HR tools: what are the best ones?
May 12, 2024Wellbeing and Happiness at Work: the Role of Technology
June 6, 2024HR Innovation Practice Observatory: research findings 23-24
May 15, 2024
HR Innovation Practice Observatory: research findings 23-24
What are the new challenges for HR Directorates? What does the 2023-2024 research conducted by the Hr Innovation Practice Observatory tell us about: Talent Shortage, Major Resignations, Job Creeping, AI and Reskilling?
As many as88 percent of Italian organizations struggle to hire new staff and in more than half of the cases, the difficulty has increased in the past year, according to the survey results. The mismatch between labor supply and demand is mainly due to the shortage of people with technical (57 percent) and soft (36 percent) skills, but also to the mismatch between what companies offer and what people want in terms of salary, career, flexibility and lifestyle, because the workplace is less and less a place where people “feel good.”
In fact, the research, conducted by the Observatory in collaboration with BVA Doxa, shows that only 9 percent of Italians, , say they feel good in their current employment considering the three dimensions of well-being: physical, psychological and relational. Barely 5% today are “happy” at workOne in three workers has been absent from work at least once in the past year due to stress or anxiety, but only one in two companies offers services to support them. Unhappiness and malaise lead many to change jobs: of Italians have done so recently or plan to do so soon, and in 2024 for the first time the main reason is the search for “physical and mental well-being” (36 percent), but the search for career opportunities and medium- to long-term employability are also growing..
Thus theGreat Resignationcontinues, but so does theGreat Regreat”: 56% of those who changed jobs in the past 12 months have already regretted it, up 37%, +37% from 2023. One of the main sources of malaise remains the inability to manage work and private life: in one year, Job Creeper (13% those who cannot stop working and do so at times they should be devoting to their private lives, doubled, while the number of Quiet Quitter (12%), workers who do the bare minimum without being emotionally involved in the activities they perform, was stable.
The Twenty-six percent of workers have already used AI solutions in the past year, though few on an ongoing basis (only 3 percent every day and 7 percent a couple of times a week), and, on closer inspection, the main activity was simply searching for information (31 percent) such as a classic search bar. But the potential impact is high: according to workers, 24% of their tasks can already be done with the support of generative AI solutions. And almost one in two is concerned about the consequences, not so much about the risk of losing their jobs (12%), but about the possibility of them becoming more precarious (26%) or their skills being less relevant (22%). Those who are more optimistic see generative AI as an ally for doing work better (29 percent), developing new skills (23 percent) and working less (21 percent).
These are some of the findings of research by the HR Innovation Practice Observatory of the School of Management of Politecnico di Milano, presented today during the conference “Navigating the uncertainty of the future of work: well-being and AI on the horizon”.
““The world of work in recent years has been affected by a real revolution, and the search for ‘living well’ is a response to emerging uncertainties,” explains - spiega Mariano Corso, Scientific Director of the HR Innovation Practice Observatory -: If in the past, work was the center of aspirations and projects for self-realization in order to grow in role and social status as well, now the fragility of the future seems to push people above all to be well here and now. Economic and mental well-being is sought in work, where flexibility in time and place is key. It is therefore necessary to start again from the basics in order to build a new happiness-oriented approach to work, which includes together fair recognition, flexibility, work-life balance, inclusion, empowerment, employability”.
“In order to respond to people's needs, it is crucial to design new organizational models centered on a purpose capable of giving work a new meaning,” adds Martina Mauri, Director of the HR Innovation Practice Observatory – For example, through commitment to sustainability: the percentage of happy at work rises to 24 percent in companies where people are involved in sustainable initiatives. In addition, to respond to changes in the current labor market, artificial intelligence can be a valuable ally. On the one hand, it can mitigate the shortage problem by automating repetitive tasks and reducing dependence on specialized skills. On the other it can help redesign organizational environments, improving well-being and making organizations more attractive”.
Attracting and retaining talent
The main challenge for 2024 for HR Departments is the talent shortage. The hardest figures to find are digital profiles, skilled workers, health professions, and civil construction technicians. To attract more candidates 51 percent of companies are increasing search channels, 45 percent are requesting support from specialized recruitment companies, and 40 percent are offering higher salaries.
