Category: Employee Engagement

Employee Retention: Combating Turnover

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Employee retention is a major concern for many organizations. More than 50 percent of organizations worldwide have expressed difficulty in retaining some of their most valued employee groups according to a Willis Towers Watson study.

Although hiring has increased in recent years, turnover and attrition rates have also increased globally across all industries by more than 3 percent since 2013.

Turnover is not just an inconvenience for organizations, it can be expensive. Research from the Work Institute’s 2017 Retention Report uncovered that it currently costs 33 percent of a worker’s annual salary to replace them, with the major costs being recruiting a replacement, reduced productivity, cost of onboarding a new hire and training expenses.

This means for mid- to enterprise-sized employers, turnover can cost hundreds of thousands to millions of dollars a year. With turnover costs this high, it is important for organizations to improve employee retention.

Employee Retention: Employee Turnover and What To Do About It

The strong economy and historically low unemployment rates have made workers more confident, and as a result, they are more comfortable exploring the job market.

In the U.S., the unemployment rate reached 3.7 percent in October. Low unemployment is not confined to the U.S. The unemployment rate has also dropped to 4 percent in the UK and 5.3 percent in Australia.

In LinkedIn’s Why and How People Change Jobs study, the top three reasons employees leave a position are to advance their careers, dissatisfaction with their workplace culture and dissatisfaction with management.

Moreover, the study found that once employees resigned, 42 percent said they might have stayed if their employer had done something to show they valued the employee.

Below, we address some of the main causes of employee turnover and provide insights into how to improve employee retention.

Create a Positive Workplace Culture  

Stressful, negative and inhospitable workplaces are a recipe for high employee turnover. Research bears this out, as the American Institute of Stress reports that workplace stress can lead to an increase of nearly 50 percent in voluntary employee turnover.

How we feel about our work often depends on the relationships we have with coworkers, managers and the overall company culture. According to a study conducted by the University of Michigan, there are six essential qualities of a positive workplace culture:

  1. Caring for, being interested in and maintaining responsibility for colleagues as friends.
  2. Providing support for one another, including offering kindness and compassion when others are struggling.
  3. Avoiding blame and forgiving mistakes.
  4. Inspiring one another at work.
  5. Emphasizing the meaningfulness of the work.
  6. Treating one another with respect, gratitude, trust and integrity.

As an organization, you should work to foster these qualities in your workplace. The University of Michigan research points to two key strategies:

Encourage Trusting Safe Relationships

Employees who trust that their coworkers and managers have their best interests at heart feel safe, as research by Amy Edmondson of Harvard demonstrates. Workplace cultures where leaders are inclusive, humble and encourage their staff to communicate and ask for help lead to better learning and performance outcomes for all employees.

Be Empathic

A brain-imaging study found that when employees recollected instances when a manager had been harsh or lacked empathy, they showed increased activation in areas of the brain associated with avoidance and negative emotion, while the opposite was true when they recalled an empathic manager.

Moreover, Jane Dutton and her team at the CompassionLab suggest that leaders who demonstrate compassion toward employees foster individual and collective resilience in challenging times. Thus, creating a workplace environment more conducive for overcoming challenges and obstacles.

Key Action:

Develop a workplace environment that meets employee needs whenever possible to drive positive organizational outcomes and increase employee retention.

Professional Development

In an article published by HR Dive, Laurie Bienstock of Willis Tower Watson states that “We know from our research and consulting that career management continues to be a top driver of attraction, talent retention and sustainable engagement for most employees…Effective career management at many organizations remains elusive. That’s one of the main reasons so many of today’s employees feel they need to leave to advance their careers.”

Well-thought-out professional development programs can provide your employees with opportunities and clear direction on how to increase their skills and advance their careers within your organization.

With an expanded skill set, not only will employees feel more empowered, they will also have more tools to help your organization. A win-win for your organization and staff.

When starting a professional development program, you can leverage the expertise you have within your organization. Senior employees, for example, can serve as mentors and help mentees sharpen both their soft skills and technical skills, gain practical knowledge, institutional insights and hands-on guidance, and can help mentees become more valuable and versatile employees.

At PeopleScout, for example, we sponsor a program where employees are paired with mentors at different levels within the organization to provide mentorship and career guidance. During the first three cycles of our program, 10 percent of participants received promotions after completing the program.

Key Action:

Invest in your employees’ career development and tie their career success to the success of your organization.

Management and Leadership

It’s often stated that “employees don’t leave organizations, they leave managers.” This is not a mere business platitude, there is evidence to back it up.

In a study conducted by Gallup, 50 percent of employees said they left a job “to get away from their manager to improve their overall life at some point in their career.”

What’s more, according to an article by SHRM, “Employees who trust their managers appear to have more pride in the organization and are more likely to feel they are applying their individual talents for their own success and that of the organization.”

To curb employee turnover that stems from mismanagement, organizations should train managers on how to constructively engage, develop and motivate their teams to improve employee retention.

One challenge managers may face lies in the fact that what motivates employees is often unique to the individual. To uncover the diverse factors that drive their team members, emotional intelligence is required.

Training support for managers should involve teaching them how to build better relationships, communicate more effectively, notice the early signs of employee burnout, delegate work and shift their mindset from being “the boss” to becoming a leader who empowers their team for success.

Moreover, managers should not have to wait for HR to step in with talent retention initiatives. Instead, managers should feel empowered to provide incentives and rewards, as well as the ability to develop their staff and offer meaningful opportunities to their team.

Managers should also be aware that meaningful recognition and praise can be powerful. Employee awards, recognition programs and praise might be the single most cost-effective way to maintain a happy, productive workforce.

Managers can send positive emails at the completion of a project or monthly memos outlining the achievements of their team, and organizations can develop peer-recognition programs to provide positive feedback to individuals as well as their teams as a whole.

What’s more, organizations can create formal employee recognition programs. These programs let employees know that their work is valued and provides employees with a sense of ownership and belonging within their organization.

Creating a culture of recognition is something any organization can do to improve their employee retention. The key to success is identifying how your employees like to be recognized and then finding ways to show recognition in their preferred method consistently over time.

While recognition programs can help improve employee retention, you still need to make sure managers are provided with coaching and training programs as well as supplied with the resources they need to become more empowered.

Key Action:

Enable employees to have positive social interactions with leadership and a rewarding work environment to increase satisfaction with their role in the organization.

Using Predictive Analytics to Track Turnover

Today, organizations are more data-driven, using AI and predictive analytics to better analyze data and drive business decisions. Predictive analytics can be leveraged by organizations to monitor and manage employee turnover by identifying which employees are at risk of leaving the organization.

Organizations should build their predictive models based on employee data tracked and stored in their HRIS or ATS. This historical data contains a wealth of information relevant to predicting employee turnover. Successfully leveraging predictive analytics to improve employee retention begins with the validity and quality of data fed into a predictive model.

Some of the most commonly used employee information for turnover-focused predictive modeling includes:

  • Tenure or duration of employment
  • Compensation level or ratio
  • Date of, or time since, last promotion
  • Percent of most recent pay raise
  • Job performance score
  • Commute distance
  • Job satisfaction score
  • Number of previous positions held
  • Years with current manager
  • Engagement score

These points of data can be analyzed to predict the likelihood and rate of turnover across roles within an organization.

For example, a PeopleScout client uses data and predictive models to assess turnover trends. The client uses employee demographic information such as age, tenure and their previous employer to predict when an employee might resign based on historical trends and patterns of similar employees.

Equipped with this data, the client is better positioned to prevent valuable employees from resigning by taking preemptive actions during periods or junctures where the employee is most likely to resign.

Leveraging Interviews to Improve Employee Retention

A key to improving employee retention is uncovering the unique issues your employees face day-to-day. Exit and stay interviews can give you a wide variety of perspectives from which to tackle issues that are driving employees away.

Exit Interviews

Exit interviews are designed to gather feedback from departing employees, and can provide an organization with insights that can be used to make current and future employees less likely to resign.

For example, if your exit interviews uncover that employees feel their duties didn’t match their original job expectations, consider changing your job descriptions and your onboarding sessions to better reflect the duties within a specific role.

What’s more, recruiters and talent acquisition stakeholders should be educated on the competencies and skills that are needed to be successful in a specific role and be able to communicate them effectively to candidates.

Tips for conducting effective exit interviews:

  • Choose the Right Interviewer: When conducting an exit interview, the interviewer should be someone with little connection to the interviewee or someone they feel comfortable sharing their true feedback and concerns with.
  • Ask the Right Questions: To get the most out of an exit interview, it is important to ask the right questions – e.g. what is the attraction of the new position?; how were relationships with colleagues?; was there an issue with benefits or compensation?; what could be done to make this company a better place to work?
  • Analyze the Interviews: Make sure you analyze the results of each exit interview and aim to find any common issues that are causing your employees to leave.

