The 9/80 schedule offers a fresh take on the work week by lengthening weekends. This working model is gaining popularity as a strategy to improve the ultimate business trifecta: Productivity, employee satisfaction, and work-life balance.

Contents
What is a 9/80 schedule?
How does a 9/80 schedule work?
9/80 schedule versus 4-day workweek
What are the benefits and drawbacks of a 9/80 schedule?
What does a 9/80 schedule look like?
How HR can help implement the 9/80 schedule
Companies that use the 9/80 work schedule

What is a 9/80 schedule?

The 9/80 schedule upends the typical 9-5 work schedule of eight hours a day, five days a week, followed by two days off on weekends. Instead, it compresses workweeks, providing more free time for the same wages. Under a 9/80 schedule, employees work slightly longer days in exchange for every other Friday off.

9/80 schedules are calculated in two-week blocks. In week one, employees work a 9-hour day from Monday to Thursday and an 8-hour day on Fridays. In week two, they work nine hours from Monday to Thursday and get Fridays off. And then the routine repeats. This means they get two 3-day weekends every month, on average.

The backstory of how work scheduling come about is an interesting one. The automotive tycoon and manufacturing pioneer Henry Ford established the 40-hour work week back in 1926. It then became the legally mandated work week in the United States in 1940.

Since then, flexible and compressed schedules have been recognized under the banner of ‘alternative work schedules’ and are gaining popularity as a way to boost work-life balance without sacrificing productivity. These include the 9/80 and 4/10 schedules, also known as the 4-day work week.

How does a 9/80 schedule work?

A 9/80 schedule is a work schedule that condenses the standard 80 hours worked in two weeks into nine days instead of 10. This means staff get every other Friday off, all while keeping total work hours the same.

If you’re considering introducing a 9/80 schedule, here’s how HR can be the ultimate advocate for this new approach:

1. Be the communication champion: Clearly explain the new schedule to everyone. This includes details on the format, how payroll handles the 9/80 schedule, and the benefit of extra days off.
2. Help with scheduling: Support managers and employees in adjusting to their new workloads and ensure coverage is in place during the additional days off. Think of it as a scheduling puzzle you get to solve – and happy employees are your reward.
3. Provide guidance on maintaining productivity: Offer tips and resources on managing energy and staying focused during the longer 9-hour workdays.

9/80 schedule versus 4-day workweek: Which is better?

Both the 9/80 schedule and 4-day workweek aim to improve work-life balance by compressing more work hours into fewer days. But they achieve it in different ways:

• 9/80 schedule: Employees work for nine days (eight 9-hour days and one 8-hour day) over two weeks, totaling 80 hours. This translates into an extra day off every other week for extra recharge time.
• 4-day work week: Here, employees power through a compressed schedule, typically working four 10-hour days for a total of 40 hours. The reward? A three-day weekend every week, boosting morale and, hopefully, creativity.

The key is picking the option that best suits your company’s needs and your team’s preferences. For instance, a marketing agency might find the 4-day week perfect for their creative minds. It allows for focused work sprints followed by extended downtime to refresh and come back with even better ideas.

On the other hand, a manufacturing plant with strict production targets might benefit more from the 9/80 schedule — allowing it to maintain efficiency while still offering occasional long breaks to avoid burnout.

While the 4-day workweek is less complex from a scheduling and payroll perspective, both options can be successful if implemented carefully.

What are the benefits and drawbacks of a 9/80 schedule?

A 9/80 work schedule offers employers the potential benefits of greater productivity and employee satisfaction, but it’s not without its drawbacks. Let’s explore some pros and cons.

The pros:

• Enhanced productivity: We all struggle with distractions in our ‘always-on’ world. Longer, uninterrupted stretches in a 9/80 schedule could help employees focus on deep work tasks, potentially leading to more complex projects getting finished faster and overall productivity gains.
• Improved employee retention: Offering a work-life balance perk like a 9/80 schedule can make your company stand out. This can be a game-changer when it comes to attracting top talent and keeping your existing team happy by providing the freedom that comes with extra personal time.
• Reduced absenteeism and tardiness: This recent Gallup study confirms that having happy, engaged employees translates into an 81% reduction in absenteeism and a 14% increase in productivity. The 9/80 schedule, with its three-day weekends every other week, could contribute to a more positive and reliable workforce. Think of it as an investment in employee wellbeing and productivity.
• Improved employee work-life balance: For employees who handle 9-hour days with ease, the benefit of a 9/80 schedule lies in the extra day off. Reduced stress and a better work-life balance can lead to a happier, more engaged team, ultimately leading to higher outputs and retention prospects.
• Environmental benefits: Think about all that commuting avoided with an extra day off every other week. A 9/80 schedule can contribute to a smaller carbon footprint, which is a major plus for companies looking to build an environmentally conscious employer brand to attract top candidates.

The cons:

• Scheduling challenges: Let’s face it; a 9/80 schedule won’t suit every type of business. Coordinating meetings and ensuring team coverage, particularly in customer-facing roles, can become a juggling act, potentially disrupting workflows with employees having different days off every other week.
• Limited flexibility during workweeks: Employees might have less wiggle room during their nine-day stretches to handle appointments and personal needs. This could lead to some frustration.
• Increased risk of burnout: Not everyone thrives on longer workdays. While some might see a productivity boost, others may struggle with maintaining stamina and experience fatigue or burnout. This could ultimately cancel the initial productivity benefits and decrease overall morale and performance.
• Payroll and overtime complexity: The non-standard nature of a 9/80 schedule can be extremely challenging, especially with overtime and leave calculations. Be prepared to invest in new software or resources to ensure your compensation, overtime, and leave figures are accurate.

What does a 9/80 schedule look like?

Here’s a 9/80 schedule example:

Employees typically work four longer days from Monday to Thursday, nine hours each, followed by an 8-hour stint on Friday in the first week. Then, they power through four more 9-hour days in the second week but get the Friday off to recharge. And so, the two-week routine repeats itself.

9/80 schedule example

This is just a sample schedule. Your 9/80 schedule can be tailored to your specific business needs. For instance, the extra day off could fall on a different weekday, such as a Monday, to meet the needs of your company or team.

How HR can help implement the 9/80 schedule

A 9/80 work schedule can be a win-win for both your company and employees, but let’s be honest, not everyone will immediately take to a switch-up in routine.

Here’s how HR can ensure a smooth transition to a 9/80 schedule and prepare employees for the change:

1. Test it out first

Before diving headfirst into a company-wide launch, consider suggesting a pilot program for the 9/80 schedule. This lets you test the waters with a small, representative group of employees. It’s a great way to iron out any logistical kinks, identify potential scheduling challenges, gauge employee adoption, and track productivity metrics. This will enable HR to refine the program and ensure a smoother, more successful launch for everyone.

2. Cater for leave and payroll

Non-standard workweeks can lead to complications in your leave and payroll processes. Before launching a 9/80 program, make sure you have clear policies in place. This includes figuring out how sick leave and vacation will work — for instance, will it be based on 8-hour or 9-hour days? Also, check if your payroll system can handle the 9/80 structure.

3. Work on workload management

Partner with managers to ensure workloads are adjusted for the new schedule. This might mean helping them prioritize tasks, delegate effectively, and even build in some buffer time for breaks. By working together, you can help everyone feel supported and productive during their longer workdays.

4. Monitor for burnout

Long weeks can zap employee energy. HR can help by offering wellbeing resources. Think stress management workshops, time management tips, and resources to help them maintain a healthy work-life balance.

5. Set up team training

Before you pilot your new work schedule, develop brief training programs to educate managers on effectively scheduling their teams with the 9/80 model and provide pointers on addressing common employee concerns. Meanwhile, employees can be trained on time management strategies for longer workdays.

6. Build trust with open comms

Encourage employees to ask questions and share concerns before things get going. Stay receptive to feedback throughout the process — it’s the best way to refine a 9/80 work schedule program and make sure it works for everyone. By keeping this open dialogue going, you’ll build trust and get your team on board.

7. Be flexible

Consider offering some flexibility within your 9/80 structure. This could involve letting employees choose their ‘off’ Friday or allowing occasional adjustments to the schedule to accommodate personal needs. A little flexibility will go a long way in boosting morale and keeping your team happy.

8. Track and adapt

Throughout the pilot program and beyond, keep an eye on key metrics like productivity, absenteeism, and employee satisfaction to gauge the effectiveness of your 9/80 schedule – and be prepared to make adjustments as needed for maximum benefit.

HR tip

Check the pulse of your team with ‘stay’ interviews

Don’t wait for problems to surface. Be proactive about scheduling ‘stay’ interviews with employees before and during your 9/80 flex work schedule rollout. These one-on-one chats are a great way to get a feel for employee sentiment, preferences, and any potential concerns. By keeping the conversation flowing, you can proactively address issues and tailor your 9-hour workday programs to meet employee needs better.

Companies that use the 9/80 work schedule

1. Chevron

The global energy giant Chevron offers flexible work schedules, including the 9/80 schedules and 4/10 schedules (where employees work 10-hour days four days a week with one extra day off every week). Based on Chevron’s Glassdoor reviews, its 9/80 schedule is a hit with staff.

Learnings for HR: 

• Chevron offers its team the benefit of selecting one of two non-traditional work schedules to boost work-life balance. 
• The company does not allow off days to be banked and discourages the exchange of scheduled days off with scheduled days of work.

2. Shell

Long before COVID and the rise in the popularity of telecommuting and new flexible ways of working, Shell was offering alternative work schedules. This included the compressed 9/80 working week.

Learnings for HR:

• In addition to an ‘every other Friday off schedule,’ Shell also provides its team with flexible start and finish times.

3. Lockheed Martin

Defense contractor Lockheed Martin also offers the 9/80 schedule, providing its staff with the benefit of every other Friday off.

Learnings for HR:

• Lockheed Martin has leveraged its 9/80 scheduling to build its employer brand by publicizing the benefits of work-life balance as experienced by staff members in a video posted to its social media platforms.

The bottom line

The 9/80 work schedule can be a win-win for businesses and employees, but it has drawbacks. Piloting the program with a smaller team is a smart way to gauge its impact on your workforce and helps HR to smooth out scheduling, payroll, and other challenges.

Ultimately, the success of any 9/80 schedule relies on striking the right balance between maintaining productivity and employee satisfaction.

The post What Is a 9/80 Schedule? Your (2024) Explainer Guide appeared first on AIHR.

A WeSpire study revealed that Gen Z workers were the first to prioritize purpose over salary. They must see the connection between their actions and the broader social impact. 75% of respondents surveyed believed that work should have a greater meaning than just bringing home the bacon. They are looking for positive, purposeful, and significant roles. 

Contents
What is a purpose statement?
The role of HR in developing a company purpose statement
How to write a purpose statement
5 actionable steps for HR when crafting a purpose statement
Sample company purpose statement
21 company purpose statement examples

What is a purpose statement? 

Purpose statements are the core beliefs guiding the organization’s decision-making and culture. It is a powerful tool for attracting and retaining talent. Candidates are drawn to companies that stand for something bigger than themselves.

A strong purpose statement resonates with potential employees, which helps in creating a robust workforce. It also helps build customer loyalty. Customers support brands that share their values. A compelling purpose statement can foster loyalty with customers who trust companies that align with their beliefs. 

Company vs. personal purpose statements

Personal purpose statements

• A personal purpose statement is your internal compass
• More subjective and reflects the unique motivations and aspirations of a person. 
• Mainly written for yourself, explaining your life goals and motivations.

Company purpose statements

• A company purpose statement is the guiding principle of the entire organization. 
• Broader and consider the impact on a large scale, like solving environmental problems or promoting social justice. 
• Targeted at employees, customers, and investors to inspire and build trust with stakeholders.

Purpose statement vs. mission statement: The difference

The role of HR in developing a company purpose statement 

HR forges a strong connection between employees, leadership, and the company’s purpose, ensuring it drives the organization’s success.

