Career

Putting People First in the Automotive Industry

7 March, 2019
article-img
"Mercer's study found that prosperous employees are twice as likely to work for a company with solid goals."

The employee turnover rate in the automotive industry is alarmingly high. In fact, according to research by the US National Automobile Dealers Association, some dealerships report turnover rates as high as 70–80%. This trend should concern everyone in the industry, as employee churn is often the symptom of a more serious and troubling array of issues. Happy people do not leave good jobs. Something is clearly wrong.

So, what is going on, and what can be done to fix it?

Focus on the employee experience
 

To start, companies must place employees at the heart of the organisation. Though this may seem easy to do in theory, the reality is much different. Most companies, judging by their decisions and actions, focus more on their finances than on their people.

Businesses are designed to make profits, so this regular focus on examining and analysing sales figures makes sense. But how many times a year do automotive businesses hold performance discussions? Maybe once or twice a year? Most organisations prioritize sales figures over performance evaluations because it is in the DNA of their operations—a practice that often comes at the expense of their most important asset: their people.

A commitment to change
 

To reduce turnover, the automotive industry must first acknowledge the need for change and then commit to a strategy that will produce change. There needs to be a paradigm shift from where the industry currently is, where it wants to go in the future.

To start, the automotive industry must ask the following questions:

        1. How should work be organised?

        2. How can value be created?

        3. How do we ensure employees thrive in an evolving environment?

Mercer's 2018 Global Talent Trends Study identifies the five top trends that can turn around the turnover problem in the automotive industry: 

         1. Change@speed

         2. Working with purpose

         3. Permanent flexibility

         4. Platform for talent

         5. Digital from the inside out

Change at speed
 

Companies must have the ability to change, and change at speed. The world is constantly evolving and progressing forward. If an automotive business is not proactively embracing change—at the speed that change is occurring—it will be left behind.

Change, however, creates uncertainty in employees. Change impacts critical matters in life such as job security, financial health and the human need for an inspiring workplace and rewarding career. This is where leadership becomes imperative—by bringing certainty to times of uncertainty. Businesses that are able to provide employees with consistent, decisive and certain leadership are poised to thrive in times of change. In fact, the ability to change at speed becomes a differentiating organizational competency.

Working with purpose
 

Employees remain loyal to companies they connect with in terms of values and culture. Typically, culture is driven by the leaders within an organisation, and it is the responsibility of those leaders to clearly establish the values and purpose of the company.

Mercer’s study found that thriving employees are twice as likely to work for a company with a strong sense of purpose. Embedding a higher sense of purpose into the Employee Value Proposition unlocks individual potential and spurs employees to be change agents. Automotive companies can differentiate their brands from the competition by cultivating a workforce of engaged and inspired employees.

Permanent flexibility
 

Two percent of HR leaders in the automotive sector say that flexible work schedules are visibly present in their organisations—even though 50% of employees want their company to offer more flexible work options. However, more than 40% of employees are concerned that flexible work schedules will impact their opportunities for a promotion.1

Leaders in the automotive industry must seek innovative ways to increase flexibility for employees. Flexibility isn’t simply about working wherever or whenever, but about rethinking what work is done, how it is done, and by whom. Getting the most out of employees means working with them to build desirable schedules that prioritize productivity and availability. 

Platform for talent
 

Automotive organisations must evolve into platforms that encourage in-house talent to develop their skills and thrive as professionals. By linking the creativity and ambition of employees to the evolving needs of an industry where skills sets and work demands are constantly advancing, automotive companies can become places not only of employment, but professional development.

Thirty-six percent of HR leaders provide analytics on the effectiveness of buy, build and borrow strategies.1 Industry professionals and employees want job security, workplace safety and the confidence that the future of the industry will never outgrow their skills and knowledge base. If companies serve as a platform for employees to nurture meaningful careers, that investment in human capital will help the company to thrive and increase its bottom line. 

Digital from the inside out
 

For the automotive industry, and the world, the digital economy is already here. Companies that talk of “going digital” lag far behind the digital transformation learning curve. AI and automation will continue to unlock human potential by revolutionizing businesses on every level—from how they operate and source materials to how they develop workforces and provide solutions to evolving customer needs. 

Fifty-six percent of employees say having state-of-the-art digital tools is key to achieving their professional objectives.1 Leaders in the automotive industry must leverage technology in ways that place employees at the heart of what they do. Put your people first, and profits will follow.

 

1People First: Mercer's 2018 Global Talent Trends Study
https://www.mercer.com/our-thinking/career/voice-on-talent/people-first-mercers-2018-global-talent-trends-study.html

MORE IN CAREER

Isabelle Hernu-Sfeir | 19 Aug 2019

In accordance with the ‘Professional Future’ law passed on September 5, 2018, French companies/subsidiaries with over 50 employees are now required to publish on their website their Gender Pay Equity Index on an annual basis. The deadline imposed by the law for the first publication of the index depends on the size of the French entities: - 1st March 2019 for entities with over 1,000 employees; - 1st September 2019 for entities with 250 to 1,000 employees; - 1st March 2020 for entities with 50 to 250 employees. The law sets out the five indicators that should be assessed to establish the index value. If the value of the index turns out to be less than 75 out of 100, the company then must implement actions to reach this threshold within a three-year timeframe. Should the threshold not be reached after three years or should the company not publish the index, then the company will incur a financial penalty of up to 1% of payroll. The French State intends to follow this very closely and is expected to review 7,000 companies in 2019. This is a wonderful opportunity to revisit your company action plan to reduce the gender pay gap. It is a call to take action to improve diversity and inclusion in organizations’ career, talent and performance management processes. The French pay equity index is a score out of 100 points defined as the total of 5 indicators: 1. The Gender Pay Gap, for identical positions and ages (up to 40 points) (0 points allocated if the gap is more than 20%); 2. The difference between the number of men and women given a pay increase during the year (up to 20 points); 3. The difference between the number of men and women promoted during the year (up to 15 points); 4. The percentage of employees given a pay rise on their return from maternity leave (up to 15 points). This catching-up pay rise has been mandatory since 2006. If only one employee did not get it over the year on return from maternity leave, then the company gets no points for this criteria; 5. The number of people from the under-represented gender (usually women) among the 10 highest earners (up to 10 points). Based on published indices to date, this last indicator is the one on which companies score the lowest. The average representation of the women in the 10 highest earners is two or three out of ten. The above indicators 2 and 3 are merged into one indicator over 35 points for French entities with less than 250 employees. Would you like to find out more?      Mercer France can help you ensure you are compliant with the gender pay equity law in France and can help you implement efficient actions to reduce your Gender Pay Gap and improve diversity and inclusion in your HR processes. Click here to get in touch.

