The war for talent continues into 2018: Retention and recruitment are top of mind for HR professionals.
Nearly half (47%) of the HR professionals surveyed in The 2018 SHRM/Globoforce Employee Recognition Report cited employee retention/turnover as the top workforce management challenge for the third consecutive year. Second on the list is recruitment, which 36% of HR professionals said was a top challenge this year.
There’s no denying that recruiters have a hard job: The Bureau of Labor Statistics Job Opening and Labor Turnover Summary (JOLTS) reports about 5.8 million job openings at the end of 2017, up from 5.5 million a year prior. Meanwhile, nearly 40% of the American workforce is engaged in some kind of freelance work, demonstrating that the economy is increasingly defined by gig workers and job hoppers, rather than lifelong employees.
According to the survey results, companies can help resolve these challenges through more a human-centered approach in the workplace.
Eighty percent of the HR leaders surveyed reported that their organization currently has an employee recognition program. And the majority of those with programs in place are reporting tangible benefits: 89% say their employee recognition program helps with employee experience; 86% say it helps employee relationships; 85% say it helps with organizational culture; 84% say it helps with employee engagement; and 83% say it helps strengthen organizational values.
It’s important to treat employee recognition as not just a program, but a management practice with measurable business impact. Social recognition has a proven ROI, and it only takes an investment of 1% of payroll to see the results.
Meanwhile, another 34% of HR professionals indicated culture management is a challenge, jumping from the fifth-most cited challenge last year to number three this year. One possible reason is increased transparency into the inner workings of a company’s operations, mostly due to social media.
There’s no denying that workplace culture, retention, and recruitment are closely related: According to iCIMS’s Modern Job Search Report, nearly one in three full-time workers declined a job offer due to negative online reviews. While qualified workers have more options in the workforce, they’re demanding better cultures. A more human approach in the workplace boosts company culture while fostering retention and attracting talent.
The 2018 SHRM/Globoforce Employee Recognition Report explored what constitutes a human workplace by surveying 738 HR leaders in multiple organizations. For a deeper dive into how to distinguish yourself as an employer of choice, register for our webinar, “The Retention Crisis: 3 Ways to Keep Your Top Talent,” on February 27 at 2 pm EST.
Stay tuned as we explore four more key findings from The 2018 SHRM/Globoforce Employee Recognition Report on the blog in the coming weeks. To download the full report, click here.
Report: social recognition can help resolve recruitment and retention challenges
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