Here’s how Human Resources plays a role in developing the organization’s purpose statement: 

1. Aligning employee and company motivations and aspirations: HR interacts with employees. Through staff surveys and meetings, they gather insights into their motivations and aspirations and how these align with the company’s potential purpose. 
2. Aligning company culture and purpose: HR ensures that the purpose statement reflects the company’s values and how it resonates with the culture. 
3. Promoting holistic insights across the organization: HR can organize discussions with staff from different ranks and departments, customers, partners, and other stakeholders to gain a holistic view of the company’s purpose.
4. Communicating the organization’s purpose: HR plays a vital role in communicating the company’s purpose to the employees. This ensures that everyone understands how their work contributes to the company’s bigger purpose, fostering employee engagement.
5. The purpose statement guides policy and initiative development: HR can use the company’s purpose to guide policies, programs, and initiatives. 
6. Creating attractive talent acquisition strategies: A clear purpose statement can be a powerful tool in attracting talent who share the employer’s values and aspirations. HR can use the purpose statement when creating recruitment and employer branding strategies. 

How to write a purpose statement

To create a purpose statement that truly reflects your organization, consider the following elements: 

Values

These are the fundamental beliefs that shape your company’s culture. They influence the way employees work together and decide. Think about how they shape your organization’s identity and purpose and ensure they are reflected in your mission statement. 

For instance, if collaboration and innovation are your company’s core principles, your purpose statement should match these values and communicate how they drive your organization’s purpose.

Stakeholders

These are the people and groups with a significant interest in your business, such as your staff, clients, shareholders, vendors, and local communities. Consider their perspectives, needs, and expectations to ensure alignment when formulating your purpose statement. 

For example, a statement highlighting customer satisfaction and social responsibility will help build stronger relationships with customers and communities, ultimately nurturing trust and loyalty.

Long-term goals

Your purpose statement should align with your company’s goals and aspirations. Explain how your goals coincide with your anticipated results, impact, and legacy. 

For instance, if you desire to become a global leader in sustainability technology, your purpose statement should highlight your commitment to sustainability, innovation, and global impact. 

Impact

Consider your organization’s financial success and the wider societal and environmental effects it wants to achieve. Recognize important social, environmental, and economic issues and explain how your goals aim to tackle them. 

For example, a purpose statement for a healthcare organization may emphasize advancing medical research to cure cancer, focusing on its broader societal impact beyond giving healthcare services.

Authenticity

Your purpose statement must be sincere, transparent, and aligned with the organization’s values, culture, and actions. It should accurately represent the organization’s leaders and employees’ true intentions and beliefs. 

When creating a purpose statement, it’s important to avoid generic statements. Being authentic builds credibility with stakeholders, improving engagement and commitment to the organization’s purpose.

5 actionable steps for HR when crafting a purpose statement

1. Build a team and collaborate

Crafting a company’s purpose statement is a team effort that should involve different groups of stakeholders. So, it’s imperative to build a cross-functional team to brainstorm ideas. Encourage open dialogues and active participation from staff of all levels. Assemble a representative individual or team from various departments, e.g., Sales, Marketing, Operations, Finance, IT, etc. 

HR can employ various techniques to facilitate collaboration, such as design thinking workshops, brainstorming sessions, or virtual idea-sharing platforms. 

2. Research and analyze

Survey or interview employees, customers, potential suppliers, and community members. Ask questions about understanding the company culture and mission and identifying impact and contributions: 

• What values do you believe are essential to our company?
• Which values do you think define our company culture the most?
• What do you think is the primary purpose of our organization?
• In what ways do you believe our company contributes to the wellbeing of our customers, communities, and stakeholders?
• How do you envision our company making a difference in the future?
• Where do you see our company in the next 5–10 years?
• What are your aspirations for the future of our organization?

By gathering and analyzing this data, HR gains valuable insights to inform the development of a purpose statement that resonates with stakeholders and aligns with market trends.

HR tip

You can also analyze industry trends and competitor purpose statements to inspire your own and consider how yours differs.

3. Crafting the purpose statement 

Keep your statement concise and clear. It should focus on the organization’s reason for existence and ensure it aligns with its mission, values, and strategic objectives. It should also authentically reflect the organization’s values and resonate with internal and external stakeholders.

Based on your analysis and research, you may have many complex ideas, so HR professionals must simplify them with simple and impactful language. Use storytelling techniques to make your purpose statement engaging and memorable. 

HR tip

Aim for a short and clear company purpose statement. Ideally, it should be around 1–2 sentences that are easy to understand and remember. 
Avoid jargon and complex sentences. 

4. Ask for feedback and finalize your purpose statement 

Share the draft with the team and broader stakeholders. Solicit feedback from the employees, managers, customers, and other stakeholders. This will identify gaps and clarify any misunderstandings. It will also confirm that the purpose statement is inclusive and relevant to all stakeholders. 

Based on their feedback, refine your statement to ensure clarity, conciseness, and inspiration. Remember to have the company’s leadership team review and approve it. 

5. Create a communication plan

Once finalized, develop a comprehensive communication plan to roll out the purpose statement internally and externally effectively. Present the statement to employees via town hall meetings, intranet announcements, and integration into training and onboarding materials.

Externally, work with marketing to integrate the purpose statement into your company website, marketing materials, and social media presence.

Sample company purpose statement

“To empower individuals and communities to thrive by providing innovative solutions and exceptional service, guided by our commitment to integrity, diversity, and sustainability.”

In this example, the purpose statement articulates the organization’s commitment to empowerment, innovation, and service excellence. It emphasizes integrity, diversity, and sustainability values, reflecting the organization’s ethical stance and long-term vision for positive impact.

21 company purpose statement examples 

1. Intel: We create world-changing technology that improves the life of every person on the planet.
2. Boston Consulting Group: Unlocking the potential of those who advance the world
3. Novartis: Reimagine medicine to improve and extend people’s lives 
4. Unilever: Make sustainable living commonplace 
5. Walmart: We aim to build a better world — helping people live better and renew the planet while building thriving, resilient communities. For us, this means working to create opportunity, make a more sustainable future, advance diversity, equity, and inclusion, and bring communities closer together.
6. Pfizer: Deliver breakthroughs that change patients’ lives. R&D is at the heart of fulfilling Pfizer’s purpose as we work to translate advanced science and technologies into the therapies that matter most.
7. McDonald’s: Feed and foster communities
8. Goldman Sachs: We aspire to be the world’s most exceptional financial institution, united by our shared values of partnership, client service, integrity, and excellence.
9. Coca-Cola: To refresh the world and make a difference.
10. Vodafone: To connect for a better future
11. Sony: Fill the world with emotion through the power of creativity and technology 
12. United Airlines: Connecting People. Uniting the World” drives our decision-making, supported by our core values – Safety, Caring, Dependability, and Efficiency. In action, that means doing the right thing for our planet, our passengers, and our people.
13. Mondelez: We empower people to snack right
14. DHL: Connecting people, improving lives 
15. Ford: To help build a better world, where every person is free to move and pursue their dreams.
16. Nike: Move the world forward through the power of sport
17. HSBC: Opening up a world of opportunity. We’re here to use our unique expertise, capabilities, breadth and perspectives to open up new kinds of opportunity for our customers. We’re bringing together the people, ideas, and capital that nurture progress and growth, helping to create a better world – for our customers, our people, our investors, our communities, and the planet we all share.
18. De Beers Group: Make life brilliant 
19. Mckinsey and Company: To help create positive, enduring change in the world.
20. Mastercard: Connecting Everyone to Priceless Possibilities
21. Visa: To uplift everyone, everywhere by being the best way to pay and be paid

To sum up

Writing your company’s purpose statement is an investment in your organization’s future. It serves as a guiding light, attracting talent who share your vision and inspiring employees to bring their best selves to work every day.

A clear, concise statement that captures your “why” will resonate with your target audience, building trust and loyalty. Remember, your purpose statement is a living document. As your company grows and evolves, review and refine it to ensure it continues to reflect your core values and the positive impact you strive to make in the world.

The post How To Write a Company Purpose Statement (+ 21 Real Company Examples) appeared first on AIHR.

Contents
What is a work-from-home policy?
Why have a work-from-home policy
What to include in your work-from-home policy
Work-from-home policy examples
Work-from-home policy template
14 HR best practices when developing a work-from-home policy

Download our free work-from-home-policy template in Word:

What is a work-from-home (WFH) policy?

Welcome to the future of the (hybrid) office. According to Gallup, eight in 10 remote-capable employees expect to work hybrid or fully remote, with 60% wanting to work off-site for part of the week and almost 30% not wanting to return to the office at all.

Deloitte’s statistics reveal a similar pattern:

• 29% of remote-capable employees are fully remote today
• 40% of remote-capable employees have shifted from working entirely on-site to either a hybrid or exclusively remote work arrangement.

This shift is not only the result of digitization and the pandemic. Many employees have found that they like the flexibility of hybrid work, and 46% of respondents in a Workmonitor report by Randstad said they would quit if their jobs did not support work-life balance.

The challenge is that working remotely, or even hybrid, is not the same as working from the office, and traditional policies may not always accommodate these differences. To meet the needs of a hybrid or remote workforce while maintaining consistency, strong company culture, and productivity, it’s essential to have a work-from-home policy that outlines how the company allows its employees to work from locations outside the traditional office environment (typically their homes). 

This type of policy specifies who is eligible to work from home, often based on the nature of their job or on a case-by-case basis. It sets expectations for working hours, clarifying if the remote work arrangement adheres to standard business hours or if there is flexibility to accommodate different schedules.

Why have a work-from-home policy

Like all company policies and procedures, a WFH policy provides clear guidelines and expectations for employees. In the context of remote work, this is crucial for maintaining consistency, efficiency, and productivity when the workplace extends beyond the traditional office setting. It ensures that employees understand their responsibilities, work hours, and the methods of communication they should use. This helps in adopting discipline and a sense of normalcy, even when working remotely.

As an HR professional, it’s important to remember that a well-defined WFH policy can lead to improved employee satisfaction and work-life balance. Allowing employees to work from home can reduce commute times and provide a more flexible schedule, accommodating personal commitments and leading to a better balance between work and personal life.

In terms of productivity, many companies find that employees are more productive when they have control over their working environment. Without the usual office distractions and with the ability to create a personalized workspace, individuals find they can focus better and be more efficient with their time.

However, as with all business practices, a work-from-home policy is only effective if it is designed with the organization and employees’ needs in mind and is managed and measured.

What to include in your work-from-home policy

HR should consider various factors to ensure a comprehensive and clear policy when constructing work-from-home policy guidelines. 

Some key considerations you should include:

• Eligibility: A clear definition of which employees and job scopes are covered by the policy and under what circumstances it applies. This includes which roles are eligible for remote work and the extent to which they can work from home.
• Request process: A process for employees to request work-from-home arrangements, including any necessary approvals from management.
• Communication and scheduling: Communication channels, flexibility of work hours, and where, when, and how employees should collaborate and connect.
• Performance evaluation: How performance and outputs will be measured.

Importantly, a hybrid work-from-home policy will include a range of policies within the overarching policy. By its very nature, a work-from-home policy is not one-size-fits-all, and yet it is the foundation for transparency and consistency. The various ‘sub’ policies within your work-from-home policy will, therefore, meet employees’ different needs.

Here are a few policies you could include:

1. Hybrid work-from-home policy: Outline how the hybrid model operates, with specifics on how many days are expected in-office versus at home. For more detailed guidelines, read our article on developing a hybrid work schedule.

2. Work-from-home internet outage policy: Establish a protocol for what employees should do in case of an Internet outage, including any expectations for communication and a timeframe for resolving the issue.

3. Work-from-home security policy: Emphasize the importance of information security and specify the measures employees must take to protect company data. This includes using secure connections, company-approved devices, and adhering to IT security policies.

4. Work-from-home stipend policy: If applicable, define a stipend policy to cover the costs of home office setup or ongoing expenses that employees might incur when they work from home.

5. Work-from-home reimbursement policy: Provide details on what costs the company will reimburse, the process for submitting expenses, and any limits on reimbursable amounts.

6. Work-from-home equipment policy: Clarify if the company will provide the necessary equipment (computers, phones, ergonomic furniture) and how equipment support and maintenance will be handled.

7. Work hours and flexibility: Define core working hours during which all employees are expected to be available while also providing flexibility to accommodate personal obligations and varying time zones.

8. Performance management and productivity tracking: Outline how performance will be assessed. For example, is productivity based on output and completion of objectives or hours logged? What regular digital productivity tracking tools are in use?

9. Communication protocols: Determine expected response times during work hours and the use of company-approved platforms for all work-related discussions and file sharing.

