7 Rising Trends in Employee Training and Development in 2016

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2016 Training Trends

“The only thing worse than training employees and losing them is not training them and keeping them.” This Zig Ziglar quote is one many businesses can relate to. The cost of NOT training employees can be substantial to a business. However, when it comes to training employees, it is beneficial to be up-to-date on the ever-evolving trends. In Josh Bersin’s Forbes article, “The Learning Curve Is The Earning Curve,” he points out that “learning is part of economic survival for most of us” and if businesses don’t make an effort to continuously re-skill employees, they will fall behind.
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Six Trends that will Influence Employers in 2014

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Six Trends that will Influence Employers in 2014

Several training trends emerged from 2013 that will affect employers’ delivery of learning and development, heading into 2014. They include the following:

1. Informal Learning

Discussing best practices, reading articles and blog posts, informally talking to mentors, and exchanging messages with coworkers, is evolving and more organizations are leveraging it to improve performance.
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Compensation & Benefits Trends for 2013-2014

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Sue Bailey is a Senior Consultant at ERC with more than 25 years experience in the HR, compensation, and benefits field. We sat down with Bailey to answer a few questions about benefits and compensation in the workplace.

How has the Affordable Care Act impacted benefits and compensation?

The Affordable Care Act, or Obama Care, is having a significant effect on benefits and compensation in 2014.  “Specifically, it will have a large impact on employer’s benefits packages in the future. A lot will depend on the medical and insurance companies, and consumers,” says Bailey.
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The Most Critical Trends Shaping HR

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The Most Critical Trends Shaping HR

There are so many important trends shaping HR right now that will affect employers in years to come. Here's a brief synopsis of the most critical ones that you should know heading into 2014.

1. Social Media & Mobile

Social networking platforms are changing, and will continue to change, how HR departments operate. People's lives are becoming more social networked, and nowadays, social media is no longer simply a marketing or personal tool. It is gradually becoming engrained into many aspects of the workplace.

Although social networking is primarily used for recruiting, employers are beginning to use social networking platforms for learning and development, employee communications, collaboration and innovation, and recognition.

Similarly, mobile continues to become more central to our lives, which poses both challenges and opportunities for our workplaces. Mobile can be leveraged for learning, recruiting, and other HR needs, and provides employees with greater flexibility to do their work, but it also will continue to present difficulties (e.g. productivity).

2. Big Data

Big data, or HR analytics, is increasingly guiding decisions pertaining to talent and the workplace. As technology increasingly is implemented in HR departments, people decisions are becoming more strategic and complex.

More companies will move beyond operational reporting and benchmarking, and leverage data about employees to make their HR departments more data-driven and strategic.

This includes using data to predict outcomes (e.g. hiring, performance, etc.) and conducting strategic analytics to statistically analyze problems and translate data findings into solutions.

Because research is finding that leading organizations are using big data for HR and that it is effective in delivering sound problem solving, this trend will require HR departments to hire and develop staff with big-data related skills in business acumen, consulting, data management, statistics, communication, and executive presence.

3. Generational Issues

Four generations are in many organizations right now, and they all have very different ways of working, forcing companies to put into place practices that help manage generational issues and conflicts.

The younger generation, in particular, is creating challenges for HR departments with their distinct values, forcing organizations to re-tool their talent management practices. For example, the younger generation...

  • Desires flexible work hours and work-life balance
  • Has intolerance for boredom and 'dead-end' jobs
  • Values mentoring, personal learning, and development
  • Expects rapid career progression

Because this generation brings critical skills to the table and are the future leaders of organizations, HR will need to find better ways to manage this group in order to retain them.

4. Rise of Contingent Workforce

Studies are predicting that the workforce will become more contingent in the next five years, and that by 2019, nearly half the workforce will contract their skills to multiple organizations.

There are already signs that this is happening with a rise in temporary workers, contractors, independent consultants, and freelancers. According to a report by Accenture, the most common freelance jobs include sales and marketing, IT and programming, design and multimedia, engineering and manufacturing, and writing.

The dynamics of business are changing so rapidly these days that many employers find they need an agile, "just-in-time" workforce that is more cost-effective. Contingency is attractive because work is becoming more knowledge and project-based, and increasingly reliant on specialized skills and expertise. In addition, economic fluctuations like we've seen the past few years will require more flexible staffing models.

Though contingent workers bring benefits, they will also pose challenges for HR departments in terms of how they are managed, compensated, and treated.

5. Change & Innovation

Because organizations are changing so rapidly, HR will have to take on more significant roles related to managing and communicating change initiatives and disruption within the workplace effectively. HR will need to take on a more consultative and change-management oriented role in their organizations.

Similarly, the need for innovation, risk-taking, and creative solutions is becoming more necessary. HR will be increasingly relied upon to drive this behavior through the development of culture and programs (rewards, empowerment, suggestions and ideas, employee feedback, etc.).

6. Leadership

Traditional theories of leadership are not as relevant to today's challenges, and certainly won't be in the future.

Leaders will need to demonstrate different behaviors and skills than were required in the past. Skills such as empathy, authenticity, influencing, strategic thinking, articulating, flexibility, risk taking, demonstrating integrity, leading diverse teams, collaborating, and bringing out the best in others are all being seen as more important for leaders.

While these aren't necessarily new leadership skills, more emphasis will be placed on them in the future.

7. Total Rewards

More and more, employers are faced with the issue of "there's only so much money in the bucket" and must make harder decisions about the total rewards that they offer.

For one thing, the benefits landscape is changing with the steady rise in health care costs, the uncertainty associated with how the Affordable Care Act (ACA), and the changing nature of wellness in the workplace.