Especially for digital profiles a“wage bidding war”is underway, with negative consequences for the entire market, as SMEs are cut off from this economically unsustainable competition and internal pay policy inequity is created. One solution is reskilling and upskilling to train these figures internally, for example by accompanying people at risk of job loss in a retraining process in more in-demand roles: digital transformation, in addition to increasing the demand for new professions, is speeding up the obsolescence of some roles. According to HR Departments, already 8 percent of workers need to be redeployed or retrained for skills that are inadequate or at risk of obsolescence..
Artificial Intelligence and HR
32 percent of companies use at least one AI solution to support HR processes In most cases these are Chatbots or Virtual Assistants, to support administrative tasks, navigation of business applications or onboarding process; natural language processing systems,mainly for CV screening; and recommendation systemsto suggest the most suitable training content/paths based on the individual person's needs. In addition, companies are beginning to invest in AI talent: 54 percent are looking for profiles in this field (+25% compared to 2023) and 62 percent have begun experimenting with generative AI solutions to support work activities, although only 12 percent with direct guidance from the organization and guidelines on use.
For HR Directorates, the main impact of AI solutions in the next 5 years will be the evolution of roles and competencies, rather than the reduction of headcount. According to 62% , the rise of generative AI will lead to skill enrichment and for 34 percent, a retraining of declining roles. To understand the magnitude of this revolution, however, we need to start by analyzing the data: 17% of organizations are conducting a survey on the impact of generative AI; 25% are planning to do so in the coming months.
To cope with the changes in roles and competencies, mainly training actionsare planned: in 2024 33% of companies will enhance upskilling paths and 28% will introduce reskilling pathsfor the first time. Alongside innovations in processes and models are emerging: 43 percent of companies will automate repetitive and standardizable tasks and processes, 39 percent will revise the organizational model to encourage sharing and development of skills, and 25 percent will introduce or enhance the use of advanced digital tools to perform tasks for which they would not have the necessary skills internally.
The HR Innovation Awards
The Observatory has awarded the HR Innovation Award 2024 to organizations that have distinguished themselves for innovating and improving their human resources management and development processes. Established in 2011, the award aims to create opportunities to learn about and share projects that have most distinguished themselves for their ability to use digital technologies as a lever for innovation and improvement of key human resources management and development processes.
This year's winners are SACE, for the category “The potential of AI in HR,” Saipem for "Edtech: the opportunities of digital training”, Barilla for "Building a new employee experience to meet people's needs”, Sky in the category“How to develop and acquire the skills of the future”. Allianz on the other hand, received theHR Innovation IMPACT Award, an award for companies that have already received awards in the past and have been able to innovate their nominated project over time.
The potential of AI in HR
The category includes those projects testing the potential of Artificial Intelligence in HR, which make processes more effective and efficient. The winner in this category is SACE, with the projectCraft Your Growth: Career GPS" which involved the introduction of a digital, AI-based tool that allows people to manage their careers in the company, providing an overview of the evolution of skills and suggesting paths to close training gaps. Finalists in this category were Leonardo, for the implementation of a platform dedicated to training through Digital Role Play, which made it possible to improve managers' soft skills through interactive simulations and artificial intelligence algorithms capable of analyzing verbal language, and RINA, for the adoption of a platform for recruiting young candidates equipped with AI algorithms in order to optimize the candidate experience, support the selection team and improve the company's Employer Branding.
Edtech: the opportunities of digital training
This category includes projects that encourage the application of digital technologies in training to make processes more engaging, effective and scalable. The winner is Saipemfor its adoption of innovative digital technologies, among them Virtual Reality, to make training activities on the use of highly complex machinery replicable, creating conditions for greater safety and cost optimization. Finalists in this category were Cofidis, for the implementation of digital technologies as part of the “Cofidis Academy” project, with a view to making training accessible in an omnichannel manner, using different methodologies and integrated teaching tools, and Lamborghini for the“Race your language skills” project, which made the language training process in the company more inclusive, for the entire population, and more engaging and innovative, thanks to the adoption of a platform to support it.
