-thirds of all jobs by 2030”. To prepare for this future, we need to invest in developing these skills today. This brings us to an essential question – how can we develop these skills in our youth effectively?

Learn World indicates that education and training programs have begun adopting strategies to enhance soft skill development. Initiatives range from establishing coaching or mentoring programs, live workshops, and peer learning to online learning, adopting a learning mindset, simulation training, role-playing, and self-reflection opportunities. These strategies offer diverse avenues to learn and master these skills in different contexts and settings.

As we commemorate World Youth Skills Day, we encourage the emphasis on soft skill development. By preparing our youth for the future of work, we are not just investing in their careers but in the prosperity and adaptability of our global workforce. As the adage goes, “Hard skills will get you the job, but soft skills will get you the promotion.” Let’s work towards building a balanced skill set, shaping our youth for a future where they’re not just workers, but innovators, leaders, and game-changers in their respective fields.

In the ever-evolving landscape of employment and workplace dynamics, HR professionals need to be well-versed in the trends and developments. Emphasising relevance and timeliness in practices not only allows for the anticipation of industry shifts and effective strategic planning but also drives growth and enhances performance within the organisation. By proactively responding to changes, departments can ensure the sustainability of their talent management strategies, supporting the overall business objectives.

Keeping up with trends ensures that the sectors can make strategic decisions that align with the organisation’s objectives. HR metrics and data-driven strategies have become a significant trend today. These strategies enable professionals to make decisions based on data, driving a more strategic approach to talent management.

Trends like remote work, digital transformation, diversity and inclusion, and the gig economy are fundamentally reshaping the workplace. According to a study by McKinsey & Company, more than 20% of the workforce could work remotely three to five days a week just as effectively as they could if working from an office. Therefore, HR needs to revise its strategies to accommodate these trends effectively.

For example, in the case of remote work, HR needs to build policies around remote work ethics, employee engagement, and digital wellness. Similarly, as digital transformation takes centre stage, HR should drive digital literacy and upskilling initiatives across the organisation.

Diversity and inclusion have also emerged as critical components of a successful HR strategy. HR departments should be proactive in developing diversity and inclusion initiatives, creating a more inclusive and equitable work environment.

The rise of the gig economy also presents new challenges and opportunities. As more workers shift to gig roles, HR must rethink traditional employment strategies to attract, retain, and manage this growing workforce segment.

In conclusion, to effectively steer the workforce in this fast-paced working dynamics, HR departments need to stay both relevant and timely. More than just following trends, HR must also become trendsetters themselves, pushing the boundaries of traditional practices to innovate and transform the workplace. By doing so, they will be leading the charge towards a future that benefits the employees and the organisation as a whole.

The future of work is here, and HR departments that are Sustainable, Measurable, Agile, Relevant, and Timely will be at the forefront, enabling their organisations to thrive in this new era.

In today’s ever-evolving business landscape, the ability to be flexible and responsive is crucial, and the HR sector is no exception. Agile HR can help organisations navigate this rapidly changing landscape. This approach involves the adoption of iterative processes, continuous feedback, and cross-functional teams to make HR more responsive and adaptable.

Agile methodologies have been successfully incorporated into various practices, such as recruitment, performance management, and learning and development. One case study reveals how a team of HR professionals successfully applied Scrum, an agile framework, to their development work. They prioritised projects, worked on one or two at a time, released them, and then moved on to the next, thereby focusing their efforts on delivering value to users and completing projects before moving on.

This agility in HR practice leads to numerous benefits. According to a study by McKinsey & Company, organisations using an agile model saw a 20% boost in employee engagement scores. Other benefits include improved team collaboration, better communication across different organisational areas, and enhanced trust within teams due to increased transparency.

Another study by McKinsey & Company suggests that agile performance management is another emerging trend that has shown significant potential. It’s a shift from traditional annual performance reviews to more frequent, real-time feedback. By adopting an agile approach in performance management, organisations create a direct link between the goals of the employees and the priorities of the business. Research has shown that when this alignment is present, employees are 84% more likely to view their performance evaluation process as fair. In essence, employees feel that the system is just because they know from the beginning what they need to achieve and how they will be evaluated.