10. Professional development: Outline how employees working from home will have equal access to professional development opportunities and training resources, ensuring remote work does not hinder career growth and skill advancement. Also, discuss the expectations on remote employees in terms of their development.

Work-from-home policy examples

Example 1. Atlassian blazes a trail in work-from-home

Dubbed Atlassian’s ‘Team Anywhere’ initiative, Atlassian has been a distributed company since its first US office opened in 2005. The company has redefined the concept of a distributed workforce by offering flexibility and autonomy in work locations, whether it’s from home or in-office. 

Team Anywhere emphasizes asynchronous communication and reserves real-time meetings for key activities like project kick-offs and brainstorming. They strive for progress over perfection, continually adapting their approach based on feedback and learning. The goal is to merge remote working strengths with in-person interaction benefits for a balanced solution.

Example 2. The EY work-from-home difference

EY’s work from home mandate is that “Work is what you do, not where you go.” According to EY’s website, the company’s remote working policy was developed before the lockdown and is still in place today.

EY’s policy encourages working from home, although its offices remain open, primarily to assist its employees when they face issues like power or internet disruptions. EY has also introduced an app for employees to log visits to the office or clients and has set up a ‘click and collect’ service for those needing to acquire tech accessories or other essentials.

Work-from-home policy template

14 HR best practices when developing a work-from-home policy

To make the most of your work-from-home policy, follow these tried-and-tested best practices:

1. Provide training: Offer comprehensive training on digital tools and platforms that facilitate remote work, ensuring that all employees use them comfortably and efficiently.
2. Encourage regular check-ins: Encourage regular check-ins between managers and their teams, possibly through daily or weekly virtual meetings, to keep everyone aligned and informed.
3. Prioritize cybersecurity: Provide extensive training on cybersecurity best practices to all employees to protect sensitive company information.
4. Encourage work-life balance: Encourage employees to maintain regular work hours and to take breaks throughout the day to avoid burnout and maintain work-life balance.
5. Organize social events: Create virtual social events, like online coffee breaks or team games, to maintain morale and a sense of community among remote workers.
6. Develop clear communication protocols: Ensure that team members remain connected and collaborative.
7. Implement virtual project management tools: Help track progress on tasks and projects.
8. Establish clear performance metrics: Align metrics with remote work outputs rather than time spent in the office.
9. Enable a good home office setup: Provide ergonomic guidance and support for setting up a home office to help reduce the risk of strain and injury.
10. Provide support: Offer mental health support, such as access to counseling or mindfulness resources, acknowledging that remote work can sometimes lead to feelings of isolation.
11. Encourage a culture of trust and autonomy: Train managers on managing remote employees to help avoid micromanagement, which can be counterproductive in a remote setting.
12. Help managers to lead by example: Ensure leaders model healthy work-from-home behaviors to set a standard within the organization.
13. Offer reimbursements or subsidies: Reimburse or subsidize home office expenses to alleviate any financial burdens on employees.
14. Review and revise: Review and revise the work-from-home policy regularly to adapt to changing circumstances and feedback from employees.

Implementing these practices can help ensure a smooth transition to remote work and contribute to the sustainability and success of work-from-home programs.

To sum up

The implementation of a comprehensive work-from-home policy is crucial for modern organizations aiming to stay competitive. This policy is the foundation for clear communication, efficient operation, and sustained employee engagement, regardless of geographical boundaries.

By considering factors such as eligibility, communication protocols, and performance tracking, companies can foster a productive and flexible work environment that aligns with the goals of both the organization and its employees. Ultimately, a well-designed WFH policy enhances operational efficiency and supports a healthier, more balanced approach to work.

The post What To Include in Your Work-From-Home Policy (Plus Free Template) appeared first on AIHR.

Contents
What is organizational restructuring?
The role of HR in organizational restructuring
Types of organizational restructuring
7 organizational restructuring strategies for HR
Organizational restructuring examples
Organizational restructuring plan template
Organizational restructuring announcement letter
9 steps HR should take in organizational restructuring

What is organizational restructuring?

Organizational restructuring is a strategic process aimed at enhancing efficiency, adapting to new market demands, or improving competitiveness. It can significantly alter a company’s structure, strategy, and operations.

The process includes realigning departments, redefining roles and responsibilities, and sometimes downsizing to improve efficiency and effectiveness. It’s not just a cost-cutting measure but a strategic decision to improve overall productivity and long-term sustainability.

Organizations may decide to restructure for various reasons:

•  Responding to economic pressures: Economic downturns or shifts in market conditions can necessitate changes in how a company operates to maintain its competitiveness.
• Mergers or acquisitions: Combining different cultures, systems, and processes from multiple organizations can require thoughtful restructuring to achieve seamless integration.
• Continuous improvement initiatives: Ongoing efforts to enhance processes and reduce inefficiencies often call for periodic restructuring to align with best practices and technological advancements.
• Leadership changes: New leaders may bring different strategic visions that necessitate changes in organizational structure to support new directions and initiatives.

The role of HR in organizational restructuring

HR plays an important role in reshaping the organizational model to align with new business strategies and objectives. HR is involved in managing the operational aspects of restructuring and supporting the organization’s strategic vision.

Here are HR’s key responsibilities and roles during corporate restructuring:

1. Overseeing staff reduction processes: HR is responsible for planning and executing staff reductions in a manner that is legally compliant and handled ethically. This includes determining severance packages, conducting exit interviews, and ensuring that the process is transparent and respectful to affected employees.
2. Managing communication strategies: Effective communication is vital during restructuring. HR must develop a communication strategy that keeps all stakeholders informed throughout the process. This involves regular updates about the restructuring plans, timelines, and potential impact on employees. Clear and consistent communication helps manage the uncertainty and anxiety typically associated with organizational changes.
3. Redeployment and retraining of employees: As part of restructuring, HR may need to redeploy employees to different roles that better suit the new organizational structure. This often requires retraining employees to equip them with the necessary skills for their new roles. HR must assess the skills gaps and implement training programs to ensure a smooth transition.
4. Facilitating post-restructuring culture shifts: After restructuring, there is often a need for a shift in organizational culture to align with the new business direction. HR plays a crucial role in driving this cultural change, fostering a culture that supports the organization’s strategic goals. This includes reinforcing new values, behaviors, and ways of working that support the revamped organizational model.
5. Monitoring employee morale and engagement: Throughout the restructuring process, HR needs to monitor and address changes in employee morale and engagement. This includes conducting employee engagement surveys, setting up feedback mechanisms, and implementing initiatives to maintain or improve employee engagement during the transitional period.
6. Strategic workforce planning: HR must align the workforce plan with the future needs of the business. This involves analyzing current workforce capabilities, forecasting future needs, and developing a plan to close the gap between the current state and future requirements. This strategic planning is crucial for ensuring that the organization has the right talent in place to achieve its objectives post-restructuring.

HR tip

During times of change, maintaining or increasing employee engagement is essential. Engage employees through involvement in decision-making where appropriate, recognize and celebrate milestones and successes, and provide clear pathways for feedback. This not only helps retain talent but also smooths the transition by making employees feel valued and involved in the process.

Types of organizational restructuring

Legal restructuring

This involves changing the company’s legal structure to meet regulatory requirements, optimize tax strategies, or better align with business strategies. Legal restructuring may include forming, merging, or dissolving company entities.

Functional restructuring

This targets the functions within an organization, such as sales, marketing, or production. The aim is to enhance efficiency by reallocating resources, merging similar functions, or even outsourcing certain functional tasks.

Strategic restructuring

Strategic restructuring involves rethinking and realigning the company’s strategic goals to adapt to market changes, technological advancements, or changes in consumer behavior. It may require pivoting to new markets, products, or service offerings.

Cost restructuring

Here, the focus is on reducing expenses to improve financial health. Techniques can include streamlining operations, reducing the workforce, renegotiating contracts, and cutting non-essential costs.

Divestment

This type of restructuring involves selling off parts of the organization to raise capital, exit non-core businesses, or simplify the organizational structure. Divestments help the company to focus on its core competencies.

Mergers and acquisitions (M&A)

M&A involves either merging with or acquiring another company to enhance competitive positioning, enter new markets, or gain new technologies. This can radically transform the company’s operations, market presence, and strategic direction.

Portfolio restructuring

This is about reviewing and adjusting the mix of businesses or investments a company holds. The aim is to optimize the investment portfolio’s performance in line with the company’s strategic objectives.

Cultural restructuring

Although less tangible, cultural restructuring is crucial and involves changing the corporate culture to support new organizational directions or structures. This might be necessary after mergers, during leadership changes, or when trying to innovate corporate practices.

Each type of restructuring is based on specific internal needs and external conditions, and often, multiple types are implemented concurrently to achieve comprehensive transformation.

7 organizational restructuring strategies for HR

Here are seven strategic frameworks and actions HR needs to implement:

1. Staffing considerations

Strategic framework: Effective staffing during restructuring involves assessing current and future organizational needs, identifying gaps, and making adjustments to the workforce accordingly.

 2. Change management

Strategic framework: Change management is essential for helping employees navigate the restructuring process smoothly and effectively.

3. Communication with employees

Strategic framework: Clear, consistent, and transparent communication is crucial to maintaining trust and morale during periods of significant change.

4. Legal and compliance considerations

Strategic framework: Ensuring compliance with legal standards and internal policies is critical to mitigate risks associated with restructuring.

5. Talent and performance management

 Strategic framework: Managing talent effectively involves aligning employee skills and performance with the new strategic goals of the organization.

6. Cultural shift management

Strategic framework: Cultural adjustments are often necessary to align with new organizational structures and strategies.

7. Employee support programs

Strategic framework: Supporting employees through transitions with appropriate programs helps reduce turnover and maintain morale.

Organizational restructuring examples

Example 1. The Wall Street Journal

The WSJ, a flagship publication of Dow Jones, underwent a significant reorganization in 2017 to shift towards a more digital-focused strategy.

From an HR standpoint, this restructuring was handled with a strong emphasis on minimizing layoffs. Instead of reducing its workforce, WSJ reallocated existing employees to new roles suitable for a digital environment.

This strategy involved asking employees to apply for newly defined positions, allowing the company to maintain a stable headcount while aligning its workforce with technological advancements and market needs.

This approach helped in retaining talent and ensured that the existing employees were part of the transition, supporting a smoother cultural shift towards digital operations​.

Example 2. Hulu

Hulu’s reorganization in 2023 was driven by its need to support rapid growth and expand its streaming content.

The restructuring led to the creation of new key management positions, including a Chief Technology Officer and Chief Data Officer, to align with its strategic priorities.

Hulu’s HR approach focused on both scaling up by hiring new tech and product employees and streamlining operations to enhance efficiency. This dual focus helped Hulu manage its existing workforce effectively during the transition and attract new talent to support its expansion plans.

The restructuring was part of a broader strategy to make Hulu more attractive to potential buyers and investors, particularly during a time when it was considered a valuable asset in Disney’s bid to purchase 21st Century Fox​.

HR tip

Keep all employees informed throughout the restructuring process. Transparent communication prevents rumors, reduces anxiety, and builds trust. Ensure that messages are clear and consistent, detailing what changes are occurring, why they are needed, and how they will impact the various team members.

Organizational restructuring plan template

Organizational restructuring announcement letter template

The announcement letter is critical in the early stages of organizational restructuring. It will set the tone and expectations for the changes ahead.

