People Trends 2018: Thriving
in Unprecedented Volatility
Joanne Dahm
President, Global
General Industry, Talent,
Rewards & Performance
Aon
Nearly every day, we hear news about cyber breaches, banking controversies and sexual-harassment violations—
incidents that are unlikely to abate in 2018. We believe CHROs
and HR professionals have a stark choice when it comes to their
human-capital strategy: They can continue to wait and see, as
some did in 2017, or they can start to mitigate their people risk.
Below are a few of the top people trends we are predicting for
2018. To read our report in full, visit: aon.io/peopletrends2018.
Tightening of Borders
Recent changes to immigration policies around the world are
already impacting the flow of talent from country
to country and we anticipate this trend will
continue in 2018. These types of policy changes
are making it more challenging to hire for critical
roles, which could result in a skills deficit for
companies in the upcoming year.
Calculating Leadership Risk
We are starting to see organizations examine
the risk that is inherent in leadership behaviors,
similar to how they weigh a competitive or
environmental risk. Leadership can also model
behaviors that put the organization or its
customers at risk, which has the potential to ruin
a company. Thus, we expect to see an increased
focus on specific leadership behaviors and the
possible risks that leaders pose to the external
reputation of the organization.
Creating a Culture of Inclusion
Sexual-harassment cases are all over the news,
and organizations are taking strides to amend the
situation before it becomes a problem. In fact, some forward-thinking organizations are turning inward to determine if there
are issues inherent within their own cultures. Using research
on toxic work environments, many organizations are beginning
to take a hard look at contributing conditions. Feedback
mechanisms that encourage employees to speak up without
fear of retaliation are a step in the right direction, but there is
much work to be done to stamp out damaging behavior in the
workplace.
Alternative Rewards
As the quest to find top talent becomes increasingly
competitive, organizations are looking at alternative methods
to attract the best and brightest. Emerging trends include
paying back an employee’s student loans and mainstreaming
benefits such as compassionate-care benefits, autism benefits
(e.g. diagnostic services and behavioral therapies) and employee
recognition (e.g. length-of-service awards or on-the-spot rewards
for exemplary performance).
We see rewards being segmented according to the
importance of the role itself. Positions that are mission-critical
to organizational growth and require in-demand skillsets are
incentivized with additional benefits. Organizations are also
starting to customize rewards for growth-oriented roles, based
on demographic factors such as age and marital status, and then
using these profiles to build benefit packages. For example, a
20-something software programmer living in a city would likely
not need vehicle insurance, but a leader in his or her late 50s
would likely need both vehicle and homeowner insurance.
Fluidity in Hiring
While contingent workers, especially in the technology
sector, are now commonplace in most organizations, we
anticipate that other sectors will adopt this hiring practice
with increasing frequency. However, if organizations intend
to continue using contingent workers, talent acquisition and
onboarding must keep pace with an increased rate of hiring and
turnover. Often, talent acquisition remains a slow and painful
process—one that does not always result in hires who are well-matched to their positions. In 2018, we expect to see the talent-acquisition process speed up, using more efficient automated
systems that provide a first pass at screening employees.
HR Embracing Technology
Marketing and finance have welcomed new technologies
into their everyday lives, yet HR seems to be stuck at the
entryway to digitalization. While HR departments have
bought and integrated new systems to improve their ability to
run analytics and collect metrics, few have the actual people
capacity or capability to get this work done. HR must ensure
that it has strong digital leadership to meet increasing demands
from other parts of the business.
In conclusion, CHROs and HR professionals have an
opportunity to play a role and help their organizations explore
ways to cope with these new complexities. The right people
strategy can not only mitigate the uncertainties and pervasive
risk businesses are facing, but also inspire a culture that discovers
and capitalizes on opportunity.
Aon is here to guide you along your journey. Our HR experts are
ready to assist you through any roadblocks you experience, and our
data-backed solutions will help you move forward with confidence.
