This exponential increase in planned and unplanned attrition is attributed to the global COVID-19 outbreak. Due to the economic upheaval, several organizations had to cut costs, relieve non-critical employees, and operate on limited resources. Moreover, the increased global competition for niche talent and growing skills shortage has also left many organizations understaffed. Understaffing can have severe repercussions on businesses. From employees being stressed and burnt out to compromised work quality and revenue loss due to lost opportunities, it negatively impacts a company’s overall efficiency. However, if appropriately managed, business leaders can enhance operational efficiency even when understaffed. This article explains the impact of understaffing and how one can combat it with a definite strategy. Let’s delve into the basics,

What is operational efficiency, and how does understaffing impact it?

Operational efficiency is the ability of an organization to deliver high-quality projects and services/products with limited resources. It can be measured by comparing an organization’s revenue generated against expenses incurred for every project. Operational efficiency factors in several metrics like production capacity, labor productivity, turnaround time, and profitability. If an organization is understaffed, it may witness a decline in these metrics. Organizations might overutilize their existing resources to keep that occurrence at bay by allocating extra work to meet the project requirements. However, the downside is that employees feel stressed and burned out when given an unmanageable workload or allocated beyond their capacity. This can result in unplanned absenteeism and even high employee turnover. In addition, they may miss deadlines, and work quality inevitably suffers. When businesses cannot deliver high-quality projects within the stipulated time and budget, customer dissatisfaction jeopardizes the brand’s reputation. All of this may further lead to lost growth opportunities and question the firm’s sustainability. The pertinent question is, can organizations function efficiently and negate this impact, even when they don’t have enough workforce? The answer is a resounding yes. Let’s see how.

11 Ways to manage understaffing and boost operational efficiency

Since understaffing is a consistent issue in organizations today, managers can adopt ways to make the best use of their existing resources and enhance operational efficiency. The following ways will help you in the process.

Prioritize projects based on business value and strategic goals

When organizations are functioning with fewer resources, it’s imperative to ensure that only profitable and value-adding projects are undertaken. Otherwise, they will end up utilizing the workforce without any substantial ROI. Therefore, managers can coordinate with the PMO to help identify profitable and strategically aligned projects. This way, they can deploy their talent pool on the right projects, contributing to the organization’s growth. In addition, working on such projects ensures that the financial and long-term goals are met even with a limited workforce, thereby increasing operational efficiency.

Ensure effective time and task management

Adequate time and task management are key to boosting operational efficiency, especially when you are understaffed. Thus, the onus lies with managers to ensure every project task is defined clearly and given a realistic timeline. Because you are facing resource constraints, giving unrealistic deadlines will cause more harm than good. Moreover, employees can plan ahead of the curve and avoid any potential delays when working with a well-defined schedule. So, managers can implement the work breakdown structure that helps divide the projects into smaller, manageable tasks and estimate the deadline for each. Once the required skillset is defined, they can allocate competent resources for the job and clarify the roles and responsibilities. This will ensure timely delivery and ensure no task is overlooked or missed.

Track project financials regularly to avoid loss of revenue

Profitability is one of the very important metrics to assess operational efficiency. Naturally, higher profitability implies better efficiency. Thus, managers must track project financials regularly. If not, it can lead to budget overruns, billable loss, and more. The pertinent question is, how can they procure accurate data? Implementing a project and resource management tool will provide real-time insights into project costs forecast vs. actuals where managers can evaluate variances between planned and actual costs, etc. This helps them take corrective actions well ahead of the curve and avoid any loss of revenue. Moreover, while estimating the budget during the planning stage, managers should leverage lesson-learned reports to improve accuracy.

Implement resourcing treatments to optimize the workforce

Project managers are in a predicament when they have to deliver projects with less resources as multiple risks are involved. For instance, the absence of a critical resource can hamper other dependent tasks, derailing the whole project. In this case, implementing the right resourcing strategy such as out-rotation and backfill can help save both the ongoing and the new project. Moreover, when you are understaffed, optimizing and building a future-ready workforce is of utmost importance. This ascertains that each employee is equipped with appropriate competencies to manage evolving demands. So, organizations can conduct upskilling and training programs to achieve this. These practices enable managers to deliver quality projects with limited availability of resources.

Hire contingent workforce to fulfill short-term niche requirements

Often projects demand niche-skilled resources that are not available within the organization’s talent pool. If this is a one-time requirement, they can hire contingent workers such as freelancers or contractors from empaneled vendors to get the job done. This way, organizations can avoid unnecessary overheads of hiring permanent employees or losing the opportunity altogether. To gauge if the demand is one-time or recurring, managers can deploy a resource management tool that provides a bird’s eye view of current and pipeline project demand. This will also reduce training time, minimize unnecessary hiring/firing cycles, help form the right mix of permanent and contingent staff, and elevate overall efficiency.

Ensure profitable resource utilization for better productivity

Resources are the most significant investment and success drivers of any organization. Thus, managers are responsible for tapping into the maximum potential of every employee and ensuring optimal utilization. For instance, if a resource is underutilized or spending more time on BAU or admin tasks, they are not generating substantial revenue, which declines profitability. Thus, managers must correct and mobilize or reallocate them to billable or strategic projects. This will boost productivity and ascertain revenue generation, eventually enhancing efficiency.

Encourage cross-departmental collaboration

Organizations must ensure that they have an adequate talent pool to avoid missing out on opportunities or new projects. The first question that surfaces is, how can one achieve this when there is a resource crunch? Cross-departmental collaboration is the solution to combat this. It allows employees to work on projects that do not fall under their respective departments but demand their skills. This will facilitate sharing of resources and also let employees diversify their portfolios. This way, businesses can intelligently utilize their existing workforce, deliver projects successfully, and improve efficiency.

Automate and streamline administrative work

As discussed earlier, when employees spend more time on BAU work, it affects their productivity and the organization’s profitability. To prevent this, businesses should implement the right tool inventory that can automate mundane tasks. For instance, they can streamline repetitive tasks like generating reports, invoicing, and billing using automation tools and software. Thus, employees can utilize their time on human-critical activities such as strategic work, tasks, etc. In a nutshell, automation will help you put your limited resource pool to the best use and add to the efficiency.

Invest in multi-skill building programs and IDPs

One of the many most effective ways to improve efficiency while understaffed is conducting multi-skill building programs and IDPs. Many employees are generalists, meaning they are proficient in performing different tasks that demand varied competencies. Organizations can leverage these resources and hone their skills to allocate them to diverse projects. Thus, even if you have a smaller resource pool, you will not miss out on new opportunities and can deploy the employees on multi-faceted projects and upkeep efficiency. Furthermore, it ensures optimal utilization and increased productivity, boosting operational efficiency.

Conduct regular rewards and recognition programs

When there is a resource shortage, the existing workforce puts in their maximum effort and goes the extra mile to ensure quality project delivery. Thus, they expect to get rewarded and compensated for their hard work. Without that, employees may feel disengaged and demotivated at work. Hence, organizations can formulate employee recognition programs that acknowledge the contribution and high performance. They can leverage their company’s social media handle and give shout-outs to their employees or offer physical fitness programs or mental well-being sessions. This will foster a sense of belonging and make employees feel valued and appreciated at their workplace. Eventually, it increases their drive for work resulting in higher efficiency.

Build assets within the project and reuse them as appropriate

Organizational assets include tech inventory, machinery, human resources, lesson learned reports, knowledge base, etc. These assets demand high investment and hold high value. Thus, to get the maximum output of their investment, one can reuse such assets for similar projects or endeavors. For instance, a project requires a code to automate some tasks. Once the employee develops this code, organizations can preserve it in their repository and make it available for others to use as and when there is a need. This will save time and money spent on doing the same task, allow employees to complete other tasks at the same time, and ensure efficiency. Coupled with the above-mentioned strategic tips, organizations can implement modern resource management software to mitigate the challenges of understaffing. The following section explains ways this software helps in elevating operational efficiency,

How can resource management help manage understaffing and enhance operational efficiency?

Advanced resource management software can help in dealing with understaffing and maximize operational efficiency in the following ways:

• It provides visibility of pipeline project demand and offers real-time insights into the capacity vs. demand gap, thus helping you make informed decisions ahead of the curve to bridge the gap.
• The tool provides a centralized view of the enterprise-wide resource pool, thus facilitating competent resource allocation based on the project demand. Moreover, it allows managers to utilize employees across matrix boundaries.
• The Business Intelligence tool provides accurate information on forecasts versus actuals (utilization, financials, etc.). Thus, managers can evaluate if resources are taking more time to complete a task than estimated or if there is any budget overrun and take corrective course measures to secure the project’s fate.
• Visibility into the present and future resource schedules and utilization heatmap allows managers to see if resources are working on billable or non-billable projects and if they are over or underutilized. Accordingly, they can either ease their workload, assign additional work (if underutilized), or mobilize resources from non-billable work to billable and strategic work.

All these benefits ensure that organizations are effectively utilizing their workforce, which directly leads to better operational efficiency.

Conclusion

Operational efficiency is incumbent to stay sustainable and profitable in the hyper-competitive market. Therefore, even though you are understaffed, it is imperative to take the right measures and stay afloat to stay relevant. The above-mentioned strategies will not just keep you afloat but will enable you to maintain your competitive edge. Moreover, paired with the right software will take your productivity and efficiency to the next level.

The Glossary

The SAVIOM Solution

SAVIOM is the market leader in offering the most powerful and configurable solutions for managing enterprise resources efficiently and effectively. Having more than 20 years of experience, this Australian-based MNC has a global presence in over 50 countries. It is also popular with more than 100 customers and helps them achieve their business goals. SAVIOM also has products for project portfolio management, professional service automation, and workforce planning software which can be easily customized as per business requirements.

What’s the first thing you would do? Indeed, you will try to get to the root cause of the situation. Let us help you there,  

This above-mentioned situation primarily stems from low employee morale, poor management, an inconducive work environment, lack of growth opportunities, micromanagement, etc. 

According to Gallup, 

15% of employees possess low workplace morale due to miserable work experiences and poor management. 

Lower employee morale has a direct impact on productivity and profitability. There can be delays in meeting deadlines, compromised project quality, leading to client dissatisfaction, and you may even see an increase in employee turnover. 

So, how can organizations combat it?  The first step is to detect the signs of low staff morale in the workplace and course-correct them before it is too late.  

This article takes you through these signs and the subsequent remedial actions. But, first, let’s start with the definition. 

What is employee morale, and why is it important?

Employee morale is defined as job satisfaction and the feeling of well-being that an employee experiences at the workplace, reflecting their attitude, behavior, and performance. Simply put, it encompasses how your employees feel about work, their approach to assigned tasks, etc. Factors such as leadership style, professional development opportunities, work-life balance, organization culture, etc., directly impact employee morale.    

High employee morale ensures increased productivity, motivation, efficiency, and engagement at work.  

It is also intrinsic to a company’s overall success.  On the contrary, low morale results in disengaged employees reflecting poor performance, unplanned absenteeism, high turnover rates, etc. 

