How Companies can Prepare Their Workforces for the Future

Table of Contents

Workforce Action Plan ……………………………………………………………….

Inclusion and Diversity ……………………………………………………………….

Current State of the Workforce ……………………………………………………….

Future State of the Workforce ……………………………………………………………….

Abstract

Today, like many companies, Mi-ORG, a successful, customer-centered consultancy, is faced with a wide array of challenges, including reducing unplanned turnover, ensuring a smooth succession of a significant number of retirees and expected departures as well as developing and sustaining a diverse workforce that promotes employee morale and organizational loyalty and places a high priority on innovative practices. In addition, Mi-ORG tries to maintain a laser-sharp focus on its clients, but all of these trends have created a critical juncture in the company’s path moving forward. Indeed, Mi-ORG’s current human resource management practices, especially its web task management application, are adversely affecting employee morale and productivity, and timely interventions are clearly needed to avoid even higher levels of unplanned turnover in the future. Using a systematic review of the literature, this project focuses on identifying current constraints to workforce development in general and at Mi-ORG in particular to identify opportunities for improvement. The findings that emerged from this project reinforce the need to provide employees at all levels with appropriate incentives to promote morale and loyalty as well as the need to think ahead in terms of planning for workforce development needs in the future.

Workforce Action Plan: Mi-ORG

Today, the American workforce is faced with multiple challenges, including most especially identifying viable strategies for maintaining normal business operations during an ongoing global Covid-19 pandemic and its economic impact. Other trends, however, are also already having a significant effect on businesses of all sizes and types, including fundamental shifts in the demographic composition of the workforce as well as a wide array of technological innovations that are changing the way enterprises operate. Against this backdrop, it is clear that human resource managers must develop timely workforce action plans to help guide their organizations moving forward. Located in Boston, Massachusetts, Mi-ORG is a management consulting firm that uses innovative solutions to assist their client organizations in becoming more efficient and effective in achieving their objectives (Mi-ORG company overview, 2021). The purpose of this project is to use a systematic review of the relevant, peer-reviewed and scholarly literature to identify existing constraints to workforce development in general and at Mi-ORG in particular. As the research that follows will show, this project determined that Mi-ORG needs to provide employees at all levels with appropriate incentives that will promote improved employee morale and heightened loyalty as well as what steps are needed at present to plan for the company’s workforce development needs in the future.

WORKFORCE ACTION PLAN

a. Employee Retention Plan: The high costs of recruiting new employees is well documented, and it is clearly in the company’s best interests to use the most cost-effective retention strategies possible. To its credit, Mi-ORG (hereinafter alternatively “the company”) recognizes this need and currently provides its employees with a number of valuable perquisites for this purpose, including (a) long-term employment arrangements, (b) internal promotions, (c) tuition reimbursement programs, and (d) flexible work schedule options (Mi-ORG company overview, 2021). Despite these generous offerings, the company has still experienced an inordinate amount of turnover in recent months due in large part to increases in the number of retirees, the increased demand for consultants elsewhere and a shaky economy.

Taken together, these trends underscore the need for the company to systematically reevaluate its current workforce action plan in order to identify new strategies that can reduce their adverse impact. The recommendations provided by Duboff and Heaton (2009) are appropriate for this purpose: “The first step to creating an integrated employee retention plan is to establish principles for the analysis and implementation” (p. 10). The principles that are outlined below provide a useful framework in which to manage the development, implementation and administration of an employee retention plan for Mi-ORG:

· Focus on specific segments: In many cases, organizations implement money-based solutions that are intended to reduce unplanned turnover in a wholesale fashion without regard to where the majority of turnover is actually occurring. While it is essential to ensure that any incentive program is applied equitably across the board throughout the organization, it is also important to target those business units where recruitment and retention efforts have been unable to satisfy the organization’s workforce needs by offering specific non-monetary incentives for these positions.

· Money alone is not effective: Although studies consistently report that money remains at the top of employee incentives, higher pay or bonuses are no longer sufficient in and of themselves. Some sage advice provided by Duboff and Heaton (2009) notes that, “Over the long haul, bonuses unaccompanied by changes in the fundamentals of the relationship don’t work. Emphasize building loyalty, not reducing churn or turnover” (p. 10).

· Systematically prioritize efforts based on return on investment: No matter how generous or broad-based incentive programs may be, they tend to diminish in effectiveness over time. This means that it is vitally important to review existing incentive initiatives to ensure they are providing the expected return on investment and whether revised strategies are required.

b. Succession Planning: As noted above, a significant number of experienced employees have retired recently and many more or expected to retire in the foreseeable future, representing a loss of invaluable tacit organizational knowledge as well as the long-term relationships these retirees have built with clientele and other employees. Fortunately for the company, many of the recent retirements have been known well in advance, allowing time for Mi-ORG to conduct the requisite selection interviews. Nevertheless, it is essential for the company to conduct ongoing succession planning to ensure that the best candidates that are available are identified and recruited in time to allow for some overlap with the departing incumbent.

