HOW TO BECOME AN HR HERO Your ultimate guide to driving employee satisfaction and business growth in the UAE by transforming your HR operations 2021 TABLE OF CONTENTS HR’S CHANGING LANDSCAPE 2 THE POST-PANDEMIC WORLD 3 HR TEAMS... ASSEMBLE 5 Keep employees engaged 5 Build the right culture 7 Upskill your managers 8 Prioritize employee wellbeing 10 Elevate employee benefits 11 HR HERO STATUS: ACHIEVED 13 1 THE WORK LIFE PLATFORM HR’S CHANGING LANDSCAPE The world of HR has evolved significantly in recent times. This has largely been driven by the increasing influence of millennials. In 2019, the average age of the UAE employee fell below 35. Many studies predicted that millennials would account for around a third of the global workforce by 2020, potentially rising to 75% by 2030 according to the U.S. Bureau of Labor Statistics. The UAE is already ahead of this trend, with millennials making up 77% of the regional workforce. Narrowing the focus even further, we see that the 31-40 age group is the biggest cohort, comprising 47% of the UAE workforce. That’s compared to just 18% for the 41-50 age group. This generation of employees has introduced different workplace behaviors, expectations and priorities. As a result, the last few years have been characterized by widespread digital transformation initiatives. The accelerated adoption of automation, cloud-based platforms and mobile capabilities have become key characteristics of the digital workplace. This is illustrated by the fact that 59% of millennials expect employers to offer mobile-optimized technology, while 93% cite modern and up-to-date technology as one of the most important aspects of a workplace. However, the pandemic has caused priorities to shift once again. Covid-19 has intensified and exacerbated many of the challenges facing modern businesses, particularly in terms of the employee experience amidst today’s changing work environment. 2 THE WORK LIFE PLATFORM THE POST-PANDEMIC WORLD The nature of how and where people work has dramatically altered as a result of Covid-19. But perhaps more importantly, the idea of an effective employer has also changed. These changes have forced HR teams to reassess how they engage and support their employees in order to meet the needs and demands of the post-pandemic workforce. As stated by Ayman Kattan, Bayzat’s Chief People Officer: We are in a moment of reckoning for organizations as well as their leaders. Companies that haven't historically invested in their people or appreciated the true value of building culture and engagement are facing challenges, compared to organizations that put people first. There has been a serious shift in the Lorem ipsum employee mindset due to the emergence of remote working. Those who once tolerated mediocre workplace cultures and work practices are now getting access to companies that cater to what employees genuinely need in today's workplaces, and have built a people-first, authentic employer value prop where employee wellbeing, engagement, autonomy, purposeful work, accountability and flexibility come before all else. 3 THE WORK LIFE PLATFORM Nearly half (48%) of HR leaders are thinking more deeply about flexible work arrangements as a direct result of the pandemic. At a strategic level, HR teams are having to focus more on higher-value initiatives and activities in order to attract and retain employees – which has become a greater challenge in a world of reduced locality restrictions. HR teams are having to focus more on culture, health, and emotional wellbeing. They’re having to revitalize the experiential element of work life. And they’re having to do all this while competing for talent on a global scale. With a massive 95% of workers considering changing jobs, the pressure is on to consistently deliver the best possible workplace experience. When it comes to adapting to a post-pandemic world, being able to spend less time on manual tasks – such as insurance or payroll admin – and take more of a people-focused approach is the order of the day. By removing the admin burden through digital tools and platforms, HR teams will be empowered to focus on the most important areas (i.e. the workforce) and scale that work in a way that drives tangible results. This is what HR leaders aspire to, but it’s a challenge that isn’t easy to solve. I enjoy helping people and creating events to support their well-being. All the admin work … I hate it. Sabahatt People Director, Eat App Ultimately, there are now greater opportunities than ever for HR teams to create value as businesses continue to recover and thrive in the “new normal”. But how can they get there? How can they effectively respond to the cultural changes being driven by today’s workforce? And what must HR leaders do to realize their potential and become the HR heroes of tomorrow? In this handbook, we’ve pulled together real business data from the Bayzat platform – coupled with actionable tips and advice – to provide HR departments with the insights they need to help take their business to the next level and reach heroic HR status. 