Likewise, modest pay increases and a performance-oriented approach to compensating employees has also been evident. Then, there are other rewards that factor into the equation like perks, recognition and rewards/staff appreciation, voluntary benefits, training and development, and more.

Employers will have to continue to make hard decisions about what total rewards will be provided to the workforce. Business strategy, performance, and the needs and interests of the workforce will all play a role in these difficult decisions.

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Northeast Ohio Keeping Up with National Pay Adjustment Trends

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The 2013-2014 ERC Wage & Salary Adjustment survey results found an average projected pay adjustment of 2.9%- basically more of the same from 2013. The results from this local survey of Northeast Ohio employers are very much in line with national reports from organizations such as Hay Group and WorldatWork which repeatedly indicate that employers are hovering right around the 3.0% mark, much as they have for that past several years.

One bright spot here in Northeast Ohio is that out of the 139 participating employers only 7 indicated they are not giving any pay increases to their employees or a full 95% of employers that are providing increases in 2013. 2014’s numbers are shaping up similarly, with only 6 out of the 139 employers projecting that they will not give increases, again that’s 96% projecting increases for 2014.

As the chart below illustrates, in terms of the overall percent of employers providing increases, 2013 and 2014 (projected) have finally met and even exceeded the pre-recession levels. Seeing these adjustments continue to expand across the region’s employers is a positive sign for the region’s business community and in theory means these increases (even if small) are reaching a larger proportion of the total workforce as a result.
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Social Recruiting: What's Trending Now

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Why is social recruiting such an important topic, and what's the value to your company? Mike Donoghue, the Senior Director of Mobile, Video & Vertical Strategy at Advance Digital (parent company of Cleveland.com), has teamed up with ERC to answer some of our most pressing social recruiting questions.

Trends & Growth

Over the last few years, Mike and his team have seen rapid growth happening on LinkedIn. As the 'brand-safe outlet', as Mike calls it, LinkedIn provides a platform for talent acquisition that does not require a deeper, personal relationship between company and candidate. Although, he also comments that as professionals become more weary of whom they add to their LinkedIn networks, there will be some decline in usage. Platforms like Google+, Twitter, and Facebook will gain popularity as organizations and individuals become more comfortable interacting and begin developing richer profiles.
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Top 5 Trends in Training & Developing Talent

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Training and development is a critical aspect of an organization's talent management strategy. Every organization needs to invest in it to attract and retain talent and grow their employees' knowledge base and capabilities. Here are five current trends influencing training and development.

Trend #1: Training is a means of keeping, developing, and rewarding talent.

Training has evolved into not only a means of developing employees’ skills, but also a strategy to retain, develop, and reward key talent. In ERC's 2012 Talent Management Practices Survey, the majority (57%) of organizations say they use training and development opportunities as a strategy to retain top or key talent and 61% use it as a way to reward and recognize employees.
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5 Pay Trends You Need to Know

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If your organization is in the process of determining compensation for the rest of 2011 and budgeting for 2012, here are 5 important pay trends that you should know related to salary increases and bonuses.

1. Employers are planning salary increases.

The percentage of employers planning salary freezes continues to decrease from 2009, and the number of organizations projecting salary increases continues to rise. In fact, research shows that 82% of employers are providing increases in 2011 and 89% are projecting increases for 2012. This compares to only 55% in 2009 and 59% in 2010 and is approaching 2008 levels when 90% of employers gave increases. These findings are consistent with other national studies which suggest that salary freezes are on the decline.

2. Average salary increases continue to be modest.

Although more employers are planning increases than in the past, they will be modest, hovering around 2.8%-2.9%, which are the average projected increases for 2011 and 2012 cited by numerous surveys. Nonetheless, increases are approaching 3% and some organizations are even exceeding 3%, although very few organizations are budgeting more than 4%. Most compensation experts, however, believe that 3% will be the new 4%. These projections and insights are common across not only our local findings, but also those of WorldatWork, Aon Hewitt, and Towers Watson.

3. Few organizations are recovering pay.

Another trend that has been consistent across numerous compensation budget studies is that few employers are reporting high recovery increases to boost employees’ pay to market levels in spite of their pay freezes over the past few years. Because of this trend, employers may be faced with challenges in retaining employees and especially top talent. This year, studies have shown an uptick in employees dissatisfied with their organization’s compensation practices, especially among those organizations that have not provided increases over the past few years.

4. Merit increases remain the most common.

Merit increases continue to be the most common type of increase provided by organizations, according to most compensation studies, and are differentiated by performance level (by approximately 1.5-2%). Top performers can typically expect increases of 4-5% on average; however, this varies widely by industry. Cost-of-living and across-the-board adjustments are less common, but still used by some employers.

5. There is a positive outlook for bonuses.

Not only are employers continuing to offer bonuses, but they also are more able to fund them. A study conducted by Towers Watson shows that many organizations are experiencing stronger performance in terms of profits and as a result, they expect that annual bonuses will be fully funded in 2011. Bonus trends for 2011 seem to be more positive for many organizations compared to the preceding years. Additionally, other pay for performance trends remain strong including differentiation of merit increases. 

Overall, many studies indicate that the outlook for pay is moving in a positive direction with fewer salary freezes, slightly higher pay increases, and more funding for bonuses. Nonetheless, market adjustments continue to be an area where many employers are lagging and should keep in mind the possible detrimental effects of not recovering pay from salary freezes.

View ERC's Wage & Salary Adjustment Survey Results

The survey reports data from Northeast Ohio organizations regarding their actual and projected wage and salary adjustments.

View the Results