Therefore, leaders must identify the signs of low employee morale and implement deliberate steps to boost the same.  

Listed below are some of these signs that need to be course-corrected when seen in the workforce. 

Signs of low employee morale in the workforce

Low employee morale manifests itself in diverse ways, with some visible signs. 

Here are some prominent ones: 

• Poor employee performance: Decreased output quality and a significant dip in employee performance are telltale signs of low employee morale. It becomes more evident when there are frequent project delays, subpar quality, error-prone work, or the need to rework increases. 

• Increase in unplanned absenteeism: If employee absences increase at an alarming rate, it tantamounts to workplace morale. This can be due to an increase in workload, which can take a toll on their mental and physical health. When resources are not allocated to suitable opportunities or projects of interest, etc., it could result in low workforce morale resulting in unplanned leaves.  

• Decrease in active participation: If you observe that employees reduce involvement in meetings, this indicates lower motivation and morale. This can be because they feel like their opinions are not appreciated and valued. 

• Increase in conflicts and complaints: Low workforce morale is often reflected in the overall attitude and behavior, disrupting internal harmony and interdepartmental collaboration. It is indicated by frequent complaints, arguments, and disputes between employees and management.  

• Lack of innovation and creativity: When you witness employees not being driven enough to exhibit innovation and creativity in their work, their morale is lower. This can be attributed to excessive micromanagement, lack of autonomy, etc.  

• High employee attrition: High attrition is one of the sure-shot signs of low staff morale. It affects the employees’ interpersonal relationships, motivation, and engagement. When employees are unhappy at an organization and have only a few reasons to stay, it will lead to high attrition.  

Now that you know some of the visible signs of low employee morale, and if you spot them in your organization, it’s time to act towards it and adopt robust strategies to combat them. 

7 ways to boost employee morale

As mentioned above, high employee morale creates a positive work environment and helps attract and retain top talent. Below are some techniques that can be implemented to boost the workforce’s morale. 

Implement cross-departmental activities to improve team participation

When employees work in a single team performing similar tasks, it leads to boredom, disinterest, and disengagement. It also lowers their exposure since there is no opportunity to hone their skills.  

The lack of growth opportunities will drastically affect their morale, and therefore, it is necessary to provide them with cross-departmental opportunities. In addition, it will increase interdepartmental collaboration, knowledge sharing and thus enhance creativity.  

According to Stanford,  

Individuals who work in collaborative settings are more than 50% more effective at completing tasks. 

In addition, working on multi-faceted projects will enable employees to diversify their skill sets, thereby boosting their morale. 

Have an open-door policy for robust communication

The overall morale of the workforce plummets when there are communication gaps between management and employees. In addition, a lack of space for employees to share their opinions and concerns will also affect their overall motivation and engagement.  

Thus, an open-door policy can be set as a workplace standard to communicate freely with managers or supervisors. As a result, the policy will help solve any persisting problems between managers and their team members, restore trust, and address issues or challenges before they become more significant problems. Moreover, such practices foster a sense of belonging amongst employees and help maintain employee morale. 

Offer flexibility to eliminate stress and burnout

Working in rigid schedules with minimal breaks can cause stress and disrupt an employee’s work-life balance. Moreover, when employees are assigned multiple tasks beyond their capacity, it will result in burnout. Thus, morale can sink when the workplace starts to stagnate and lack vibrancy.  

Changing the routine with flexible work arrangements can positively affect morale. According to a Gartner survey,  

43% of respondents said that flexibility in working hours helped them achieve greater productivity.  

Employees can be given a choice to choose work timings and location based on their convenience. It enables employees to have a better work-life balance and do justice to personal and work obligations. In addition, it will reduce the risks of fatigue and promote mental and physical well-being.  

Avoid micromanagement and provide autonomy for employee empowerment

Micromanagement is one of the primary reasons for lower workforce morale. Compelling employees to use specific methods or constantly monitoring them only increases stress. It stifles creativity and leaves them feeling powerless, lowering their confidence.  In addition, since micromanagers do not consider employees’ opinions, the trust between employees and employers would be lost. 

Therefore, employers must grant autonomy and empower their employees. When the workforce has the authority over their tasks and the liberty to explore different methods to accomplish the activities, it will enhance their engagement. In addition, practicing autonomy will improve employee-employer relationships with the company and demonstrate that their efforts are known, recognized, and rewarded, thus, maintaining high workforce morale. 

Allocate responsibilities based on their skill set and interests

Allocation of responsibilities plays a significant role in stimulating employee morale. It is necessary to allocate the right project to the right employee to maximize productivity. When employees are assigned to projects that don’t match their skills, they will be under pressure and unable to attain their goals. 

Thus, managers should assign tasks based on employees’ skillset or let employees choose their areas of interest. This will ascertain more commitment towards the assigned tasks and better quality. Thus, when employees have the freedom to incorporate and explore their ideas into their work, you will witness an increase in their morale. 

Reward and recognize employees to boost confidence

Staff morale declines when their efforts and hard work are undermined and underappreciated. Therefore, timely acknowledgment and appreciation play a considerable role in boosting employee morale. 

When they are recognized for their hard work and contribution, it increases their motivation and drives their focus towards achieving their goals. Providing employees with monetary and non-monetary benefits will give them a sense of accomplishment and lift their spirits. It will also create a healthy work environment because employees will put in extra effort and attain better results. 

Make learning and development part of your DNA

Professional growth and career development are crucial factors in employee retention. The current workforce is career-driven and seeks growth opportunities in their workplace. So, to help them attain their goals and diversify their skillsets, managers can initiate resource skill development programs.   

As part of learning and development, organizations can conduct training and upskilling programs and formulate Individual development plans (IDP). It can help the employees to expand their skills and develop professionally. Furthermore, managers can also conduct workshops to provide a space for learning and improve their efficiency and work quality. 

Conclusion

Employee morale is the cornerstone of better performance and productivity. It assures better output and helps build a positive work environment. Therefore, managers need to ensure employees are always motivated and high on spirit. The points mentioned above will help managers identify the signs of low morale and implement ways to course-correct the same. 

What do you do to improve morale at your organization? 

The Glossary

The SAVIOM Solution

SAVIOM is the market leader in offering the most powerful and configurable solutions for managing enterprise resources efficiently and effectively. Having more than 20 years of experience, this Australian-based MNC has a global presence in over 50 countries. It is also popular with more than 100 customers and helps them achieve their business goals. SAVIOM also has products for project portfolio management, professional service automation, and workforce planning software which can be easily customized as per business requirements.

Every employee is a significant contributor to an organization’s growth, success, and profitability, and they are also the most important investments of any firm. Thus, if the hiring strategy does not align with the long-term business goals, it may lead to a large bench of mismatched skillset resulting in lost market opportunities.

By developing an organized and comprehensive hiring strategy, you will be taking the first step toward setting up your business for success by attracting the right talent.

This article highlights the significance of an effective recruitment strategy and how to form one.

But before that, let’s start with the basics.

What is an employee hiring strategy?

A hiring strategy is a plan of action that describes a company’s recruitment process in detail. The strategy comprises basic steps such as defining job roles, descriptions, etc., selecting the right platform for a job posting, and even using more advanced techniques, such as an applicant tracking system.

Using these strategies will ensure that you attract, identify, and hire the right people for your company’s vacant positions. Also, it is vital to ascertain that this employee recruitment plan aligns with the company’s strategic goals.

To better understand the importance of hiring strategy, let us first examine some of the main factors that influence it.

Factors that can influence hiring strategy

Recruitment is an essential function of human resource management that must be performed diligently. There are number of internal and external factors that influence the hiring strategy. Let’s discuss this below;

Internal factors:

The internal factors are the elements within the organization that impacts the hiring function.

One such internal factor is the recruitment policy which entails the needs and organizational objectives. In addition, the hiring process varies depending on the job requirements. For example, for short-term projects, the company looks for part-time and contingent employees. However, it is viable to employ a permanent employee for long-term projects.

Some companies also follow the policy of hiring local citizens as they understand local languages and business practices better. In addition, the budget, followed by the organization’s growth rate or scalability, also determines the hiring process.

External factors:

External factors are elements that cannot be controlled by an organization yet highly influence the recruitment process.

The first external factor is the demand and supply of employees with specific skill sets in the labor market. If the demand for a specific skill exceeds the supply in the job market, the hiring will be competitive as every firm will want to recruit the best talent. On the contrary, if organization is hiring a skillset with lower demand in the job market, recruitment will be fairly easier.

Furthermore, employment rates of specific locations play a significant role in hiring. For instance, if a firm recruits from a place with a high unemployment rate, it will have a greater chance of finding skilled employees quickly. Along with this, the company’s reputation in the job market, reviews from existing and former employees also matter in attracting qualified employees.

With all the factors in mind, let’s understand the significance of the recruitment strategy.

Significance of recruitment strategy

Attributing to the evolving market trends, organizations’ work culture and practices have experienced a paradigm shift too. As a result, the traditional recruitment process has taken a back seat in this current employee-centric era.

Thus, companies need a solid recruiting strategy integrated with inclusive onboarding to attract and retain the best talent. It will help build an optimized workforce that will help maintain the company’s competitive edge. Furthermore, implementing an effective recruitment strategy standardizes the entire hiring process and increases transparency. This ensures that discrimination is avoided at all stages of recruitment, as it opens the door for merit-based hiring.

A smart hiring and selection plan also promotes better coordination between the resource and HR managers and identifies skills and competency gaps within the company in advance. Thus, recruiters can hire resources with the desired skill set ahead of time and avoid last-minute hiring.

In a nutshell, an efficient recruitment system is a driving force that helps a company onboard the best talent and establishes its position in the job market.

Before understanding the various strategies, you can use for an effective hiring process; let’s know the difference between lateral and mass hiring.

How recruitment strategy differs for lateral hiring and mass hiring?

Lateral hiring

The term lateral hiring in an organization describes the process of recruiting talent who is already employed by another organization. It is also known as strategic hiring that attracts experienced and qualified employees and will benefit the organization in the long term.

Lateral hiring involves hiring people through various social media sites or niche-specific job portals and is held at any time of the year when the need for competencies arises. Employees can also be hired through referral programs. One differentiating factor is that it involves more planning and a stringent screening process compared to mass hiring as it constitutes hiring experienced or highly-skilled candidates.

Mass hiring

Mass hiring is recruiting a large number of employees within a short timeframe. The employees are usually fresh graduates hired from an educational institution. Many companies practice mass hiring drives to scale their workforce and stay in line with the growing demand of the business. It is generally observed in IT companies.

However, it needs meticulous planning and systematic execution to get the desired result. Here the recruiting strategy can include hosting hiring events, developing a fast-screening process, and strategizing the training and onboarding. Unlike lateral hiring, mass hiring happens around the time when the students are about to graduate.

The following section outlines some of the most critical steps you should take to build a successful hiring plan for your organization.

