06Jun

“The COVID-19 pandemic has fundamentally changed employment,” declares this year’s Labor Day Report from Littler Mendelson, one of the largest employment law firms in the world.

“The challenges employees and employers continue to face this Labor Day are enormous and unprecedented. Even when the coronavirus is finally behind us, many of these challenges will remain,” says the report, released on Labor Day.

In five, to-the-point parts the report lays out the current employment situation, explores the changes the pandemic has forced upon the world of work, details the legal complexities and examines federal and state efforts to cope with the crisis.

Business leaders and human resource professionals will find the legal section especially useful. There, the report authors discuss the COVID-inspired lawsuits with a focus on employment issues. The report examines wage and hour cases, layoffs, ADA discrimination, safety and health and similar matters.

In its provocative fifth section, the report attempts to predict what lies ahead, admittedly, says the report, “a fool’s errand.” Nevertheless, it highlights “certain factors and variables” the team of writers suggest will influence the US recovery and put a stamp on the durability of the employment changes COVID-19 has compelled.

Consequently, most of the predictions are really directional signposts, things to watch, rather than outright forecasts. Indeed over half the 10 entries discuss the various surveys and metrics to monitor in order to better judge the direction of the economy and the mood of consumers.

For example, to judge the health of the nation’s small businesses, which the report says is a “bellwether for the economy as a whole,” watch the Census Bureau’s Small Business Pulse Survey.

“The survey asks 20 key questions worth monitoring, including whether small businesses permanently or temporarily closed a location, are operating at the same capacity relative to one year ago, are receiving federal financial assistance, or have changed their operations in other ways.

“How these responses trend over the coming weeks could be informative,” advises the report.

Among the 10 entries in the section are three hints about the future of work:

  • The gig economy – “independent contractor work” the report calls it – will expand, helping to replace jobs that have permanently disappeared. “Because the economic recovery will be long and protracted, individuals will need to look to other avenues find work,” says the report.
  • Online shopping has expanded so much that it may have accelerated the closure of physical stores. In addition, “crowd avoidance may influence the number of people who plan to attend concerts and theaters, take public transportation, or travel when the pandemic subsides.”
  • “A safe and effective COVID-19 vaccine will go a long way to revitalizing jobs that require close personal contact, and boosting consumer confidence.”

The report concludes saying, “The challenges of the past six months have tested the resolve and resiliency of the U.S. population and economy. How businesses fare in the next six months may indicate how long these current struggles will last.”

Photo by Ben White on Unsplash

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Jun 6, 2023

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Jun 6, 2023

The ‘Radical Reinvention’ of Human Resources

Now is the time for a “radical reinvention of human resources,” declares a report from IBM’s Institute for Business Value.

Businesses are adapting to the rapidly and dramatically changing world, says the report, prefacing the findings and recommendations from a survey of more than 1,500 HR executives from a variety of industries.

How they engage with employees must also change. “Enterprises now must become inherently humanized, build engagement with remote employees, foster trust in uncertain times and cultivate a resilient, diverse workforce capable of facing whatever the future may hold.”

This, says the report, is HR 3.0.

HR thought leader Josh Bersin, who collaborated with IBM on the report, explains what that means in his introduction:

“Traditional HR 1.0 departments focus on compliance, administration, and highly efficient service delivery.

“HR 2.0 teams move toward integrated centers of excellence, and focus on training and empowering business partners to deliver solutions at the point of need.

“HR 3.0, which only 10 percent of companies have achieved, turns HR into an agile consulting organization, one that not only delivers efficient services, but also practices design thinking to push innovative solutions, cognitive tools, and transparency into the organization.”

HR 3.0 - blog.jpg

The report found substantial agreement among the surveyed executives on the key ingredients of HR 3.0, but uncertainty among them about how to evolve their operation. Providing that guidance is the essence of the report.

After studying multiple HR practices, Bersin and IBM identified 10 “Action Areas” drawn from what the most successful companies are doing. “Our analysis has identified ten priority Action Areas critical to the HR 3.0 model. The Action Areas span the breadth of the human resources function, in some cases wholly reinventing traditional people practices.”

These 10 are:

  1. Measure employee performance continuously and transparently
  2. Invest in the new role of leadership
  3. Build and apply capabilities in agile and design thinking
  4. Pay for performance — and skills — in a fair and transparent way
  5. Continuously build skills in the flow of work
  6. Design intentional experiences for employees
  7. Modernize your HR technology portfolio
  8. Apply data-driven insights
  9. Reorient and reskill your HR business partners
  10. Source talent strategically

Though few companies are on the path to 3.0, those that don’t begin to evolve will be left behind.

“Even as leading companies transform their HR model, it’s clear HR 3.0 is not a destination, just a way station. The world is changing too quickly to allow even a hint of complacency,” the report concludes.

“As we continue to face unprecedented opportunities to build better businesses and a much better world, an HR 4.0 will evolve as a model to help us keep doing just that.”

Image by David Mark

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