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Concerns about employee turnover is now the biggest challenge facing HR practitioners today.
That was according to the 2015 employee recognition report by the Society for Human Resource Management (SHRM) and Globoforce.
Canvassing 823 HR professionals who are employed at organisations with a staff size of 500 or more employees, report found that staff turnover was chosen by 40% of respondents as their biggest HR challenge.
This was followed by employee engagement (39%), and succession planning (35%).
“For years, analysts have been predicting a coming war for talent, when demand for skilled labour will outstrip supply—especially true in technology and skilled manufacturing trades,” the report stated.
“Lower unemployment rates, combined with population fluctuation and the retirement of more baby boomers, likely means that this talent shortage is beginning to be felt.”
The survey also noted that HR professionals are working on improving employee retention and engagement levels by building a culture of recognition—and in particular values-based recognition -in their workplaces.
More than eight out of 10 (81%) of respondents stated they are practicing formal recognition of employees in their companies.
“HR professionals are beginning to see tangible long-term value in building a best-in-class work culture, predicated on strong relationships, an interest in employee happiness, and a strong emphasis on employee development,” the report stated.
As they seek to create these bestin-class cultures, a majority of respondents say they are seeing strong results from their recognition and reward programs.
Employee happiness was one of the strongest results seen from recognition, with 86% of values-based programmes citing an increase in worker happiness.
This was closely followed by improvements in employee relationships (84%) and in adding more humanity to the workplace, overall (85%).