Exit interviews shouldn’t be the only time you solicit feedback from employees. Rather, you should foster a culture of constructive feedback. Employee engagement surveys are a good way to take the pulse of employees throughout their tenure with your organization. That way, you’re more likely to get honest, constructive feedback from current employees, as well as when employees leave.

Key Action:

During an exit interview, ask about things like the quality of leadership, teamwork across and within departments, opportunities for advancement and internal policies.

Stay Interviews

In some ways stay interviews are similar to exit interviews. They are both used to identify reasons employees like or dislike their job and can uncover concerns or issues an employer may be unaware of.

However, stay interviews can be more valuable than exit interviews because they provide insights managers can leverage to motivate and retain employees before they make the decision to leave.

Questions to ask during a stay interview:

  • What keeps you working here?
  • What do you enjoy about your job?
  • What would cause you to leave the company?
  • What would you like to change about your job, team or department?
  • If you could change one thing about the company what would it be?
  • Have you ever thought about leaving the organization?
  • What motivates you at work?
  • Do you feel appreciated in your role?
  • Where do you see yourself in five years?

After conducting a stay interview, be as transparent as possible with the interviewee about what you can or can’t do to remedy a particular issue.

Key Action:

Aim to conduct your stay interviews at least once per year to augment the more general information about team satisfaction obtained through engagement surveys. Schedule them separately from performance reviews so the goals of each meeting remain distinct.

The Gist:

Unmanaged employee turnover is costly and disruptive to organizations. Approaches to retaining top talent need go beyond compensation and benefits to include improving employee job satisfaction with meaningful engagement, organizational commitment to managing employees’ relationships with their managers and clearly communicating opportunities for growth and advancement with the organization.

Ghosting in the Workplace

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Ghosting in the workplace is an increasing concern for employers as the growing trend of candidates who don’t show up to scheduled interviews, don’t arrive on the first day of work or even quit without giving notice rises. This trend is also known as “ghosting” in the workplace.

“As labor markets tighten, recruiters and hiring managers say they’re experiencing a surge of workers no-showing at interviews or accepting a job only to never appear for the first day of work without explanation. Some employees are even quitting by walking out and saying nothing,” wrote LinkedIn’s Chip Cutter in an article on workplace ghosting.

What’s more, an article published by USA Today reports that 20 to 50 percent of job applicants and workers are pulling no-shows or ghosting in some form or fashion.

The ghosting phenomenon is global. “I thought it could only be in pockets of a country like the U.S., where the unemployment rate has sunk to an 18-year low,” wrote Pilita Clark in an article in the Financial Times. “When I asked around in the UK, where unemployment is at its lowest in over 40 years, I found a surprising number of victims of what is known in the online dating world as ‘ghosting.’”

To further explain what ghosting is, why it’s occurring and what your organization can do to minimize its effects on your talent acquisition program, we explore the phenomenon and its effects on employers.

So, What is Ghosting in the Workplace?

In the dating world, “ghosting” is the practice of ending a relationship by stopping all contact and communication with a partner without apparent warning or explanation.

The discourteous act of ghosting is no longer confined to romance; it has now entered the world of work.

Ghosting in the workplace is similar to ghosting in dating. Essentially, candidates or employees avoid having potentially unpleasant conversations with recruiters or their employers by going radio silent instead.

ghosting in the workplace

Instead of telling employers, “I am quitting” or “I have accepted another job offer,” some workers are thinking: “If I ignore you long enough, eventually you will take the hint and leave me alone.”

Simply put, many job seekers do not want to have an uncomfortable conversation with a recruiter or manager, so they take the easy way out by ghosting them. Ghosting in the workplace comes in many forms including:

  • No-Showing for an Interview. This occurs when candidates do not show up to scheduled interviews. This can happen for initial interviews, or interviews further along in the hiring process.
  • No-Showing on the First Day. This occurs when candidates accept a job offer but don’t show up on their start date.
  • Quitting Without Notice. This occurs when an employee leaves for the day and is never heard from again.

While job candidates and employees have ghosted in the past, what’s unique now is the practice has now become more prevalent. According to a survey conducted by Washington-based research firm Clutch, 71 percent of workers admitted to ghosting at some point in the application process. What’s more, 55 percent of the respondents said they abandon one to five applications during a job search.

Why are Workers Ghosting in the Workplace?

Some experts believe it is due to changing candidate attitudes and others believe it is a result of the booming job market and historically low unemployment. Whatever the cause, ghosting in the workplace is becoming one of the top issues talent acquisition professionals face in today’s talent market.

Change in Candidate Attitudes

In an interview with the New York Post, Rob Bralow, owner of BLVD Wine Bar in Long Island says he schedules interviews back to back because the majority of applicants simply ghost the interview.

“If I have 10 people who have confirmed interviews in a day, and three people show up, I’m happy,” Bralow says. “And we’re talking about all pay grades and positions. It doesn’t matter what the pay scale is. I’ve had ghosts [no-shows] for $50,000 to $70,000 jobs, and I’ve had ghosts for minimum wage jobs.”

Clutch’s survey found 41 percent of workers found it acceptable to ghost employers, while 35 percent found it unreasonable for an organization to ghost an applicant. Clutch also found that of the workers that found ghosting acceptable, the most common reasons include accepting another job offer (30 percent) or deciding the role was not a good match (19 percent).

Improved Economy and Opportunities

Ghosting employers is not just a symptom of shifting attitudes in the workforce. It can also be the result of low unemployment.

At the height of the Great Recession, the unemployment rate reached 10 percent in the U.S. During this time, many organizations were inundated by the deluge of applications from job seekers and could not respond to every applicant.

What’s more, the global economy is expected to grow by 3.7 percent in 2018, further driving demand for talent.

As the economy and job market surge, the tables have turned. Employees are at an advantage because it’s a candidate’s job market and they have more employment options than they have in recent years.

In May of 2018, the unemployment rate reached an 18-year low of 3.8 percent. There were more job openings than unemployed workers for just the second month in two decades, according to the United States Department of Labor.

Low unemployment is not confined to the U.S., the unemployment rate in the EU has dropped to 7.1 and in the APAC region at 4.2 percent.

This means that employees have more options for employment and can move quickly from one job to the next, ignore employment offers they choose not to accept or accept multiple offers at once with little perceived negative consequences.

How to Survive Ghosting in the Workplace

ghosting employers

Ghosting is not only frustrating for employers and recruiters, it’s also expensive. The Society for Human Resource Management (SHRM) reports the average cost-per-hire for companies is $4,129 and the average time to fill a position is 42 days. Ghosting also causes lost productivity, as hard-to-fill jobs stay open longer than anticipated.

To combat ghosting, employers can implement the following strategies:

Developing a Talent Community Can Curb Employee Ghosting

With ghosting becoming the new normal, it’s essential to be more strategic and build long-term relationships with candidates. One method of building long-term relationships is with talent communities.

Talent communities are ideal for establishing long-term professional relationships with passive talent for future opportunities. This means getting to know the talent landscape and candidates regardless of whether or not they are looking to make a career change immediately.

Developing a talent community requires organizations to shift from reactive recruiting to a more proactive approach. Your organization’s mindset should switch from recruiting to fill an open position to thinking about who your organization should hire in the future.

By sourcing candidates earlier in the hiring process, you have ample time to engage them and develop closer and more personal relationships, reducing their likelihood of ghosting.

Tips for building a talent community include:

  • Determine what roles you want to target for your talent community (usually roles with high turnover or roles that are hard-to-fill.)
  • Look to past candidates, former employees and interns to build your talent community.
  • Source passive candidates by combining various sourcing techniques (e.g. social media, networking events, etc.)
  • Engage candidates through recruitment marketing until you have an open role for them.

Building a talent community isn’t a short-term strategy and takes time to develop and nurture, but in the long term the benefits are worth the investment and can help offset ghosting in the workplace.

Ghosting Employers: Evaluate Your Onboarding Process

While candidates ghosting job interviews can be a challenge, candidates who ghost on the first day or who resign their position without notice can wreak havoc on an organization.

To curb and deter this behavior, organizations should start the onboarding process early to build an emotional connection with new hires.

In fact, according to research conducted by Inavero, 77 percent of candidates are willing to accept an offer that is 5 percent lower than their expected offer if the employer created a great impression through the hiring process.