9 HR steps HR to take in organizational restructuring

These are nine steps HR can take in organizational restructuring:

• Step 1: Conduct a workforce analysis: Begin by assessing the current workforce capabilities, identifying skills gaps, and forecasting future needs. This helps determine which roles need to be filled, retained, or redefined to align with the new organizational goals.
• Step 2: Develop a redeployment strategy: Plan for moving employees to new roles or departments where their skills are most needed. Consider the potential for internal mobility and career progression, which can help retain talent and maintain morale.
• Step 3: Implement a retraining program: Provide training and development opportunities to help employees adapt to new roles. This includes upskilling and reskilling programs tailored to the organization’s strategic directions and the workforce’s specific needs.
• Step 4: Support leadership development: Equip leaders with the necessary skills and knowledge to guide their teams through the transition. This involves training leaders on change management, communication, and leadership in a changing environment to ensure they can effectively support their teams.
• Step 5: Manage outplacement services: For eliminated positions, provide support such as counseling, resume workshops, and job search assistance. This shows a commitment to the welfare of outgoing employees, preserving the company’s reputation, and supporting community employment.
• Step 6: Monitor employee wellbeing: Implement initiatives that support employee mental health and morale during the transition. This could include wellness programs, open forums for feedback, and regular communication to keep the workforce engaged and informed.
• Step 7: Evaluate the restructuring impact: Regularly review the outcomes of the restructuring against the initial objectives. This ongoing evaluation helps HR adjust strategies as needed, ensuring the restructuring achieves its goals without adversely impacting the organization or its people.
• Step 8: Facilitate continuous communication: Throughout the restructuring process, maintain clear and open lines of communication. Inform employees about the reasons for the changes, the expected outcomes, and how they will be affected. Transparency is key to maintaining trust and commitment during periods of change.
• Step 9: Strengthen organizational culture: Post-restructuring, focus on reinforcing a positive organizational culture that aligns with the new business model. This involves promoting values that support the new strategic direction and encouraging behaviors that foster innovation and collaboration.

To sum up

Companies undertake corporate restructuring to improve efficiency, adapt to new market conditions, or achieve specific business objectives. Changing the organizational structure may include altering reporting relationships, redistributing responsibilities, and consolidating or dividing departments. The goal is to optimize workflow, enhance communication, and better align resources with the company’s strategic goals. These changes often lead to shifts in job roles, the introduction of new technologies, or modifying operational practices.

For HR, organizational restructuring presents challenges and opportunities. HR is pivotal in managing the change process, ensuring smooth transitions while minimizing disruption to operations and employee morale. This involves clear communication about the reasons for changes, the expected outcomes, and the impacts on staff. HR must also handle practical aspects like redefining job descriptions, overseeing training programs for new skills, and possibly managing layoffs or reassignments. Effectively, HR’s role is critical in maintaining stability and cultivating a positive work environment during the upheaval of restructuring.

The post Organizational Restructuring: 7 Strategies for HR (Plus Free Template) appeared first on AIHR.

Various reports also reveal a strong correlation between a positive culture and employee satisfaction, making a strong company culture a strategic imperative that demands continuous attention and integration throughout all aspects of the organization.

Contents
What is organizational culture?
What role does HR play in organizational culture?
Types of organizational culture
15 characteristics of a healthy organizational culture
The role of HR in organizational culture
Great cultures in action

What is organizational culture?

In management expert Peter Drucker’s immortal words, “Culture eats strategy for breakfast.” But what does that actually mean?

Organizational culture refers to the shared values, beliefs, and norms that influence the behavior of individuals within an organization. It encompasses everything from the environment and ethos of a company to the values that guide how employees interact, make decisions and perceive their roles and responsibilities.

According to Harvard DCE Professional & Executive Development, the average adult living in the United States will spend one-third of their life at work. The culture they experience during those estimated 90,000 hours is incredibly important to how they feel, their general health and wellness, their work engagement, and overall productivity.

According to SHRM’s report, The State of Global Workplace Culture in 2023, employees who rate their organization’s culture as “good” or “excellent” versus “poor” or “terrible” are 79% more likely to feel satisfied at work. They are also 83% less likely to be actively looking for a new job.

Glassdoor and Indeed’s Work Wellbeing 2022 Insights Report supports these statistics, with 90% of people believing that how they feel at work matters. However, only 49% of people report that their company measures happiness and wellbeing. 

This indicates that there is a gap between the importance of culture and the actual measurement and understanding of employee wellbeing. Add to that the fact that 46% of people are saying that their expectation around happiness at work has increased in just the last year, and it’s clear that there needs to be a greater emphasis on designing, implementing, and supporting organizational culture.

What role does HR play in organizational culture?

In the past, the approach to establishing organizational culture was quite linear: The CEO would direct the HR department to create a corporate culture. HR would then launch a campaign to promote a mission and values created by the CEO and senior management.

They might introduce workplace perks such as complimentary snacks or monthly birthday celebrations and perhaps conduct yearly employee engagement surveys, reporting the findings back to the CEO. Having ticked these boxes, the CEO and HR would often consider the task of culture creation complete and shift their focus elsewhere.

Treating culture with a tick-box mentality no longer works (if it ever did). The heightened emphasis on diversity, equity, and inclusion (DEI), workplace health and wellbeing, hybrid workplaces, and the ongoing competition for skilled labor mean that culture is no longer a peripheral concern.

It is a central strategic element with direct consequences for financial performance. It demands continuous attention and integration across all aspects of the organization rather than being siloed or seen as a one-off project. As an HR professional, you are uniquely positioned to create and support a healthy organizational culture.

Types of organizational culture

First, let’s take a look at the different types of organizational culture various businesses implement. According to Robert E. Quinn and Kim S. Cameron from Michigan University, organizational cultures are classified based on two types of competing values: flexibility versus stability and an internal versus external focus.

Here are six examples of how this looks in practice:

1. Adhocracy culture: Often referred to as the ‘create culture’, this culture is dynamic and entrepreneurial. It emphasizes innovation, flexibility, and adaptability, encouraging employees to take risks and think outside the box.
2. Clan culture: Known as the ‘collaborate culture’, clan culture is people-oriented and friendly. It focuses on teamwork, participation, and consensus, creating a family-like work environment where relationships and loyalty are valued.
3. Hierarchy culture: The ‘control culture’ is process-oriented and structured. It prioritizes efficiency, stability, and doing things right, emphasizing formal rules, policies, and hierarchical authority.
4. Market culture: Termed the ‘compete culture’, this culture is results-oriented and competitive. It drives employees to achieve measurable goals and perform at high standards, focusing on outcomes and productivity to outperform competitors.
5. Purpose culture: This culture is centered on ideals and a sense of mission that surpasses daily business operations. It emphasizes shared values and a commitment to societal or environmental goals to inspire employees and align their efforts with a broader purpose.
6. Learning organizational culture: Characterized by continuous improvement and adaptability, this culture promotes ongoing education, innovation, and a willingness to learn from mistakes. It nurtures an open-minded environment where knowledge sharing and collaboration are key to meeting new challenges.

15 characteristics of a healthy organizational culture

There is no right or wrong company culture. Instead, there are organizational cultures that suit the leadership, mission, purpose, and values of the business and its employees. When the culture and a company’s stated mission and values do not align, the environment can become toxic.

However, if your goal is to create a healthy organizational culture, here are 15 characteristics that contribute to the effectiveness and sustainability of a company’s culture.

Characteristic 1. Shared common values

Shared common values refer to the fundamental beliefs and principles that an organization adopts as its foundation.

These values act as a compass, guiding behaviors, decision-making, and interactions both within the organization and with external stakeholders. They help create a cohesive culture by aligning employees’ actions with the company’s core mission and vision.

Characteristic 2. Clear purpose and direction

A clear purpose and direction align the organization’s efforts and goals. This clarity helps unite the team, focusing their efforts on achieving specific objectives and guiding strategic planning and daily operations.

Characteristic 3. Transparent and regular communication

Transparent and regular communication supports openly sharing information and feedback throughout the organization. This practice fosters trust, helps in early identification of issues, encourages collaboration, and ensures that everyone is informed and aligned with the organization’s goals.

Characteristic 4. Collaboration and teamwork

Collaboration and teamwork underpin a cooperative environment where groups work together to achieve collective objectives. This approach enhances problem-solving, innovation, and efficiency, while also building a supportive work environment.

Characteristic 5. Active involvement and commitment

Employees are actively involved and committed to their work and the organization’s success. When employees are engaged and committed, they are more productive, contribute ideas, and take initiative, driving the organization forward.

Characteristic 6. Opportunities for growth

Opportunities for growth refer to the avenues provided by an organization for personal and professional development. This includes training programs, mentorship, career advancement paths, and learning resources. Such opportunities increase employee satisfaction, competency, and retention.

Characteristic 7. Recognition and rewards

Recognition and rewards involve acknowledging and appreciating employees’ efforts, achievements, and contributions. This can be through formal awards, bonuses, promotions, or simple verbal recognition. It motivates employees, reinforces desired behaviors, and enhances loyalty.

Characteristic 8. Welcoming and inclusive atmosphere

A welcoming and inclusive atmosphere is one that values diversity, promotes equity, and ensures all employees feel respected and valued regardless of their background.

An inclusive culture benefits from a wider range of perspectives and experiences, leading to better decision-making and innovation.

Characteristic 9. Credibility and trust

Credibility and trust are built through consistent ethical behavior, transparent decision-making, and integrity in leadership. This foundation allows for open communication, encourages risk-taking, and strengthens relationships within the organization.

Characteristic 10. Clear objectives and strategies

Clear objectives and strategies provide direction for what the organization aims to achieve and how it plans to get there. This clarity helps prioritize tasks, allocate resources efficiently, and measure progress, ensuring that everyone is working toward the same goals.

Characteristic 11. Flexibility and responsiveness

Everyone within the business has the ability to respond to changing environments and needs quickly and effectively due to high levels of trust and flexibility.

This agility is crucial for staying competitive and meeting stakeholder expectations in a dynamic business environment.

Characteristic 12. Empowerment and initiative

Employees are empowered and encouraged to take initiative and make decisions that influence their work and the organization positively. This empowerment fosters a sense of ownership, drives innovation, and accelerates problem-solving within the organization.

Characteristic 13. Constructive handling of disagreements

Constructive handling of disagreements means addressing conflicts in a positive manner that respects all parties involved and seeks a solution beneficial to everyone.

This approach prevents escalation, promotes understanding, and maintains harmony within the team.

Characteristic 14. High ethical standards

Upholding high ethical standards involves conducting business and making decisions in a manner that is fair, responsible, and compliant with legal and moral guidelines. This commitment to ethics protects the organization’s reputation and ensures long-term success.

Characteristic 15. Community engagement

Community engagement refers to the efforts made by an organization to contribute to the wellbeing of the communities in which it operates. Engaging in social responsibility initiatives demonstrates the organization’s commitment to making a positive impact beyond its business interests.

The role of HR in organizational culture

If you’ve reached this point in this article, you are hopefully all in on how important organizational culture is, as well as the critical role you can play in creating and sustaining a healthy company culture.

With that in mind, here are some areas where your input can be game-changing for your organization and its employees:

1. Define your company culture  

HR plays a pivotal role in shaping and clearly articulating the company’s mission, vision, and values.
→ Do this: Collaborate with leadership to craft meaningful, resonant statements. Conduct workshops to ensure these values are relevant and embraced across all levels.

2. Measure the existing culture

Regular assessments of the organizational culture let you understand its strengths and weaknesses.
→ Do this: Use surveys and feedback tools to gauge employee sentiment and alignment with the company values. Analyze turnover rates and employee engagement scores.

3. Hire for cultural fit

Ensure new hires align with the company’s cultural values.
→ Do this: Incorporate cultural fit into recruitment criteria. Use behavioral interview techniques to assess candidates’ alignment with organizational values.

4. Implement programs that build company culture

Create and manage programs that reinforce the desired culture.

→ Do this: Develop comprehensive onboarding programs that introduce new hires to the company culture. Implement recognition programs that reward behaviors aligned with company values.

5. Support diversity and inclusion

Build a culture that embraces diversity and inclusion.
→ Do this: Implement diversity training programs. Create diverse hiring panels to ensure a broad range of perspectives in the recruitment process.

HR tip

Go beyond the numbers. As open-ended survey questions to get insights into employee sentiments and cultural dynamics. This can be especially powerful in pinpointing the root causes of cultural toxicity.

6. Assist with adapting the culture

Facilitate culture adaptation during organizational changes like mergers or rapid growth.
→ Do this: Provide training and support to help employees navigate changes. Establish clear communication channels to keep staff informed and engaged during transitions.

7. Support internal communication

Enhance the effectiveness of internal communication strategies.
→ Do this: Develop internal communication platforms that facilitate open discussions and sharing of ideas. Organize regular town hall meetings to discuss company values and direction.

8. Promote work-life balance

Encourage a healthy balance between work and personal life.
→ Do this: Implement flexible working policies and support remote work options. Provide resources and programs that assist with stress management and mental health.