Editorial Staff | 19 Aug 2019

Learn about the latest employee financial wellness trends emerging in 2019. Employees and employers alike can agree on at least one value: financial security. Finances can affect every function of a company and, for the individual, their personal life. When employees face a difficult financial situation, it can impede on job satisfaction, attitude and performance. Financially stressed workers miss more work and incur higher healthcare costs than their peers. These factors inevitably take a toll on a company’s employee engagement levelsand eventually the bottom line—especially if financial hardship impacts multiple employees. At the same time, HR professionals know that people don’t just work for the paycheck and that increasing salary alone won’t necessarily boost job satisfaction. Workers also strive for positive company culture, flexible scheduling, recognition, L&D opportunities, retirement plans, and other benefits. Naturally, apart from the salary figure, employees want to work for a company that values them and offers a bright future. As global unemployment reaches its lowest point in 40 years and we enter an employment economy, employers are facing an increasingly competitive hiring landscape where the benefits package is an increasingly important tool for attracting and retaining top talent. One benefit that continues to gain traction is a structured financial wellness program. With financial wellness solutions, employees receive financial education through courses on goal planning, basic financial literacy, budgeting, debt management and alleviating financial stress. The aim of a financial wellness program is to guide employees towards actions that help them reach goals for every stage of their financial lives, such as saving for a house, a car, college, or retirement. Mercer’s Healthy Wealthy and Work-wise report found employees (as well as employers) report higher satisfaction with their benefit plans when financial wellness is offered. Furthermore, companies report up to a 3-to-1 return on their financial wellness investment. Employees are worried about their finances   For many employees, money is the number one source of stress. Mercer’s Inside Employees Minds report asked 3,000 workers questions about the extent to which financial stress affected their work, finding that 62% of those who are financially challenged identify being able to pay monthly expenses as their biggest financial concern—even among people with an annual household income of $100,000 or more. Financial stress varies among demographics. Young adults are burdened with high levels of debt, especially with educated-related expenses for university. Families can struggle to meet financial goals due to cash flow issues or unexpected expenses. Even older adults often carry financial stress from caring for aging parents or children who have moved back home. Single parents have their own set of financial stressors. Therefore, when designing a financial wellness program, it is important to consider the entire scope of your workforce and the various financial lives they may lead. Financial wellness trends to have on your radar   For all the struggles brought on by financial hardship, there is hope that financial wellness programs can remedy the situation to the benefit of both employees and employers. A Gallup poll found financial wellness is closely linked with positive behavioral changes and stronger relationships, regardless of income levels. By implementing financial wellness programs, employers also enjoy the benefit of having a happier, healthier and more productive workforce. A joint study from Morgan Stanley and the Financial Health Network found that 75% of employees said a financial wellness program is an important benefit and 60% said they would be more inclined to stay at a company that offered financial wellness solutions. While employers are recognizing the importance of combating financial stress among employees, it appears they may need to improve these efforts to help employees. Cigna’s global well-being survey of employees in Asia Pacific, Europe, Africa, the Middle East, and North America found that 87% of employees are stressed at work—with personal finances being the top stressor—and 38% claim no stress management support is provided at all. While 46% of employees report they receive support from their employer, only 28% feel this support is adequate. It’s time to raise the bar on financial wellness benefits. Here are some emerging trends and strategies companies are considering so they can maximize employee financial wellness solutions and stand out in the marketplace. 1.  Users are demanding technology-driven solutions for personalization. For financial planning solutions, users want a modern, simple interface that offers a comprehensive view of their financial situation and outlines a guided, personalized path to reaching their financial goals and staying accountable. According to a recent Forrester study, customers of wealth management firms are demanding more functionality and digitalization with financial planning solutions. This demand is making features like account aggregation, personalized content delivery and accountability triggers standard elements for a successful financial wellness program. “Help me help myself” tools are being personalized for the user with finance snapshots, budget planners and loan repayment calculators. Notably, a study from Morgan Stanley and the Financial Health Network found that 42% of employees said they feel inadequately informed about the benefits and programs their employer offers. Of the employees who do not use all of the benefits, many said they would be more apt to use them if they were explained more clearly and made easier to access. According to Thompsons Online Benefits Watch, 70% of employees want mobile access to their benefits packages but only 51% of employers are offering it. These gaps mean there is an opportunity for companies to elevate their financial wellness programs and make them more usable and appealing to employees. Employers should consider informing employees about benefits through live webinars, social media or SMS alerts. The program should also be fully accessible by mobile and offer online tools that personalize the user experience. 2.  Data analytics & digital technology are personalizing financial wellness programs. Data analytics is shaping financial wellness programs to provide the level of personalization employees have come to expect in the digital age. These data analytics can help differentiate between types and categories of employees, allowing programs to be personalized for live events and stages. Just as online stores use aggregated consumer preference and demographic data to make recommendations and suggestions, financial wellness platforms are beginning to employ data analytics and algorithms to determine whether an employee is making progress or might need some extra assistance to stay on track. Some programs employ data analytics to frame an employees’ savings and spending habits and compare them to their peers. These programs can also analyze behaviors and provide scores to help employees see if they are improving on their savings or debt managements. Some programs can also offer employers the ability to create targeted marketing campaigns that focus on personal milestones for employees, such as buying a new car or getting married. These milestones can be used to inspire specific savings behaviors and spending habits, which might mean recommending homeowners insurance or opening an education savings account. Data analytics can also be used to build each employee a profile, which can then be supported by customized self-service tools to help employees get answers to specific questions and better plan for possible life changes. For example, with their profile input and all their financial information accounted for, employees can determine just how much additional life insurance they might need to purchase if they have a child. Without data analytics, the manual process of calculating this figure would be tedious, time consuming and require a potentially costly meeting with a financial advisor. On the employer side, data can be collected to determine how well the financial wellness program is performing. This data can help drive the program to offer new components and functions in ways that better meet the needs of employees. 3.  Employees want actual help not hype. As financial wellness programs continue to shape the benefits ecosystem, more employees are expecting that their employers will care about their financial security beyond just signing their paycheck. According to Thompsons Online Benefits Watch, 79% of employees trust their employers to deliver sound advice on planning, saving and investing. Employers are expected to deliver real, actionable ways to help employees improve upon their financial situation. A study from Merrill Lynch found a sharp disconnect in what employees want to have and what employers are offering in financial wellness programs. For example, employees generally want to work on meeting end goals, and they’d prefer to focus on one goal at a time. But employers are taking a heavy approach, emphasizing a comprehensive approach to controlling overall finances. While the comprehensive strategy of employers is certainly well-intentioned, it has a tendency to overwhelm users. Financial planning can be intimidating, especially for those in stressful situations. To counter this, companies in the wellness space are designing programs from the employee perspective to offer a holistic approach. Holistic programs, which integrate financial health with mental and physical health, can help employees open their financial “junk drawer” and make connections between the various elements of financial health and life—from saving for a wedding, buying a home, managing loan debt, etc. Well-designed programs will demystify the topic of financial wellness rather than scare employees away with an onslaught of complex information and suggestions for services and financial products they don’t understand. 4.  Building the business case for financial wellness programs: engagement, productivity & success. Whether management wants to admit it or not, employees are bringing financial stress to work and it’s impacting the company’s bottom line. In a survey from the Society for Human Resource Management, 83% of respondents reported that personal financial challenges had at least some effect on their overall performance at work in the past year. This disengagement means big losses for businesses. Workforce stress is potentially costing companies more than $5 million a year.  Because of the business losses incurred, supporting employees’ financial wellness is becoming a major priority for organizations and the trend is catching on. Research from GuideSpark found that financial wellness is the third most important type of wellness program to employees, at 82%, behind stress management (86%) and physical fitness (85%). The results of employee wellness programs are promising. According to Employee Benefit News, participants in financial wellness programs demonstrate progress in their finances. The percentage of participants feeling “highly stressed” about personal finances fell from 52.4% to 19.2% after the completion of a financial wellness program. Similarly, 56% of participants said they believe they’re in a better position to manage their monthly cash flow after the completion of a financial wellness program. 5.  An increased focus on student loan repayment & affordable education. In the HR industry, employee development has become an impetus for employee engagement. But the truth is that for many employees, their past continues to weigh them down. Higher education costs are contributing to unprecedented student loan debt challenges in both developed and developing countries. As university tuition costs continue to rise, student loan debts have reached concerning record levels for graduates. The World Bank reports that developing countries face greater higher-education challenges than developed countries. Enormous debt and high tuition costs are setting back many employees before they have the chance to get ahead, which is widening the talent gap and thinning talent pools for companies. Amid rising tuition and mounting debt, HR professionals owe it to companies and employees to offer solutions to the challenges they both face. This can be done through loan repayment education that helps employees strategize to pay off loans as quickly as possible. Taking it a step further, some HR departments may be able to convince companies to offer loan repayment and tuition reimbursement programs. When employees are worried about finances, they may have to switch jobs and find an employer willing to give them the tools and monetary compensation they need. Offering loan repayment advice or support offers employees a solution to a personal problem they face. They will likely become more invested in the company, which can translate to boosted morale and productivity across the company’s workforce. Tuition reimbursement and the encouragement of further education can also go a long way in helping companies thrive in the digital transformation and foster a culture of lifelong learning. Amid digitalization, the workforce is shifting from fixed job titles and detailed job descriptions to ever-revolving roles. At the current pace of technology growth, chances are that many of today’s prized technical skills will be obsolete within a few short years. As the skill gap grows, companies won’t have the luxury of easily recruiting new hires. They will instead need to focus on upskilling and recruiting lifelong learners who have a passion for integrating new technology into business operations. Offering tuition reimbursement or education planning advice will help attract and develop a talented workforce for the digital age. People around the world are experiencing record amounts of stress, according to Gallup’s Annual Global Emotions Report, and finances are certainly among the greatest stressors. As the stress escalates, more companies will find their employees’ personal bottom lines eroding the company’s bottom line. Without intervention, employees’ financial stress will rise, and companies will suffer drops in productivity, increased absenteeism, and low engagement levels. When implemented properly, financial wellness solutions can be a rising tide that lifts all boats—benefiting both employees and the company. The HR department is in a unique position to make this connection, sending the message that employees and companies are in this together.