That is important because new hires decide to stay or leave a job within the first three weeks, according to a study by the Wyndhurst Group.

Despite the fact that it can take a year or longer for a new employee to reach full productivity, only 15 percent of organizations extend their onboarding past six months, according to SHRM. If employers want to keep their new hires from ghosting, they should consider extending their onboarding processes through the first year of employment. Here are some ideas for successful onboarding techniques at different key points throughout an employee’s first year.

  • Before start date: Prior to a candidate’s first day, reach out with friendly messages welcoming the new employee or sharing an introduction to some of the benefits your organization has to offer.
  • On the first day: When the new hire arrives for their first day, be sure they are personally introduced to their coworkers and designate a point of contact who will be readily available to answer questions.
  • The first six months: Now that the new hire has learned the ropes, continuous feedback is what is going to help them hone their skills, catch mistakes and take corrective action when needed. This is also a great way to establish rapport and trust with the rest of the team.
  • After the first year: After the first year, managers should start having conversations about a new hire’s future within the organization and their career development as a way to show the employee that the organization is invested in their continued success.

Conclusion

No one can say for certain if ghosting in the workplace is a trend that is here to stay or if the emergence of an employer-friendly job market will curb it. But one thing is certain; candidate’s attitudes have changed, so organizations need to take steps to adjust.

By building strong talent communities and engaging new hires early and often, you can better position yourself to reduce the likelihood of candidates and employees ghosting you.

Expanding the Talent Landscape by Recruiting Virtual Employees

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With very low unemployment in many of the world’s major economies, those seeking to attract talent should explore the benefits of recruiting employees that work from home. Since a number of these countries, such as the United States and the UK, are considered to be at “full employment,” where nearly everyone who wants a job has a job, the traditional formula of recruiting in the market where a company is located may no longer be as effective as it has been in the past. And since the top reason for quitting a current job is to increase wages, employers face the challenge of meeting candidate expectations for higher pay based on local salary ranges.

While remote work may not be viable for some positions, expanding the pool of candidates outside a specific geographic area allows employers to take advantage of the growing trend in telecommuting as well as potentially reduce attrition, decrease cost-per-hire and even improve productivity.

The Virtual Workforce is Substantial (and Growing)

A study by Global Workplace Analytics and FlexJobs released earlier this year reported that 3.9 million U.S. employees, or 2.9 percent of the total U.S. workforce, currently work from home at least half of the time. This number is up from 1.8 million in 2005, an increase of 115 percent. And as of 2017, 43 percent of U.S. workers worked remotely at least occasionally, up from only 9 percent of workers in 2007.

Growth in remote work is not limited to the United States. In the UK, one in seven people work from home, according to the Office for National Statistics. In Canada, nearly half (47 percent) of employees work from outside one of their employer’s main offices for half the week or more. And in Australia, the number of people who work from home has risen to 30 percent. The significant percentages of telecommuters is not the case for all economies. Eurostat reported earlier this year that working from home was slightly more common in the Eurozone than in the EU as a whole. And some non-Eurozone countries have a negligible virtual workforce. Bulgaria has only 0.3 and Romania just 0.4 percent of its workers working from home, as an example.

A Deloitte study on Global Human Capital Trends reported that 70 percent of employees value telecommuting, but only 27 percent of employers offer this option. Therefore, companies that provide opportunities for telecommuting may have a competitive advantage in attracting talent.

Reducing Employee Turnover and Increasing Productivity

While study results vary, there is evidence being offered that working from home can increase employee retention. One study by OwlLabs found that companies that support remote work have 25 percent lower employee turnover than those that don’t.

A study conducted by a Stanford University professor set up a control group between office-based workers and those were allowed to work from home. As the Harvard Business Review reports:

“Half the volunteers were allowed to telecommute; the rest remained in the office as a control group. Survey responses and performance data collected at the conclusion of the study revealed that, in comparison with the employees who came into the office, the at-home workers were not only happier and less likely to quit but also more productive.”

The professor noted that “The results we saw at Ctrip, (the company studied, which is the largest online travel agency in China and the owner of other travel sites worldwide including Trip.com) blew me away. Ctrip was thinking that it could save money on space and furniture if people worked from home and that the savings would outweigh the productivity hit it would take when employees left the discipline of the office environment. Instead, we found that…Ctrip got almost an extra workday a week out of them. They also quit at half the rate of people in the office—way beyond what we anticipated. And predictably, at-home workers reported much higher job satisfaction.”

Providing the option of working virtually can be a crucial factor in retaining valuable talent. If an employee needs to relocate temporarily for family reasons, such as caring for an older parent, or permanently due to a spouse’s job transfer, the employee can remain with the company by working remotely. Having this option available allows the employee to remain with the organization while the employer retains experienced talent and saves the costs of hiring and training a new worker.

Cost Savings for Employers and Employees

This same Stanford study showed that the company saved $1,900 per employee working from home over nine months. Remote workers allow employers to save money on furniture, parking, office space, insurance costs and other expenses. Global Workplace Analytics’ research shows that a typical employer can save more than $11,000 per year for each half-time telecommuter, the result of a combination of increased productivity and reduced real estate, turnover and absenteeism.

The cost benefits of remote work also extend to employees. Those working remotely save on commuting expenses, depreciation on their vehicles if they drive and gain the time back that would normally be spent going to and from work.

Can Remote Work Be a Solution for Your Business?

The difficulties of recruiting locally and the potential returns of developing a remote workforce may be attractive, but it is also uncharted territory for many companies. How would you source candidates throughout the nation and even beyond? Can you develop recruiting processes, including interviewing, that are effective using video and other tools if you have only relied on face-to-face meetings until now? And once a candidate is hired, how will you manage the onboarding process remotely? The answers to these and many other questions confronting a company exploring a remote workforce option can be provided by a recruitment process outsourcing company (RPO). An RPO can provide the experience, technology and expertise to ensure your success as you remove the geographic limits of your talent pool.

Changing Workforce Demographics: Aging Talent

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An Aging Workforce in an Aging World

For the first time in history, the majority of people on earth will live to 60 years of age and beyond. This is true in high, medium and low-income nations. People are not only living longer, but they are working longer. In the U.S., 23 percent of workers are aged 55 and older. Over one-third of Canadians over the age of 55 are still working and in the UK, workers over 50 comprise 27% of the workforce. In Australia, labor force participation, (those working or actively looking for work), for those 55 and older has never been higher. The demographic shift towards an aging workforce brings both unprecedented opportunities and challenges for organizations that want to attract and retain talent.

A Talent Ticking Time Bomb?

The Deloitte 2018 Global Human Capital Trends Study notes that “population aging poses a workforce dilemma for both economies and organizations. Thirteen countries are expected to have ‘super-aged’ populations—where more than one in five people is 65 or older—by 2020, up from just three in 2014. These include major economies such as the United States, the United Kingdom, Japan, Germany, France, and South Korea. China’s 65-and-older population is projected to more than triple from approximately 100 million in 2005 to over 329 million in 2050. In fact, analysts have estimated that 60 percent of the world’s population over 65 will live in Asia by 2030.”

The study notes that almost all developed economies have a birthrate below the “replacement rate,” or the rate of babies born that will ultimately replace previous generations, leading to a potentially catastrophic talent shortage. Citing the example of Japan, now the world’s oldest country in terms of population, a shortage of approximately 1 million workers in 2015 and 2016 is estimated to have cost the economy $90 billion.

To bolster its declining talent pool, Japan changed its laws so that descendants of Japanese citizens living abroad would be attracted by newly available long-stay visas and work permits. It had particular success in attracting workers from Brazil with as many as 320,000 Brazilians of Japanese descent working in Japan ten years ago, although that number has decreased in recent years. China also faces a steep plunge in its working population in the coming years and has made it easier for those of Chinese descent to live and work there.

Despite these developments in Asia, addressing a workforce shortfall through immigration appears to be an increasingly remote option for many advanced economies. A recent article in the Economist explains that the trend in many countries has been to place increased barriers to foreign talent. For organizations seeking to successfully navigate this demographic reality, success may depend on leveraging the talent of an older workforce, mentoring, succession planning and redefining the concept of retirement from work.

Older Workers as Outperformers

There is evidence that older workers have an edge on their younger colleagues regarding work performance. A study conducted by a management professor at the University of Pennsylvania’s Wharton School of Business concluded that older workers often out-perform their younger colleagues, stating “when it comes to actual job performance…older employees soundly thrash their younger colleagues…every aspect of job performance gets better as we age…I thought the picture might be more mixed, but it isn’t.”