9. Develop leadership

Ensure leaders are ambassadors of the company culture.
→ Do this: Offer leadership development programs that emphasize cultural leadership. Mentor leaders on how to exemplify and reinforce company values in their teams.

10 Monitor and enhance employee satisfaction

Regularly assess and improve employee satisfaction.
→ Do this: Conduct annual employee satisfaction surveys. Create action plans based on survey results to address areas of concern and enhance positive aspects of the work environment.

11. Enhance organizational ethics

Uphold and promote ethical standards within the company.
→ Do this: Create clear ethical guidelines and conduct regular ethics training. Establish a confidential system for employees to report unethical behavior.

12. Facilitate team building

Strengthen team cohesion and promote a collaborative environment.
→ Do this: Organize regular team-building activities that align with company values. Create cross-departmental projects to enhance collaboration.

13. Sustain safety and wellbeing

Ensure the physical and psychological safety of the workforce.
→ Do this: Conduct regular safety drills and training. Offer wellbeing programs that include physical, mental, and emotional health resources.

Great cultures in action

To give you some inspiration, here is how HubSpot and Zappos approach culture.

Example 1: The HubSpot Culture Code

HubSpot views company culture as the promise you make to your employees and candidates. It answers key questions like, ‘What sort of environment can people expect to work in? What are our core values? What are our norms?’

To ensure everyone at HubSpot understands what that promise is and what to expect, employees who work at HubSpot are expected to have HEART: To be Humble, Empathetic, Adaptable, Remarkable, and Transparent.

Here is how HubSpot defines its culture:

• Culture is to recruiting, as product is to marketing
• Solve for the customer, not just their happiness but their success
• Power is gained by sharing knowledge, not hoarding it
• HubSpot has a no-door policy, where everyone in the company has access to anyone
• You shouldn’t penalize the many for the mistakes of the few
• Results should matter more than when or where they are produced
• Influence should be independent of hierarchy
• Great people want direction on where they’re going, not directions on how to get there
• We’d rather be failing frequently than never trying.

Example 2: Zappos lives and delivers WOW

Known for ‘the culture everyone wants to copy’, Zappos’ culture is defined by its commitment to customer service and company values, emphasizing employee happiness and organizational flexibility.

Core elements of its culture include a strong focus on customer satisfaction, a distinctive approach to employee engagement, such as the $1000 offer to quit after a few weeks on the job (Zappos does not want anyone who does not 100% want to be there), and a flat organizational structure through ‘Holacracy’. This blend of creativity, autonomy, and a strong value system has proven itself through a cohesive and innovative work environment.

Here are a few cultural phenomena Zappos has personified:

• Zappos strongly emphasizes exceptional customer service and aligns its entire culture around enhancing customer satisfaction. Founder Tony Hsieh has made it clear he willingly gives up short-term profits to ensure his company has the best culture possible.
• Initiatives like the ‘Pay to Quit’ bonus are designed to ensure employees are genuinely committed to the company’s culture.
• Zappos employs a unique management system that removes traditional hierarchies, promoting autonomy and rapid decision-making.
• New hires undergo extensive training to immerse them in the company’s values, ensuring a good fit with the organizational culture.
• Zappos values adaptability and continuous improvement, encouraging employees to embrace change positively.

To sum up

With a majority of people (79%) more likely to feel satisfied at work in a positive culture, and 83% less likely to seek new jobs, it’s evident that how employees perceive their workplace culture directly impacts their work satisfaction and loyalty. This underscores Peter Drucker’s sentiment that culture is more influential than strategy in determining a company’s success.

HR (that means you) has moved away from implementing top-down culture initiatives to actively shaping and nurturing an organizational culture that aligns with modern workplace demands such as diversity, equity, inclusion, and employee wellbeing. HR professionals have the critical role of focusing on continuous culture assessment, crafting inclusive policies, and aligning hiring practices with the organization’s cultural values to ensure sustained organizational health and effectiveness.

There are many different types of organizational cultures. The suitability of a culture type depends on your organization’s goals, industry, and workforce dynamics. Recognizing and intentionally cultivating a specific type of culture can lead to better alignment with organizational objectives and enhance overall performance, suggesting that one-size-fits-all approaches to culture may not be effective.

The post 15 Characteristics of (a Healthy) Organizational Culture appeared first on AIHR.

When employees respond well to an organizational culture, it encourages collaboration and innovation to propel the company forward. On the other hand, an organizational culture that employees find discouraging can hinder success. 

Organizational culture surveys tell the story of what’s going on in your workplace culture. This article covers what organizational culture surveys have to offer, provides 17 example questions to ask your employees, and recommends some best practices for administering and making the best use of them.

Contents
Why measure organizational culture?
17 organizational culture survey questions to ask
Checklist: How to conduct an organizational culture survey
Organizational culture survey: Top tips for analyzing the results

Why measure organizational culture?

The type of culture an organization offers can work to either its benefit or detriment. A cohesive, supportive culture creates trust, camaraderie, and belonging and unites employees with organizational goals and each other. It’s also a catalyst for attracting and retaining highly talented employees who are engaged and productive. 

In fact, 92% of the 3,000 participants in an EY U.S. survey stated that company culture is a top factor in whether they stay with an employer.

A Gallup poll showed that only 21% of respondents strongly agreed with feeling connected to their organization’s culture.

However, those that do feel connected are:

• 3.7 times as likely to be engaged in their jobs
• 68% less likely to often feel burned out at work
• 55% less likely to be on the lookout for a new position
• 5.2 times as likely to strongly recommend their employer to others. 

Since healthy, resilient cultures support better business success, every organization must stay abreast of how its current culture resonates with employees. Measuring organizational culture is the key to this.

The benefits of conducting an organizational culture survey

While there are other ways to gauge corporate culture, a survey can help get data directly from employees to make informed HR and business decisions.

Conducting organizational culture surveys offers many advantages, including the following:

• Identifying the current culture and establishing benchmarks for future assessments
• Being aware of what employees appreciate about the culture
• Identifying issues and practices that undermine the culture
• Fostering transparency and communication with employees
• Demonstrating a commitment to valuing employee input
• Empowering changes that drive improvements.

17 organizational culture survey questions to ask

Employee feedback is essential when evaluating organizational culture. To understand employees’ authentic perceptions of your culture, you need to ask questions that will extract the right information.

Following are 17 sample organizational culture survey questions, with explanations of how they relate to assessing workplace culture.

1. Is the organization’s mission and vision clear to you? 

Organizational culture should match up with what the company claims to be about. If employees are unclear about the organization’s mission and vision, they can’t live them out as expected. 

2. Do you see the impact of your duties on achieving organizational goals?

Employees who can see the value of their contributions will feel aligned with the organization and form a more connected culture.

3. How effective is overall communication throughout the organization?

When employees feel informed about what’s happening, there is greater transparency and less employee frustration in the work environment.

HR tip

In-depth (20+ questions) company culture surveys should generally be conducted at least once a year. Shorter pulse surveys can be useful to send out a few times per year. These can help to understand the impact of significant organizational changes, measure cultural improvement initiatives, and help allocate resources.

4. Is there transparency in how high-level decisions are made?

When employees understand the reasons for changes and new procedures, it reduces misinformation and negative speculation that can circulate throughout the workplace.

5. Are the organization’s ethics and compliance policies clearly defined and carried out? 

A lack of ethics or inconsistencies in practicing them can lead to mistrust and problematic behaviors.

6. Does the organization provide a safe working environment for all employees?

It’s difficult to cultivate a positive organizational culture if employees feel unsafe or like they have to be overly cautious.

HR tip

Inform employees that their survey responses are confidential. You must guarantee anonymity for employees to feel safe sharing the kind of candid feedback you need from them.

7. Does the organization honor and promote Diversity, Equity, Inclusion and Belonging?

DEIB statements and policies are easy to implement, but employees will sense if they’re just lip service.

8. Does the organization support employee wellbeing and work-life balance?

When employees feel valued as human beings, not just workers, it creates a nurturing environment where they can thrive.

9. Does your manager empower you to make decisions?

A sense of autonomy allows employees to take more pride in their work and realize they can make an impact.

HR tip

Ask executive leaders to participate in the survey as well. Consider isolating their results and comparing them to the overall results. This will reveal any disconnect between how leadership and the rest of the workforce interpret culture.

10. Do you feel free to voice your ideas and opinions on work matters?

When employees can speak freely, they feel heard and entrusted with bringing solutions to the conversation. 

11. Can you voice concerns without fear of repercussion?

If employees know they’ll suffer consequences for speaking up, they’ll tend to ignore problems or tolerate difficult situations. Small struggles will fester into crises that create a contentious environment, leading to worse business outcomes.

12. Do you feel encouraged to originate and experiment with creative ideas? 

In a healthy organizational culture, employees know they can try new ways of doing things, even if they don’t always succeed.

HR tip

Anticipate any obstacles employees might face in completing the survey. For example, will they have enough allotted time for it? Will the survey load and be easy to complete on their devices?

13. Is the onboarding process effective in helping new employees settle into the workplace?

New hires get their first real taste of company culture during onboarding. They will feel valued and appreciated if they are welcomed and well-prepared to start their roles.

14. Are conflicts and interpersonal issues addressed and resolved effectively?

Tension among employees can be picked up by everyone they interact with and can spread throughout the workplace. Addressing these situations promptly prevents them from becoming a tolerated norm.

15. Are enough opportunities provided for continuous learning and acquiring new skills?

An organization’s commitment to long-term employee investing demonstrates a culture of growth and development.

HR tip

No survey can cover everything, so allow employees the chance to offer more input. Include a section where employees can share additional comments or suggest other questions they’d like to see on the survey.

16. What do you like best about our company’s culture?

Hearing directly from employees about your strong cultural points will reveal what you should be reinforcing.

17. How could the organizational culture be improved?

Every employee will value different aspects of organizational culture. However, uncovering the most common priorities will help you spot emerging problems and focus on the most meaningful areas.  

Checklist: How to conduct an organizational culture survey

An effective organizational culture survey questionnaire is intentional. It’s important to consider the factors that will help you engage employees and capture the right information.

Here are six steps to guide you through the process of executing an organizational culture survey:

• ✓ Identify the objectives: Determine the purpose of the survey. In other words, why do you want to gather this information from employees? Do you want to affirm the overall culture’s strengths and weaknesses? Are you trying to assess whether the culture is affecting employee engagement? Maybe you want to see how well the culture reflects the company’s core values. Once you decide on the end goal, you’ll be able to design the survey specifically with this in mind.
• ✓ Collaborate with stakeholders: Getting stakeholder input on the survey structure and topics will generate diverse perspectives to ensure the survey is comprehensive and relevant to the entire organization. Key stakeholders to engage with may include executives, team leaders, other HR team members, and employee representatives.
• ✓ Choose the survey delivery method: The right survey delivery method is crucial to getting maximum participation and optimal results. A user-friendly online platform streamlines the process by providing easy access and simplifying data collection and analysis. If you have deskless employees with varying degrees of access to digital tools, be sure to incorporate alternative formats.
  Make the survey as concise as possible. Reveal the number of questions upfront so employees know what to expect. A progress bar displayed throughout the survey may keep respondents on task.
• ✓ Choose question types and craft the wording: Several question formats are commonly used in culture surveys. For example, multiple-choice, yes/no rank order, opinion scale, Likert scale, and open-ended short answer. Using a combination of types will gather different types of data, break up the monotony of the survey, and give respondents more options for expressing their opinions.
  Ensure that each question is worded to be clear, concise, and focused on relevant feedback. Avoid biased wording that prompts the desired response. (i.e., “How amazing is our relaxed work environment?”) Use straightforward language and avoid HR or other kinds of jargon that some employees won’t be familiar with.
• ✓ Conduct a pilot survey: Before officially launching the survey, do a trial run with a small number of employees from various departments. They can describe what it was like to take it and reveal any problems with the survey format, question comprehension, or response options.
• ✓ Implement the survey: At this point, the survey should be ready to release. Here are a few tips for a successful roll-out:
  • Promote the survey within all applicable communication channels
  • Provide the link to the survey and share how long it will take them to complete
  • Communicate the purpose of posing employee questions about culture
  • Explain why employee input is so valuable and how it will be used
  • Describe what types of actions or initiatives may come about from the survey results and how this will affect employees.