Editorial Staff | 12 Aug 2019

Learn about the latest diversity & inclusion trends emerging in 2019. Promoting diversity and inclusion (D&I) in the workplace is a critical element of talent management as it cultivates employee engagement and enhances the employee experience. In an inclusive culture, team members feel valued, respected and accepted as individuals—and are therefore encouraged to fully participate and contribute as their authentic, unique selves. A diverse staff provides companies with different perspectives and new skills that infuse company culture with innovation and creativity, which are key to thriving in digital transformation. Cultural evolution, emerging markets, advancing technology, generational differences, widespread immigration and a widening skills gap are contributing to an increasingly complex corporate environment that challenges old processes and necessitates new ways of building a workforce. These forces—while presenting challenges for HR leaders in recruiting, developing and retaining top talent—also open doors. Innovation comes from all corners of the globe. Strong D&I improves a company’s performance because it opens new talent pools and expands points of view and experiences. Businesses that do not recruit from diverse talent pools are at risk of missing out on qualified candidates and incurring higher recruitment costs. Why Diversity & Inclusions Matters   D&I progress not only helps organizations fill positions with qualified candidates more efficiently—it also raises the employer brand, which is becoming increasingly important for attracting the right talent. According to research from Glassdoor, 67% of active job seekers said a diverse workforce is important when considering job offers and 57% of employees think their companies should be more diverse. Having a diverse, multilingual workforce from varying ethnic backgrounds can also be helpful for companies that want to expand or improve operations in new markets locally, regionally, nationally and internationally. As millions of new internet users sign online each year for the first time, companies have an unprecedented opportunity to communicate and captivate new customers and draw in talent. D&I can help accomplish this, as diverse companies are 70% more likely to capture new markets.  A large-scale shift toward diversity and inclusion workplace policies can make waves around the world. For example, the World Economic Forum has projected that correcting gender segregation in employment and developing women’s entrepreneurship could increase productivity globally by as much as 16%. Trending Now: Diversity & Inclusion   The compelling business case for D&I means that more companies will adopt stronger policies and become more adept at integrating a myriad of individuals into one cohesive workforce. D&I will therefore become the norm rather than the exception. Keeping a strong pulse on the D&I trends emerging in the workplace can help a company stay a beat ahead of the competition and prepare for the future of work. 1.  Deploying artificial intelligence (AI) technology to remove unconscious bias. Unconscious bias has become a hot topic of the D&I conversation in HR, as companies make strides toward becoming more diverse and inclusive. Companies cannot afford to ignore implicit bias for it has serious consequences on the employee experience, whether in hiring/recruitment, employee feedback, performance reviews, or development. The Center for Talent Innovation found that employees at large companies who perceive bias are: ·  Three times as likely to plan to leave their employers within the year. ·  More than twice as likely to have withheld ideas or solutions in the past six months at work. ·  Five times as likely to speak about their company in a negative manner on social media. Even if a company commits itself to fully eliminating unconscious bias, it still proves to be difficult because these predispositions operate automatically and act without us even knowing it. All humans, whether we notice it or not, engage in unconscious bias to some degree. It’s often involuntary and rooted in the brain. Furthermore, there are far too many biases to manually remove them from our decision-making processes. Because unconscious bias is an ingrained human trait, some experts suggest that the best way to overcome it is via non-human solutions—such as artificial intelligence (AI). A notable feature of AI in HR technology is its potential to mitigate the effects unconscious bias companies face in the hiring and development process. With AI, candidates are sourced, screened and filtered through large quantities of data. The programs combine data points and use algorithms to identify who will likely be the best candidate. These data points are looked at objectively, completely removing the biases, assumptions and oversight that humans are naturally hindered by. AI for human resource systems can be also programmed to automatically ignore a candidate’s demographic information, such as gender, race and age. It can take a step beyond protecting the basic demographic information and disregard other details that may indicate racial or socioeconomic status, such as school names and zip codes. When it comes to assessment and development, L&D programs can be strengthened with machine learning to identify high-potential employees with the skills and qualifications the company needs. Strikingly, it has been found that the employees ranked highest by the machine learning software aren’t usually those on the promotion track. Instead these high potential employees may exhibit qualities such as introversion that find them being overlooked when undergoing traditional methods of assessment. 2.  Using data to assess D&I climate, identify focus areas & quantify the success of initiatives. Among the challenges for implementing D&I initiatives are knowing where to begin, how to focus efforts and how to measure success. When seeking a buy-in from leadership for a diversity program, it is important that the HR department sets out a strategy for quantifying its ROI. To satisfy this, many companies are now turning to data-driven ways of assessing the D&I climate, focusing efforts and determining if an initiative was successful. Before implementing any D&I initiative, the company’s starting condition—its current D&I environment—should be diagnosed. D&I is a vast realm so narrowing down focus areas can help a company in implementing or improving practices. The diagnosis can help identify focus areas and drive diversity initiatives forward in a tailored way that will fill the company’s distinct gaps. To gather useful D&I data, some companies conduct regular employee engagement surveys, asking questions that focus on company culture and inclusion. From the onset, these surveys, especially when done consistently, can serve as a barometer of the company’s D&I culture since it is based on first-hand feedback directly from employees. It is also key to evaluate employee data, such as turnover rates, promotion and salary. Some sample metrics that can be used to assess D&I practices include for each employee: the velocity of mobility (which is the length of time it takes to hire, promote and move up within the company), pathways for employees, percentage of diverse employees with mentors, results of mentorship in terms of career progression and employee engagement. This data can help uncover systemic issues like a gender pay gap. Companies can also look across employee reviews online, such as on Glassdoor, or conduct a social media audit to detect if there is any evidence of bias.  After all key areas for improvement have been identified, there must be organizational consensus on how to measure changes. Some companies rely on retention and attrition rates of different groups as an indicator for success. When implementing D&I training, it is helpful to perform employee surveys both prior and after to gauging the program’s success. Storing data from evaluations and all D&I initiatives can help measure changes along the way. The end goal of a more inclusive, diverse team is of course central to D&I but there should also be methods of measuring success along the journey. Each company is different and there will never be a one-size-fits-all approach to D&I but consistent data collection can help companies implement, modify and quantify their success. 