Brian Kropp, from CEB, explains what HR can do to engage and inspire progression-oriented employees
Climbing the greasy pole to bag a desk in the corner office is no longer a realistic goal for many of today’s employees as companies become flatter, with fewer middle management positions to use as career stepping-stones.
This means that for the overtly ambitious generation Y, opportunities for promotion are thin on the ground and the risks of a demotivated and disengaged workforce are much higher, according to research from consultancy CEB.
Brian Kropp, HR practice leader at CEB, explains what this means for HR and what the function can do about it.
Why are organisational structures becoming flatter?
During the financial crisis, organisations focused on profitability over revenue growth and delayered to help drive down costs. After operating without those additional layers for so long, businesses are now hesitant about putting them, and their associated expenditure, back into the system.
Your research found that a lack of career development opportunities is the top reason staff leave, yet people thought that money would be the main reason. Why were they so surprised?
Compensation offers are starting to look more and more alike, so the pay differentials in most situations are actually rather small. That said, if you are offering 25 to 30 per cent more, people will move employers.
How can a company maintain a flat organisational structure without alienating employees who are highly motivated by career opportunity?
We need to shift from title progression to experience progression. Most employees – millennials in particular – are actually motivated by experience just as much as titles.
The question you should be asking is how do you move your employees around the business to give them different experiences – in other words, managing the internal labour market becomes critical in managing today’s workplace.
The CEB study found that almost two-thirds of workers regret accepting a management position. How can HR make sure managers are prepared if flatter structures prevent them from getting on-the-job training?
For any new manager there are three main challenges: getting a real-life sense of the role; gaining some experience of managing others; and building relationships with people who can help them.
HR can help in various ways, they can facilitate group and one-to-one discussions with existing managers to give junior employees a sense of what being a manager is like and allow managers to share advice or key learnings.
HR can also encourage existing managers to provide constructive, forward-looking feedback to help junior staff.
Finally, HR could encourage new managers to expand their network of contacts, which will provide them with a support system for accessing advice and identifying people they can work with to get things done.