Creative solutions which include accommodating the needs of older workers can help utilize their talent and positively impact a corporation overall. The Economist cites an example from BMW:

“When BMW, the German car maker, faced an outflow of workers it applied an adaptive approach for older workers with great success:…facing an imminent outflow of experienced workers, [it] set up an experimental older-workers’ assembly line. Ergonomic tweaks, such as lining floors with wood, better footwear and rotating workers between jobs, boosted productivity by 7%, equaling that of younger workers. Absenteeism fell below the factory’s average. Several of these adjustments turned out to benefit all employees and are now applied throughout the company.”

Employer Brand Ambassadors and Mentors

Older workers, especially those with significant tenure in an organization and industry, can serve a critical role in its talent lifecycle. Older employees can become employer brand ambassadors by effectively sharing their success stories with prospective candidates as part of an organization’s recruitment marketing messaging. Older employees can be mentors for new workers being onboarded that not only teach necessary skills but also help acclimate a new employee to the organization’s corporate culture. If a company’s workforce is reflective of the economy as a whole, then it should plan to see an exit of at least one-fifth of its employees due to retirement in the next ten years. These older workers form a natural base for a mentorship program which can play an essential role in succession planning.

Redefining Retirement Age

The days when turning 65 meant the end of working life appear long gone. Some workers past the traditional age of retirement have no choice but to continue working due to a lack of savings. Others choose to keep working, on a full or part-time basis, or as consultants. Companies will also have to compete with the trend towards entrepreneurship for talent 65 and over because this age group is more likely than any other to be self-employed.

Having the Competitive Advantage

What does an aging workforce mean for the overall talent strategy of your organization? Does your organization have the necessary insight into the challenges and opportunities that an aging workforce presents? If not, this expertise can be provided by recruitment experts such as a recruitment process outsourcing (RPO) company. Whether your strategy is developed in-house or with a partner such as an RPO, the current tight job market drives the need to build a talent program that integrates the reality of this important workforce demographic. As the Deloitte study concludes “The demographic math is undeniable: As national populations age, challenges related to engaging and managing the older workforce will intensify. Companies that ignore or resist them may not only incur reputational damage and possible liabilities but also risk falling behind those organizations that succeed in turning longevity into a competitive advantage.”

Medical Staffing: How to Engage and Retain Healthcare Workers

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Retaining healthcare staff and medical staffing are more important than ever. The lifeblood of a healthy healthcare organization is a happy and well-engaged staff, from food service and facility maintenance employees to clinical professionals like physicians and nurses. To ensure a happy healthcare workforce, medical staffing, employee engagement and retention need to be top priorities of healthcare HR professionals.

Unfortunately, many healthcare organizations lack concrete plans or programs for healthcare talent management, or the programs they have in place are antiquated and in need of updating. In this post, we educate healthcare HR professionals on ways to improve medical staffing by better engaging and retaining employees.

Why Engagement and Retention is Important for Medical Staffing

medical staffing

Healthcare employee turnover is high, according to a Leaders for Today (LPT) survey report, which included 852 participants of both clinical and non-clinical healthcare workers. The survey found that 43 percent of respondents reported they have been with their current organization for fewer than two years and 65.7 percent reported they have been with their hospital for fewer than five years. More than one-third of LPT survey respondents plan to leave their current organization within two years, and 68.6 percent plan to leave in five years.

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What’s more, the financial costs of high turnover can be significant for healthcare organizations. The turnover of a physician represents a $200,000 loss for a healthcare organization, according to a 2016 report from B.E. Smith, while the loss of a bedside nurse can cost up to $56,300 annually according to NSI Nursing Solution’s report. By better engaging employees, healthcare organizations will not only raise morale and lower employee turnover, but they will also improve their bottom line.

Four Key Areas of Medical Staffing and Employee Engagement

Developing an effective medical staffing strategy is a challenge, especially with the healthcare industry experiencing a shortage of medical professionals. Healthcare workforce planning can help resolve some medical staffing issues. However, organizations also need to factor in the following areas to ensure strong employee engagement and retention:

  • Onboarding new employees: Involves training, educating and getting new employees comfortably situated in their new position.
  • Engaging employees: Involves managing and developing employees to become more engaged with the organization.
  • Retaining employees: Involves expanding responsibilities of employees as well as offering incentives to stay with an organization.

Medical Staffing Basics: Onboarding New Healthcare Employees

Making sure new hires are comfortable, connected and productive as soon as possible is essential for the success of a comprehensive medical staffing program. New hires need to know how they fit into an organization and understand how their roles support the healthcare organization’s goals. When a healthcare organization takes the time to cultivate relationships with new hires, those employees feel like part of the team from day one and are more likely to stay in their positions.

Having a strong support structure is vital for new hires, managers should work to create a support network for their new hires in their departments to help them get up to speed as soon as possible. Managers should also be as available as possible to answer questions and provide feedback to new hires.

Instead of waiting for new hires to introduce themselves to their new co-workers, healthcare HR professionals should actively introduce new hires to their teams before their start date. This can be done with email notifications or a brief in-person meeting. Veteran employees should also conduct regular follow-ups with new hires once they have started to make sure they are acclimating well to their new environment.

Additional on-boarding suggestions:

  • Appoint point persons and mentors to welcome and orient new hires for the first 90-days of employment.
  • Before a new hire’s start date, send him/her a card or letter welcoming them to the organization and include important paperwork, employee handbook and benefits package along with an agenda letting them know what to expect on their first day.
  • Make sure the employee’s work area is ready.
  • Create lunch plans for new hire’s first few days, helping her/him feel at ease and welcome. This can also can serve as a way to introduce them to the team.
  • Promptly educate new hires on the healthcare organization’s culture and unwritten rules. For example, what is the preferred method of communication – email, phone, chat programs or in-person meetings?

Successfully onboarding employees can be one of the most effective weapons in a healthcare organization’s arsenal. Studies have illustrated that well-designed onboarding programs can quickly transform new hires into dedicated employees, reducing the costs associated with turnover and improving overall employee morale.

Engaging Healthcare Employees

Employee engagement is one of the most important elements of successful medical staffing. Highly engaged employees often have persistent feelings of work fulfillment. This work fulfillment can often translate into increased enthusiasm and passion in employees, resulting in higher than average levels of focus and energy put into their jobs.

Employee engagement has become more important to healthcare HR professionals because there is growing evidence that employee engagement correlates to positive outcomes for individual, group and organizational performance in the areas of productivity, retention, turnover, patient care and loyalty. Here are a few practices healthcare organizations can do to better engage employees.

Professional development: For healthcare professionals—especially clinical employees—the opportunity to learn and grow professionally is very important. To better engage employees, healthcare organizations should look to create a positive learning environment for employees who seek additional skills and professional experiences. Learning opportunities can pay long-term dividends, the skills and new experiences gained by employees through education and training can be utilized to improve performance in their current position, or they can transition into vacant positions, lessening the need for hiring new personnel.

Offer better work-life balance

Healthcare workers experience the same challenges in their personal lives as employees in other industries, they are trying to balance childcare, school schedules and needing time away from work. Adding some freedom to an employee’s daily, weekly or monthly schedule is often seen as a big plus for employees and can be more important than compensation in some cases.

Working relationships and mentorship

Strong bonds and relationships between team members are important for professional growth. Veteran employees who have been with an organization for years have a lot of experience, knowledge and advice to impart to younger and less experienced employees looking for career guidance. To build better employee engagement, healthcare organizations should create a formal mentoring program. Healthcare organizations can ask seasoned employees to guide younger ones in their careers to help engage both the mentor and mentee, giving a sense of purpose and direction to both parties.

Additional employee engagement suggestions:

  • Make staff meetings a time to celebrate successes and highlight individual achievements.
  • Have managers involve employees in determining their career path goals and development plan.
  • Promote values such as integrity, empowerment, perseverance, equality, discipline and accountability into the organization.
  • Let employees know they matter and make a difference within the organization.
  • Give employees responsibilities and new challenges.
  • Give employees thank you cards for going the extra mile.
  • Implement employee suggestions and ideas to show you care and value their input.
  • Create opportunities for employees to become a “leader” in something they are interested in and knowledgeable about.
  • Ask employees work-appropriate questions about their family life, hobbies and interests.
  • Always provide staff the care, tools and resources needed to be successful in their position.

By better engaging employees, medical staffing efforts will see reduced turnover and higher levels of job satisfaction among employees. Remember, managers are key in engaging employees and must pay attention to staff needs to help create a positive working environment.

Medical Staffing Retaining Healthcare Employees

Employee retention is certainly one of the most important ingredients for success for healthcare organizations. Improving employee retention allows organizations to avoid the high cost associated with replacing employees, improves patient care and enhancing the overall quality of service to the communities served. Below are a few ways healthcare organizations can improve their employee retention efforts.