3.  Increased leadership accountability & support for D&I programs. Corporate leadership is recognizing that a solid D&I strategy is not merely a “nice-to-have” add-on carried out solely by the HR department but is instead a business imperative in today’s competitive landscape. Among the best practices for D&I implementation are executive buy-in and a strategic emphasis on D&I as a valued competitive advantage. Some companies are taking it a step further and modifying the structure of an organization’s leadership to enrich its approach to D&I. In a top down approach, some companies are making headway on D&I by creating an executive role in the form of a chief diversity and inclusion officer. The D&I executive can outline goals, establish targets, identify key improvement areas and then lead the organization through the steps of meeting goals. While this person interfaces with all areas of the organization in various capacities, the D&I’s department takes ownership and spearheads D&I initiatives. An employee-led grassroots approach forms a decentralized company-wide D&I council that draws on feedback directly from employees. While it still requires executive buy-in, the council’s reach is distributed through the entire workforce. The council appoints representatives from various departments or segments of a company and meets regularly to improve the company’s D&I culture as it pertains to recruitment, engagement and development. Some companies might opt for a hybrid approach to D&I leadership, which would involve appointing a D&I-specific executive and a D&I council. Instead of being solely led by employees, the D&I council is supported by the HR department and guided by representation from both the D&I executive and employees. Initiatives are cooperatively strategized and outlined by the D&I executive, HR and employees. The three groups agree upon how initiatives will be spearheaded and what role each group will play in their execution. 4.  Interview standardization will continue & reduce bias. Inconsistent recruitment practices will yield inconsistent (or, even worse, illegal) hiring results and may also open floodgates for unconscious bias in hiring processes. For quality and compliance, HR should have policies in place that ensure the hiring process is standardized from the time they list the job all the way through to when the hired employee steps in the door (or signs online if they’re remote) for their first day of work. Establishing and implementing hiring best practices provides a company’s recruiters with control and guidance for hiring. This type of standardization enhances transparency, allows for a fair comparison of candidates and reduces the risk of violating applicable labor laws. It also helps promote a company’s E&D profile. Striving for behavioral interviewing methods is an ideal strategy because a person’s behavior is an indication of future performance, especially when it comes to soft skills. According to research from LinkedIn, 57% of HR professionals struggle to assess candidates’ soft skills while 80% report that soft skills are increasingly important to company success. This makes sense because soft skills are one area where automation and AI cannot fully compete with humans. Many companies want the initial introduction with a candidate to be as blind as possible. This might mean starting out with a phone interview, which will eliminate visually-based unconscious bias upfront. Some companies are taking it a step further to accomplish the “blind interview,” using voice modulation apps for technical interviews so the interviewer won’t know the candidate’s gender or be able to pick up on any accent that might distinguish background attributes of the candidate. Behavioral interviewing seeks to uncover how an individual will react in critical job situations and can potentially provide more insight about a candidate’s qualification for the job than what is written on their resume or what you hear when you ask a candidate about their professional background. These questions could start with, “What would you do in…” or, “Tell me about a time when you…” Using an example of a customer service representative interview, the interviewer might present prospective candidates with a hypothetical customer situation and have them explain their approach to addressing it.   Asking the typical behavioral interviewing questions reduces the risk of legal or ethical pitfalls in the interview questions. Formally planning and asking all candidates the same questions saves time and prevents duplicate questions from being asked by multiple interviewers (unless intentionally done, so as to confirm consistency in the candidate’s response). This brings up another key point of having multiple people interview each candidate when possible. Engaging multiple interviewers can help overcome unconscious bias in interviews and offer a wider perspective for determining a candidate’s standing. However, even behavioral interview questions can be answered untruthfully by candidates. Pre-employment assessments can validate or negate the data derived from an interview. There are many options available to companies for hiring assessment tools that quantify and use objective, impartial data to evaluate candidates. Results from pre-employment assessments can provide an accurate snapshot of a candidate's strengths and weaknesses. The results can even be input to create hiring benchmarks that candidates can be compared to. 5.  Diversity & inclusion will be embraced across products & services for customers. D&I has gone mainstream. In the age of customer-centricity, there is mounting pressure on companies across industries to launch inclusive products and solutions that meet the needs of all customers. The 2019 World Economic Forum Annual Meeting identified ‘empathy for the end-user’ as a key competitive advantage for succeeding in the digital age. In the age of digital transformation, companies will have to become more accessible to wider customer bases—and invoke messages and values that resonate with audiences across cultural and geographic boundaries.  According to LinkedIn, nearly half of employers said that they emphasize the importance of diversity to better represent their customers. This number is likely to grow as customers, who are increasingly accustomed to personalized products and services, will expect D&I to be embedded in the customer experience. Meanwhile, 70% of millennials are more likely to choose one brand over another brand if that brand demonstrates D&I in terms of its promotions and offers. As an industry that has been spearheading corporate D&I efforts for years, HR has deep expertise and can play a prominent role in leading the customer experience transformation. As companies look to amplify their market-relevance, HR departments will be charged with strategically staffing companies in ways that enrich the D&I profile and foster greater connections with customers. The moral case for building fairer and more inclusive workplaces is clear: people matter and organizations have an ethical and legal obligation to ensure their people management strategies do not disadvantage any groups. But equally important, D&I has evolved from being an HR-led initiative to being one that is reverberated to all corners of a company as a key business strategy. As global unemployment reaches its lowest point in 40 years and we enter an employment economy, the hiring landscape is only becoming more competitive. In this landscape, D&I is fast becoming one of the most powerful tools a business has. By keeping pace, HR can help companies leverage D&I to reimagine people management and elevate brand-loyalty among employees, customers and investors. 