How can you create an effective hiring strategy?

Before hiring the ideal candidate, there are many processes involved, such as attracting top talent, reviewing hundreds of resumes, and conducting an interview every other day. Effective hiring will help you smoothen the onboarding process and make it hassle-free and less time-consuming.

Here are some strategies you can use to create an organized hiring process.

Connecting with the resource manager to understand their needs.

The resource manager is responsible for identifying and allocating the necessary resources as per the project manager’s request. They have complete visibility of the future skill demand, existing skill gaps, etc., in the enterprise. Thus, managers coordinate with HR professionals to explain the resource requirements and initiate the hiring process. in case of any skill shortages within an organization

The hiring requirements, i.e., whether you require an on-demand contingent workforce or permanent employee, can vary depending on the project’s duration and business goals. Therefore, HR recruiters must constantly stay in touch with resource managers to understand their needs, streamline the entire recruitment process, and select suitable candidates.

Develop a clear employer brand

According to a 2018 U.S. site survey on Glassdoor, 83% of job seekers are likely to research company reviews and ratings when deciding where to apply.

The employee value proposition (EVP) and employer brand (EB) of your organization play an important role in recruiting new employees. Employer brand is the image your company has in the marketplace. It’s crucial to align your organization’s branding with its values, vision, and culture. It displays the benefits of choosing your company over a competitor and fosters loyalty.

A company’s employee value proposition refers to the rewards and benefits it offers employees in return for their loyalty. With a well-developed EVP, an organization’s staff are more likely to discuss the company’s accomplishments, which ensures good publicity and more quality referrals.

Create compelling job descriptions

A well-written job description is the most critical part of the hiring process. It is crucial to craft a clear, meaningful job description so that candidates know for which position they are applying. In addition, ensure the exact title, roles, responsibilities, and salary of each post to increase interest and attract the suitable candidates.

Also, it is imperative to explicitly highlight the work culture when creating a convincing job description. Furthermore, you can also include popular keywords in your description based on what your ideal job applicant would likely search for. Since job portals also have backend SEO processes, it is crucial to include high-ranking keywords.

Implement an employee referral program

According to a survey, 82% of Employees rated Employee Referrals above all other candidate sourcing options.

Since your existing workforce is familiar with the organization’s culture and needs, they can help you improve the recruitment process. A referral program encourages your current employees to refer the top talent in their field of expertise. It will also benefit the candidate, who will become more invested in the company since they know someone there.

Additionally, companies can offer incentives such as referral incentives or goodies to employees for finding candidates that are ideal for the available position. This will also help keep employees engaged, reduce turnover and retain them. The referral programs make recruitment less cumbersome since the selection process is not as time-consuming. Moreover, it also strengthens the relationship between employers and existing employees.

Leverage an applicant tracking system (ATS)

An applicant tracking system (ATS) is a tool that automates the process of posting jobs and finding relevant candidates or resumes. First, it is used to evaluate candidates for a particular position. Then, the ATS collects, analyzes, and stores multiple resumes reducing the manual work for the HR managers.

The algorithm then compares resumes to the job description automatically. In the following stages, the resumes that match the most are advanced.

According to Capterra, 94% of recruiters and hiring professionals say their applicant tracking system (ATS) has positively impacted their hiring process.

Additionally, it also saves the resume in case a future need arises.

Use social media platforms & niche job boards

It’s no secret that social media has created an excellent opportunity for companies to hire talents due to increased awareness and online presence. Therefore, promoting your company on social media platforms like LinkedIn among others can help you attract suitable candidates. For example, if your company has a multigenerational workforce, perhaps you should post a picture of them on social media. It will highlight your company’s work culture, build your reputation, and create a positive image.

Along with social media, certain platforms are built for specific industries. Thus, if you are looking for niche skills, running a search on different niche boards for candidates would be beneficial. For instance, if you need a software developer, searching for them on a forum for software professionals is recommended.

Aim for gender-balanced & diverse hiring

Diversity and inclusion in your workplace will help your team emulate what the outside world looks like. In order to achieve diversity goals, businesses need to avoid unintentional bias during the recruitment process. Using techniques such as blind resume reviews that remove personal information makes the selection process more efficient. Additionally, the use of artificial intelligence to review applications through an applicant tracking system can negate chances of partiality. Also, it is essential for the organization to expand its boundaries and look for a diverse workforce by hiring from any location.

Moreover, it is always advisable to ensure that the language used in job advertisements is inclusive and does not inadvertently exclude certain individuals. For example, using overtly masculine phrases and terms can discourage women from applying. Another important aspect is to ensure pay equity for all gender roles and provide training to HR managers on diversity intelligence. They will significantly contribute to the inclusive growth of the company.

Conclusion

It is clear from the above discussion that the recruitment process should be optimized to attract top talent– a critical component for the success of any organization. By implementing the strategies outlined above, you can create an effective hiring process that gives you an edge over your competitors. Furthermore, it will boost workplace productivity and profitability by building an optimized workforce.

The secret of my success is that we have gone to exceptional lengths to hire the best people in the world.” – Steve Job.”

The Glossary

The SAVIOM Solution

SAVIOM is the market leader in offering the most powerful and configurable solutions for managing enterprise resources efficiently and effectively. Having more than 20 years of experience, this Australian-based MNC has a global presence in over 50 countries. It is also popular with more than 100 customers and helps them achieve their business goals. SAVIOM also has products for project portfolio management, professional service automation, and workforce planning software which can be easily customized as per business requirements

However, often these performance reviews fail to make an impact. It might be due to any communication gap, or the employees could not grasp the core idea of the feedback. Or, in worse cases, managers intentionally or unintentionally end up using derogatory remarks.

Thus, they should adopt a better approach and offer an action plan or a solution while pointing out the setbacks. This form of review is technically known as constructive feedback. It facilitates employers to look at employee performance, identify the areas of improvement, and provide suggestions for better outcomes.

Today’s employees expect a constructive review process from managers, and the organizations that offer it find it easy to nurture a work culture of ongoing talent development.

This article discusses how managers can give constructive feedback to their employees for their overall progress.

First, let us get to the basics.

What is constructive feedback?

Constructive feedback is a communication tool used by managers to address specific issues of an employee’s performance. It helps analyze the recipients’ work and develop an action-driven plan to build skills and behaviors. In addition, it ensures that employees meet the company’s expectations.

When managers set aside dedicated time to review performance and provide constructive feedback, it will help employees understand their areas of improvement. In addition, the comments and suggestions given by the employer will help recipients work on their shortcomings and perform better. As a result, they will be motivated to build new skills and grow professionally.

Now that the basic meaning of constructive feedback is clear let’s find out how it benefits the employer and the employee.

What are the benefits of constructive feedback?

Constructive feedback offers a plethora of benefits to both employers and employees. From improving employee performance to reducing unplanned attrition, it is beneficial in multiple ways.

The most prominent ones are enlisted below:

Improves employee performance

The primary purpose of constructive feedback is to improve performance by identifying every employee’s “blind spots” or areas of development. One of the key benefits is that this feedback is data-driven and thus, provides an objective view to the employees about their work and setbacks. As a result, it will help them course-correct by revisiting their approach, thereby enhancing performance.

Strengthens employer-employee relationships

When managers constructively review the workforce’s performance, they take an action-oriented approach and provide feasible solutions rather than pointing out mistakes. The aim is to empower the employees and not to demean them. This ensures employees that managers are focused on improvement and development, and thus strengthens trust, thereby improving their relationship.

Ensures alignment of efforts with expectations

While giving constructive feedback, managers reiterate the long-term and short-term objectives of the company. They ensure that employees understand the goals and work towards achieving them. If an employee deviates from the expectations, the managers can highlight this issue during feedback sessions. It facilitates employees to realign their efforts with the strategic objectives without veering from their area of focus.

Reduces unplanned attrition

The idea behind constructive feedback is to support the professional development of employees. Thus, when managers help understand employees’ true potential and areas of improvement, they recognize leaders’ efforts for their career progression. Subsequently, it gives them a solid reason to exhibit more commitment towards their work and increases retention rates.

Helps employees come out of their comfort zone

Constructive feedback is a holistic process where managers not only look into employees’ setbacks but also identify the hidden potential of their employees. Since constructive feedback focuses on employees’ overall growth and development, it helps them realize their true worth and talent. It will encourage employees to tap into their potential by pushing their limits and eventually come out of their comfort zone.

Boosts employee morale and engagement

Gallup studies show that,

67% of employees are fully engaged in their work when they receive positive feedback from their managers.

Constructive feedback reflects the active participation of the employer in the recipient’s professional growth. This will automatically increase employee engagement as the reviews drive them to go above and beyond. Besides, as feedback helps employees understand their true potential, it automatically boosts their morale.

Given the benefits, let’s understand how to provide valuable employee feedback.

7 ways to provide constructive feedback to your employees

Providing constructive feedback is not an easy job. Managers need to be mindful of their tone, conduct a thorough review before the session, and so on.

Here is how you can ensure that your feedback to employees is constructive.

Ensure it is a one-on-one feedback meeting

Managers need to ensure that feedback is given in person or via video conference instead of emails. That’s because emails or text messages will not have non-verbal cues and may be misconstrued by the recipient. Managers must also ascertain that they conduct an individual review session instead of a collective one. In one-on-one meetings, employees will have the dedicated attention of their leader, who focuses on their performance and career goals, making them feel valued.

A collective review session can make the recipient uncomfortable, and they might not communicate properly. A joint meeting can fail to convey the message because the employees might be unreceptive and intimidated by their peers. Individual sessions make the recipients understand the manager’s expectations, discuss their challenges and ambitions freely and receive guidance for their professional goals.

Maintain a positive tone throughout

The leaders must always be mindful of their language while highlighting the problem areas during review meetings. Derogatory tone or language will demotivate the employees, and they will only focus on the harsh tone instead of the underlying message. As a result, the recipient may remain resentful, and it can ruin your relationship with that employee. Hence, it will leave no room for improvement, leading to repetitive mistakes.

Managers should undertake an optimistic approach for the recipients’ betterment and not criticize them. It prevents the blame game and shows their confidence in the employee’s abilities. The feedback must be framed so that the message is highlighted concisely and precisely. An optimistic tone coupled with the manager’s belief in their workforce will lead to a better outcome.

Start with achievements before discussing areas of improvement

Constructive feedback is intended to discuss not just negative aspects or gaps in performance but also achievements. Highlighting only the gaps and setbacks in the meetings will discourage employees and erode their self-confidence. Therefore, starting the feedback sessions to acknowledge the recipient’s positive points can work better.

Listening to the positive responses will boost the recipient’s confidence and set an optimistic tone for the whole session. It will help them respond better to any negative remarks and work on them to close performance gaps. The company will also benefit from their positive attitude and commitment to self-improvement, turning them into “assets.” Therefore, it is necessary to balance the positive and negative remarks throughout the session.

