What The State Of Employee Relations Tells Us About HR
There are long term implications for HR and company culture as a whole
Posted on 06-23-2020, Read Time: - Min
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When HR Acuity wrapped up its Fourth Annual Employee Relations Benchmark Study, three trends immediately jumped out at us. Those trends tell us a lot about the state of employee relations as a discipline within HR organizations today, but there are long term implications for human resources and company culture as a whole.
Employee relations leaders from more than 200 enterprise organizations, collectively representing 5.5 million employees globally, participated in the study. The data, based on organizations’ data from 2019, not only provide a snapshot of what was happening last year in employee relations, but also highlight trends and comparisons from previous studies and as well as providing a look at the post-pandemic future.
Employee Relations, Elevated
The study makes it clear that employee relations is a major influencer in the larger corporate strategy, and the trendlines show that the influence of employee relations leaders, employee-related data and insight is growing. For example, this year’s study found that 52% of employee relations teams report directly to the Chief Human Resources Officer or head of human resources, up a significant 18% over last year’s results.
A whopping 92% of organizations now collect employee relations data, and many are sharing metrics more broadly with other areas, including compliance (28%), diversity and inclusion (17%) and business managers (25%).
The elevation of employee relations is a signal that companies are taking employee issues more seriously, and data collection and dissemination are indispensable steps toward building trust and creating a positive employee experience. To name one example, a recent Harvard Business Review article pointed out that data collection is essential to tasks like creating successful HR programs.
A whopping 92% of organizations now collect employee relations data, and many are sharing metrics more broadly with other areas, including compliance (28%), diversity and inclusion (17%) and business managers (25%).
The elevation of employee relations is a signal that companies are taking employee issues more seriously, and data collection and dissemination are indispensable steps toward building trust and creating a positive employee experience. To name one example, a recent Harvard Business Review article pointed out that data collection is essential to tasks like creating successful HR programs.
Transparency Is on the Upswing
Another key trend is that companies are increasingly transparent with employees about employee relations issues. Nearly 30% are now sharing aggregate data on investigations with employees. Contrast that to HR Acuity’s Third Annual Benchmark Study, which showed that only 10% of companies reported publishing harassment metrics with employees.
The #MeToo movement had an enormous impact on companies in the U.S., underscoring the importance of taking harassment seriously to ensure staff safety and mitigate risk. Greater transparency is one way companies can signal their commitment to equality in the workplace on a variety of issues. It also builds trust since employees value transparency.
The #MeToo movement had an enormous impact on companies in the U.S., underscoring the importance of taking harassment seriously to ensure staff safety and mitigate risk. Greater transparency is one way companies can signal their commitment to equality in the workplace on a variety of issues. It also builds trust since employees value transparency.
Widespread Adoption of Employee Relations Analytics Lags Behind Data Collection
Collecting employee relations data is essential to identify areas of concern, mitigate risk and become more transparent with the workforce. As the study reports, almost all companies are collecting employee relations data now, which is a great first step. But the findings indicate that the use of technology designed to meet the unique needs of employee relations lags, with respondents saying they aren’t doing anything with the data they collect. Less than a third report that they’re using data to create predictive models of employee behavior, which could provide valuable insight and drive better decisions. And, 91% of participants said more advanced analytics capabilities make their job easier by helping them identify trends and spot reoccurring issues.
Benchmark Study Underscores Importance of Skilled Employee Relations Practitioners
The study trends point out that not only have employee relations been elevated as a discipline, but as best practices are operationalized, industry standards are solidifying. A specialized approach is important for the employee relations function, with trained and skilled practitioners to support companies’ increased focus on following proven, effective procedures.
For example, nearly 60% report that they use required investigation processes — up 18% over the previous year’s number. This signals companies’ determination to conduct thorough, fair and consistent investigations, as does the finding that a clear majority of surveyed companies —57% — now conduct investigation training at least once a year.
Another finding is that 62% of those surveyed now use a centralized model to manage employee relations, and a further 8% say they intend to do so over the next 12 months. This tells us that more companies are adopting best practices for employee relations management, which is a positive development.
Employee relations professionals are standardizing their approach, and those who have the technology assets and resources they need are more effective in their roles. This enables an HR strategy that is more data-driven, people-focused, transparent and accountable. That’s an approach that works well in any economic climate, including a rebuilding phase in the post-pandemic business world.
To download HR Acuity’s Fourth Annual Benchmark Study, visit https://www.hracuity.com/4th-annual-benchmark-resources
For example, nearly 60% report that they use required investigation processes — up 18% over the previous year’s number. This signals companies’ determination to conduct thorough, fair and consistent investigations, as does the finding that a clear majority of surveyed companies —57% — now conduct investigation training at least once a year.
Another finding is that 62% of those surveyed now use a centralized model to manage employee relations, and a further 8% say they intend to do so over the next 12 months. This tells us that more companies are adopting best practices for employee relations management, which is a positive development.
Employee relations professionals are standardizing their approach, and those who have the technology assets and resources they need are more effective in their roles. This enables an HR strategy that is more data-driven, people-focused, transparent and accountable. That’s an approach that works well in any economic climate, including a rebuilding phase in the post-pandemic business world.
To download HR Acuity’s Fourth Annual Benchmark Study, visit https://www.hracuity.com/4th-annual-benchmark-resources
Author Bio
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Deb Muller, is the CEO and Founder at HR Acuity. After serving in executive HR roles at numerous Fortune 500 companies like Honeywell, Citibank, and Marsh & McLennan, Deb launched HR Acuity to create technology with built-in expertise and equip organizations to manage employee relations more strategically. Visit www.hracuity.com Connect Deb Muller Follow @hracuity |
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