A recent People Risk Survey Report from Mercer Marsh highlights the top 5 people risks NZ businesses are facing right now, namely:
- Attracting the right talent
- Heavily relying on one or more key people in the business
- Scarcity of talent
- Retaining talent
- Succession Planning
When considering emerging risks within the business, the report observed the clear need for businesses to manage and further invest in employee mental health and wellbeing.
Mercer Marsh also discussed ways businesses can mitigate these risks, including having a social conscience, embracing diversity and inclusion, having a strong culture, flexible working conditions and a range of employee benefits that evolve with employees’ needs.
But how does a business go about implementing these changes, or changing the culture to ensure these risks are minimised? To do so you must have a plan in place – a People or HR Strategy. This will allow you to focus on the performance of the company, by giving you insight into issues obstructing successful achievement of your company goals. You can then determine how your HR processes will run to support these goals and have the foundations on which to plan all HR activities.
When establishing an HR strategy, there are four main areas to look at:
- Company culture – values, norms and beliefs
- The business itself
- The people
- The general HR system
“The way we do things around here”, otherwise known as your company culture, is the foundation of your strategy. The way your company acts, reacts and interacts will affect your HR strategy and every aspect of the Employee Lifecycle, from recruitment to training, to performance management. Therefore, your strategy must support your culture, otherwise it will be ineffective.
Once you’ve evaluated all four areas above, you can then start working on implementing your strategy and aligning people initiatives to it. This means looking at assessing the benefits certain initiatives may reap, deciding where the resources will come from, establishing risks, working on a budget and deciding how the initiative will fit into the company. Once completed, ongoing monitoring, evaluation and potential changes will be required, and whilst it’s working your whole company can expect better success in all areas, thus mitigating your people risks.
Unsure where to start?
Establishing a People or HR Strategy takes some time and effort. That’s where we can help. Using our Discovery process, we will work with you to establish a People Plan, driving your HR activity and outcomes according to your highest priorities.
You can download the full People Risk Survey Report 2018 from Mercer Marsh here.
Get a quick snapshot of your business’s readiness for growth through your People by taking our FREE Ready, Set, Grow People Check-Up here.