Organizational culture survey: Top tips for analyzing the results

Key takeaway

Organizations shape their cultures both intentionally and unknowingly. Unfortunately, leaders aren’t always in touch with the nuances of how employees experience culture. 

HR can help bridge this gap by conducting an organizational culture survey and exploring the data it yields. Once you understand what your employees think works well, and what doesn’t, you’ll be equipped to strategize and act on what will enrich the culture and support organizational achievement.

The post 17 Organizational Culture Survey Questions To Include appeared first on AIHR.

Contents
What is the job characteristics model?
5 core job characteristics in the job characteristics model explained
What is the goal of the job characteristics model?
Psychological states and work outcomes
Job characteristics model examples
FAQ

What is the job characteristics model?

In 1975, organizational psychologists Greg R. Oldham and J. Richard Hackman wanted to figure out why employees lost interest in their jobs. So, they studied people and their jobs and came up with a universal model that we still use–more than 40 years later–called the job characteristics model.

You can apply this model to any job and then work to make the job more engaging and, therefore, a job that will keep the employee happier and more productive. It consists of five components:

• Skill variety
• Task identity
• Task significance
• Autonomy
• Feedback 

Each one of these components can be adjusted to recalibrate a job, making it more engaging for the employee.

5 core job characteristics of the job characteristics model explained

The five core job characteristics identified in Oldman and Hackman’s job characteristics theory and model are:

Let’s have a look at how these core job characteristics translate into actual jobs:

Primary school teacher

• Skill variety. High. A primary school teacher works with multiple children and applies a multitude of skills on a daily basis. Every day, there is a new challenge.
• Task identity. This can depend on the school and the assignment. Each unit can have a beginning, middle, and end so that a teacher can see clear progress.
• Task significance. While many would argue that a primary school teacher has incredibly high task significance, their impact may be limited to one class. In contrast, a school principal oversees many teachers, students, and grades and has a higher task significance.
• Autonomy. A teacher who designs their curriculum has a high degree of autonomy. A teacher who must teach a pre-planned curriculum on a school administration schedule, using only rewards and punishments approved by the school board, will have a lower degree of autonomy.
• Feedback. The primary school teacher receives feedback from a variety of sources. They can see the test scores and the progress their students make. They also receive information from their supervisors and parents. All these things work together to provide a high degree of feedback.

Fast food worker

• Skill variety. If the employee runs a cash register, takes orders, makes sandwiches, helps with inventory, and trains new hires, this job has a high degree of skill variety. If, on the other hand, they stand at the sandwich-making station all day, it would be a low level of skill variety.
• Task identity. This would vary greatly depending on the skill variety. Someone who spends the entire day in one station could have a beginning, middle, and an end but not feel responsible for the whole process.
• Task significance. The typical fast-food worker makes very few decisions outside of a small set of tasks–should I make the sandwich first or fill the drink cup? These tasks have a low level of significance, as they do not affect the company as a whole.
• Autonomy. With low variety, task identity, and task significance, this job also comes with low autonomy. The fast-food worker makes sandwiches according to a chart on the wall and fries french fries by pushing a pre-programmed button. 
• Feedback. The fast-food worker receives feedback based on immediate responses from customers and coworkers. Managers also provide feedback.

HR Generalist

• Skill variety. The HR generalist scores very high in skill variety, as they are responsible for employee relations, benefits management, employee compensation, and many other tasks daily, having to use multiple skills.
• Task identity. While there is a strong identity associated with the title, there is very rarely a beginning, middle, and end. An HR generalist can never say, “all employees are engaged and happy, so I’m done with employee engagement tasks.”
• Task significance. A good HR generalist can help make a company run smoothly. They can coach managers to be better, provide accurate information to the government, and help employees navigate difficult situations at work. A bad one can destroy the morale of the company. Therefore, task significance is high. 
• Autonomy. This can vary greatly. An HR generalist who runs their department and reports to a supportive company president can have a high independence level. A company that limits the HR generalist’s work and undermines their suggestions can create a job with low autonomy.
• Feedback. Feedback for an HR generalist can be difficult. Some successes or failures aren’t seen for years, if ever. What’s more, a non-HR supervisor may not understand what they accomplished and give limited feedback. As a result, this can be a difficult job for accurate feedback.

What is the goal of the job characteristics model?

Oldham and Hackman were looking to reduce the boredom and monotony that comes from working in a factory setting. Instead of getting better and more productive as time passed, they found that employees were becoming bored and unengaged, and their performance dropped. This model helps turn jobs around.

The job characteristics model can help an HR professional evaluate a job and make it better and more engaging. Managers can work with their employees to create a better situation for everyone–ultimately increasing engagement and productivity.

Sometimes, jobs just “happen.” There is a lot of work to be done, so companies hire a new person but fail to conduct a job analysis and create a position without a proper job design process. Using Hackman and Oldham’s job characteristics model, you can sit down and design a job to be more effective.

Here are some of the ways that the job characteristics model can help organizations:

It helps in creating job design strategies.

Unless your business consists of one solo practitioner, you have multiple people in multiple roles. Tasks assigned to each job can vary from position to position. With the job characteristics model, you look at all the functions and build various jobs around them.

For instance, you can bring in job rotation, which allows a bit of variety in everyone’s day. Or, you can work to simplify some tasks–especially ones that are tedious. You’ll have some areas you will want to expand and make more critical, and you’ll figure out where you need to include employee enrichment.

The job characteristics model recognizes that it’s not just about working today, but developing jobs for the future, so employee enrichment is a critical part of this model.

It improves job satisfaction.

When Human Resources and management work together with the job characteristics model, they design each job to increase job satisfaction. While it’s impossible to do away with all boring or monotonous tasks, this model can reduce those problems.

For example, your busy law firm may have enough work for one person to spend all day filing–a tedious and boring job. You might break that task up so that four people spend two hours per day filing and the other six doing more exciting tasks. The result is higher job satisfaction and better performance.

It enables job enrichment.

This step focuses on taking a regular job and adding additional tasks and assignments to make it a better job. Instead of focusing on making things as easy as possible, job enrichment makes it more motivating. Job enrichment can give purpose to the job. While the job characteristics model comes from the 1970s, it is still very timely. Younger workers place a high value on meaningful work, and job enrichment can do just that. 

Better delegation of tasks.

The job characteristics model uses job design to make jobs better. Jobs are broken down into specific tasks, and employees receive authority to carry those tasks out. This autonomy gives employees more control over their work environment and increases their job satisfaction.

Clear organizational information.

When everyone’s job description is a result of thorough job analysis with clear tasks and responsibilities, it is easier to manage the organization. You can see who is responsible for which duties. It can make general organizational design easier. 

It allows for straightforward performance appraisals and goal setting.

Because each job is designed rather than thrown together, setting goals and evaluating employee performance becomes more manageable in an organization that follows the job characteristics model.

Psychological states and work outcomes

The original development of the job characteristics model searched for how to make jobs better so that employees can be happier and more productive at work. This model can help by affecting the employees’ psychological states. These include:

• Experienced meaningfulness. When an employee feels that they accomplish something of value, meaningfulness is the result.
• Experienced responsibility for outcomes. Using the job characteristics model and giving employees autonomy over their tasks, they can feel responsible for their work. If they accomplish the work successfully, that’s a positive psychological outcome.
• Knowledge of the actual results. In larger companies or siloed organizations, employees often find it difficult to see the consequences of their actions. With good task identity and feedback, an employee can see their impact on the bigger organization.

The updated model defines the following work outcomes:

• Internal work motivation. Employees whose jobs have been optimized under the job characteristics model feel responsible for their work and find it more meaningful. Therefore, their internal motivation increases.
• Job satisfaction. Job satisfaction increases when employees experience autonomy, receive meaningful and timely performance, and feel their work is significant. This, in turn, leads to performance. 
• Work performance. This was a key driver in developing the job characteristics model. The organizational psychologists wanted to increase performance through the careful use of these tools. Evaluating and optimizing jobs for each category improves performance.
• Low absenteeism rate and turnover. Happy and engaged employees are more likely to come to work and less likely to quit. 
• Quality and quantity of work. When applied effectively, this model can increase both the quality and quantity of work and employee satisfaction. It brings out the best results for employees and managers alike.

Job characteristics model examples

Reading about the job characteristics model, you can see its benefits quite clearly. However, it may feel overwhelming to redesign the roles in the entire company based on this model. You do not need to do everything at once–you can start with one job at a time.

Let’s take a look at some examples of how to put the job characteristics model into practice.

1. Primary school teacher

For the primary school teacher, you can increase task identity by dividing the work among several teachers. By having one teacher teach all the second-grade students math while another tackles physical education, they can develop a deeper connection and expertise in their designated area, which not only improves their sense of identity with the tasks but also increases their autonomy.

Furthermore, this specialization can lead to a greater sense of accomplishment and recognition as they see the direct impact of their efforts on student learning and development over the course of the year. That means they have feedback on their work.

2. Fast food worker

For a fast-food worker, you can increase variety by having employees learn each station and rotate through. So, someone may run a cash register on Monday, make sandwiches on Tuesday, and be in charge of the drive-through on Wednesday. This not only prevents the monotony associated with performing repetitive tasks but also increases their understanding of how each station contributes to the overall customer experience.

The variety fosters a more engaging and dynamic work environment, which can boost morale and team cohesion as employees gain an appreciation for their colleagues’ roles and challenges.

3. HR generalist

The HR generalist can have an enriched job when management trusts them to decide how to approach their job. Allowing them the autonomy to make decisions on how best to carry out their responsibilities can lead to more innovative and effective HR practices.

When HR generalists are entrusted with more control over their tasks, from recruitment strategies to employee development programs, they can tailor their approach to meet the unique needs of the organization and its workforce. This autonomy, coupled with the responsibility for significant areas within the organization, enhances their sense of significance and identity within their role.

Furthermore, it provides them with direct feedback on their initiatives’ effectiveness, creating a cycle of continuous improvement and professional growth.

For instance, by pulling from the job characteristics model examples above, you can see how to maximize the model.

There are many different ways to enrich a job. Ask yourself the following questions:

1. Are there tasks that can be combined to give variety?
2. Are there tasks that can be separated and divided among employees to increase variety?
3. Is a siloed function working (everyone on this team makes hamburgers), or would it increase variety, autonomy, and task significance if you had everyone responsible for creating a customer’s entire meal?
4. Is there an opportunity for growth? Are the skills the employee develops with this job applicable to higher-level positions? If not, what tasks can you add to increase these skills?
5. Are you providing proper feedback? Is natural feedback occurring? Allowing employees to see how their work fits into the larger picture can increase the feedback organically.

A final word

The job characteristics model is a practical tool to analyze your organization’s jobs, which helps you improve your jobs, ultimately leading to increased motivation, satisfaction, and performance. It can be a great way to start revising job designs to better align with employee needs and organizational goals.

If you want to future-proof your HR skill set and develop new HR competencies, check out our All You Can Learn Certification Program!

FAQ

The post Job Characteristics Model: A Practical Guide appeared first on AIHR.

In this article, we will explain what job evaluation is, discuss key methods of job evaluation, take you through the full job evaluation process, and share some job evaluation examples. Let’s dive in!

Contents
What is job evaluation?
Benefits of job evaluation
Job evaluation methods
Job evaluation template to download
Job evaluation process: 4 phases
Job evaluation examples
FAQ

What is job evaluation?

Job evaluation is the systematic process of using internal and external data to determine the relative value that specific jobs bring to an organization. This ensures that compensation is commensurate with the worth of individual roles and that each has appropriate entry and performance requirements. 

The goal of job evaluation is to compare jobs with each other to create a pay structure that is fair, equitable, and consistent for everyone. 

Job evaluation is often used for purposes such as:

• Designing competitive and equitable salary range structures
• Determining pay for newly created positions
• Ensuring fair compensation for related positions.

HR is responsible for job evaluation but may partner with a consulting company that conducts the process. In any case, there must be collaboration with leadership teams and workers’ unions or other partners to confirm the evaluation criteria for each position. For instance, these can be working conditions, required skills, degree of difficulty, and supervision needed.

Job evaluation determines the relative worth of a job based on the role itself and not the individual skills of the person performing the job. According to a European Commission report on pay transparency, “(t)he determination of the worth of a job is assessed irrespective of the qualities of the specific job holder.” 