Offer flexible scheduling: Scheduling can be a rather difficult part of medical staffing. A healthcare workers’ schedule can be exhausting, as they often have to work long and unpredictable hours. To better retain employees, healthcare organizations should consider offering a wide array of scheduling options. Employees will appreciate an organization’s attempts to accommodate their personal lives and needs, and in turn, become more loyal to an organization as a result. Employees who have more control of their schedules tend to feel more job satisfaction and often stay with an organization longer.

Remove frustrating obstacles: Many employees may truly love their jobs, but due to obstacles and unnecessary challenges associated with performing their duties, they become burned out. For instance, nurses might get inundated with never-ending paperwork. This may result in nurses feeling unsatisfied with their work. A solution to this challenge could be to implement a new technology to streamline the paperwork process. Without an overload, nurses will most likely feel greater satisfaction because their workload is more balanced between administrative and clinical work.

Conduct stay interviews: Interviewing employees is often reserved for before hiring or after an employee resigns their position. Stay interviews should be conducted at least once a year with employees on a one-on-one basis in a neutral setting. Employees should be asked questions about their frustrations and issues and about ideas on how improvements can be made for them.

Questions to include in stay interviews:

  • What about your job makes you eager to get to work?
  • What makes you want to hit the snooze button instead of coming to work?
  • If you were to leave the organization, what would you miss the most?
  • What would be the one thing, if it changed in your current position, would make you consider leaving?
  • What would be the one thing you would change about your department if you could?

Employees who are treated well will often feel a sense of obligation or duty to their organization. As a healthcare employer, each action an organization takes to improve employee job satisfaction, morale and productivity is a step towards improving retention and improving medical staffing outcomes.

Conclusion

For healthcare organizations, medical staffing is only as successful as their ability to engage and retain the best healthcare professionals. To achieve this end, organizations must be consistently vigilant of their employees’ needs and must develop talent carefully to keep employees engaged and committed to their job.

Age Discrimination in the Workplace: What Employers Need to Know

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According to the Pew Research Council, 18.8 percent of people over 65 worked in 2016, while the National Council on Aging reports that, by 2019, over 40 percent of people over age 55 are expected to be working. With the increase of older employees in the workforce, age discrimination in the workplace will become a greater issue, necessitating strategic planning to avoid age-related issues. In this post, we outline the issues and offer concise solutions to combat age discrimination in the workplace.

What is Age Discrimination in the Workplace?

In the United States, the Age Discrimination in Employment Act (ADEA) is a federal law that protects individuals 40 years of age or older from age-based employment discrimination. According to the ADEA, the following are examples of age discrimination in the workplace:

  • Not hiring an individual because an employer wants a younger-looking person for the role.
  • If a person receives a negative performance review because they were too old or inflexible to taking on new projects.
  • Firing an individual because management wants to hire and retain younger less expensive workers.
  • Turning an individual down for promotion because they are “too old” for the position or they want “new blood” in a position.
  • When company layoffs are announced, most of the persons laid off are older, while younger workers with less seniority and less on-the-job experience are kept on.
  • Before termination, supervisors or management made age-related remarks about an individual such as the person being “over-the-hill,” “ancient,” or “an old man or woman.”

If any of these situations take place, employees may have a solid case against a company for age discrimination in the workplace.

Managing Age Diversity in the Workplace

A study by PricewaterhouseCoopers revealed that 64 percent of CEOs surveyed had adopted strategies promoting diversity and inclusiveness. However, only 8 percent included age as a factor in their diversity strategy. This means that many businesses may be ill-equipped to properly manage an age-diverse workplace.

Older employees bring with them years of experience, tried and true ideas and problem-solving approaches that can be of great benefit to a business. However, multi-generational workplaces also come with unique challenges, which if mismanaged, can lead to unsatisfied employees and hampered business efficiency. This means getting it right depends on smart management and an open-minded leadership approach. Here are some ways businesses can effectively manage and create a positive working environment free of age discrimination in the workplace:

Flexibility:

Older individuals may need more flexibility in the workplace dues to age-related illnesses, family obligations and physical ability. Providing flexibility to older employees allows them to participate in the workplace without feeling like they are a burden to the company they work for.

Foster Multi-Generational Team building:

Building age-diverse teams in the workplace allows employees to learn from one another. Older employees can impart knowledge gained through experience to younger employees while younger employees can teach them how to use new technology and techniques.

Both parties benefit from the chance to challenge and motivate one another. That is why businesses should look for opportunities for inter-generational teams to collaborate on projects whenever possible.

Job Requirements:

There are a few circumstances when it is lawful for an employer to treat people differently if it is a legal requirement that the employee must be of a particular age. When deciding if this applies, it is necessary to consider the nature of the work and the context in which it is carried out. Jobs may change over time and companies should review whether the requirement continues to apply, particularly when recruiting for certain positions.

Age Discrimination in the Workplace and Recruitment

According to Department of Labor data, the unemployment rate for those over age 55 stands at just 3.6 percent, compared with 5 percent for the total population. While older workers have found a place in the modern workforce, many individuals find themselves the victims of age-based discrimination when it comes to being recruited and hired. There are many ways businesses can avoid age-based discriminatory hiring practices. Below we have listed a couple of tips:

Job Applications

Businesses should remove the age and date of birth fields from job applications. In addition to removing these fields, businesses should also review their applications to ensure that they are not asking for unnecessary information about dates. Asking for age-related information on an application could project an air of discrimination, which could be a liability and dissuade older candidates from applying.

Job Descriptions:

Avoid references, however oblique, to age in the job description. For example, a job seeker could challenge any time requirement, and a business may have to justify it in objective terms, again leaving a business vulnerable to discrimination allegations.

Harassment and Age Discrimination

Harassment is unwanted conduct related to a relevant protected characteristic, such as age, which has the purpose or effect of violating an individual’s dignity or creating an intimidating, hostile, degrading, humiliating or offensive environment for that individual.

Harassment may be intentional bullying which is obvious or violent, but it can also be unintentional, subtle and insidious. It may involve nicknames, teasing, name calling or other behavior that does not have malicious intent but is upsetting. It may be about the individual’s age (real or perceived), or it may be about the age of those with whom the individual associates. It may not be targeted at an individual but consist of a general culture which, for instance, appears to tolerate the telling of age-related jokes.

Businesses may also be held responsible for the actions of employees. To ensure age-related harassment does not take place, businesses should clearly communicate an anti-harassment policy and make sure the policy is thoroughly enforced.

Conclusion:

Fairness at work and good job performance go hand in hand. Tackling discrimination helps to attract, motivate and retain staff and enhances a businesses’ reputation as an employer. Eliminating age discrimination in the workplace helps everyone to have an equal opportunity to work and develop their skills regardless of age.

Improving Racial and Ethnic Diversity in the Workplace

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In the modern workplace, companies are placing greater emphasis on diversity and inclusion initiatives to strengthen organizational adaptability, gain competitive advantage and reduce legal risks. Despite this trend, many companies still struggle with racial and ethnic discrimination and policymaking.

In fact, According to data collected by the EEOC, $112.7 million is collected from employers for racial discrimination violations on average each year. In this post, we outline what constitutes racial and ethnic diversity, its benefits to companies and best practices when it comes to implementing and monitoring a racial and ethnic diversity policy in the workplace.

The Benefits of Racial and Ethnic Diversity in the Workplace

ethnic diversity

Companies increasingly understand the value of recruiting and retaining diverse employees, as these workers play a critical role in a company’s ability to adapt, grow and sustain a competitive advantage in the modern business landscape.

However, some companies fail to recognize the benefits of having a racially and ethnically diverse workforce. Factors such as prejudice and stereotypes towards certain racial or ethnic groups, whether conscious or unconscious, can lead to discriminatory practices in hiring.

What’s more, to combat prejudice and internal resistance, companies need to create a business case for diversity by outlining the benefits of a racial and ethnically diverse workplace such as:

  • Gains in worker welfare and efficiency
  • Reduced turnover costs
  • Fewer internal disputes and grievances
  • Improved accessibility to new and diverse customer markets
  • Higher productivity and increased revenue
  • Increased innovation
  • Development of new products and services
  • Improved company reputation management
  • Greater flexibility and adaptability in a globalized world
  • More efficient risk management (e.g. legal risks due to non-compliance)
  • Prevention of marginalization and exclusion of categories of workers
  • Improved social cohesion

Companies are more likely to reap these benefits when they go beyond meeting the minimum requirements for legal compliance. Companies should strive to understand both the social and cultural complexities inherent in embracing diversity and strive to be diversity leaders in their industry.