Focus on the issues rather than getting personal

Sometimes, managers unknowingly lose the neutral and non-personal tone while giving feedback. It makes the review meetings targeted at an employee’s personality, making them feel humiliated and dejected. They might take it personally and lose trust in their managers. They may also become unreceptive to the reviews, which can defeat the entire purpose of feedback meetings.

Therefore, focusing on the issue and highlighting the changes is necessary to help employees improve and reach their potential. So, managers must refrain from getting personal and keep the feedback thoroughly backed by facts and findings. Also, leaders should assure them that they will offer the sufficient guidance and support necessary for the progress. This will help them transform the issues into growth opportunities.

Provide context and use facts for objective feedback

The focal point of any effective feedback is to be specific and straightforward. Managers should point out what needs to be improved and the reason for this feedback session in the first place. The best way to do this is by giving concrete examples of situations and behaviors to highlight the point. Managers can also use employee metrics like utilization reports to assess productivity and point out gaps if they are consistent. This helps avoid self-interpretations about an employee’s actions and blanket statements without highlighting the real issue.

For example, the remark “Your presentation skills aren’t great” won’t show the recipient what they lack precisely and how it affects their performance. Instead, the comment “I have observed that “you often read from a script during presentations” can point out the exact issue. It can give them a better idea of what they need to improve and work on it to enhance their presentation skills. This way, mentioning the exact area of improvement will give employees more clarity and enable them to find ways to improve.

Make every feedback session a two-way conversation

Managers must ensure the feedback meeting is a dialogue instead of a monologue. The leaders must allow the recipient to respond to the review and explain their side if their opinions differ. It is essential to understand why the employee has behaved differently before deciding on the suggestions.

Having a clear perspective will make it easier for managers to deal with the issue and work out a solution together. It will also bring in better clarity and make the employees feel respected. Sometimes employees deliver their best performance and still might not meet expectations. If there are any loopholes in the work process from the organizational side, employees will have a chance to point this out, and managers can take necessary action to bridge these gaps. Thus, feedback sessions will become a space for continuous improvement and development instead of unproductive meetings.

End your feedback with a conclusion and call to action

While concluding a session, the leader can summarize all the key points and observations and ask the recipient the takeaways from the meeting. This will help ensure that the receiver has understood the discussion. The employers must also give them a chance to ask questions to clarify doubts.

While concluding, one must try to end on a positive note so that the employee can leave feeling confident and purpose driven. Managers can maintain an open-door policy to ensure that the team members approach them without hesitation if they face any hurdles in the future. They should also show trust and confidence in individual team members and their capabilities. Thus, employees will become goal-oriented and push their performance limits further.

The bottom line

When delivered the right way, constructive feedback propels individual and organizational growth. It shows what went right or wrong in the past and facilitates corrective measures for further improvement.

Crafting and delivering constructive and effective feedback is one of the most significant skills of a strong leader. It helps you create an inclusive and supportive work environment and plays a pivotal role in the company’s growth.

So, what’s your take on the strategies for constructive feedback?

The Glossary

The SAVIOM Solution

SAVIOM is the market leader in offering the most powerful and configurable solutions for managing enterprise resources efficiently and effectively. Having more than 20 years of experience, this Australian-based MNC has a global presence in over 50 countries. It is also popular with more than 100 customers and helps them achieve their business goals. SAVIOM also has products for project portfolio management, professional service automation, and workforce planning software which can be easily customized as per business requirements

But, did you know, it can do more harm than good? It is not considered as an appropriate leadership style. 

A survey reveals that, 

“79% of the respondents reported experiencing micromanagement, and 69% said they had considered quitting. Moreover, 36% of those individuals quit their jobs.”

Thus, you must follow some tried and tested strategies to eliminate micromanagement to avoid these repercussions. The following pertinent question is, how can you do so? 

One proven way is proper delegation or employee empowerment. It is the opposite of micromanagement and highlights the importance of providing autonomy to the employees and the support they require to work independently. 

This blog enlists some effective ways to empower employees and prevent micromanagement. But before delving deep, let’s start with the basics. 

What is micromanagement?

Micromanagement is a term used to define a management style where the supervisor gets excessively involved in the subordinates’ activities. They monitor and control every minor detail of the members’ working process and influence the output. Simply put, a micromanager expects the work to be done exactly their way and gives minimal or no leeway to the members to bring in their opinions or insights. 

Micromanagement could be stemming from personal reasons such as the urge for perfectionism, trust issues, etc., or organizational factors including constant pressure from the executives, lack of skilled employees, etc.  

Regardless of the factors, micromanagement is a negative practice and should be eliminated. Here are some signs that imply you’re micromanaging the workforce. 

Signs of micromanagement 

• Avoidance to take opinions or feedbacks from subordinates. 
• Lower employee productivity or performance. 
• Lack of creativity amongst the workforce. 
• Over-involvement of managers in assignments. 
• Disengaged workforce and increase in unplanned absences. 

Now that the basics are discussed, let’s focus on why managers should opt for employee empowerment over micromanagement in the following section. 

Why should you choose employee empowerment over micromanagement?

As mentioned in the beginning, employee empowerment is a practice where autonomy is given to the team members. They have the authority over their tasks and the liberty to explore different methods to accomplish the activities. 

Here are some reasons why employee empowerment is necessary: 

• Improves employee productivity and performance.
• Helps the employees discover their true potential.
• Enhances accountability among the team members.
• Strengthens the decision-making power of the employees.
• Builds a culture of trust and transparency.
• Boosts employee engagement and improves morale.
• Develops a sense of belonging and loyalty in the members.
• Assists in forming a cohesive work environment.

Attributing to these benefits, it is evident that managers should adopt the empowerment approach over micromanagement. When team members have control over their work, it will enhance their productivity, thereby, improving the quality of the deliverables. Furthermore, it will help in boosting business profitability and sustainability. 

In the following section, we shall discuss how organizations can empower employees and eliminate micromanagement. 

Best practices to empower employees while avoiding micromanagement

Managers can avoid practicing micromanagement and empower employees in myriad ways. Below are enlisted the effective practices one can implement and accredit the team members. 

Exhibit trust towards the employees 

The first and foremost thing that managers need to do is instill trust in their team members. Since employees were hired because they met the company’s skill set and experience criteria, it is crucial to trust every team member to implement their knowledge and skills for the given tasks. 

Managers should therefore give autonomy to their employees and have faith that they can do their jobs independently. Moreover, showing trust will improve accountability and foster a sense of responsibility amongst the workforce. They will perform their duties meticulously, thus resulting in enhanced productivity and performance. 

Develop clear goals and expectations 

This is one of the prime prerequisites for getting the best out of your employees. Knowing the long-term and short-term goals and what they are expected to do from the onset will help them align their efforts in the right direction and perform better. Moreover, when you clarify the boundaries and set the standards from the beginning, it inculcates self-discipline in them. 

Lastly, with distinguished goals, employees will always stick to their key responsibility areas and ensure that the KPIs are met. With a clear definition of roles and responsibilities and efforts from the workforce, managers will not be required to get too much involved in the tasks and thus, eliminate micromanagement. 

Provide constructive feedback to the team 

When it’s advised to avoid micromanagement, it does not imply that the employees should be left on their own. Monitoring your members’ performance regularly is imperative to ensure productivity and quality. However, suppose an employee is not performing up to the company’s standards. In that case, you should avoid being too harsh and not give any demoralizing comments that may dishearten the employee or hamper their motivation. Instead, you should give them valuable and constructive feedback that provides an action-driven approach to do their jobs better. 

For instance, if a specific employee commits a mistake, then as the manager, you should explain how they can rectify it or lead them by example instead of demeaning or blaming them. Constructive feedback is imperative for employee growth. Thus, while conducting feedback sessions, you should focus on providing solutions to the problems rather than pointing out mistakes. 

Assign work that caters to skill development 

One of the many ways to empower employees is to ensure that the assigned tasks help them hone their skills. Thus, while giving work, managers should take an employee-centric approach and ensure the tasks add value. 

Moreover, when employees understand that the tasks given to them will help in developing their skills, they will be more engaged and productive. They will give their 100% and complete the job as per the requirements. Thus, managers can stay assured that the members will do a good job, and they won’t need to intervene much. It will, in turn, prevent any micromanagement issues. 

Encourage brainstorming and knowledge sharing 

If employees aren’t given the leeway to express their ideas or opinions, then it will hamper their morale. Consequently, they may work in a non-creative way and just do the work for the sake of it. Ultimately, it may affect the task’s quality, cause client dissatisfaction, or even result in redoing the tasks all over again. 

As managers, you need to involve your employees in task meetings and decision-making processes. Additionally, you should also take their opinions and feedback for process improvement and encourage them to share fresh and innovative ideas. An inclusive culture will not only help in empowering employees but will also make the organization open to an out-of-the-box approach. 

Avoid penalizing for small mistakes 

Most micromanagers tend to penalize their subordinates for minor mistakes. But that shouldn’t be the case. Managers need to understand that the employees are human beings, too, and they may commit little mistakes now and then. Even if the error hampers the task or project’s progress, managers should avoid penalizing the members and instead give proper directions. 

Only when an employee causes a blunder deliberately or gets involved with unethical or compliance-related issues, should the manager take extreme measures. Otherwise, it can be mitigated with a warning. When employees are steered in the right direction, managers can ensure that they learn from their mistakes and do not make such errors in the future. Thus, it will help empower the employees by assisting them in improving their performance. 

Recognize their efforts and hard work 

Lastly, managers should recognize the efforts put in by the employees and appreciate their hard work. It allows employees to feel valued, acknowledged, and respected. However, it is unnecessary to reward them with monetary benefits every time. Even a simple personalized thank you mail or a shoutout on the company newsletter would be enough for recognition. 

Apart from the simple recognitions, managers can also admire their employees’ works through modern recognition methods such as peer-to-peer appreciations, personalized gifts, etc. All these initiatives boost employees’ confidence, and they will be more motivated and engaged. 

Conclusion

“Authority—when abused through micromanagement, intimidation, or verbal or nonverbal threats—makes people shut down & productivity ceases.”– John Stoker, renowned author, and speaker. 

From the discussion above, it is clear that micromanagement should be avoided at any cost. Even the employers or the upper management should monitor the activities of their subordinates and intervene whenever these signs are visible. 

However, it is also necessary for the managers to have a certain degree of control over the tasks. Otherwise, employees may do anything they want, leading to chaos. 

There is a thin line between micromanagement and ensuring discipline.  And managers must find the sweet spot or balance between the two. 

Using the above-mentioned practices, they can empower employees and foster a positive work environment. 

Glossary

SAVIOM Solution

SAVIOM has over 20 years of experience helping multinational clients manage their resources efficiently and effectively. With over 20 years of experience, this Australian-based MNC has a global presence across 50 countries and has helped 100+ clients meet their specific business goals. Saviom also provides tools for project portfolio management, professional service automation, and workforce planning software. So, SAVIOM can help your business to establish an efficient system geared towards your specific business challenges.