The relative worth corresponds to a ranking, which then corresponds to pay scales (called wage grids). Based on this evaluation, the job is added to the job structure. The resulting structure ensures pay transparency and equity between various groups of employees.

Personal qualities of the job holder, including seniority, education level, and tenure, are rewarded by an entitlement to higher steps within the applicable pay bracket. 

The European Commission actively encourages the use of job evaluation. According to Cordis, which coordinates EU-supported R&D activities, 49% of European organizations in the private sector use a formal job evaluation scheme, with small and mid-sized businesses at less than 3%. This lack of evaluation leads to unstructured wage payment practices and a lack of requirement-based career and skill development for employees.

Check out our Learning Bite to learn everything you need to know about the Job Evaluation.

Job evaluation vs. job analysis

Job evaluation and job analysis, though closely related, serve distinct purposes within an organization. While job evaluation assesses the relative value of positions within an organization, a job analysis provides the foundational information necessary for the evaluation. Job analysis determines a position’s duties, responsibilities, and environment, as well as which skills, credentials, tools, and equipment are needed to perform the job.

Essentially, job analysis outlines what a job entails and the environment in which it is performed, serving as a critical input for creating accurate job descriptions. These descriptions, in turn, are instrumental for job evaluation, as they offer a comprehensive overview of each role, enabling organizations to accurately assess and compare the value of jobs to the company.

Benefits of job evaluation

While job analysis is a resource-intensive process, it’s worth investing in for the following reasons:

• Ensures fair and equitable compensation: Job evaluation helps establish a compensation system that is fair and equitable, aligning pay with the relative value of each job within the organization.
• Helps create competitive salary structures: By assessing the worth of different roles, organizations can design competitive salary ranges that attract and retain talent.
• Promotes pay transparency: The process contributes to pay transparency, making it clear how salaries are determined and reducing the potential for disputes over pay equity.
• Streamlines payroll budgeting: Job evaluation allows you to take a systematic approach for budgeting salaries and wages, helping to manage payroll costs effectively.
• Aids in compliance with legal standards: It helps organizations comply with legal and regulatory requirements related to pay equity and non-discrimination.
• Supports strategic HR management: Job evaluation aligns with strategic HR goals by ensuring that compensation practices support the organization’s overall objectives and culture.
• Enhances employee satisfaction and morale: Fair and transparent compensation structures improve employee satisfaction, morale, and trust in management.

Job evaluation methods

There are a variety of methods for job evaluation, and all of them involve comparisons derived from either qualitative or quantitative data. Qualitative methods draw comparisons from a subjective review of each position’s characteristics. Quantitative methods assign numerical values to each position and depict the comparison in numbers. 

Here is a look at how four common job evaluation methods fall into these two categories:

Each type has its advantages and disadvantages. The qualitative methods are usually faster while the quantitative methods are more objective and account for required skills and responsibilities. The best approach is typically a combination of techniques.

Next to the four above-mentioned methods, market pricing and Hay job evaluation system are also often used to conduct job evaluations.

Following is a brief explanation of six job evaluation methods:

Job evaluation methods are selected depending on organizational size and complexity. The paired comparison method (choosing the more impactful job of a pair, as displayed below) works well for smaller organizations, while a factor comparison or a point method of job evaluation works better for larger companies.

Point factor method in more detail

The point factor method is probably the best-known of all job evaluation methods. On a high level, the steps for this approach are as follows: 

1. List jobs.
2. Define evaluation factors and factor subcategories.
3. Determine scoring degrees on these factors.
4. Assign a weight to each factor.  
5. Allocate points per job for each factor.
6. Define a new wage structure.
7. Adjust the existing wage structure.

Here is what a sample point factor job evaluation method could look like for an individual role:

Once you’ve collected the data for individual jobs, you can create an overview of all the jobs within your organization or a certain department.

Based on that, you can visualize the spread of points and a salary range per job, similar to the image below. Any outliers can be calculated and need to be dealt with on an individual basis, as we discuss in the next section.

Job evaluation process: 4 phases

Implementing a job evaluation demands significant time and planning. While each method has its own procedures, there are some general phases involved in every job evaluation process. We’re outlining the following four phases to guide you through executing an effective job evaluation:

Phase 1: Planning & diagnosis

A job evaluation project starts with an initial workshop to decide on the scope and approach.  

In terms of scope, you need to make decisions on the following:

• How job evaluation will be used to support equal pay
• Cost/budget
• Time constraints
• Degree of rigor applied 
• Who are all the stakeholders?
• Who will be responsible for administration? 
• Data sources, tools, and software
• External help required
• How to build on previous projects

The next decision is which job evaluation method you will use. It’s also important to consider the degree of customization your organization needs for the method. For example: 

• Proprietary. This is an existing framework created by consultants. It has been tried and tested, is easy to implement, and requires low internal effort. The con is that it may not suit every organization and creates dependence on the supplier.
• Customized. This builds upon an existing framework. It provides a good starting point, leads to faster implementation, and helps to create employee buy-in. This may require sufficiently revising a framework that is not entirely suited for the organization.
• Tailor-made. This is a fully customized scheme developed in-house with the help of external advisors. The participatory process leads to buy-in and enables alignment with a competency framework. Although it will be a great fit for the organization, the process will take longer and cost more.

Next comes identifying benchmark jobs, planning the data collection, and forming a communication plan for the job evaluation team. 

Bear in mind that this phase will require multiple meetings to cover everything. Rushed planning can result in more roadblocks and inefficiencies that slow or stall the process.

Phase 2: Design & development

The second phase involves determining which evaluation elements and levels to incorporate as benchmarks. This often happens through a workshop to discuss how various roles impact the organization. 

It is important to identify relatively timeless elements because the job scheme is relevant only for as long as the elements it is based on are relevant. 

Once this is complete, it’s time to collect and analyze data on the different roles in the organization, such as:

• Organizational chart or hierarchy with grade classifications
• Current salaries
• Job descriptions
• Workforce demographics

Phase 3: Validation & modeling

The third phase starts with discussing the collected data and the weightings of the different elements. This may require some fine-tuning as initial definitions often skew the results.

Next comes drafting a pay grade structure and categorizing jobs. It is likely that certain jobs will not fit perfectly within the pay grade structure. For example, these can be specialist roles in artificial intelligence and machine learning that are in demand and crucial for the company’s future. These jobs may have to be ranked higher on the salary scale than their titles correlate with. As qualified candidates for these roles become more abundant in the future, their placement on the pay scale may need to be revised.

Phase 4: Communication & roll-out

The final phase of the job evaluation process is where the new pay structure is implemented. It is crucial to explain to everyone affected why their pay grade may have changed. 

This phase goes smoother when there is buy-in throughout the organization. There should be an opportunity for employees to appeal decisions they perceive as unfair. Investigating these circumstances will help employees feel heard, ensure transparency, and uncover potential discrepancies in the system that need to be remedied. 

As a note of caution, lowering current workers’ salaries is not advisable. This will cause unrest, lower morale, and prompt people to leave the organization. Furthermore, certain wages are protected under labor laws.

Job evaluation examples

There are all kinds of scenarios where conducting a job evaluation is a good idea. Here are three job evaluation examples that demonstrate how it can be put into action.

1. Job evaluation for a merger

When Scotland’s regional and specialist police forces merged, Police Scotland/Scottish Police Authority (SPA) became the second-largest law enforcement group in the U.K. Since each agency came in with its own compensation program, a job evaluation was needed to create a fair and consistent pay and grading system for the combined staff.  

Police Scotland/SPA hired a consultant to conduct the process with the help of a factor-based job evaluation software program. After a thorough assessment of over 800 staff roles, they were able to create an appropriate pay and grading structure. 

2. Job evaluation for recruitment

In this hypothetical example, a mid-sized e-commerce company was struggling to fill entry-level customer service positions that were crucial for its growing business. The hiring managers noted that applicants often desired higher starting pay than was offered. 

The HR director used the market pricing job evaluation method to gather external market data and compare its salaries to those of similar-sized organizations. The comparison showed that their starting salary was roughly 15% lower than average. This information incentivized the leadership team to approve an increase in starting pay and expand the salary range for these roles.

3. Job evaluation for an initial pay structure

In another speculative example, a locally owned landscaping business offered a range of services from lawn maintenance to tree removal. The company was expanding and needed to formalize how employees were paid. Despite handling different responsibilities, most were earning the same hourly wage.  

The owner devised a basic compensation structure by reviewing the typical duties carried out by various employees and classifying them into the following four titles:

1. Specialty team leader
2. Team leader
3. Specialty landscaper
4. Landscaper

These categories were based on the level of responsibility and expertise needed to handle tasks and operate specific equipment. With clarification of what each role contributes, employees were paid appropriately via a justifiable method. 

Over to you

Job evaluation is the basis for making informed decisions about distributing pay effectively and achieving equitable compensation for employees. The process requires a significant commitment of time and resources. However, understanding each role and assessing its compensatory value is well worth the effort.

A transparent and coherent pay structure promotes pay satisfaction by showing employees how they are paid for what they do. It can also increase their motivation to be productive and improve their skills to achieve career growth.

If you’d like to learn more about job evaluation, we recommend the Hay Job Evaluation Manual and the book Job Evaluation by Armstrong and colleagues, which we used as one of the resources for this article.

FAQ

The post Job Evaluation: Your 2024 Guide [+ Free Template] appeared first on AIHR.

Well, a rather large impact as it turns out. In a recent global study by PwC, the majority (67%) of respondents stated that culture is more important than strategy or operations. The same research found that organizations with a distinctive culture experienced greater competitive advantage in terms of a 48% higher revenue, an 80% higher employee satisfaction and an 89% higher customer satisfaction.

This wouldn’t come as a surprise to most HR professionals, since strong cultures in companies have long been correlated with above-market returns – the thing is when discussing organizational culture, it would be a mistake to neglect organizational climate. Read on to find out why.

Contents
Defining organizational culture
What is organizational climate?
Organizational climate vs. culture: The differences
Organizational culture examples
Organizational climate examples
Developing climate and culture: Best practices for HR professionals

Defining organizational culture

Organizational culture is the deep-rooted set of values, attitudes, and behaviors that define your company’s DNA. It’s the implicit or explicit codes that shape how employees interact with each other, interact with your clients, and make decisions.

In a recent global study, Gallup found that less than a quarter of employees (23%) were engaged. How can organizational culture address this issue? Weak cultures often stifle creativity and lead to dissatisfaction and disengagement whereas strong cultures are a tonic for innovation, engagement, and high performance.

What is organizational climate?

Organizational climate reflects the current emotional state or feeling of your workplace. It concerns how employees experience and perceive the company. Your climate is influenced by leadership styles, communication practices, workload pressure and employee recognition.

A positive climate fosters a sense of belonging, motivation, and higher performance, whereas a negative climate can lead to disengagement and hinder business goals.

Organizational climate vs. culture: The differences

Climate and culture connection

Organizational culture and climate are interconnected concepts, you can think of them as two sides of the same coin. Culture sets the long-term values and beliefs that shape how things are done, whereas climate reflects the current state and experience of the work environment based on those cultural norms.

For culture and climate to function well in unison, they must be aligned. For example, if a company claims to value work-life balance (culture) but also demands long hours or constant after-hours access to its employees (climate) there is a clear misalignment. On the positive end of the spectrum, a workplace with a strong culture encourages healthy climates – affecting morale, motivation, and performance. Reciprocally, a positive climate can support an organization’s cultural goals and can nurture its culture over time.

What this means for HR professionals is that addressing one element without considering the other will result in a missed opportunity to create a highly functional and healthy work environment.

Organizational culture examples

1. HubSpot

There’s a reason that HubSpot consistently places in ‘best companies to work for’ rankings and that’s because it obsesses over its company culture – so much so, that it views its Culture Code as a perpetual work in progress, one that has been updated 25 times to date.

HubSpot acknowledges that great culture makes it easier to attract amazing people, which in turn makes recruiting easier – and hiring amazing people helps to not only strengthen its culture but further it, in an ongoing improvement loop. In their recruitment process, HubSpot pays special attention to identifying candidates with ‘H.E.A.R.T.’ – their acronym for Humble, Empathetic, Adaptable, Remarkable and Transparent.