An important point regarding succession planning, though, concerns the need to look ahead at least one year and even more in some cases. For example, the Society for Human Resource Management advises that, “Succession planning is a focused process for keeping talent in the pipeline. It is generally a 12- to 36-month process of preparation, not pre-selection” (Engaging in succession planning, 2021, para. 3). Moreover, even though all organizations are unique in some ways, virtually all of them can benefit from thoughtful succession planning by providing the talent and expertise that will be required for success in the future. Although there is a widely held perception among many business practitioners that succession planning is a dauntingly complex enterprise that is most appropriate for larger organizations, the Society for Human Resource Management also emphasizes that the process is essential for companies of all sizes and types. In this regard, the Society for Human Resource Management also notes that, “Succession planning can be of great value to smaller organizations that have fewer resources available for knowledge management programs and the formal, structured development of employees” (Engaging in succession planning, 2021, para. 5).

Some of the more compelling reasons for Mi-ORG’s performing timely succession planning include the following:

· Adapting to demographic changes and talent scarcity.

· Identifying skill gaps and training needs.

· Retaining institutional knowledge in a knowledge economy.

· Boosting morale and retention by investing in employees.

· Replacing unique or highly specialized competencies (Engaging in succession planning, 2021, para. 5).

c. Strategic Relationships.

At the risk of saying the quiet part out loud, the top management at Mi-ORG must face the harsh reality that they have created some level of institutional gender-based racism that has inhibited the company’s commitment to inclusive practices. A good example of this can be found in one senior white male, representative of the other members of the selection committee for a new candidate, insisted on more interviews, complaining that “All we’ve seen thus far are women” (An average day at Mi-ORG, 2021, p. 4). This is not to say, of course, that the company’s recruitment processes are inherently biased, but it is to say that there appears to be a general consensus among Mi-ORG’s top leadership that there is at least some benefit to perpetuating their “good old boy” network. Consequently, Mi-ORG needs support from its human resource services in order to ensure that the company’s top leadership team is truly representative of its workforce.

While the ongoing Covid-19 pandemic continues to have a profound impact on American businesses in unexpected ways, there are some demographic trends that will invariably affect the manner in which employees interact with their organizations and the way they go about accomplishing their daily routines. Although every organization’s workforce development situation is unique in some fashion, these following demographic forces are projected to have the most impact on organizations recently and in the foreseeable future:

· Millennials will be the largest adult generation by 2019;

· Marriage in the US is on the decline;

· Women are getting closer to making up half of the workforce;

· Immigrants will drive overall workforce growth;

· Births outside of marriage hold steady for US-born women;

· There is a decline in adults living in middle-income households in key European countries;

· There is a record increase in first-time asylum applications; and,

· There is a record admittance of refugees to the United States (Trends that impact the workforce, 2021, p. 3).

In addition, as the turmoil that has characterized the nation’s political process over the past several years has made clear, politically based priorities can also have a significant impact on what types of strategic relationships are most important at any given point in time as well as what these priorities hold for the future (Trends that impact the workforce, 2021, p. 3).

Furthermore, Mi-ORG's web task management system appears to be creating far more problems than it can reasonably solve. For example, one manager observed that, “You take a few more minutes to clear your inbox of the deluge of daily messages generated by Mi-ORG's web task management system. Unfortunately, you have been subscribed to notifications for several projects outside of your direct supervision, so you often miss important emails that get mixed in” (An average day at Mi-ORG, 2021, p. 3).

INCLUSION AND DIVERSITY

a. How might the organization encourage employees to use elements of diversity and inclusion to develop or enhance products and services?

As noted above, although the company’s top leadership team is not exclusively comprised of older white males, they appear to account for a majority of Mi-ORG’s executives at present. A number of these senior executives, however, are scheduled for retirement in the foreseeable future and this situation may change thereafter. At present, though, there appears to be a glaring need for some level of formal encouragement to use elements of diversity to develop and enhance Mi-ORG’s products and services (Larcker & Tayan, 2020). In fact, the current diversity that is present in the company’s workforce as reflected in its job profiles may therefore have been the result of Mi-ORG’s responses to legal mandates rather than enlightened leadership that fully embraces an inclusive corporate culture (Dobbin & Kaley, 2018). In this regard, one practitioner advises that, “Inclusion is a concept that is closely related to diversity, however some researchers believe a key distinction to be that management of diversity can be legally mandated, whereas inclusion is the result of purposeful planning and action on the part of an organization” (Diversity and inclusion, 2021, p. 5).

One viable and cost-effective solution to encouraging the company’s employees to use elements of diversity and inclusion to develop or enhance its existing products and services would be to include these as performance goals that are included in Mi-ORG’s existing performance review processes. The addition of diversity and inclusion as performance review goals would also help reinforce the importance of these efforts for all employees. For instance, as one business practitioner points out “Internally focused, Mi-ORG supports its employees with individualized attention and merit-based advancement [through] frequent performance reviews, long-term employment considerations, internal promotions, tuition reimbursement programs, and flexible work schedule options” (Mi-ORG company overview, 2021, p. 1). Although they are highly time consuming, performance reviews are regarded at all levels in the company as an integral part of its human resource management strategies, making goal-setting for performance reviews an appropriate approach for promoting diversity and inclusion through its workforce.

b. How diverse is your office? What categories of employees are underrepresented? How might the current organizational culture be contributing to the disparities?