Building a new employee experience to meet people's needs
This category includes those projects that included digitization of HR processes in order to improve the employee experience for users and governance by HR management. The winner is Barillafinalists, for defining the “OneHR” project that centralizes and simplifies all HR processes on a single cloud-based platform. The initiative made it possible to improve information governance and traceability, optimizing the user experience in the use of HR processes. Finalists in this category were Lagardére Travel Retail for the creation of "Valerio, the portal that takes you seriously” aimed at optimizing the performance management process and enabling the culture of continuous feedback in the company, with the entirely in-house development of the platform, and WINDTRE, for a project to evolve the company's incentive processes, thanks to the adoption of an ad hoc application capable of creating future scenarios and cost simulations based on the achievement of objectives.
“How to develop and acquire the skills of the future
The category includes those projects that have promoted the development of skills that will be increasingly in demand in the future, increasing the employability of employees. Winning is Sky with the project “Butterfly: Build the Sky of the Future,” which aims to guide the company toward a new operating model, with extensive upskilling and reskilling programs for employees, with a view to enhancing the employability of all Sky people. Gefranfinalists, for defining the “Talent questing: agile recruitment,” aimed at strengthening some critical skills in the selection team. The initiative enabled work on the ability to identify potential talents in candidates in order to optimize recruiting activities and design internal growth plans, and Vodafone for "Future skills: let's prepare for the future together,” a project aimed at creating a digital platform capable of personalizing learning paths based on the role, skills and interests of employees, creating the necessary conditions for their growth and development.
- Allianz was awarded the l’HR Innovation IMPACT Award for theEXPO 2017” project, through the introduction of the “4ALL 2023 - Learn to Win” application, with the aim of increasing employee engagement and training hours per capita. Through gamification mechanisms, the system incentivizes the enjoyment of content, stimulating the development of a sustainability-oriented, lifelong learning mindset.
The worker survey was conducted in collaboration with BVA Doxa.
CONSULTANCY, TRAINING, HR DIGITALIZATION AND CORPORATE SOLUTIONS, DISCOVER THE ALVERIA METHOD. GET READY FOR CHANGE.
Quali sono le nuove sfide delle Direzioni HR? Cosa ci dice la ricerca 2023-2024 condotta dall’Osservatorio Hr Innovation Practice su: Talent Shortage, Grandi Dimissioni, Job Creeping, AI e Reskilling?
Secondo i risultati dell’indagine ben l’88 percent of Italian organizations struggle to hire new staff and in more than half of the cases, the difficulty has increased in the past year, according to the survey results. The mismatch between labor supply and demand is mainly due to the shortage of people with technical (57 percent) and soft (36 percent) skills, but also to the mismatch between what companies offer and what people want in terms of salary, career, flexibility and lifestyle, because the workplace is less and less a place where people “feel good.”
In fact, the research, conducted by the Observatory in collaboration with BVA Doxa, shows that only 9 percent of Italians, , say they feel good in their current employment considering the three dimensions of well-being: physical, psychological and relational. Barely 5% today are “happy” at workOne in three workers has been absent from work at least once in the past year due to stress or anxiety, but only one in two companies offers services to support them. Unhappiness and malaise lead many to change jobs: of Italians have done so recently or plan to do so soon, and in 2024 for the first time the main reason is the search for “physical and mental well-being” (36 percent), but the search for career opportunities and medium- to long-term employability are also growing..
Thus theGreat Resignationcontinues, but so does theGreat Regreat”: 56% of those who changed jobs in the past 12 months have already regretted it, up 37%, +37% from 2023. One of the main sources of malaise remains the inability to manage work and private life: in one year, Job Creeper (13% those who cannot stop working and do so at times they should be devoting to their private lives, doubled, while the number of Quiet Quitter (12%), workers who do the bare minimum without being emotionally involved in the activities they perform, was stable.
The Twenty-six percent of workers have already used AI solutions in the past year, though few on an ongoing basis (only 3 percent every day and 7 percent a couple of times a week), and, on closer inspection, the main activity was simply searching for information (31 percent) such as a classic search bar. But the potential impact is high: according to workers, 24% of their tasks can already be done with the support of generative AI solutions. And almost one in two is concerned about the consequences, not so much about the risk of losing their jobs (12%), but about the possibility of them becoming more precarious (26%) or their skills being less relevant (22%). Those who are more optimistic see generative AI as an ally for doing work better (29 percent), developing new skills (23 percent) and working less (21 percent).