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Key Racial and Ethnic Diversity Definitions

diversity statistics in the workplace

To effectively improve racial and ethnic diversity in the workplace, companies need to understand some of the key terms and definitions including:

Racial Discrimination: Racial discrimination in the workplace can be defined as any exclusion, restriction or preference based on race, color, descent or national or ethnic origin which has the purpose of impairing an employee’s ability to exercise their rights to equal standing in the workplace.

Ethnic Group: The term “ethnic group” refers to a group of persons whose members identify with each other through such factors as common heritage, culture, ancestry, language, dialect, history, identity and geographic origin.

Ethnic Minority: Ethnic minority does not only refer to ethnic groups that are a numerical minority. Instead, it refers to any ethnic group that is not dominant socially, economically or politically.

Implicit Bias: Also known as unconscious or hidden bias, implicit biases are negative associations that people unknowingly hold. They are expressed automatically, without conscious awareness.

Inclusion: Authentically incorporating traditionally excluded individuals and/or groups into processes, activities and decision/policy making in a way that shares power.

For more diversity definitions and terms, visit Racial Equality Tools.

Employer and Employee Responsibilities

Both employers and employees have responsibilities when it comes to promoting and monitoring racial and ethnic diversity policy in the workplace. Both stakeholders have to work together to ensure the success of a company’s diversity initiatives.

Employer Responsibilities

Employers should act as facilitators and purveyors of knowledge to improve relations among their diverse workforce. Employers should also continuously work on the development of diversity policy and implementation. Management should also be trained to ensure the improvement of awareness on racial discrimination and ethnic diversity in the workplace. Furthermore, employers can help build the capacity of managers to ensure that the ethnic diversity policy is effectively applied within the company.

Employee Responsibilities

Employees and organizations tasked with protecting workers rights should lobby companies for strong ethnic diversity policies, ensuring that all workers enjoy equal opportunities at all stages of the employment cycle, including access to employment, training, promotion and retirement. Employees also have an important role in raising awareness amongst themselves on the right to a workplace free from racial discrimination and in supporting their coworkers when they issue complaints.

Introducing Racial and Ethnic Diversity Initiatives in the Workplace

lack of diversity in the workplace

Improving racial and ethnic diversity in the workplace often challenges the values and worldview of current employees. For this reason, introducing diversity initiatives is both challenging and necessary for companies looking to create a more inclusive corporate culture.

How companies introduce racial and ethnic diversity initiatives matters. To successfully introduce diversity initiatives, companies need to take a structured approach that involves assuaging feelings of uncertainty about the future of the company and effectively communicating new policies aimed at protecting workers belonging to certain racial and ethnic groups.

At the same time, companies should communicate realistic expectations to members of minority groups regarding the new policies to ensure they understand the goal and scope of the initiative.

Companies can communicate new racial and ethnic diversity policies by creating a consistent message delivered and sent to all hierarchical levels through email, internal media networks (including social media) and placing posters in high traffic areas. Messaging should also be designed to accommodate the different languages and literacy levels of employees to ensure everyone understands the new policies.

Creating an Effective Response to Complaints

race vs ethnicity

Making it easy for workers to raise complaints helps demonstrate a fair and concerted effort to understand their concerns and issues surrounding diversity. If it can be shown that the complaints procedure is confidential, backed by prompt and effective action to investigate and settle them transparently and seriously, there will be not only greater acceptance of the policy but also greater commitment to practice the policy throughout the company. There are two processes to resolve complaints:

Formal Process

A formal complaint process is one that provides a written summary of the full investigation to the complainant and the alleged offender. Both parties should be given the opportunity to provide comments on the content of this summary before the full report is finalized. The final report should include who was interviewed, what questions were asked, the investigator’s conclusions, and what possible remedies, sanctions or other action may be appropriate.

Informal Processes

An informal process involves conciliation, mediation, counseling or discussions in order to resolve complaints. Peer mediators should be used instead of HR staff to facilitate dialogue between the parties but not making any recommendations, sanctions or hand down rulings.

In addition to the two processes of resolving complaints, companies should also look to the following persons, departments and organizations for help in resolving diversity-related issues:

Focal Point: Regardless of the size of a company, it is important to have one or more officials dedicated to overseeing that diversity policy is upheld. These “focal points” should be reliable, approachable and respected by staff and management, such as members of the executive board, department heads or employee relations staff. The size of the company will determine the number of focal points and how many workers are covered by each one.

Human Resources: If a company is large enough to support a human resources, transformation or diversity department; then consideration should be given to appointing the main focal point from within these departments.

Unions: If the employee base for a company is comprised of members of a union, they will need assurance that they have union support to raise issues regarding racial discrimination. Some workers, therefore, prefer to call their union representative when dealing with discrimination issues. Companies need to make sure that they have open and clear channels of communication with unions representing their employees and an established protocol when it comes to dealing with ethnic diversity policy.

Call Center: For large companies, it may be cost-effective to establish a call center for employees who are not yet ready to lodge a formal complaint with focal points, human resources or their union. These employees can anonymously contact the call center if they wish to voice concerns and seek further advice about an incident. Call centers can also be an effective means of monitoring incidents to ensure they are being tracked and followed up by managers who are responsible for the work or by the department where racial discrimination is alleged to have occurred.

Conclusion

To thrive in the current diverse times, companies need to lead the way in inclusion by creating workplaces that promote and celebrate racial and ethnic diversity. By creating diversity-friendly environments, companies gain an advantage in the competitive search for skilled talent.

Benefits of Workplace Diversity: The Value of LGBTQ+ Employees

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On June 26, 2015, the United State Supreme Court ruled in Obergefell v. Hodges that state-level bans on same-sex marriage were unconstitutional, ushering in marriage equality nationwide. However, despite the inroads made towards LGBTQ+ rights, many companies are still playing catch up when it comes to hiring, supporting and understanding the value of LGBTQ+ employees.

While there are legal protections in place to protect LGBTQ+ employers from discrimination in the workplace in many countries, in over half of the world, LGBTQ+ people are not protected from discrimination under workplace law. In a survey by the Center for American Progress (Cap) in 2022, half of LGBTQ+ and “sexual and gender diverse” people reported experiencing some form of workplace discrimination or harassment due to their sexual orientation or gender identity. This rocketed to 70% for transgender respondents. In the UK, 40% of LGBTQ+ workers and 55% of trans workers have experienced harassment, compared with 29% of heterosexual, cisgender employees.

These issues are not only troublesome for LGBTQ+ individuals in the workplace, but they are also bad for businesses. In this post, we outline the value of hiring and fostering a positive workplace environment for LGBTQ+ employees.

The Importance of Workplace Diversity

Today’s workforce has become increasingly diverse. Companies are more aware of the benefits of hiring talent from various backgrounds and the incredible contributions these employees bring to the workplace.

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A well-managed diverse workforce will both reduce costs and generate greater profit, with companies that employ a diverse workforce having 35 percent higher financial returns than national averages according to a McKinsey report on workplace diversity. This clearly illustrates the importance of diversity in the workplace not only for a company’s culture but also for its bottom line.

Diversity does not just mean including women and persons from diverse racial, ethnic and religious backgrounds; it also means that businesses can benefit from hiring LGBTQ+ employees and creating a supportive atmosphere for them to thrive.

Workplace Diversity: Benefits for LGBTQ+ Individuals

For starters, LGBTQ+ supportive policies will have an instant effect on individual employees, consequentially creating less workplace discrimination and improved comfort about being openly LGBTQ+ at work.

According to a survey conducted by the Williams Institute, The Business Impact of LGBT-Supportive Workplace Policies, LGBTQ+ employees who feel the need to hide their identity in the workplace often feel greater levels of stress and anxiety causing health issues and work-related complaints.

By creating an LGBTQ-friendly workplace, companies can reduce stress and improve the health of LGBTQ+ employees, increase job satisfaction and create more positive relationships with co-workers and supervisors.

Workplace Diversity: Benefits for Businesses

Following the individual benefits, organizational outcomes will also improve. Employers with LGBTQ-friendly workplaces will benefit from lower legal costs related to discrimination lawsuits as well as lower health insurance cost, through improved health of employees.

In fact, a study by Out Now Consulting, LGBT 2030 – LGBT Diversity Show Me the Business Case, states that the U.S. economy could save $9 billion annually if organizations were more effective at implementing diversity and inclusion policies for LGBTQ+ staff.