More from Voice on Growth

Editorial Staff | 19 Aug 2019

Learn about the latest employee financial wellness trends emerging in 2019. Employees and employers alike can agree on at least one value: financial security. Finances can affect every function of a company and, for the individual, their personal life. When employees face a difficult financial situation, it can impede on job satisfaction, attitude and performance. Financially stressed workers miss more work and incur higher healthcare costs than their peers. These factors inevitably take a toll on a company’s employee engagement levelsand eventually the bottom line—especially if financial hardship impacts multiple employees. At the same time, HR professionals know that people don’t just work for the paycheck and that increasing salary alone won’t necessarily boost job satisfaction. Workers also strive for positive company culture, flexible scheduling, recognition, L&D opportunities, retirement plans, and other benefits. Naturally, apart from the salary figure, employees want to work for a company that values them and offers a bright future. As global unemployment reaches its lowest point in 40 years and we enter an employment economy, employers are facing an increasingly competitive hiring landscape where the benefits package is an increasingly important tool for attracting and retaining top talent. One benefit that continues to gain traction is a structured financial wellness program. With financial wellness solutions, employees receive financial education through courses on goal planning, basic financial literacy, budgeting, debt management and alleviating financial stress. The aim of a financial wellness program is to guide employees towards actions that help them reach goals for every stage of their financial lives, such as saving for a house, a car, college, or retirement. Mercer’s Healthy Wealthy and Work-wise report found employees (as well as employers) report higher satisfaction with their benefit plans when financial wellness is offered. Furthermore, companies report up to a 3-to-1 return on their financial wellness investment. Employees are worried about their finances   For many employees, money is the number one source of stress. Mercer’s Inside Employees Minds report asked 3,000 workers questions about the extent to which financial stress affected their work, finding that 62% of those who are financially challenged identify being able to pay monthly expenses as their biggest financial concern—even among people with an annual household income of $100,000 or more. Financial stress varies among demographics. Young adults are burdened with high levels of debt, especially with educated-related expenses for university. Families can struggle to meet financial goals due to cash flow issues or unexpected expenses. Even older adults often carry financial stress from caring for aging parents or children who have moved back home. Single parents have their own set of financial stressors. Therefore, when designing a financial wellness program, it is important to consider the entire scope of your workforce and the various financial lives they may lead. Financial wellness trends to have on your radar   For all the struggles brought on by financial hardship, there is hope that financial wellness programs can remedy the situation to the benefit of both employees and employers. A Gallup poll found financial wellness is closely linked with positive behavioral changes and stronger relationships, regardless of income levels. By implementing financial wellness programs, employers also enjoy the benefit of having a happier, healthier and more productive workforce. A joint study from Morgan Stanley and the Financial Health Network found that 75% of employees said a financial wellness program is an important benefit and 60% said they would be more inclined to stay at a company that offered financial wellness solutions. While employers are recognizing the importance of combating financial stress among employees, it appears they may need to improve these efforts to help employees. Cigna’s global well-being survey of employees in Asia Pacific, Europe, Africa, the Middle East, and North America found that 87% of employees are stressed at work—with personal finances being the top stressor—and 38% claim no stress management support is provided at all. While 46% of employees report they receive support from their employer, only 28% feel this support is adequate. It’s time to raise the bar on financial wellness benefits. Here are some emerging trends and strategies companies are considering so they can maximize employee financial wellness solutions and stand out in the marketplace. 1.  Users are demanding technology-driven solutions for personalization. For financial planning solutions, users want a modern, simple interface that offers a comprehensive view of their financial situation and outlines a guided, personalized path to reaching their financial goals and staying accountable. According to a recent Forrester study, customers of wealth management firms are demanding more functionality and digitalization with financial planning solutions. This demand is making features like account aggregation, personalized content delivery and accountability triggers standard elements for a successful financial wellness program. “Help me help myself” tools are being personalized for the user with finance snapshots, budget planners and loan repayment calculators. Notably, a study from Morgan Stanley and the Financial Health Network found that 42% of employees said they feel inadequately informed about the benefits and programs their employer offers. Of the employees who do not use all of the benefits, many said they would be more apt to use them if they were explained more clearly and made easier to access. According to Thompsons Online Benefits Watch, 70% of employees want mobile access to their benefits packages but only 51% of employers are offering it. These gaps mean there is an opportunity for companies to elevate their financial wellness programs and make them more usable and appealing to employees. Employers should consider informing employees about benefits through live webinars, social media or SMS alerts. The program should also be fully accessible by mobile and offer online tools that personalize the user experience. 2.  Data analytics & digital technology are personalizing financial wellness programs. Data analytics is shaping financial wellness programs to provide the level of personalization employees have come to expect in the digital age. These data analytics can help differentiate between types and categories of employees, allowing programs to be personalized for live events and stages. Just as online stores use aggregated consumer preference and demographic data to make recommendations and suggestions, financial wellness platforms are beginning to employ data analytics and algorithms to determine whether an employee is making progress or might need some extra assistance to stay on track. Some programs employ data analytics to frame an employees’ savings and spending habits and compare them to their peers. These programs can also analyze behaviors and provide scores to help employees see if they are improving on their savings or debt managements. Some programs can also offer employers the ability to create targeted marketing campaigns that focus on personal milestones for employees, such as buying a new car or getting married. These milestones can be used to inspire specific savings behaviors and spending habits, which might mean recommending homeowners insurance or opening an education savings account. Data analytics can also be used to build each employee a profile, which can then be supported by customized self-service tools to help employees get answers to specific questions and better plan for possible life changes. For example, with their profile input and all their financial information accounted for, employees can determine just how much additional life insurance they might need to purchase if they have a child. Without data analytics, the manual process of calculating this figure would be tedious, time consuming and require a potentially costly meeting with a financial advisor. On the employer side, data can be collected to determine how well the financial wellness program is performing. This data can help drive the program to offer new components and functions in ways that better meet the needs of employees. 3.  Employees want actual help not hype. As financial wellness programs continue to shape the benefits ecosystem, more employees are expecting that their employers will care about their financial security beyond just signing their paycheck. According to Thompsons Online Benefits Watch, 79% of employees trust their employers to deliver sound advice on planning, saving and investing. Employers are expected to deliver real, actionable ways to help employees improve upon their financial situation. A study from Merrill Lynch found a sharp disconnect in what employees want to have and what employers are offering in financial wellness programs. For example, employees generally want to work on meeting end goals, and they’d prefer to focus on one goal at a time. But employers are taking a heavy approach, emphasizing a comprehensive approach to controlling overall finances. While the comprehensive strategy of employers is certainly well-intentioned, it has a tendency to overwhelm users. Financial planning can be intimidating, especially for those in stressful situations. To counter this, companies in the wellness space are designing programs from the employee perspective to offer a holistic approach. Holistic programs, which integrate financial health with mental and physical health, can help employees open their financial “junk drawer” and make connections between the various elements of financial health and life—from saving for a wedding, buying a home, managing loan debt, etc. Well-designed programs will demystify the topic of financial wellness rather than scare employees away with an onslaught of complex information and suggestions for services and financial products they don’t understand. 4.  Building the business case for financial wellness programs: engagement, productivity & success. Whether management wants to admit it or not, employees are bringing financial stress to work and it’s impacting the company’s bottom line. In a survey from the Society for Human Resource Management, 83% of respondents reported that personal financial challenges had at least some effect on their overall performance at work in the past year. This disengagement means big losses for businesses. Workforce stress is potentially costing companies more than $5 million a year.  Because of the business losses incurred, supporting employees’ financial wellness is becoming a major priority for organizations and the trend is catching on. Research from GuideSpark found that financial wellness is the third most important type of wellness program to employees, at 82%, behind stress management (86%) and physical fitness (85%). The results of employee wellness programs are promising. According to Employee Benefit News, participants in financial wellness programs demonstrate progress in their finances. The percentage of participants feeling “highly stressed” about personal finances fell from 52.4% to 19.2% after the completion of a financial wellness program. Similarly, 56% of participants said they believe they’re in a better position to manage their monthly cash flow after the completion of a financial wellness program. 5.  An increased focus on student loan repayment & affordable education. In the HR industry, employee development has become an impetus for employee engagement. But the truth is that for many employees, their past continues to weigh them down. Higher education costs are contributing to unprecedented student loan debt challenges in both developed and developing countries. As university tuition costs continue to rise, student loan debts have reached concerning record levels for graduates. The World Bank reports that developing countries face greater higher-education challenges than developed countries. Enormous debt and high tuition costs are setting back many employees before they have the chance to get ahead, which is widening the talent gap and thinning talent pools for companies. Amid rising tuition and mounting debt, HR professionals owe it to companies and employees to offer solutions to the challenges they both face. This can be done through loan repayment education that helps employees strategize to pay off loans as quickly as possible. Taking it a step further, some HR departments may be able to convince companies to offer loan repayment and tuition reimbursement programs. When employees are worried about finances, they may have to switch jobs and find an employer willing to give them the tools and monetary compensation they need. Offering loan repayment advice or support offers employees a solution to a personal problem they face. They will likely become more invested in the company, which can translate to boosted morale and productivity across the company’s workforce. Tuition reimbursement and the encouragement of further education can also go a long way in helping companies thrive in the digital transformation and foster a culture of lifelong learning. Amid digitalization, the workforce is shifting from fixed job titles and detailed job descriptions to ever-revolving roles. At the current pace of technology growth, chances are that many of today’s prized technical skills will be obsolete within a few short years. As the skill gap grows, companies won’t have the luxury of easily recruiting new hires. They will instead need to focus on upskilling and recruiting lifelong learners who have a passion for integrating new technology into business operations. Offering tuition reimbursement or education planning advice will help attract and develop a talented workforce for the digital age. People around the world are experiencing record amounts of stress, according to Gallup’s Annual Global Emotions Report, and finances are certainly among the greatest stressors. As the stress escalates, more companies will find their employees’ personal bottom lines eroding the company’s bottom line. Without intervention, employees’ financial stress will rise, and companies will suffer drops in productivity, increased absenteeism, and low engagement levels. When implemented properly, financial wellness solutions can be a rising tide that lifts all boats—benefiting both employees and the company. The HR department is in a unique position to make this connection, sending the message that employees and companies are in this together.