These are some of the findings of research by the HR Innovation Practice Observatory of the School of Management of Politecnico di Milano, presented today during the conference “Navigating the uncertainty of the future of work: well-being and AI on the horizon”.
“Il mondo del lavoro negli ultimi anni è stato interessato da una vera e propria rivoluzione e la ricerca del “vivere bene” è una risposta alle incertezze emergenti – spiega Mariano Corso, Scientific Director of the HR Innovation Practice Observatory -: se in passato il lavoro era il centro delle aspirazioni e dei progetti di autorealizzazione per crescere anche di ruolo e status sociale, ora la fragilità del futuro sembra spingere le persone soprattutto a stare bene qui ed ora. Nel lavoro si cerca un benessere economico e mentale, in cui la flessibilità nei tempi e luoghi è fondamentale. È necessario quindi ripartire dalle basi per costruire un nuovo approccio al lavoro orientato alla felicità, che preveda insieme giusto riconoscimento, flessibilità, work-life balance, inclusione, valorizzazione, employability”.
“In order to respond to people's needs, it is crucial to design new organizational models centered on a purpose capable of giving work a new meaning,” adds Martina Mauri, Director of the HR Innovation Practice Observatory – For example, through commitment to sustainability: the percentage of happy at work rises to 24 percent in companies where people are involved in sustainable initiatives. Inoltre, per rispondere ai cambiamenti del mercato del lavoro attuale, l’intelligenza artificiale può essere un alleato prezioso. Da un lato può mitigare il problema della mancanza di personale automatizzando compiti ripetitivi e riducendo la dipendenza da competenze specialistiche. Dall’altro può contribuire a ridisegnare ambienti organizzativi, migliorando il benessere e rendendo le organizzazioni più attrattive”.
Attracting and retaining talent
The main challenge for 2024 for HR Departments is the talent shortage. The hardest figures to find are digital profiles, skilled workers, health professions, and civil construction technicians. To attract more candidates 51 percent of companies are increasing search channels, 45 percent are requesting support from specialized recruitment companies, and 40 percent are offering higher salaries.
Especially for digital profiles a“wage bidding war”is underway, with negative consequences for the entire market, as SMEs are cut off from this economically unsustainable competition and internal pay policy inequity is created. One solution is reskilling and upskilling to train these figures internally, for example by accompanying people at risk of job loss in a retraining process in more in-demand roles: digital transformation, in addition to increasing the demand for new professions, is speeding up the obsolescence of some roles. According to HR Departments, already 8 percent of workers need to be redeployed or retrained for skills that are inadequate or at risk of obsolescence..
Artificial Intelligence and HR
32 percent of companies use at least one AI solution to support HR processes In most cases these are Chatbots or Virtual Assistants, to support administrative tasks, navigation of business applications or onboarding process; natural language processing systems,mainly for CV screening; and recommendation systemsto suggest the most suitable training content/paths based on the individual person's needs. In addition, companies are beginning to invest in AI talent: 54 percent are looking for profiles in this field (+25% compared to 2023) and 62 percent have begun experimenting with generative AI solutions to support work activities, although only 12 percent with direct guidance from the organization and guidelines on use.
For HR Directorates, the main impact of AI solutions in the next 5 years will be the evolution of roles and competencies, rather than the reduction of headcount. According to 62% , the rise of generative AI will lead to skill enrichment and for 34 percent, a retraining of declining roles. To understand the magnitude of this revolution, however, we need to start by analyzing the data: 17% of organizations are conducting a survey on the impact of generative AI; 25% are planning to do so in the coming months.
To cope with the changes in roles and competencies, mainly training actionsare planned: in 2024 33% of companies will enhance upskilling paths and 28% will introduce reskilling pathsfor the first time. Alongside innovations in processes and models are emerging: 43 percent of companies will automate repetitive and standardizable tasks and processes, 39 percent will revise the organizational model to encourage sharing and development of skills, and 25 percent will introduce or enhance the use of advanced digital tools to perform tasks for which they would not have the necessary skills internally.