4 THE WORK LIFE PLATFORM HR TEAMS... ASSEMBLE In order to create a culture that drives employee engagement and long-term business growth, HR departments must recognize the key employee and workplace trends that are shaping the modern work environment. But this is just one part of the puzzle. The most important step is understanding how to adapt to them. HR leaders must take steps to transform their teams and organizations in line with employee needs and preferences. Here’s how HR departments can materially change the way they address the employee experience in order to truly delight their people. KEEP EMPLOYEES ENGAGED Internal HR and payroll processes play a key role in the overall employee experience. Work expenses are the most obvious example. In the UAE, employees submit 12-23 reimbursement requests per year - businesses with 21-50 employees being at the top end of the scale - most commonly related to fuel (35%) and travel (25%). However, inefficient processes can have a significant impact on employee satisfaction and engagement. Two recent SAP Concur surveys found that 24% of business travellers would rather have a cavity filled than complete an expense report, while 43% of employees have forfeited expenses either because they didn’t think it was worth filing or because their employer never paid up. 5 THE WORK LIFE PLATFORM This highlights the need for businesses to modernize and centralize. Easy self-service is a key issue that can hinder businesses by damaging the employee experience - along with access to information. More than half (52%) of employees struggle to get updates on issues or requests, while 41% say it’s hard to find information about company policies. Businesses must make it easier for employees to access HR, payroll and insurance information and complete key processes such as expense reimbursements. HR teams can look to mobile apps and cloud-based platforms to plug the gap. This is particularly important for millennials, who are used to the flexibility and autonomy that digital tools provide. For example, providing a mobile app to request leave, access insurance policies, track reimbursements and manage payslips can completely transform employees’ work life experience. On the one hand, mobile access increases productivity and enhances the digital workplace experience. On the other hand, cloud platforms centralize key processes and make employees’ lives significantly easier by providing everything they need in one place. But it’s not all about tech; several other factors including employee benefits, development opportunities, manager proficiency and social engagement also come into play. For example, by introducing social groups that allow employees to connect with each other over shared interests - from online gaming to gardening, cooking or exercising - employees will become more engaged and, as a result, happier at work. How has digital transformation impacted your employee experience? Digital transformation is critical to the employee experience from the moment a new employee joins the organization. The initial employment period is a fragile time in the relationship between the employer and employee. Leveraging digital technology is crucial in developing employee feedback loops, helping them understand the benefits available to them in addition to streamlining HR and payroll processes such as making it easier for employees to submit expenses and request time off. Digital transformation, in my opinion, is successful if it completes the full employee cycle. Chene Esterhuizen Human Capital Manager RAW Coffee Company BAYZAT TOP TIP Make it easier for employees to manage tedious work administration such as insurance policies, reimbursements and payslips through online apps and cloud-based platforms. 6 THE WORK LIFE PLATFORM BUILD THE RIGHT CULTURE Arguably the biggest challenge facing companies in today’s ultra-competitive business landscape is being able to retain their top talent. Our data shows that most employees don’t hang around for long. Less than one quarter (23%) stay for more than five years, with the most popular tenure length being 2-3 years (38%). 53% of employees in the UAE stay with their company for three years or less. This presents some issues - most notably that hiring new employees is expensive. According to research by Oxford Economics and Unum, the average cost of turnover per employee is just over £30,000. It’s estimated that replacing an employee costs 33% of an employee’s annual salary, while other studies put this figure at twice the employee’s annual salary, especially for high-earner or executive level employees. Key expenses include: • Recruitment - advertising, interviewing and screening costs • Onboarding - training and management time, both initially and as part of long-term development programmes • Lost productivity - it takes time for new employees to reach the productivity levels of exiting employees How have you worked to reduce employee churn? Attrition is one of the biggest factors that we considered in creating a Sweetheart Kitchen Culture. We wanted to keep our staff members fully engaged by showing them appreciation and by getting their input in some of the important changes that we have implemented. Ensuring that all team members have a voice and are bought into the vision of SWHK is fundamental in ensuring we build and sustain a strong, inclusive company culture. Andrei Neil Chavez HR Superintendent for Kitchen Operations Sweetheart Kitchen 7 THE WORK LIFE PLATFORM There are also less tangible costs such as the cultural impact. Other employees who see high turnover tend to disengage and lose productivity, which can also have an impact on a company’s bottom line. The key to countering employee attrition is implementing policies and processes that help build a clear, consistent and inclusive workplace culture. Ultimately, businesses must make their people want to stay. Employees simply won’t hang around if they feel like they can get a better experience elsewhere. This can be as simple as establishing values that are clear, easily understood by everyone, and actionable in daily work. Other impactful initiatives