Isabelle Hernu-Sfeir | 19 Aug 2019

In accordance with the ‘Professional Future’ law passed on September 5, 2018, French companies/subsidiaries with over 50 employees are now required to publish on their website their Gender Pay Equity Index on an annual basis. The deadline imposed by the law for the first publication of the index depends on the size of the French entities: - 1st March 2019 for entities with over 1,000 employees; - 1st September 2019 for entities with 250 to 1,000 employees; - 1st March 2020 for entities with 50 to 250 employees. The law sets out the five indicators that should be assessed to establish the index value. If the value of the index turns out to be less than 75 out of 100, the company then must implement actions to reach this threshold within a three-year timeframe. Should the threshold not be reached after three years or should the company not publish the index, then the company will incur a financial penalty of up to 1% of payroll. The French State intends to follow this very closely and is expected to review 7,000 companies in 2019. This is a wonderful opportunity to revisit your company action plan to reduce the gender pay gap. It is a call to take action to improve diversity and inclusion in organizations’ career, talent and performance management processes. The French pay equity index is a score out of 100 points defined as the total of 5 indicators: 1. The Gender Pay Gap, for identical positions and ages (up to 40 points) (0 points allocated if the gap is more than 20%); 2. The difference between the number of men and women given a pay increase during the year (up to 20 points); 3. The difference between the number of men and women promoted during the year (up to 15 points); 4. The percentage of employees given a pay rise on their return from maternity leave (up to 15 points). This catching-up pay rise has been mandatory since 2006. If only one employee did not get it over the year on return from maternity leave, then the company gets no points for this criteria; 5. The number of people from the under-represented gender (usually women) among the 10 highest earners (up to 10 points). Based on published indices to date, this last indicator is the one on which companies score the lowest. The average representation of the women in the 10 highest earners is two or three out of ten. The above indicators 2 and 3 are merged into one indicator over 35 points for French entities with less than 250 employees. Would you like to find out more?      Mercer France can help you ensure you are compliant with the gender pay equity law in France and can help you implement efficient actions to reduce your Gender Pay Gap and improve diversity and inclusion in your HR processes. Click here to get in touch.