Now, there is further uncertainty due to Omicron virus in the beginning of 2022 and no one knows how long its effect will continue.

An analysis by Gartner Inc. reveals:

68% of organizations had started at least one wellness benefit program by late March 2020 to assist employees during the COVID-19 pandemic.

However, the journey doesn’t end here. Now that offices are re-opening, organizations must continue to prioritize employees’ physical and mental well-being in the post-pandemic workplace. They can form wellness programs and ramp up other initiatives to make the workforce feel comfortable and taken care of.

This informative article covers the benefits of employee wellness and effective ways to implement them with proven strategies.

But before that, let’s begin with understanding how COVID-19 has influenced the workplace culture.

How has COVID-19 influenced the workplace culture?

As we already know, the pandemic has brought about significant changes in people’s lives across the globe. The terms like “social distancing”, “quarantine”, “lockdown”, etc. became a part of the everyday lexicon. One of the most prominent shifts among all the aspects was witnessed in the workplace dynamics. The pandemic compelled many companies to completely transition to remote work and stay relevant during the crisis.

Although working from home offered multiple benefits to the employers and employees, it also brought about several challenges. Employees started feeling the pressure to meet the deadlines amid several disruptions at home. There could be technical glitches like network/Wi-Fi issues or parents of young children feeling overwhelmed to juggle work and kids at home, among other challenges.

As a result, organizations started witnessing a surge in unplanned absenteeism, lower employee morale, decreased productivity, and even attrition. The growing importance of work-life balance propelled organizations to introduce flexible work schedules into their workplace policies. Although some offices resumed normalcy and others embraced the hybrid work model, many companies continued to adopt a complete WFH approach.

Since resources are their most significant asset, organizations must take necessary steps to ensure employees’ health and well-being. Some examples of employee wellness programs include 4-working days per week, free counseling sessions, etc. Companies like Buffer and Twitter have implemented them and experienced promising results.

Now that we know how the workplace changed after Covid-19, let’s look at how employee wellness is crucial in the post-pandemic era.

Significance of employee wellness

A survey by Harvard Business Review reveals 60% of employees believe that their employers should implement some sort of strategy to benefit the workforce and improve employee well-being

The reason is the numerous benefits employee wellness provides.

Here are a few prominent ones.

Helps minimize work stress

Employee wellness programs at the workplace boost employees’ spirits and ensure they are physically and mentally at their best. Thus, the workforce is better positioned to manage stress levels when emotionally fit.

Enhances engagement and productivity

Taking care of an employee’s well-being strengthens their morale and sense of belonging, causing a higher level of engagement. Moreover, when resources lead a healthier lifestyle, they are naturally motivated to perform better, increasing productivity.

Provides a sense of value to the employees

By providing employee wellbeing programs, companies can foster a people-centered workplace, and workers will have a space to talk about what they’re feeling or going through. It gives them a sense of worth because they are heard and understood.

Increases retention rate

When an organization caters to the workforce’s emotional and physical well-being, it evokes a sense of loyalty. So, when organizations provide wellness programs coupled with professional growth and development opportunities to their employees, it increases retention.

Reduces absenteeism

Wellness programs can help reduce health risks by providing a safe environment for the employees’ holistic well-being. Since employees are at their optimum levels, there is less absenteeism as sick leaves, and unplanned absences go down significantly.

Given the importance of employee wellbeing initiatives, let’s understand how to implement an effective employee wellness strategy.

Effective strategies to promote employee wellness in the new normal

Employees are returning to the office after witnessing the most stressful year of their lives. Thus, the return is not easy for them. To ensure they have a great experience and smooth transition, employers must implement the right strategies to upkeep their workforce’s health and provide a positive work environment.

Here are some of the following ways you can implement to promote employee wellness programs in the post-pandemic workplace.

Communicate and empathize with employees

As mentioned earlier, your workforce is returning to the workplace after facing a challenging time due to the pandemic. Some must have faced significant losses or critical health issues, or some may have just stayed isolated away from their loved ones. All these factors might have triggered their emotional state. Thus, first and foremost, managers should communicate with each of them.

They can conduct one-on-one sessions to console them and help them understand they are not alone. Moreover, a private conversation provides more comfort to the employees to open up. Your compassion and empathy will make them feel heard, help them feel at ease, reduce their stress levels, thus facilitating emotional well-being.

Ensure compliance with COVID norms

Employees prioritize their safety and fear getting infected with the Covid-19 virus in the new normal. In order to ensure everyone stays safe at the workplace, organizations must raise awareness about the significance of following Covid-appropriate behavior. They should encourage employees to wear masks, maintain social distancing, use hand sanitizers, and get vaccinated.

At the same time, firms should invest in the regular sanitization of the workplace, provide health kits, keep packaged foods instead of sharing common canteens to prevent the spread of the virus. They can also set up various medical camps for employees to receive regular health checkups. Moreover, companies should organize separate vaccination drives for their employees to ensure utmost safety. All of these measures will help ensure a safe return to the workplace

Focus on nurturing a people-centric culture

After the pandemic, a people-centric office environment has become essential. So, the question is, what does a people-centric culture entail? Starting from inclusivity to boosting trust and transparency, a people-centric culture, in its essence, means making employees feel heard, valued, and respected.

Thus, the leaders of organizations need to ensure people are included in decision-making and their opinions are heard. Moreover, managers should ensure that their employees have meaningful work to do and assist them in achieving their goals. Additionally, avoiding overutilization to prevent burnout can help them stay stress-free and more productive at the workplace. Last but not least, providing work flexibility to attain work-life balance is an essential part of a people-centric culture. These factors will create a positive work environment and minimize potential stressors, thus elevating well-being.

Conduct surveys to assess employees’ preferences

Work from home is a personalized work setup for your employees. For example, they might be using bean bags to relax, doing mid-day yoga to regenerate, or taking a few short breaks instead of a long lunch break, and so on. Thus, when they return to the offices and see these amenities missing, it may hinder their productivity. Therefore, to add the viable options at offices, employers can conduct workforce wellness surveys to determine if the company’s initiatives align with employees’ priorities.

This will give a comprehensive idea of how they feel about the work culture. It will also help them determine any issues that they are facing. Accordingly, the organization can revisit its policies, eliminate underlying issues, and incorporate the requisite changes.

Implement suitable employee wellness programs

To promote holistic employee well-being, managers can implement multiple wellness programs or initiatives. For example, they can organize regular fitness and nutrition programs to help employees relieve physical and mental stress. Also, employers can arrange for various types of counseling workshops, provide gym memberships, and offer yoga retreats, all of which will contribute to employees’ psychological and physiological well-being.

In addition, they can ensure their employees take periodic breaks throughout the day. For example, they can promote frequent walks in the office to break the monotony of a sedentary lifestyle. Moreover, music has several benefits, so implementing musical programs in workplaces is a good way to rejuvenate and engage the workforce, thus encouraging employee wellbeing.

Lead by example to promote wellness

Employees are inspired by their leaders and imbibe their values, morals, and work practices. In simple words, they look up to their leaders, and hence leaders must lead by example. The first step is to reflect on the importance of work-life in their lives. They can exhibit that by taking lunch or coffee breaks and leaving the office premises on time instead of overworking.

Also, they can share testimonials and describe the effects of Covid on themselves and their families to help the employees understand they aren’t alone. In addition, leaders can also show that they are concerned about their health by going for regular check-ups and taking a leave for relaxation. This will encourage employees to open up and follow suit, leading to a better and healthier work environment.

Leverage the right tech to enhance well-being

Technology became the bread and butter of remote work culture. However, its benefits are not limited to the virtual work setup but beyond that. Today, workers are likely to deal with internal and external stressors, which can affect their productivity and health. Integrating advanced techs such as AI or IoT-enabled software or gadget can help leaders understand individuals, their behavioral patterns, etc. They can leverage this data and take the right initiatives to course correct in case of discrepancies.

Employers can even take wellness initiatives to the next level by incorporating IoT, especially wearable devices. With smart devices, employee data can be collected and integrated into an electronic health record that motivates them to meet desired goals.

Foster diversity, equity, and inclusion (DE, I)

An analysis by Deloitte shows that inclusive teams outperform their peers by 80% in team-based assessments.

Discrimination among different ethnicities, lack of inclusion, and unequal income distribution are factors behind unnecessary stress for employees. Thus, it is crucial to create an inclusive workplace to ensure that employees from underrepresented backgrounds are given fair opportunities and an equal platform to voice their opinions.

This will cultivate a positive work environment, alleviate stress, minimize animosity, and promote engagement, ultimately leading to employee wellness. For example, instead of reinforcing diversity, firms can organize diversity intelligence training to ensure employees accept each other without prejudice. Moreover, organizations can adopt policies, initiatives and even ensure parity of income for similar roles, which will enhance equity and positivity at the workplace.

All the above practices can help you formulate a compelling wellness initiative to ensure employees’ health and well-being.

Conclusion

Contrary to popular belief, employee well-being is no longer restricted to corporate giants. Today, it has become a buzzword for almost every organization. Employers have realized that sustaining well-being is the key to enhance engagement and employee retention in the wake of the pandemic. Also, the COVID-19 pandemic has affected the working population in several ways, making it even more essential to prioritize their wellness.

As vaccinations become more accessible and people return to their offices, introducing support programs will give them hope. In every organization, resources play a pivotal role. So, their empowerment will pave the way for a company to survive, innovate, and grow further.

The Glossary

SAVIOM Solution

SAVIOM has over 20 years of experience helping multinational clients manage their resources efficiently and effectively. With over 20 years of experience, this Australian-based MNC has a global presence across 50 countries and has helped 100+ clients meet their specific business goals. Saviom also provides tools for project portfolio management, professional service automation, and workforce planning software. So, SAVIOM can help your business establish an efficient system geared towards your specific business challenges.

The upheaval in today’s business landscape has compelled organizations to address this question. Employees are no longer satisfied with increased monetary benefits or better compensation. Instead, the current workforce seeks meaning in their work, yearns for a collaborative environment where they can learn, work, and grow along with their organization.

This forms the essence of employee experience and has become an enterprise-wide initiative and not just conformed to the HR.

As a result, companies worldwide are revisiting their work policies and culture to implement changes and create an excellent EX strategy. While global giants were already on it, the pandemic onset has catalyzed it further,

A survey reveals:

More than 9 in 10 employers consider enhancing the EX a top priority for post-pandemic success.

A good employee experience management strategy is the backbone of an organization in the current times. It helps boost productivity, improve quality of work, client/customer experience and satisfaction, retention rate, and more.

This blog highlights the impact of employee experience, its constituents, and ways to improve it.

But before delving deeper, it’s important to understand:

What is employee experience?

Employee experience encompasses every interaction of an employee with the organization, right from their onboarding to their exit.

In other words,

Employee experience constitutes what an employee learns, perceives, and feels about an organization’s policies, work culture, coworkers, management, and more.

Given the basic definition of employee experience, let’s understand how it can affect an organization if neglected.

How does poor employee experience impact organizational efficiency?