include: • Encouraging employees to take time off and work in a more flexible manner as part of a healthy work-life balance • Supporting employee development through comprehensive training programs • Facilitating workplace relationships by holding after-work events that focus on employee communication and collaboration Trust building should also be a priority, as creating deeper, more meaningful bonds at work will be a key characteristic of the post-pandemic workplace. Virtual team building initiatives can help develop trust between employees and leaders, fostering a positive culture that puts people at the heart of the work life experience. Facing the costs associated with employee churn, the pressure is on businesses and HR leaders to keep their employees happy. By building a culture that makes employees want to stay, HR teams will be rewarded with a loyal and engaged workforce. BAYZAT TOP TIP Foster an environment of open communication, personal relationships and empowerment as part of a culture that prioritises inclusivity and support. UPSKILL YOUR MANAGERS In today’s working environment, the role of the manager is more important than ever. Relationships with management is a top factor in employees’ job satisfaction, meaning they have a vital role to play in maintaining company culture, supporting employees and driving a positive workplace experience. For example, managers who take the time to fully onboard new employees help create a positive work culture from day one, which increases the likelihood of long-term employment. However, the other side of the coin is that a bad manager can be a major detriment. Poor management commonly leads to low employee engagement, decreased productivity, and reduced job satisfaction. It can also drive employees to leave their company. A 2019 study found that 57% of employees quit jobs because of their boss, while a report from August 2021 revealed that 63% of those with a bad manager were thinking of leaving in the next 12 months. 8 THE WORK LIFE PLATFORM What initiatives do you have in place to help managers develop? We conduct quarterly Human Capital meetings where we discuss the strengths and weaknesses of each employee and identify areas of improvement based on future career growth opportunities. Furthermore, we commit to continued guidance and coaching in addition to role specific training. For the senior leadership team we invest in external consultants to ensure high impact training and development plans are put in place. Chene Esterhuizen Human Capital Manager RAW Coffee Company HR teams must therefore give managers the support to improve. This could start by introducing regular employee surveys to gain visibility into manager performance and help ensure that managers are driving the right values. But the biggest impact will come from training programs designed for both new and existing managers. Managers must be taught how to set goals, motivate their team members and effectively communicate with modern employees. The communication aspect is key post-pandemic. Managers must be taught how to adapt their meeting styles for remote work and make themselves more accessible to remote employees - such as through regular Q&As or one-to-one sessions that drive more meaningful and personalized communication. Teaching leaders how to design roles and structures around outcomes - as well as providing employees with varied, flexible job roles - is also key. Mundane jobs that are measured by input have been compromised as a result of Covid-19. Without the traditional workplace environment, it’s vital that managers are equipped with the skills to re-design roles and provide employees with the task variety and significance that they are now looking for. BAYZAT TOP TIP Develop an internal leadership program to improve management capabilities. This should cover areas such as empathy, emotional wellbeing, skills coaching, empowerment and motivation - all focused on motivating today’s millennial and Gen Z workforce. 9 THE WORK LIFE PLATFORM PRIORITIZE EMPLOYEE WELLBEING Something that has become acutely clear during the pandemic is the issue of employee burnout. The lines between work and personal life have become increasingly blurred, leading to an ‘always-on’ culture that can impact employees’ mental health. According to the results of a recent Covid-19 Global Impact study among UAE employees: • 95% claim to have an always-on working environment • 71% say they are working longer hours • 68% suffer from work-related stress Clearly, burnout is an issue HR teams must take into account. HR teams must be aware of the impact it can have on both the employees and the business, such as fatigue, decreasing morale and increased churn. Most importantly, HR leaders must take steps to prevent burnout by prioritizing employees’ mental health and wellbeing. Employee wellbeing is predicted to have the greatest impact on the workplace of the future (74%), followed closely by employee mental health, stress and burnout (70%). Initiatives such as regular team activities, increasing accessibility to mental wellness services and placing extra value on vacation time can all help to reduce stress and make employees feel supported. What is the most effective strategy to address the issue of burnout and the steps that can be taken to reduce it? Historically, employee burnout was not an issue we worried about too much but Covid-19 really brought the importance of employee wellbeing and burnout to the forefront for the organization. As a company we value the importance of transparency, acceptance and employee appreciation and encourage