Editorial Staff | 17 Aug 2019

There is a huge opportunity for blockchain to establish itself in the healthcare sector. Learn more about specific use cases that can help innovate how HR departments deliver healthcare & wellness benefits. Blockchain technology is one of the most disruptive technologies on the market today, with multiple industries adopting it to optimize processes and innovate the way companies function. It has proven to be a game changer in the business arena and the global blockchain technology market is estimated to amass US$20 billion in revenue by 2024. Meanwhile, SAP reports that 71% of business leaders who are actively using blockchain believe it plays a key role in advancing technology and reestablishing industry standards.  While blockchain has already been widely integrated in processes for supply chains, banking and cryptocurrency (e.g. Bitcoin), the healthcare industry has also been identified as one of the top industries likely to be disrupted. Blockchain technology could offer solutions to some of  healthcare’s greatest challenges, from securely managing patients’ medical data to tracking large databases of drugs through the supply chain or extracting healthcare data from clinical trials. As the technology advances and becomes more readily available, more healthcare organizations across the industry will be adopting blockchain solutions to redesign the global healthcare ecosystem.  HR serves a critical function for the healthcare industry and is an intermediate between employees and one of the most valued aspects of life: their health. According to Bitfortune, 55% of healthcare applications will adopt blockchain platforms for commercial deployment by 2025. Meanwhile, adoption seems to be ramping up with multiple governments around the world announcing plans to invest in blockchain and encourage its implementation. For example, Singapore’s government has announced financial incentives to enterprises for adopting the technology. Amid an evolving industry, it is imperative HR professionals stay current with how blockchain’s ledger technology is disrupting the healthcare industry. They should especially keep a pulse on the implications blockchain holds for delivering the employee experience with improved healthcare and other benefits. Use cases: how blockchain can help HR transform in delivering healthcare & benefits   While the use of blockchain technology is still more commonly associated with payment functions, its disruption to HR will be profound and pervasive in coming years with many possible use cases across the functions of an HR department. To prepare for the coming blockchain revolution, HR departments should focus on identifying problem areas and inefficient processes that could be addressed by the transparency, accuracy and speed that blockchain provides. The processes most primed for blockchain disruption are those that are burdensome and expensive with substantial data collection and third-party verification. For this reason, healthcare and benefits could be the ideal match for an HR department looking to adopt blockchain technology. 1.  Enhancing fraud prevention & cybersecurity for sensitive data in HR. HR teams conduct some of the highest-volume financial transactions for an organization and handle sensitive employee data related to healthcare (as well as, banking, disciplinary records, performance records, expense reimbursement, and more). Unfortunately, all of the data an HR department maintains is at risk of being exploited and, as more companies face data breaches, it is becoming increasingly important that proper measures are in place to maintain security and prevent fraud. A company’s cyber risks largely emerge from an underlying lack of transparency and accuracy in its data systems. Because of its capacity for promoting transparency and accuracy, blockchain technology is being lauded as a solution for combating cybersecurity crime and protecting data. While blockchain’s popularity grows among large companies and companies that hold critical, sensitive data (for example, Lockheed Martin is trusting it to secure data), it is also being used by nonprofits to collect donations securely. It is important to consider that blockchain technology can mitigate both internal fraud and external hacks of sensitive employee records. Access to the blockchain is limited and controlled—even those who have access are not able to modify the records. This limits both internal fraud and external hacks of sensitive employee records. In the digital age, data is a major asset for a company. Blockchain essentially functions to decentralize data and places it across a large network of computer storage spaces to reduce the risk that a single hacking event could usurp all the data a company has. By using blockchain, HR departments can introduce a solid measure of security against cyber threats to protect their employees’ health information. 2.  Improving health insurance, health records & patient experience with ‘smart contracts.’ Much of blockchain’s power comes in the application of ‘smart contracts’, which many organizations are using to make payments to employees, contractors and vendors. In fact, it is reported that 45% of early adopters of blockchain are already implementing smart contracts within their organizations. A smart contract codes a set of parameters using statements in ‘if this, then that” (IFTTT) language. These contracts are designed so that, once executed, the entire process is dictated by these codes. It is also made irreversible unless of course terms of a contract need to be updated. While smart contracts have many applications for HR functions in terms of payroll, there are some very important considerations HR departments should be aware of in terms of healthcare. Smart contracts have the potential to be used for insurance, including how patients buy insurance. Through a smart contract, all details of an insuree’s policy could be stored in a patient profile. This profile would then be stored on the blockchain platform in a safe and secure ledger that is less prone to hacks than the databases currently used.  Smart contracts could also impact the insurance claim process by eliminating the need for lengthy forms and time lags. If an insuree undergoes a medical procedure covered by the policy, a smart contract would be automatically triggered to transfer money from the insurance company’s account straight to the hospital or medical provider. The automation cuts out delays and hassles, allowing for correct payment of the medical service. There are also numerous implications for electronic medical records, information and medical data sharing. Storing patient’s electronic health records (EHR) on secured ledgers, for example, would allow a patient to move easily from one hospital to another without having to fill out numerous forms. The blockchain network would safely store their records, allowing their new physician to access them without delay. While hospitals and healthcare providers currently rely on a number of databases filled with patient data, these can be too centralized and restrictive for sharing potentially life-saving insights around the globe. If health records were to be kept in a smart contract stored on the blockchain, the data analytics would be available to hospitals, providers and research institutions everywhere. With widespread adoption of this healthcare blockchain technology, an individual could essentially walk into any hospital in the world for treatment and, with their private key, their health data would be accessible instantly. 