Poor employee experience has a number of repercussions as below:

• A decline in employees’ engagement levels leading to lower productivity
• A rise in absenteeism rates and unplanned attrition
• Poor quality of work causing a dip in profitability and client satisfaction

All these consequences can cumulatively impact organizational efficiency. In some cases, it can also place the brand reputation in jeopardy.

Formulating a strong EX-improvement strategy can help prevent all these repercussions.

But before discussing how to do that, it is essential to understand the three main components that constitute a rich and holistic employee experience.

They are enlisted in the following section,

Components of employee experience

Employers look at employee experience from three different perspectives: social, work, and organizational. When each one is catered to, it helps build a rich and holistic experience for the employees at your firm. So, it is essential to understand these three pillars before forming a definite plan:

Social experience

Social experience constitutes how an employee feels about the way the upper management and peers interact with them. It also factors in the extent of cohesiveness and collaboration among team members. In simple words, social experience is about creating a ‘humane’ environment for the workforce. If social experience is not up to the mark, it can cause conflicts, reduce team spirit, and employee disengagement.

Work experience

One of the prominent factors that define work experience is the clarity in establishing an individual’s roles and responsibilities. The other determining factor is the degree of control and autonomy an employee gets over their work. Moreover, the rewards and recognition program of the firm plays a crucial role in enriching the work experience. A poor work experience can cause ambiguity in understanding the expectations, lower productivity, which will eventually translate into sub-optimal work quality.

Organization experience

The organizational experience focuses on how well an employee’s purpose aligns with the company. It also encapsulates providing a conducive physical environment, which implies proper ergonomics, optimum lighting, ventilation, and other amenities. Moreover, the other significant factor is providing the right tool inventory to the workforce to enhance efficiency. A bad organizational experience can cause misalignment of efforts with final goals, reduce morale and productivity, and impact business profitability.

If an organization fails to do justice to any one of them, it can reduce employee satisfaction, cause unplanned absenteeism, and, in worse cases, attrition.

To prevent these repercussions, let’s gear up and form an action plan to enhance the experience. Here are some useful ways to do so:

Ways to enhance employee experience

Given the three major elements that comprise the employee experience, the onus lies on an organization to address each one of them and enhance the overall EX (employee experience) to ensure retention.

Below are a few practices to improve each component.

Tips to enhance social experience

Build a social climate to enhance the sense of belonging

Today, employer-employee relation is no longer confined to work-related discussions but goes beyond that. It’s more about expressing compassion, empathy towards the employees and taking a “humane” approach to make them feel valued and respected. Thus, it is essential for organizations to take an extra step, create a harmonious, friendly work environment, and convey how individual efforts matter and are crucial to driving a positive impact.

This will help employees appreciate that they are the real drivers of the company’s success and their contributions matter. Moreover, a welcoming environment will enhance their sense of belonging and give them a strong reason to work with 100% commitment.

Promote teamwork and collaboration

Teamwork and collaboration are crucial as they help bring different team members with varied perspectives on the same page, foster social interactions, and enable them to work cohesively towards common goals. To foster this collaborative environment, managers can promote open dialogues, group brainstorming, and problem-solving sessions and boost team spirit.

Managers should also track any instances of friction or differences between team members and eliminate them amicably. Besides that, since it is an era of remote work, employers should also organize virtual team-building activities for their distributed workforce and keep them connected to the team. It will help bring together the whole team on one platform and provide them a fair chance to understand each other better. These initiatives will help strengthen the team bond, form a cohesive work culture, thereby elevating the employees’ social experience.

Foster Diversity, Equity, and Inclusion

Glassdoor’s survey reveals:

76% of employees surveyed accept that a diverse workforce is an essential factor while evaluating companies and job offers.

Therefore, every organization should strive to maintain diversity and inclusion in the workplace. They can start by providing equal representation to people from all walks of life in the decision-making process irrespective of their community, gender, ethnicity, etc. Ensuring equal pay for people in positions with similar roles and responsibilities in different departments is also vital to remove gaps and establish payroll equity.

When employees know that the organization holds no prejudice against anyone and believes in providing fair opportunities to the deserving candidates, it automatically checks their list of ‘positive social environment’.

Another critical component is work experience.

Enlisted below are the ways to enhance it.

Tips to enhance work experience

Define roles and responsibilities clearly

Clearly established roles and responsibilities contribute significantly to increased productivity as everyone knows what’s expected of them, which helps them align their efforts better. Thus,

Functional managers should define roles and responsibilities for the employees right at the time of onboarding.

They can do so by conducting one-on-one meetings, via emails, etc.

Clarity in expectations helps the employees understand how their work adds value and is a stepping stone towards reaching the strategic goal. This creates a sense of purpose, propels them to do better, eventually elevating their work experience.

Provide autonomy to promote individual accountability

Gartner’s 2020 ReimagineHR Employee Survey reveals:

Organizations that offer work flexibility in terms of location, timings, and quantity; see 55% of their workforce as high performers.

Thus, organizations should provide flexibility in terms of working hours, liberty to opt for work from home or in-office, etc. This will allow employees to strike a work-life balance and put in their best efforts at work. Another important factor is micromanagement. When employees are constantly told what to do, they feel under-confident, and it negates any space for creativity. Thus, managers should practice autonomy in the work culture.

It lets employees know the onus lies on them to provide quality output. This, in turn, makes them more responsible, and they put in their best foot forward to do justice to the work. These practices together make an employee feel entrusted and thus add to their experience.

Acknowledge and reward accomplishments

It is imperative for every organization to identify high performers in every department and acknowledge their work and contribution. Managers can conduct timely rewards and recognition programs to applaud their exceptional performances. When the employee receives accolades in front of the team, it provides a sense of accomplishment.

It also boosts their engagement levels, and they strive to work better to contribute to organizational success. This way, when an enterprise walks the extra mile and expresses gratitude to employees for their contributions, it boosts their work experience.

Make change and innovation a part of work culture

Change and innovation are incumbent to upscale and reach new levels of success. However, these can only be introduced when your workforce is on board. Thus, employers should establish a change management framework that will effortlessly empower resources to adopt new processes, workflows, tools, technologies, etc.

Additionally, a systematic innovation management plan promotes employees to showcase their out-of-the-box ideas that can be turned into reality. It sends a clear message to employees that their talent is appreciated, and the firm also cares about their professional development.

Integrate performance management into your work practices

Employees need a certain amount of guidance to get the tasks right and provide expected output. If something goes otherwise, managers need to convey the hiccups and help them improve further. Thus, giving proper feedback on a regular basis is imperative to ensure employees receive timely reviews and get enough leeway to course correct them.

Managers can do so by conducting one-on-ones to make the employees feel at ease. Embedding performance management at organizations helps employees feel that their professional trajectory is given due diligence. It, thus, makes their journey fulfilling at your firm.

Offer career development opportunities

As employees are valuable for the company’s success, it is essential for an organization to help them climb up the professional ladder. For this, employers must give adequate career development opportunities to the workforce. Managers can work in coordination with HR to identify and assess the training and upskilling requirements for people at different hierarchical levels. For instance, shadowing can be a good way to prepare freshers to take up bigger responsibilities and excel in their careers.

Individual development programs for higher-ups can be more focused on sharpening their current skills while acquiring new ones to diversify their portfolios. If a candidate is willing and deserving enough, management can also provide cross-skilling opportunities on a case-to-case basis. All these measures facilitate the alignment of an individual’s career goals with the company’s, engage them, and enhance their experience at the workplace.

The final component that makes up EX is organizational experience.

Following are some good ways to enhance it.

Tips to enhance organization experience

Convey the organization’s mission and vision clearly

Every organization should define its mission and vision and convey them to the new recruits right at the outset. For that, creating a great employee onboarding experience where the management walks the new employee through the company’s various aspects and work practices is essential.

Team leads, managers, and even C-level executives can also have one-on-one conversations with new hires to help them understand the core theme the company is driving. Doing this helps give a better picture of the company’s purpose to the workforce and lets them align their efforts in the right direction.

Provide the right tool inventory to enhance efficiency.

Technology-related innovations and advancements have propelled digital transformation in workplaces. So,

Enterprises should also provide the right tech inventory for their workforce to help make their work more efficient and effortless.

For instance, companies should provide video conferencing, workflow automation apps, etc., to make coordination and connectivity in real-time quick and easy.

Apart from providing general tech inventory, the management should also consider the department-specific tool requirements and fulfill them. For example, a graphic designer may require a high-resolution monitor. This way, ensuring to provide the right tech to each individual based on their role increases their work efficiency and boosts the organizational experience.

Ensure a conducive and human-centered workplace environment

The workplace environment has a significant influence on the productivity of employees. Therefore, make sure that the physical office is optimally designed to keep employees engaged and compliant with all the safety standards. A cafeteria with bean bags can also be a good idea to let employees destress themselves during coffee breaks.

The workspace should also be properly ventilated and illuminated to prevent any productivity challenges due to such physical factors. Motivational quotes, canvas-sized photos of the company’s events and functions, etc., can also make the workspace more “human-centered”. Some MNCs also provide “nap pods” to let employees take naps during working hours and rejuvenate themselves. All these measures to humanize workspaces go a long way in elevating organizational experience.

d. Provide employee well-being benefits

Gartner’s survey reveals:

68% of organizations have introduced at least one new wellness benefit for employees by March 2021 to help them.

It shows the rise in the importance of providing wellbeing benefits for an organization. These benefits can be monetary, including bonuses, paid time-offs or vacations once a year, or medical insurance cover against major diseases, etc. The non-monetary well-being benefits can be stress reduction programs, timely counseling sessions, finance management tips, health screenings, nutrition classes, and more.

For remote employees, an employer can provide standing desks, conduct virtual team-building sessions, online stretch or yoga sessions, etc. When employees see that the company is investing in their well-being, it makes them feel more valued and belonged, thereby leading to a good experience.

Transform the employee journey.

Marilyn Carlson Nelson, the former CEO of Carlson Companies, says, “On what high-performing companies should be striving to create: A great place for great people to do great work.”

As EX forms the cornerstone of creating good and long-lasting bonds with employees, it plays a crucial role in the enrichment of the work culture. If an enterprise can effectively cater to its individual components, it can achieve high employee engagement and retention.

By following the above-mentioned tips and strategies, an organization can successfully enhance the overall employee experience.

So, what is your employee experience management and enhancement strategy?

The Glossary

The Saviom Solution

SAVIOM has over 20 years of experience helping multinational clients manage their resources efficiently and effectively. With over 20 years of experience, this Australian-based MNC has a global presence across 50 countries and has helped 100+ clients meet their specific business goals. Saviom also provides tools for project portfolio management, professional service automation, and workforce planning software. So, SAVIOM can help your business to establish an efficient system geared towards your specific business challenges.

Rightly said by Mr. Hoffman, extending support to the workforce from day one can decide their relationship with the firm in the long run. When new employees join a company, they are unaware of what the organization has in store.