By recruiting LGBTQ+ candidates, companies will open up the talent pool to more potential hires, making finding the right talent for a company easier than if they ignored a large and talent-rich demographic.

How to Successfully Recruit LGBTQ+ Individuals

Learning how to recruit LGBTQ+ individuals is the first step in creating a more LGBTQ-friendly workplace. To recruit LGBTQ+ talent, businesses need to tailor their recruitment approach to meet the unique expectations LGBTQ+ individuals have when in a job search. Below are three ways to better recruit top LGBTQ+ talent.

Do Market Research

To better understand the unique concerns and needs of LGBTQ+ individuals, businesses need to identify positive factors that appeal to LGBTQ+ candidates along with the negative factors that repel them. A good way to identify positive and negative factors is by surveying current LGBTQ+ employees. If a company lacks a large enough sample size, they can acquire survey data from third parties or diversity consultants. Companies should take the data and insights gleaned from surveys and polls to craft LGBTQ-friendly messaging in job postings and recruiter communications, so the target audience feels comfortable considering employment with the organization.

Create an LGBTQ-Friendly Recruitment Process

To successfully recruit the best LGBTQ+ talent, companies need a comprehensive approach that includes tailored LGBTQ-friendly employer branding and diversity-oriented talent acquisition professionals experienced in assessing diverse candidates. Companies can also focus efforts on recruiting LGBTQ+ interns and offer them the opportunity to join the organization full-time after the internship is completed. By creating a more LGBTQ-friendly recruitment process, companies will ensure that LGBTQ+ individuals are more likely to accept offers of employment.

Employee Referrals

Employee referrals can be a strong LGBTQ+ recruitment source. Companies with employee referral programs should adopt a diversity-focused approach that includes LGBTQ+ candidates. Companies should publicize this focus to employees, letting them know that the company is actively searching for and encouraging the recruitment of LGBTQ+ candidates to fill positions.

Workplace Inclusion Programs for LGBTQ+ Individuals

Creating a diversity inclusion program is one way of helping LGBTQ+ employees and other diverse members of a company feel welcome and comfortable at work. A well-run inclusion program should support LGBTQ+ individuals in the workplace by offering workshops, training and support from both management and HR. The overall goal of inclusion is to make LGBTQ+ employees feel safe and like an integral part of a company.

Companies can also collaborate with outside LGBTQ+ organizations and charities and encourage both LGBTQ+ and non-LGBTQ+ employees to participate in events sponsored by these organizations. By aligning company values with those of LGBTQ+ organizations, companies can show their commitment not only to LGBTQ+ employees but also to supporting equality in the community as well.

Diversity and inclusion policies and programs can also save a significant amount of money spent on new talent recruitment and training by helping retain great talent. Furthermore, a more diverse and open workplace will increase creativity, which will lead to innovation and new ideas.

Conclusion

As the world becomes more accepting and understanding of the LGBTQ+ community, people expect businesses to do the same. Companies who work towards change to create a more acceptable and tolerant environment will gain the respect and loyalty of employees and the public-at-large. While there is still a lot of work ahead, there are a rising number of companies that understand that equality is good for business.

Only 5% of organizations say they’re succeeding with their DE&I initiatives. Download our free research report, Diversity & the Candidate Experience: Identifying Recruitment Pitfalls to Improve DE&I Outcomes, for insights into how to improve diversity recruitment outcomes.

Creating an Effective Diversity and Inclusion Program

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Diversity and inclusion in the workplace is becoming more important as organizations look to create workplaces more reflective of current demographic trends. According to a survey conducted by McKinsey and Company, businesses with a diverse workforce are 35 percent more likely to have financial returns above industry medians. Organizations can also use diversity and inclusion programs to better meet compliance obligations and generate higher morale amongst employees. To create an effective diversity and inclusion program, companies should consider the following.

Benefits of Diversity and Inclusion Programs

Diversity and inclusion programs provide companies with the opportunity to tap into the strengths of their workforce.

According to a survey conducted by Glassdoor, 67 percent of job seekers said a diverse workforce is important when considering job offers and 57 percent of employees think their companies should be more diverse. This means that companies that implement a diversity and inclusion program are more likely to attract top talent.

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Embracing diversity and incorporating it into overall corporate culture has many benefits, such as introducing broader perspectives informed by the personal experiences of employees from various backgrounds into the workplace. Companies employing a diverse workforce also have a competitive advantage when it comes to hiring talent and attracting customers by embracing individuals from all walks of life.

Diversity and Inclusion Program Stakeholders

In order for a diversity and inclusion program to succeed, HR professionals need to secure buy-in from senior management. Obtaining buy-in requires HR professionals to outline how a diversity and inclusion program will help the company reach strategic goals, laying out the business case for the program.

Once buy-in is secured, roles and responsibilities will need to be assigned to diversity program stakeholders, so all parties involved understand their roles and what’s expected of them. For example, managers assigned the responsibility of assisting in a diversity and inclusion program rollout should be tasked with generating a dialog between themselves and employees to ensure a commitment to diversity is not only upheld by management but with non-management staff as well.

diversity program

HR professionals may also want to create a diversity council or committee composed of employees from all levels. The committee or council’s duties should include defining program goals, promoting diversity and inclusion in the workplace and holding stakeholders accountable for outcomes. The employer should provide the committee with a clear mission, defined budget and expectations/performance goals.

In the absence of a diversity and inclusion committee, an employer can designate responsibility for the above tasks to management or consider hiring a diversity and inclusion specialist to run the program.

Diveristy Program Planning Begins With Conducting an Internal Census

The first step an organization should take in implementing a diversity and inclusion program is conducting an internal census to better understand the demographic make-up of the organization. To conduct a proper census, organizations should include information from all of the major federal and state protected groups including:

  • Race
  • Gender
  • Religious affiliation
  • Disability
  • Sexual orientation
  • Age
  • Nationality

Beyond government protected classes, other demographic information collected should include:

  • Education level
  • Years of experience
  • Family status
  • Languages spoken

To collect information needed for an internal census, companies should refer to EEO data collected for compliance obligations. However, data pertaining to non-compliance demographics will require conducting surveys where employees will need to self-identify voluntarily.

Self-reporting may prove difficult, as employees may not feel comfortable sharing personal information. To successfully conduct the survey, organizations must clearly communicate that the information requested is to help create a diversity and inclusion program. This will engender trust and assuage suspicions from employees who may feel uncomfortable with the process.

Once the data from the internal census is collected, it should be compared to the data available on the labor market. Organizations should look for gaps in diversity and then draft a plan to hire more members of underrepresented demographics.

What Should a Diversity Training Program Include?

Once an internal census has been conducted and all relevant data collected, areas of concern and underrepresented demographics can be identified. To begin addressing diversity issues, companies should review demographics such as age, sex and ethnicity to see if each group is properly represented throughout the business. Organizations can begin by asking the following questions:

  • Is management overrepresented by one demographic?
  • Do certain departments have trouble hiring certain demographics?
  • Are employees at one location less diverse than at others?

Organizations should also turn to employees to gain additional information on diversity and inclusion concerns and to learn employee attitudes on workplace culture.

Implement Diversity and Inclusion Initiatives

After areas of concern have been identified, companies should look to implement diversity and inclusion initiatives to address issues and to create a more comfortable working environment for all employees.

diversity and inclusion strategy examples

Examples of diversity and inclusion initiatives are changes in company policies and practices, staff training, targeted recruiting and employer-sponsored diversity and inclusion awareness events. The organization must develop an action plan to implement these initiatives by setting realistic goals and starting with the elements that have the greatest business value or that are readily achievable to build momentum for the initiative.

Organizations should approach managers and equip them with messages to inform, educate, engage or empower employees where appropriate. The communication plan should incorporate executive presentations, social media posts, internal newsletters, intranet and email communications. The organization should use metrics and success stories to connect the diversity and inclusion efforts to its own goals and strategic diversity plans.

Types of Diversity and Inclusion Programs

Diversity and inclusion programs need to reflect the demographics of a company to better serve employees. There are many types of diversity and inclusion programs that are designed to address the special considerations that arise in a diverse workplace. For example, if a company is looking to hire more women in management positions, creating an outreach program that seeks to scout top female talent and groom them for success in leadership positions can help achieve this goal. Companies can also implement targeted diversity initiatives for veterans, ethnic minorities, persons with disabilities and others.

Measure Diversity Programs Outcomes

To make sure that diversity and inclusion initiatives are having a positive impact, it is imperative for organizations to measure the results of the programs that have been implemented. Outcomes such as an increased representation of identified groups and improved employee satisfaction are two of the most important metrics to track. Other measurements, such as improved employee retention, public recognition and awards can also indicate how an organization is performing in its diversity and inclusion program.