open dialogue among employees, their direct reports and within the HR department. This includes verbalizing whether an employee feels burnout or needs to take a break, which we readily support. Furthermore we allocate budgets to ensure we can host mini events, company dinners and team building activities to keep employees connected to one another. Lastly, we regularly host internal seminars and other educational sessions focused on helping employees manage work stress and burnout. Jesica Austria HR Manager Hamdan AlShamsi Lawyers & Legal Consultants 10 THE WORK LIFE PLATFORM For example, vacation time offers one way for employees to switch off from work, yet our data shows that they are largely shying away from significant breaks. More than half (54%) of leave requests in the UAE are tied to three days or less, while just 28% of requests are for more than seven days. Introducing policies such as ‘duvet days’ or extra days off for volunteering can help ensure employees get the breaks they need. When it comes to mental wellbeing, businesses can use modern HR platforms to provide access to services such as confidential one-on-one sessions with certified therapists. Having quick and easy access to such a service significantly increases employees’ willingness to get the help they need. Finally, physical wellbeing shouldn’t be overlooked. Internal support groups can be a great way to ensure that employees get the assistance and encouragement they need from other employees. Members of these groups can set joint goals, discuss any issues and compete on challenges that improve physical fitness. These groups can be supplemented by mobile apps, providing a platform for activities and competitions that encourage team members to stay active. BAYZAT TOP TIP Build an infrastructure that allows employees to reach out to certified personnel whenever they need support - whether that’s internal coaches or external professionals. ELEVATE EMPLOYEE BENEFITS Today’s employees are looking for more than just a paycheck. They want to get more out of their working lives, with 32% of employees saying benefits are now equally as important as salary. Employees are also looking for businesses to bridge the disconnect between the perception and value of employee benefits. Too many businesses still think about benefits at the surface level (i.e. working from home once a week) instead of going deeper with initiatives that truly make employees feel valued. 11 THE WORK LIFE PLATFORM HR teams must therefore focus on redefining work life by: • Simplifying access to employee benefits that go beyond the workplace, such as bespoke medical insurance and telemedicine offerings • Offering a range of physical and mental health, wellbeing and financial services through digital platforms • Leveraging real-time usage data to proactively adapt insurance policies in ways that meet employees’ evolving needs An example of going deeper with benefits could be implementing true flexible working initiatives. Give employees the freedom to work from any location and flex their working hours depending on personal needs. If employees need to start and finish work an hour earlier to pick up children from school, empower them to do so. Or, businesses could focus more on financial wellbeing. On the one hand, this could involve increasing access to special rates and discounts on car insurance, gym memberships and restaurants. On the other hand, it could include higher-value offerings such as consultations with financial advisors to advise employees on how to save smarter and make effective financial decisions. In terms of insurance, providing a package that meets employees’ needs can be the difference between a happy workforce or a disengaged one. Our data shows that dental (28%) is the most popular pay and claim request, while general medicine (36%), gynaecology & obstetrics (23%) and dermatology (18%) make up the three most popular consultant bookings. With the right platform in place, HR teams can offer in-demand services - such as telemedicine support or on-site dental visits - as part of bespoke insurance packages through digital platforms. As a result, businesses will be able to build better employee experiences that stand out in their industries - in turn delivering the quality experience that is now expected in today’s era of the empowered employee. BAYZAT TOP TIP Transform employee benefits by providing easy access to high-impact programs so employees feel supported and cared for. 12 THE WORK LIFE PLATFORM HR HERO STATUS: ACHIEVED As Deloitte writes: “HR has always been more than a back-office function, but rather a core piece of the organizational fabric, one with the ability to influence the most powerful asset of any organization: its people.” This is more true now than ever before. HR teams have a significant opportunity to extend their influence and truly make themselves the heroes of their organizations. By using digital tools and platforms to ease the burden of HR and insurance admin, HR teams will be able to dedicate more time to what is truly important in a post-pandemic world. Namely driving employee engagement, supporting their people and building the right culture. In turn, this will foster world-class employee experiences that attract the best talent - helping companies achieve long-term growth in today’s ultra-competitive marketplace. That truly would be mission accomplished. Visit us at www.bayzat.com or contact us to find out how we can help transform your HR operations. 13 THE WORK LIFE PLATFORM 12 THE WORK LIFE PLATFORM
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