To continue evolving its culture, HubSpot hires for ‘culture add’ instead of ‘culture fit’ by actively seeking new employees they believe will challenge their existing culture by bringing unique experiences, backgrounds and ideas, while still embodying the company’s core ‘HEART’ values.

HR tip

• Is your recruitment process too heavily focused on identifying candidates with the full set of requirements and skills for the role?
• HubSpot acknowledges that it’s not always easy to find recruits who tick all the boxes. Instead, they focus on critical skills only and ‘culture add’, preferring to coach gaps in candidates who show good potential.

2. Lego

Lego is a company that buys into what it sells; the joy of play and creativity. Believing that restrictive environments stifle workers, create bureaucracy, and promote fear, the business strives to support a culture that values creative freedom and imaginative thinking by challenging its employees to find unique and fun ways to solve problems.

This means giving people autonomy and room to grow by encouraging an intuitive sense of how to do things rather than a rule book. Its spirit of creative adventure is a golden thread that is reflected in the company’s playful office design, its open management style, its products and its culture.

HR tip

• Lego has built an environment and culture that is conducive to unlocking its employees’ vast creative potential in service of the company’s customers and products.
• Whether your brand is staked on creativity, innovation, performance or sustainability, consider how you can build a culture that is aligned with your key pillars to get the best ideas and outputs from your employees.    

Organizational climate examples

1. Google

For companies reliant on continuously pushing the boundaries of innovation to maintain their edge, it is essential to create an environment where employees feel comfortable testing out new and sometimes outlandish ideas, voicing opinions and making mistakes along the way.

For tech giant Google, this means nurturing ‘psychological safety’ by creating a climate where high-performing teams can flourish by supporting individuals in feeling safe about taking risks and being vulnerable in front of co-workers.

HR tip

• Do your leaders create an environment where people feel safe to test out new concepts, make mistakes without the fear of being criticised, admit they were wrong and ask for help when they need it?
• If not, consider how HR can assist in upskilling managers and employees with the training and coaching needed to build trusting teams and a climate of psychological safety.

2. Nordstrom

It was American management guru, Tom Peters who said: “Organizations exist to serve. Period. Leaders live to serve. Period.” This is a philosophy that the founders of retailer, Nordstrom, shared when they introduced their ‘inverted pyramid’ in the 1970s which upended traditional hierarchy structures by placing their customers at the top, followed by the sales and support employees who serve customers, and then managers and finally the senior executive team.

Although the business has evolved since that era, the company still maintains its servant leadership approach with a commitment to providing high-quality service interactions with customers and staff, thereby positively impacting its climate every day.

HR tip

• It’s often said that people join companies, but leave managers. The impact of a single leader, good or bad, can have a disproportional effect on a team.
• Hiring and coaching managers to become conscientious servant leaders will go a long way to building and maintaining a positive working climate.

Developing climate and culture: Best practices for HR professionals

Let’s take a look at how HR can develop robust organizational cultures and climates:

Building a positive organizational culture

A good culture sets the long-term foundation for a positive work environment resulting in engaged and loyal employees. Here’s how HR can help in shaping it:

1. Define your core values: Companies with strong cultures are deliberate about defining, articulating and reinforcing the core values that represent their beliefs and shape desired behaviors. First, define your values, then hire according to them, and finally constantly reinforce those values through onboarding, training, and performance reviews at all levels of your organization.

2. Empower your employees: Once you’ve codified your values, you’re able to set the expectations and parameters for employee behaviors and performance – this, in turn, will enable you to create a sense of ownership by involving your employees in decision-making and giving them autonomy in their work.

3. Build trust and transparency: Positive cultures are built on openness and integrity so encourage open communication through regular surveys, town halls, and anonymous feedback channels. Actively listen and address your employees’ concerns promptly.

4. Reinforce through recognition and rewards: Implement programs that celebrate individual and team accomplishments that are aligned with your company’s core values. Showing appreciation for employees who demonstrate behaviors that are aligned with your culture boosts morale and establishes standards for role models within the organization.

5. Invest in training and development: Offer opportunities to help managers and employees grow their skills and knowledge aligned with company goals. Promote an environment of continuous learning to foster a culture of innovation, self-management and problem-solving.

6. Diversity and inclusion: Everyone wants to feel a sense of belonging and acceptance. Proactively build a diverse workplace where everyone feels valued, respected, and empowered to contribute their unique talents.

7. Celebrate culture: Organize events and activities that reflect the organization’s values and foster a sense of community. Encourage employee participation in building a vibrant company culture.

Building a positive organizational climate

Climate reflects the current atmosphere or feeling within your organization. Climate can shift quickly, moving the sentiment of your organization positively or negatively on the scale. Here’s how HR can work to address it:

1. Leadership matters: The quality of leadership has an outsized impact on your workforce, good or bad. Leaders and managers at every level of the organization have a responsibility to support your core values and model ideal behaviors. Create a culture of accountability where everyone is held to the same standards and implement feedback mechanisms that can help you to quickly detect and address toxic managers.

2. Combat stress and burnout: Employees who feel overburdened and under-appreciated can quickly contribute to negative sentiment. Promote healthy work-life balance by offering flexible working arrangements and encouraging breaks. Discourage working long hours or constant availability to address burnout.

3. Communication and feedback: Foster clear and transparent communication from leadership and encourage open dialog through two-way channels and regular feedback opportunities.

4. Employee wellbeing: Implement initiatives that promote employee holistic wellness programs that include mental health support, and design your workspaces to enable interaction, collaboration and productive ‘focus time’.

5. Address conflict resolution: Establish clear procedures for addressing conflict promptly and fairly. Champion an environment that places a high value on respect and understanding of others, and train managers and employees in effective communication and conflict resolution skills.

6. Measure and improve: Conduct regular surveys or focus groups to assess your employees’ perceptions of their work environment. Use the data to identify areas for improvement in the short term and address climate concerns as they emerge.

7. Be adaptable: Recognize that climate can evolve quickly. Be prepared to adapt and adjust programs based on changing circumstances and employee feedback.

Key takeaway

Remember, while organizational culture is the foundation of a company, the climate is the ever-changing atmosphere. By understanding these differences and following the tips provided in this guide, you can cultivate a positive atmosphere where employees feel valued, engaged and inspired to give their best.

The post Organizational Culture vs. Climate: The Key Differences (Plus Company Examples) appeared first on AIHR.

In this article, we will further unpack what is job leveling, offer examples of a job leveling framework and provide 9 steps for implementation in your organization.

Let’s begin!

Contents
What is job leveling?
Job leveling examples
The importance of job leveling
9 Steps for implementing job leveling

What is job leveling?

Job leveling is a system that defines an organization’s roles, corresponding job descriptions, responsibilities, career paths, and compensation ranges. Many HR professionals might recognize this term by another name — job classification. 

Setting a job leveling framework helps organizations group similar job types and sets comparable qualifications and compensation for those roles across the organization. For example, in a university setting, a job level framework would show the competencies for an IT Professional across campus, from central administration to student housing.

What makes up a job leveling framework?

Some of the key components of a job leveling framework include:

• Job levels: These are the different categories of responsibility and leadership within the organization, from employees all the way up to executive management.
• Competencies: These are the skills, knowledge, abilities and expertise necessary to do each job. They include things like communication, teamwork, and problem-solving.
• Responsibilities: These are the necessary tasks and duties for a role.
• Compensation range: This can include the starting pay to the maximum amount an organization is willing to pay for a specific job.

Job leveling examples

Job leveling is relevant to every job type. The following job leveling matrix shows how roles within the communication team have been outlined, with their various responsibilities. This also gives an indication of what career progression might look like within the team.

Here is a further example of how the above job leveling would work:

The importance of job leveling

It might seem like a no-brainer for an organization to have job leveling, but a survey by Monster found that 80% of workers do not think their current employer offers growth opportunities. In addition, 29% of workers named lack of growth opportunities as their reason for wanting to quit.

Job leveling provides a clear path for employees to know what their roles and responsibilities entail and their fellow workers. This can help with recruiting, performance reviews, and employee retention. Let’s take a deeper dive into some reasons job leveling is important:

• Clearly defined roles and responsibilities: Employees know not only what is expected of them in their existing role but also what competencies they need to achieve to be promoted and progress through an organization.
• Smoother recruitment processes: A clear path forward can help streamline the recruitment process and make filling vacancies with the best candidates more quickly. Deloitte Consulting conducted an analysis on Generation Z, one of the newest generations in the workplace. They found that Gen Z expects personalization in their career path, with a key focus on training, leadership development opportunities, and tangible work on diversity.
• Setting performance standards: A job leveling matrix that is well thought out and up-to-date can help the performance review process. Both supervisors and employees will know what the expectations are.
• Employee retention: Employees can feel stuck without a path forward, which can lead to more turnover in an organization. Job leveling helps employees, supervisors, and organizations at large see clear career paths for each job type.
• Better alignment with diversity, equity, inclusion, and justice initiatives: A well-structured job leveling system can help an organization create and adhere to more DEIJ hiring and employment practices.

These are just a handful of key aspects a job leveling framework can bring to an organization, but there are many more!

9 Steps for implementing job leveling at your organization

Now that we have a better idea of what job leveling is and why it’s important, let’s talk about how an organization can implement it. 

Most organizations start small and grow organically over time, making a job leveling framework seem unnecessary in the early phase. This means that many organizations need to implement job leveling later on, which can feel daunting and complicated. The following nine steps can help for a smoother process for implementing job leveling.

1. Understand your organization’s unique needs

Job leveling should be closely linked to the organizational design and structure – these are critical inputs to take into consideration. 

2. Get leadership buy-in

Having a great job leveling matrix in place is only half the battle. In order for it to be successful, the leadership team must buy into its importance. Ensuring proper leadership buy-in can also help with proper resource allocation in developing the system.

Make sure to explain the benefits of the system very clearly to the organization’s leaders. Beyond buy-in, leaders across the organization provide important input into the requirements for roles across various levels

3. Define criteria for leveling

Setting clear and objective criteria for categorizing jobs, responsibilities, required skills, and their corresponding impact on the organization before developing the framework is key. These will help guide the rest of the process and answer questions that may arise.

4. Develop a job leveling framework

Next is the time to develop the actual framework. Create a structured system that categorizes jobs into different levels based on the defined criteria. It is also important that this is aligned to the compensation philosophy (or grading) at this point, and the extent of impact is understood.

Another consideration is market comparability of your job leveling – this impacts compensation but also recruitment, development and progression. Below is a simplified version of a job leveling framework for roles in a finance department: 

5. Align compensation structures

During framework construction, this is a great time to align or realign compensation structures. It’s also necessary to ensure compensation aligns with the new job levels. Adjust minimum and maximum salary amounts for each job level, benefits, and other compensation elements.

6. Communicate the changes

Communication is critical. Be sure to have a proper communication plan in place to inform all employees of the new job leveling system, its benefits, and any changes that might affect them. It’s best to inform employees as you work on the new system as well, not just once it’s ready to be implemented. Explain their learning and development opportunities to progress in the organization under the new system.

7. Educate managers on the framework

As any HR professional knows, supervisors and managers are the front-line team responsible for using and explaining the new system. They are usually the first people employees will approach with questions. It’s vital to have training sessions and workshops in place to educate supervisors and managers on the job leveling framework to help them understand and effectively utilize it with their teams.

8. Integrate job leveling into performance management systems

We’ve already discussed how job leveling is an important part of performance reviews and goal setting. Be sure to integrate the framework into any future or existing performance management systems so that performance evaluation aligns with the expectations and responsibilities of each job level. This will create more objective evaluations. Also, job leveling should be aligned with other HR practices as well, such as talent management, learning and development and career enablement practices. 

9. Monitor the impact of the job leveling system

Monitor the impact of job leveling on organizational outcomes. For example on retention, promotions, internal mobility, market comparison etc.

Key takeaways

Job leveling is a necessity for any organization looking to retain and engage employees and ensure a long and successful future for the organization. With the right job leveling framework in place, employees and the organization as a whole have a clear path forward.

While setting up a job leveling system might feel daunting at first, once it’s up and running, it will make life much easier for everyone. Then it’s a matter of evaluating it and keeping it up-to-date as the work environment continues to change. Following the nine steps above will help any organization to implement a job leveling system.

The post What Is Job Leveling? 9 Implementation Steps To Take in 2024 appeared first on AIHR.