From the company’s culture to their work policies, everything is unknown. Thus, to make this transition easier, organizations take the right initiatives and steer them through the company’s culture. The most feasible solution is to build an effective onboarding plan.

With a definite plan and process in place, you can help the new candidates acclimatize to the work environment, understand their roles and responsibilities, and ensure they gel with the other employees.

Effective onboarding also assists in inculcating a sense of loyalty and belonging in the candidates right from the outset.

However, regardless of all these benefits, most companies don’t pay attention to the onboarding process.

“As per Gallup, only 12% of companies have a good onboarding process.”

This blog will highlight the criticality of the onboarding process and enlist steps to create an effective plan.

But first, let’s start with the basics.

What is onboarding?

Different organizations follow a different approach to onboarding and have varied opinions about it. Some consider it a one-day job that ends with providing an office tour, organizing a team meeting, while others follow an extensive process for the same. However, to define it in simple words- onboarding is the process of introducing a new recruit into an organization. It is a human resources term, also known as “organizational socialization.”

To elaborate further, onboarding is essential for making the new employees understand their position in the company and also the job responsibilities that they will be handling. It also assists in familiarizing themselves with the company policies, guidelines, compliance, work processes, etc.

Many activities go into the onboarding process. Here is a rundown of them:

• First and foremost, the job offers are sent to the shortlisted candidates specifying the date of joining.
• The candidate is asked to report at a specific location with supporting documents such as qualifications, previous experience etc.
• The initial onboarding process includes document verification and accepting the new joiner to the company’s payroll.
• Initial company policy and culture training is conducted as appropriate.
• Role-based job training is also given to the joiners, followed by a facility tour.
• Lastly, executive and team meetings are conducted to welcome the joiners into their respective departments.

The time taken for onboarding activities can vary depending on the organization and the nature of the role. It is usually higher for the freshers and less for the experienced resources.

Some employers also can confuse onboarding with orientation. However, both these terms have considerable differences. Let’s understand the subtleties of both these processes.

Onboarding vs. orientation process

Orientations at firms comprise introducing the organizational culture to the new joiners. Ideally, they are conference-style events where the new hires are invited and company information, i.e., policies, guidelines, etc., are passed down. Moreover, initial documentation is completed. It can be conducted in one day or within the first week of joining.

On the other hand, onboarding is a more extensive process that entails multiple processes, from introducing the recruits to team members to providing on-the-job training. Moreover, job roles and responsibilities, organizational agendas, objectives, etc., are all clarified in detail.

In a nutshell, although both orientation and onboarding are conducted to fulfill the same purpose, i.e., helping the new hires get accustomed to the environment, their processes have a stark difference.

Thus, it is safe to say that onboarding is a more preferable option for both employers and employees as it sets the tone for the entire tenure. The following section highlights the phases of onboarding,

Four phases of the onboarding process

In today’s hypercompetitive era, where every organization vies for the best talent, firms need to go the extra mile for employee retention. An effective onboarding process is one such strategy that can be the catalyst in forming a long-term relationship with the employees.

Before formulating an onboarding plan, you should note the four distinct phases that comprise the whole process. Here is a rundown of them:

Pre-onboarding

This is the first phase. It begins when the candidate accepts the job offer and ends when that candidate joins the organization. The necessary paperwork is completed during this stage, and a rapport is built with the joiners. Thus, HR managers and employers are constantly in touch with the new joiners to ensure smooth onboarding.

Welcoming

As the name suggests, the organization welcomes the recruits onboard, provides them an orientation to take them through the firm’s structure, policies, and so on. Besides, the HR managers also discuss attendance policy, medical insurance, payroll policies, etc. Usually, employers aim to finish the orientation within a week.

Training

The training phase forms the majority of the onboarding tenure. However, depending on the employee role or experience, the training period and modules may differ for each of them. For instance, seasoned employees may only require a run-through of the work processes, etc., while freshers will need detailed training from scratch. HR managers consolidate the training modules and form a repository for future purposes.

Transitioning

The transitioning phase lets the recruits implement their theoretical training in the practical world. In other words, it helps transition from the role of a new hire to a permanent employee. This is when new joiners will put their training into work and perform their responsibilities as required. To monitor their productivity, designated managers conduct timely performance reviews, one-on-one meetings, etc.

The phases mentioned above help organizations follow a systematic model to onboard a hired candidate.

The following sections delve deeper into the onboarding process and highlight the significant benefits and valuable tips to form an effective strategy.

Reasons why onboarding is essential for employee satisfaction

There are various reasons why effective onboarding is essential for the employees. The adage “first impression is the last impression” sums up the whole process. When from the outset itself, employees feel valued and get a sense of belonging, it naturally leads to their retention and forms long-term ties with the firm.

Here are five reasons why an onboarding process is necessary:

Allows employees to get acquainted with the work culture

The most important thing for any organization is its work culture and core values. If a new hire starts working without understanding these nitty-gritties, it may get arduous for them to gel with fellow team members, leaders, and so on.

Thus, onboarding resolves these issues and walks them through all the cultural ideologies that the firm abides by, the work environment and processes, the management structure, and so on. This makes it reasonably convenient for the recruits to get accustomed to the process and policies and form good relations with the employers.

Provides essential hands-on role-based training

No new employee can thrive at their respective jobs without formal training at the beginning. Assigning technical work to these candidates without proper directions is similar to letting someone drive the car who had never taken driving lessons. It will reflect in the end result, and managers may receive a subpar quality deliverable. Naturally, it will also lower the new employee’s confidence and morale.

An onboarding process addresses these issues and provides the employees with the necessary training and tools to perform their roles better. With role-based training programs, they can meet the expectations of the managers and stakeholders. Moreover, it assists in developing or nurturing their skills further.

Forms a conducive environment for the recruits

Organizations strive to form a positive work environment to do justice to the employee-centric work culture. A systematic onboarding is the first step towards the same. When the employees receive a warm welcome, it sets the impression that the firm cares about their journey and thus makes them feel valued.

Moreover, an introduction to the work policies, extensive job training, initial ice breakers with the teammates contribute to a conducive environment.

“As per Glassdoor, strong employee onboarding can improve retention by 82%.”

Get an opportunity to meet senior managers and decide on a career trajectory

Another significant benefit of setting an effective onboarding process is that it provides an opportunity for the recruits to have a dialogue with the upper management. The upper management constitutes stakeholders, senior executives, and so on.

It gives them a glimpse of the hierarchy within the company and its objectives. Apart from getting clarity on the expectations, the new employees also know about the career development opportunities, the other roles they may take in the future, and so on. Additionally, the candidates also understand the ideologies of the higher-ups and how they can seize an opportunity to make a mark in the long run.

Now, it’s time to form an action plan. You can implement the following steps to develop an effective onboarding process,

How can you create an effective onboarding process?

By now, you must have understood the significance of the onboarding process. However, you need to plan this process systematically to reap the benefits. Here is a detailed description of the steps to create an effective onboarding plan:

Implement an employee onboarding template

An onboarding template will help you organize the steps involved in the process. It will help ensure that each critical stage is taken care of and all the essential onboarding milestones are met. Although each role may have different requirements, this template will assist in organizing the common objectives in one place.

Your onboarding template should include all the four phases that were discussed earlier and sub-categories under each one of them:

• Pre-onboarding process.
• Welcoming – orientation, documentation, team introduction, etc.
• Training- goals determination.
• Transitioning- assignments, manager, and executive meetings.

Communicate with the candidates regularly

Communication is the key. Starting from the shortlisting of the candidates after screening to their last day in the company, you should regularly communicate with them. For instance, once the candidates are screened, you should get in touch and explain the further interview procedures. When they are selected, you must contact them to discuss the salaries and other benefits and come to an agreement.

Additionally, you can send them office videos or other details via email to keep them interested in the position. Moreover, during this process, you should also clarify the company policies, compliance issues, work culture, etc. Lastly, when they accept the offer and join the firm, you should conduct regular feedback sessions to understand if they are facing any challenges and resolve them accordingly. In short, communication is incumbent in all four onboarding phases.

Assign a buddy for the new hires

No matter how good an onboarding repository or training sessions you have, it will take some time for the new employees to perform their tasks confidently. Thus, assigning them a mentor or buddy can be an effective way to support them while they’re still finding their way around. A buddy can help the candidates understand the company’s work culture and how their roles fit in. They can train the joiners and also monitor their progress, identify their strengths and weaknesses.

But, who should be a buddy? Someone who has relevant experience in the company and clearly understands the roles and responsibilities. Moreover, he/she should have enthusiasm for this task of guiding the recruits.

“According to an HCI survey, 87% of companies said that assigning a buddy program improved new hire proficiency.”

Introduce them to the managers and stakeholders

Managers reflect the company culture and work ethics more than anyone. Moreover, since they will be the ones to set the goals and objectives for the new joiners, it’s only logical to involve them from the first day of onboarding. Managers can start by conducting a one-on-one with the candidate, explaining the company structure, roles, responsibilities, etc.

Introducing the new hires to all the key stakeholders is also necessary. As stakeholders are busy and may not have ample time to meet with the candidates, pre-deciding the meeting time based on their availability is an ideal choice. They can discuss the organization’s needs, dependencies, etc., with the employees. It will help the new employees understand why they are selected and how their tasks can benefit the company in the long run.

Offer presents for an immersive experience

Beginning a new job can be both exciting and intimidating at the same time. The recruits may feel overwhelmed by their unfamiliar surroundings and lack of social connections. Organizations can make an extra effort and reach out to a new employee with welcome gifts. It can help in giving them an immersive experience and also minimize their nervousness.

For example, you can gift them company laptops, water bottles, planners, diaries, etc. You may also include your mission statement, handbook, and directory as part of the presents to help them prepare for the job. All these gifts can also assist in familiarizing them with the company’s culture.

These are the steps that can help you provide a holistic experience to the new onboarders of your organization.

Conclusion

It is evident from the above discussion that onboarding is an essential process, and organizations need to take it seriously. The initial experience of the employees at your firm decide their long-term relationship with you

Providing them a sense of belonging makes them feel valued, and you can expect a healthy, long-lasting relationship with them. The above-mentioned tips are a great way to formulate an onboarding protocol to meet your organizational needs.

Michelle Hoover, Principle of Beam Leadership, has said- “How an employee initially perceives a company in terms of opportunity has a huge impact on how long they will stay.”

The Glossary

SAVIOM Solution

SAVIOM has over 20 years of experience helping multinational clients manage their resources efficiently and effectively. With over 20 years of experience, this Australian-based MNC has a global presence across 50 countries and has helped 100+ clients meet their specific business goals. Saviom also provides tools for project portfolio management, professional service automation, and workforce planning software. So, SAVIOM can help your business to establish an efficient system geared towards your specific business challenges

But, how can they record these details with accuracy? The answer is timesheet software.

Professional services organizations have a particular business model that relies on accurate billing of the work done for the clients. They need to track the hours spent by the employees to regulate their billable hours, generate accurate invoices, and process payrolls.