3.  Offering better access to healthcare & other benefits. Blockchain’s ‘smart contracts’ could also change how employees gain access to healthcare and benefits. Once the employer outlines the terms of employment prior to hiring, HR is charged with upholding the conditions in the contract. These terms include provisions that employees value in their employee experience, such as healthcare insurance, wellness programs or other benefits. The current model of manually delivering benefits runs risks of errors and could get in the way of properly servicing employees. With blockchain, HR could seamlessly deliver upon these benefits by implementing smart contracts that automate the process. For example, if a company outlines that an employee’s benefits packages begins after a specific waiting period, the smart contract would be written to automate these benefits at the right time and in the right fashion. Not only does blockchain have the potential to improve security and automation of benefits, it is possible for benefits to be more personalized to each individual employee. In today’s digital world, consumers are accustomed to enjoying personalized experiences and this trend of hyper-personalization is reaching the workplace. Through blockchain’s smart contracts, which could be integrated with artificial intelligence (AI) and IoT technology, companies would be able to empower employees with benefits packages and wellness programs that are tailored specifically for them and their evolving needs. These personalized packages could become a critical tool for enhancing the employee experience. Challenges HR faces in implementing blockchain to deliver benefits   Blockchain is a quickly evolving technology with new applications and trends regularly emerging. Though it is becoming more widely adopted across a variety of industries, it is inevitable that first-time users will run into issues and challenges in implementing it. For HR departments, it is imperative to consider these challenges as they explore which processes might be impacted by blockchain. 1.  Data standardization & integration with legacy systems. With blockchain being a new technology, protocols and standards for its application are not yet established. When the internet began to commercialize, it initially struggled without proper protocols. But over time, controls were implemented to allow for browser compatibility, cross-platform multimedia and better interconnectivity between servers. As more sectors adopt blockchain—especially healthcare which handles sensitive and personal data—ensuring that blockchains offer an industry-wide benefit will require widespread collaboration and standardization. For example, it will have to be determined when private, as opposed to public, if blockchains make sense. Otherwise, this could impact the security and functionality of blockchain technology. All industries will have to get over a major hurdle when it comes to integrating blockchain solutions with legacy systems—or replacing legacy systems altogether. But the hurdle is especially high for HR and healthcare, which are often bound to specific legal regulations and already have very specific HR or healthcare systems in place that incorporate these parameters. Synching these systems or replacing them with blockchain technology could prove to be difficult. 2.  Adoption & incentives for participation. Despite enthusiasm and a strong record of success, blockchain adoption has proven to be difficult for companies. Greenwich Associates surveyed companies that have implemented blockchain and 57% reported its integration has been harder than expected. In terms of scalability, 42% of respondents reported it as a major issue, 39% said it is a minor issue and 19% said it is no issue at all. Much of the challenges are culture or people-related, rather than technical. For example, most people resist change and, if they do tolerate it, they generally prefer it to happen gradually and incrementally. The oppositions to change could be even more pronounced for those in HR, especially with employees across an organization resisting how healthcare and employee benefits—which are very personal—is administered. Some of the proposed uses for blockchain would result in systemic changes that rapidly transform the entire system. Even if employees and management are open to change, HR still has work cut out in hiring, education and training. Blockchain will require companies to hire more research and analytical staff as well as offer training on how to properly implement it. But this is where HR thrives. By helping to cultivate a culture of digital transformation, HR departments can also guide companies on their blockchain journey. 3.  High costs of developing & operating blockchain technology. The adoption of blockchain technology is likely to offer long-term benefits in regard to productivity, efficiency, timeliness, and reduced costs. However, one of the greatest obstacles to widespread adoption of blockchain is the high cost to initially install it. The software required to implement blockchain within an organization must typically be developed specifically for each individual company. This makes it expensive to obtain, whether hiring in-house or buying from a developer. Moreover, even after the blockchain software is developed, the company would also have to purchase specialized hardware to be used with it.  In addition to the software development costs, companies must also find qualified personnel to operate the technology.  The blockchain space is new and growing so rapidly that the demand for professionals in the field outweighs the supply. This makes hiring qualified blockchain experts—either in-house or as consultants—quite costly. Currently, it appears that the world’s largest corporations are the only ones benefiting from blockchain because they have the money, resources and data to spare. Furthermore, the technology itself seems too new and not yet fully understood for SMEs to adopt in droves. However, this is all likely to change over time. The commercialization of the internet was gradual and in the early days it required companies who wanted to go online to put up a substantial amount of money upfront and invest in customized solutions. Eventually, as blockchain becomes more mainstream, it will also become much less expensive, more streamlined and more accessible to companies. Blockchain is already demonstrating its potential to disrupt business as we know it. Because the HR department guards and manages large amounts of sensitive data that are critical to employees’ lives and how a company operates, it is likely that blockchain technology will be infused directly into the HR function to add transparency and trust to various processes. Healthcare and benefits administration is one of the processes that blockchain technology is likely to directly transform. Though there are challenges in cost, scalability and perception to overcome, HR departments could potentially use blockchain technology to provide employees with greater access to more personalized benefits packages. Furthermore, as time is freed up by automated processing, HR departments will be able to turn their efforts to more value-adding activities such as building employee engagement and experience.

back_to_top