The HR Innovation Awards
L’Osservatorio ha assegnato gli HR Innovation Award 2024 to organizations that have distinguished themselves for innovating and improving their human resources management and development processes. Established in 2011, the award aims to create opportunities to learn about and share projects that have most distinguished themselves for their ability to use digital technologies as a lever for innovation and improvement of key human resources management and development processes.
This year's winners are SACE, per la categoria “Le potenzialità dell’AI in ambito HR”, Saipem for "Edtech: the opportunities of digital training”, Barilla for "Building a new employee experience to meet people's needs”, Sky in the category“How to develop and acquire the skills of the future”. Allianz on the other hand, received theHR Innovation IMPACT Award, an award for companies that have already received awards in the past and have been able to innovate their nominated project over time.
Le potenzialità dell’AI in ambito HR
The category includes those projects testing the potential of Artificial Intelligence in HR, which make processes more effective and efficient. The winner in this category is SACE, with the projectCraft Your Growth: Career GPS" which involved the introduction of a digital, AI-based tool that allows people to manage their careers in the company, providing an overview of the evolution of skills and suggesting paths to close training gaps. Finalists in this category were Leonardo, for the implementation of a platform dedicated to training through Digital Role Play, which made it possible to improve managers' soft skills through interactive simulations and artificial intelligence algorithms capable of analyzing verbal language, and RINA, for the adoption of a platform for recruiting young candidates equipped with AI algorithms in order to optimize the candidate experience, support the selection team and improve the company's Employer Branding.
Edtech: the opportunities of digital training
This category includes projects that encourage the application of digital technologies in training to make processes more engaging, effective and scalable. The winner is Saipemfor its adoption of innovative digital technologies, among them Virtual Reality, to make training activities on the use of highly complex machinery replicable, creating conditions for greater safety and cost optimization. Finalists in this category were Cofidis, for the implementation of digital technologies as part of the “Cofidis Academy” project, with a view to making training accessible in an omnichannel manner, using different methodologies and integrated teaching tools, and Lamborghini for the“Race your language skills” project”, che ha reso il processo di formazione linguistica in azienda più inclusivo, per tutta la popolazione, e più ingaggiante e innovativo, grazie all’adozione di una piattaforma a supporto.
Building a new employee experience to meet people's needs
This category includes those projects that included digitization of HR processes in order to improve the employee experience for users and governance by HR management. The winner is Barillafinalists, for defining the “OneHR” che centralizza e semplifica tutti i processi HR su una singola piattaforma in cloud. L’iniziativa ha consentito di migliorare la governance e la tracciabilità delle informazioni, ottimizzando l’esperienza utente nella fruizione dei processi HR. Finalisti in questa categoria Lagardére Travel Retail for the creation of "Valerio, the portal that takes you seriously” aimed at optimizing the performance management process and enabling the culture of continuous feedback in the company, with the entirely in-house development of the platform, and WINDTRE, for a project to evolve the company's incentive processes, thanks to the adoption of an ad hoc application capable of creating future scenarios and cost simulations based on the achievement of objectives.
“How to develop and acquire the skills of the future
The category includes those projects that have promoted the development of skills that will be increasingly in demand in the future, increasing the employability of employees. Winning is Sky with the project “Butterfly: Build the Sky of the Future,” which aims to guide the company toward a new operating model, with extensive upskilling and reskilling programs for employees, with a view to enhancing the employability of all Sky people. Gefranfinalists, for defining the “Talent questing: agile recruitment,” aimed at strengthening some critical skills in the selection team. The initiative enabled work on the ability to identify potential talents in candidates in order to optimize recruiting activities and design internal growth plans, and Vodafone per “Future skills: let's prepare for the future together,” a project aimed at creating a digital platform capable of personalizing learning paths based on the role, skills and interests of employees, creating the necessary conditions for their growth and development.
- Allianz was awarded the l’HR Innovation IMPACT Award for theEXPO 2017”, attraverso l’introduzione dell’applicativo “4ALL 2023 – Learn to Win”, con l’obiettivo di aumentare l’ingaggio dei collaboratori e le ore di formazione pro capite. Tramite meccanismi di gamification, il sistema incentiva alla fruizione di contenuti, stimolando lo sviluppo di un mindset di formazione continua e orientato alla sostenibilità.
The worker survey was conducted in collaboration with BVA Doxa.
Source: HR Innovation Practice Observatory
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