As noted throughout, Mi-ORG’s workforce appears diverse with respect to its representation of minorities in terms of their larger representation in the American population, but it remains unclear what type of career paths are in store for these minority members. Further, regardless of the origins of the company’s current lack of an inclusive mindset, however, it is apparent that the company needs to embrace inclusion in its workforce in reality instead of just the abstract, and take the steps that are necessary in order to develop and sustain a corporate culture that makes this a priority. For example, one practitioner advises that:

Organizational culture is the pattern of basic assumptions that a given group has invented, discovered, or developed in learning to cope with its problems of external adaptation and internal integration, and that have worked well enough to be considered valid, and therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to these problems. (Organizational culture, 2021, p. 2)

The employee profiles of the company indicate that although its workforce largely mirrors the current demographic composition of the larger American population, with minority representation at all levels of the organization, Mi-ORG’s top leadership team requires additional representation of minority members. As noted above, the corporate culture at Mi-ORG seems to value diversity only to the extent that is required by law rather than recognizing the multiple benefits that can accrue to a truly diverse workforce. In other words, the company seems to have paid lip service only to developing and maintaining an inclusive corporate culture, a constraint that will likely have serious implications for Mi-ORG in the future.

Moreover, it also appears that the company lacks a sufficient number of junior consultants in their current pipeline to replace the number of retirees that are expected in the near future and grooming new junior consultants for these positions requires a substantial amount of time and the company does not enjoy the luxury of taking its time for this purpose. Although the company has taken the steps that are needed to identify gaps in its employees’ skill sets, it remains unclear what actions are being taken to address these specific needs.

c. How can the organization work increase cultural awareness in others?

At present, Mi-ORG has corporate operations on three continents and continues to look for additional foreign markets to grow its business. Therefore, increasing cultural awareness among its workforce represents a timely and valuable enterprise. Fortunately, there are some evidence-based strategies that are available which can be increase cultural awareness throughout the company, including those set forth in Table 1 below.

Table 1

Increasing cultural awareness at Mi-ORG

Step

Description

Get training for global citizenship

First, build the cultural knowledge of employees. Hold training classes to teach them about different cultural practices. These classes should be framed in a way that allow employees to learn how to deal with working in an increasingly diverse global economy and society. Consider specialized cultural training concerning communication, business etiquette, and negotiation skills for countries where the company already maintains business operations.

Bridge the culture gap with good communication skills

Good communication skills are important when dealing with different cultures. How you communicate to others, both verbally and non-verbally, can be a deal maker or deal breaker. Therefore, Mi-ORG should assign bilingual employees to positions that interface with clients in other countries whenever possible or to ensure that the services of a skilled translator are available when necessary.

Practice good manners

In some countries, saying “please” and “thank you” is an important and crucial part of business conversation. It demonstrates politeness, respect and caring, which will facilitate business operations. Employees should be instructed to avoid addressing clients in other countries by their first name during initial contacts to avoid the appearance of informality and to allow clients to assume the lead in this regard.

Celebrate traditional holidays, festivals, and food

Celebrating diversity in this fashion can help increase cultural literacy, awareness, and acceptance. By introducing employees to other cultures and traditions, their sensitivity to cultural differences will be enhanced.

Observe and listen to foreign clients

Expatriates assigned to other countries should be instructed to observe and listen to their client to determine how they conduct themselves and their business operations and follow suit.

Pay attention to differences in culture

Besides performing extensive research on other cultures where Mi-ORG does business, employees can also become more culturally sensitive by paying close attention to cross-cultural differences and avoiding actions that may be regarded as offensive. For example, it is considered highly offensive to simply point the bottom of one’s foot to another person in Thailand when crossing legs.

Source: Adapted from Practices to increase cultural awareness in the workplace (2017)

CURRENT STATE OF THE WORKFORCE

a. Define the organization's current staffing situation based on the skills of your current staff. Current staffing needs should take into account organizational goals and budget realities.

A review of the company’s skills gap analysis shows that there is a significant gap between existing competencies in strong communication skills among the senior consultants and to a lesser degree in leadership and training skills. Likewise, the junior consultants are currently rated as competent in the customer service skills, their proficiency with Microsoft Suite and their problem solving skills. In each of these instances, improved proficiency will be required within 2 to 3 years. Therefore, it is important for the company to take substantive action to ensure that these consultants receive the requisite training and experience that are required to achieve this improved proficiency or to change their occupational position to better reflect their core competencies. In this regard, one practitioner advises that, “[Skill] gaps can be addressed through recruiting new individuals with high skills proficiencies, training and developing your existing staff, and/or moving staff around so they occupy positions that are more closely aligned with their highest proficiency level” (Skill gap analysis template, 2021, p. 1).