Some efforts may seem intangible, but some measures can indicate the success levels of action items. If diversity training is implemented to increase retention, employee retention can be tracked over time, and employees can be surveyed to determine if the training was a factor, and how much so, in their continued employment.

The results of the initiatives should be communicated at all levels to demonstrate the return on investment and value-add to the organization. Communication tools can include infographics for senior leadership meetings, memos to staff and company videos for potential candidates.

The ability to manage a diversity and inclusion program will only become more important as workplace diversity continues to increase. Organizations that take to time to diversity plan and have created successful diversity programs will have a leg up when it comes to hiring talent and increasing company revenue.

Managing Diversity in the Workplace

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According to a recent demographic analysis conducted by the Pew Research Center, by 2055, the U.S. will no longer have a single racial or ethnic majority. This shift towards a more diverse population will have major impacts on the workforce and how organizations address diversity in the workplace.

In the coming years, organizations that understand how to manage diversity in the workplace effectively will hold a distinct advantage when it comes to recruiting and hiring talent. This post outlines how organizations can best approach and manage diversity in the workplace with actionable tips and advice.

What is Diversity in the Workplace?

For an organization looking to cultivate a more diverse and inclusive workplace, it is important to understand what constitutes workplace diversity.

Workplace diversity refers to the variety of differences between individuals in an organization. Diversity not only includes how individuals identify themselves but also how others perceive them. Diversity within a workplace encompasses race, gender, ethnic groups, age, religion, sexual orientation, citizenship status, military service and mental and physical conditions, as well as other distinct differences between people.

Research Report

Diversity & the Candidate Experience: Identifying Recruitment Pitfalls to Improve DE&I Outcomes

read the report

What are the Benefits of Diversity in the Workplace?

What are the Benefits of Diversity in the Workplace?

What are the benefits of diversity in the workplace? Well, there are many benefits to having a diverse workplace. Organizations that commit to recruiting a diverse workforce have a larger pool of applicants to choose from, which can lead to finding more qualified candidates and reducing the time it takes to fill vacant positions. Businesses that do not recruit from diverse talent pools run the risk of missing out on qualified candidates and may have a more difficult time filling key roles, which increases recruitment costs.

According to a survey conducted by Glassdoor, 67% of job seekers said a diverse workforce is important when considering job offers and 57% of employees think their companies should be more diverse. These numbers are telling. Not only can organizations fill positions with qualified candidates more quickly by recruiting from different talent pools, but a diverse workforce also benefits their employer brand which is crucial when it comes to getting the right talent.

Having a diverse workforce with multi-lingual employees and employees from varying ethnic backgrounds can also be helpful for organizations who want to expand or improve operations in international, national, regional and local markets.

More benefits to having diversity in the workplace:

  • Employees from diverse backgrounds imbue organizations with creative new ideas and perspectives informed by their cultural experiences
  • A diverse workplace will help organizations better understand target demographics and what moves them
  • A diverse workplace can better align an organization’s culture with the demographic make-up of America
  • Increased customer satisfaction by improving how employees interact with a more diverse clientele and public

Diverse Staffing: How to Manage Diversity in the Workplace

Managing Diversity in the workplace

Managing diversity in the workplace presents a set of unique challenges for HR professionals. These challenges can be mitigated if an organization makes a concerted effort to encourage a more heterogeneous environment through promoting a culture of tolerance, open communication and creating conflict management strategies to address issues that may arise.

For leadership to effectively manage diversity in the workplace, they need to understand their backgrounds and how their behavior and beliefs can affect their decision-making within a diverse environment.

Tips for Managing Workplace Diversity

diverse staffing

Prioritize communication

To manage a diverse workplace, organizations need to ensure that they effectively communicate with employees. Policies, procedures, safety rules and other important information should be designed to overcome language and cultural barriers by translating materials and using pictures and symbols whenever applicable.

Treat each employee as an individual

Avoid making assumptions about employees from different backgrounds. Instead, look at each employee as an individual and judge successes and failures on the individual’s merit rather than attributing actions to their background.

Encourage employees to work in diverse groups

Diverse work teams let employees get to know and value one another on an individual basis and can help break down preconceived notions and cultural misunderstandings.

Base standards on objective criteria

Set one standard of rules for all groups of employees regardless of background. Ensure that all employment actions, including discipline, follow this standardized criteria to make sure each employee is treated the same.

Be open-minded

Recognize, and encourage employees to recognize, that one’s own experience, background, and culture are not the only with value to the organization. Look for ways to incorporate a diverse range of perspectives and talents into efforts to achieve organizational goals.

Hiring

To build a diverse workplace, it is crucial to recruit and hire talent from a variety of backgrounds. This requires leadership and others who make hiring decisions to overcome bias in interviewing and assessing talent. If organizations can break through bias and hire the most qualified people, those with the right education, credentials, experience and skill sets, a diverse workplace should be the natural result.

Tips for hiring a diverse workforce:

  • Incorporate a diverse interview panel to ensure candidates are chosen solely based on suitability for the position.
  • Managers should be trained on what can and cannot be asked in an interview. For example, questions about an applicant’s personal life, such as which church they attend, their romantic life and political beliefs, are off-limits.
  • Get creative when recruiting. For example, if an organization would like to hire more women in the engineering department, they could reach out to professional groups that cater to women in engineering and ask to advertise open positions in their newsletter or member communications.

Diversity Management: Policies and Practices

diversity management

Organizations that embrace diversity also need to ensure that there are policies and practices in place to protect employees’ rights and stay compliant with government regulations.

It is essential for an organization to think about the impact that company policies and practices have on a diverse group of employees. Companies should create a way for employees to give feedback with surveys and suggestion boxes to gain a better understanding of how employees feel about diversity policies. Any feedback received, both positive and negative, is valuable. Companies need to be ready to adapt and change policies that may be interpreted as obstructions or not helpful for employees.

In addition to the written policies, it is also essential to ensure that the non-official “rules” of an organization are thoroughly explained to all employees to communicate company values and culture to all workers effectively.

Documentation of Policies and Procedures

Properly documenting diversity policies is an effective means of communicating an organization’s stances on diversity. Once concrete plans are ready to be implemented, documents that outline each policy should be included in the employee handbook. Diversity policies should be reviewed with every new hire, and when updates to policies are made, they should be shared with current employees as well.

Employee handbooks should cover diversity in the following sections:

  • Code of conduct should outline the company’s policy toward diversity
  • Non-discrimination policy lets employees know about diversity
  • Compensation and benefits policy
  • Employment conditions and termination

Zero-Tolerance Policy

Having a diverse workplace means that off-color jokes about ethnicity, gender, sexual orientation or religion need to be met with zero-tolerance enforcement. Slurs, name-calling and bullying employees for any reason has no place in today’s workplace. Policies should be put in place to handle misconduct and communicate to employees that this type of behavior will not be tolerated.

Organizations will also need to make sure employees feel safe reporting any instances of inappropriate behavior by co-workers by establishing a formal complaint policy,  so employees know how to report misconduct to the proper authority within an organization.

Sensitivity Training 

Employees need to be aware of how to coexist with a diverse range of people, as well as be cognizant of cultural sensitivity, to achieve harmony within a diverse workplace. Sensitivity training can help an organization manage diversity in the workplace by helping employees become more self-aware, which plays a vital role in helping employees understand their own cultural biases and prejudices.

Benefits of sensitivities training:

  • Helps employees examine and adjust their perspectives about people from different backgrounds
  • Employees can learn to better appreciate the views of others
  • Shows employees what actions are offensive and why they are perceived as such
  • Teaches employees how to calmly communicate that a co-worker has offended them and how to resolve the conflict properly
  • Explains to employees how to apologize to a co-worker if they have indeed offended them unknowingly
  • All employees should be included in sensitivity training; adding specific training for managers makes it even more impactful. Some companies also offer sensitivity training online.

Stay Abreast of Diversity Laws  

Managing diversity in the workplace means that businesses need to keep abreast of changing employer-related laws and trends, especially diversity-related changes. Organizations should regularly review internal policies, especially those around harassment and equal opportunity, and make sure they reflect the most current laws and regulations.

If an organization has an international or multi-state presence, it is necessary to track regional changes to laws and regulations as they vary from country to county and state to state.

Diversity law resources:

The Importance of Diversity in the Workplace

The Importance of Diversity in the Workplace

Encouraging diversity is the way forward for organizations. In a global talent market, businesses that can successfully manage diversity in the workplace will have a definite competitive advantage over others in terms of differentiation, innovation and employer branding.