This approach to learning and development promotes continuous growth, helping organisations stay competitive in today’s environment. It encourages employees to learn new skills and adapt to changes quickly and efficiently.

The Agile HR approach offers a pathway for organisations to stay flexible and responsive in the ever-changing world of work. By adopting this methodology, the departments can become more strategic, forward-thinking, and proactive, leading to improvements in talent management, employee engagement, and overall performance.

In a time defined by data-driven decision-making, Human Resources has embraced this trend, demonstrating that it is no exception to this approach. The application of metrics and analytics in talent management allows organisations to evaluate the efficiency of their recruitment, assess employee engagement, and monitor turnover rates. These measurable factors significantly contribute to optimising strategies and aligning them with business outcomes.

A study by Emerald Insights found that HR technology enables analytics, which in turn facilitates Evidence-Based Management (EBM). EBM enhances organisational performance by driving decisions backed by quantifiable evidence rather than intuition or untested assumptions. This highlights how data-driven decision-making can contribute to overall business success.

Key Performance Indicators (KPIs) are a crucial part of HR metrics. They provide insights into elements like cost per hire, employee turnover, length of employment, employee satisfaction, revenue per employee, absenteeism, average time to promote, and cost per employee. By tracking these KPIs, organisations can improve retention, identify talent gaps, and better understand the effectiveness of their strategies.

Establishing effective KPIs is an art in itself. It requires focusing on a manageable number of performance metrics and leveraging the right tools to track and analyse these KPIs. It’s also essential to ensure that these KPIs are strategically aligned with the organisation’s goals. According to a study by AIHR, only those metrics that reflect HR’s contribution to the business goals—such as talent acquisition, retention, performance, engagement, diversity, and productivity—can be truly regarded as KPIs.

However, the mere adoption of metrics is not enough. The success lies in the strategic application of these metrics. By regularly monitoring and analysing these KPIs, organisations can gain valuable insights into their processes, recognise patterns, predict trends, and identify areas of improvement. This data-driven approach to HR management not only enhances operational efficiency but also facilitates strategic decision-making.

By adopting this method, organisations can streamline their processes, optimise talent management, and align their strategies with their business goals. This, in turn, sets the stage for improved business outcomes and a competitive edge in today’s fast-paced market.

In the world of Human Resources, the acronym SMART takes on a unique meaning—Sustainable, Measurable, Agile, Relevant, and Timely. SMART HR embodies the approach of developing and implementing strategies and practices that are not only sustainable and measurable, but also agile, relevant, and timely. This blog will focus on the first aspect: Sustainability.

Organisations today recognise the need for sustainable HR practices that fuel long-term growth and adaptability. These practices, defined as the adoption of strategies and actions that contribute to financial, social, and ecological goals, leave a lasting impact both within and outside the organisation. But how does sustainable HR translate to long-term growth?

A key element of sustainable HR lies in fostering task autonomy, teamwork, and employee involvement. A study by MDPI indicates that these elements positively influence immaterial satisfaction, which in turn boosts performance. When employees have a sense of control and involvement in their roles, it not only improves their job satisfaction but also enhances productivity.

Moreover, the importance of employee well-being and strong company culture in sustainable HR can’t be overstated. A research by Selectonellc suggests that job seekers place significant weight on a company’s culture when choosing their workplace. At least one-third of them would pass up an ideal job if the corporate culture was unfit. Similarly, a Forbes study suggests that organisations with a robust learning culture have higher engagement and retention rates. These figures underline the fact that sustainable practices are crucial for retaining top talent and maintaining a healthy organisational culture.

Embracing sustainability extends beyond in-house practices, reaching as far as an organisation’s Corporate Social Responsibility (CSR) initiatives. Furthermore, a sustainable HR approach embraces flexibility, such as optional remote work. A survey by Springworks suggests that companies that offer remote work options have reported a 25% lower turnover rate. This aligns with the increasing trend of remote work and digital transformation in today’s workplaces.

Building a sustainable strategy is all about creating a resilient, adaptable framework that not only focuses on immediate goals but also keeps long-term growth and adaptability in mind. By investing in such practices, organisations can create an environment that promotes employee well-being, encourages a strong company culture, and retains top talent—all critical factors for long-term success.