Therefore, it’s imperative for professional services firms to implement a real-time tracking system that accurately logs every minute spent on tasks. It’s one of the most significant ways to track employees’ utilization, analyze their actual time spent on tasks against forecasted to align future allocations to reality, and ensure precision facilitates timely invoicing to avoid revenue leakage.

This blog highlights the importance of timesheet maintenance for consultancy firms and some tips to manage them.

Why do professional services firms need Timesheets?

In the professional services industry, most projects are short-duration, and clients are billed hourly. Thus, the managers need to keep track of every resource and the projects they are working on. It helps streamline the employees’ payrolls, provide accurate client invoicing, thereby improving the organization’s efficiency and profitability.

Currently, many firms rely on manual record books or excel-based timesheets to log these details. However, they are cumbersome and prone to manual error. Thus, it’s time for businesses to look for a more innovative, time-saving, accurate solution, and helps maintain the database on one platform. This is where the timesheet software can prove beneficial.

Below are some of the reasons why they can be used in this scenario:

• Managers can review the timesheets in real-time with accurate insights and send them further for payroll processing almost immediately. Thus, it minimizes the latency and any chances of time theft.
• Moreover, resources won’t have to send endless email trails for timesheet approvals. A real-time software sends it directly to the reporting managers once submitted. They can authorize the sheets from any location.
• Modern time tracking can be integrated with resource management software and be used to maximize the resources’ productive utilization. Thus, managers can also course-correct instances of over/underutilization.
• This tool also negates the need to maintain multiple records or databases across departments. It breaks the silos and maintains records of the enterprise-wide resources (remote and in-office) on one platform.
• Similar to integration with the resource management tool, a timesheet can also be embedded into different software, and its data can be used to procure insightful reports on various metrics.
• In some advanced solutions, resources can also log in and start the timer for specific tasks. Following this, the software will automatically record the hours until the resource stops the timer. It helps in reducing the time employees put in filling the timesheets manually and also enhances precision.

In a nutshell, real-time timesheet tracking can streamline employees’ attendance while also helping the managers regulate invoice and payroll management processes. Moreover, its utility expands in different horizons, and managers can also use the data recorded to enhance the resources’ billability, utilization, productivity, etc.

Timesheets vs. Attendance software

There are various ways to track your employees’ attendance and day-to-day activities. Selecting the right software for your needs can be daunting, and thus to simplify it, we have narrowed it down to two specific tools. They are:

• Attendance tracking software.
• Timesheet/time tracking software.

However, before selecting any of these tools, you must understand the difference and determine the best one for your business.

Attendance tracking software

This tool is based on the clock in/out process. Employees need to manually clock in at the start of their schedules and then clock out when their day is over. It provides information on the number of hours the employees have put in. Based on this, the management can understand if they are logging in late or logging out early.

In today’s world, organizations use biometric scanners or facial recognition systems to track attendance. But the information gathered is the same as traditional attendance systems. These tools are primarily used by retail outlets, food service companies, etc. However, attendance tools may not be fruitful enough for professional services firms as they cannot track project/task durations or strategic/ billable activities.

Now, let’s understand the time tracking software and how it can be a better option for the professional services industry.

Timesheets/time tracking software

A time tracking software or timesheet allows managers to enter the project tasks for the employees, and following that, the resources can log the time spent against each task or project. Along with that, the timesheet also has a comment box where they can enter additional details about the task for better clarity and transparency.

As stated earlier, the integrability feature makes it an excellent tool for monitoring project activities and resources’ productivity. For example, the employees’ data filled in their timesheets can be used by a resource management tool or a PSA tool to generate other metric reports such as utilization or forecast vs. actual. Thus, managers can compare it with the allocated hours and understand how long tasks should ideally take and how long the employees are taking. Moreover, it can also help answer questions like:

• Are the resources being optimally utilized?
• Are the projects behind schedule or going over budget?

In addition to these features, an invoice generating or PSA software can also leverage the timesheet data to create invoices by factoring in the employees’ hourly charge-out rates. Thus, you can make invoices with speed and accuracy. These features and benefits are discussed in detail in the later sections.

Therefore, with all being said, it’s evident that time tracking software is a more feasible option for professional service firms than a simple attendance tracker.

What are the different types of Timesheets?

A timesheet is a record tracker that allows employees to log in the work they have done alongside each project with its duration against their capacity. Thus, they are used to record time spent on specific tasks. Also, there are various methods to record timesheets, such as on paper, using excel sheets, or through a dedicated software.

There are three types of timesheets based on the purpose they serve, they are:

Payroll timesheets

These timesheets help in tracking the number of hours an employee has worked to streamline payrolls. Moreover, they also record leaves, vacations, or any other information needed to precisely calculate the paid and unpaid leaves. Employees need to enter their day-to-day work information, following which the managers will approve and send it forward for salary processing.

Online timesheets

Online timesheets are the digital versions of traditional payroll timesheets. However, these timesheets can be integrated with the payroll software and used for real-time time tracking. Moreover, employees can enter data in online timesheets from anywhere and through any device.

Employee timesheets

Employee timesheets are used for non-exempt employees who work on an hourly basis. These timesheets are used to track their hours and also the overtime so that employers can provide fair wages.

Now that you know what a timesheet is and the categories, let’s understand why the traditional timesheets templates are a thing of the past.

Why is the Traditional Timesheet Template obsolete in the 2020s?

Traditional timesheet templates are error-prone and need to be checked and reviewed several times before they can be used for payroll configuration. In organizations where these types of timesheets are used, managers, the HR team, and the finance department have to spend a lot of time processing the records. Thus, it leads to chaos and confusion.

Here is a rundown of the reasons why traditional timesheet templates are not the ideal solution for tracking employees’ hours:

• These timesheets lack in providing an accurate record of employees’ working hours. Since they are manual, in some cases, employees may indulge in malpractices such as time thefts.
• Management has to spend a lot of their time reviewing and approving the records.
• Since they are based on manual processing, filling up these timesheets can hamper the productivity of employees.
• There are no mechanisms to check the authority of these timesheets. Employees may put misleading or wrong data regarding arrival and departure from the office.
• Since they are manual and not standardized, these timesheets may be subject to bias from the HR department or management.
• As the invoicing will be done manually, it may be subject to inaccuracy, causing revenue leakage for the company or a bad reputation with the clients.
• Traditional timesheets create silos of data, as every department maintains its own template. Thus, there is no standardization of policies across the organization.

Benefits of Timesheet software in professional services firms

Professional services firms have a large resource pool. Moreover, these employees are scattered among different locations and may be working for several clients. That’s why a centralized timesheet solution can be an excellent addition for such organizations. It can help keep the timesheets up to date without human intervention. Thus, employees can spend their time on the projects and tasks that matter. Moreover, the upper management can access any information at any time to implement payroll functionalities.

Here is a detailed description of the advantages of a real-time time tracking solution for consultancy firms:

Provides real-time insights into resource utilization

The timesheets can either be used as a standalone solution or come as an add-on in different software and tools. In either case, it can be integrated into other tools, and the data can be used to infer actionable insights. Taking the previous example, a resource management software can utilize the data and curate utilization and forecast vs. actual reports. Using business intelligence, it can be visualized in the form of color-coded heatmaps that showcase the real-time utilization rates of employees.

For example, it shows 80-100% utilization as green depicting maximal or optimal utilization, 50-80% is shown as yellow, and anything below that is red. Based on that, managers can understand if the resources are optimally utilized or not. Thus, they can take necessary actions to minimize the under/over utilization symptoms.

Facilitates automated invoicing and payroll processing

As stated earlier, with the help of this time tracking solution, managers can review the data filled in by the employees quickly. The tool gives them a clear picture of the billable hours put in by the employees. Following this, they can approve the timesheets and send them forward for invoice processing. Thus, it helps ensure accurate invoicing where there is no billable loss of any kind.

Also, since the tool can track work hours, leaves, accruals, and adjustments, management can have direct visibility into how team members are spending their time and their productivity. Thus, it helps streamline and standardize payroll processing. Since everything is well-documented and devoid of human errors, there are no chances of conflicts or biases.

Procures forecast vs. actual reports

Forecast vs. Actual reports are helpful to understand the project’s progress and if it’s in line with the initial plan. Thus, managers can understand the variance between the planned (expected) and the actual values using these reports. If yes, they can take corrective measures ahead of time to meet the deadline, control the project’s lifecycle, and avoid billable loss. Besides, they can also form a course-corrective plan to cater to the deviation in employees’ utilization.

If employees spend more time than predicted on specific tasks, managers can investigate the cause for the excessive time spent. Following this, they can adjust the estimates if needed and communicate the same to the employees. These forewarned reports also help managers in improving the project plan for future projects.

Standardizes policies and ensures compliance

Using a standard tool to track employees’ activities across the enterprise creates traditional practices. Every department is compelled to follow the same rules and guidelines while filling in their timesheets. This ensures that every employee is treated fairly and there are no biases for payroll or invoice processing. In addition, the time tracking systems can be easily integrated with the internal knowledge management solution.

Therefore, the timesheets can be programmed as per the company policies and guidelines. It helps the employees understand how to fill and submit the timesheets on time and adhere to the organizational rules and regulations. Moreover, if they have any questions regarding the company’s laws and policies, then the software can provide answers to those questions as well. Lastly, it also helps in minimizing the chances of time thefts and ensures ethical practices.

Reduces administrative overhead

Since everything is streamlined via the tool, it minimizes excess admin work like payroll regulation, invoicing, etc. With pre-scheduled reminders and background entries, employers can submit their timesheets on time. It helps in speeding up the reporting, approval process, and reconciliation.

Besides, timesheets also help in enhancing employees’ work efficiency and productivity. As employees get relieved from doing specific mundane tasks, they can focus on the tasks that matter. Moreover, organizations can relieve the excessive admin workforce or indulge them in strategic activities to reduce the overall administrative overhead. Thus, timesheets are also beneficial for minimizing costs.

In conclusion, we have added some proven tips you can leverage to manage these timesheets seamlessly.

Conclusion- Tips to manage timesheets

Managing timesheets require standardization and following a routine. Here are some tips for managing timesheets properly:

• First, move from traditional timesheets to a dedicated software.
• Integrate the modern timesheet solution with the company’s invoicing and payroll systems and other relevant software.
• Include the company policies and timings guidelines in the solution.
• Ensure that all the employees fill their data into the timesheet regularly.
• Ascertain that the managers approve the timesheets on time before the month-end so that payrolls can be processed.

So, are you planning to switch to a real-time time tracking system yet?

The Glossary

SAVIOM Solution

SAVIOM has over 20 years of experience helping multinational clients manage their resources efficiently and effectively. With over 20 years of experience, this Australian-based MNC has a global presence across 50 countries and has helped 100+ clients meet their specific business goals. Saviom also provides tools for project portfolio management, professional service automation, and workforce planning software. So, SAVIOM can help your business to establish an efficient system geared towards your specific business challenges.