Human Capital Intel - 6/4/2024
Bad managers become material risks | American loneliness crisis enters the office | Quiet PTO | Employees turn to social media for skills training
Welcome to the latest edition of Human Capital Intelligence. As always, we would love to hear from you at ken@stibler.me with news ideas, feedback and anything else you find interesting.
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By Ken Stibler; Powered by Reyvism Analytics
What’s Working
Mal-trained managers pose the biggest risk to organizations
As businesses navigate an increasingly complex landscape, from hybrid work to the integration of AI, effective leadership has never been more critical. However, a recent report from Mercer and Marsh reveals that HR professionals and risk managers view ineffective leadership as the biggest risk facing US organizations in 2024. This finding underscores a growing concern: many managers are simply not equipped to handle the challenges of modern management.
The consequences of this leadership gap are far-reaching. Gallup found that managers demonstrate weakness in the five most important behaviors that drive employee engagement, such as providing meaningful feedback and motivating outstanding performance. Sadly this makes sense as most managers don't receive any feedback themselves. This lack of managerial skill can lead to disengaged employees, high turnover rates, and ultimately, significant financial losses for companies.
Compounding the problem is the prevalence of "accidental managers" – those who have been promoted without formal training or preparation. A survey by Robert Walters found that 66% of managers fall into this category, with an additional 22% being "quietly promoted" without acknowledgement or compensation. This lack of intentional leadership development leaves many managers feeling overwhelmed and under-equipped, leading to a vicious cycle of poor performance and employee dissatisfaction.
American’s loneliness epidemic enters the workplace, leaving bosses an opportunity (not a responsibility) to help
America's loneliness epidemic, once largely confined to personal lives, is seeping into the workplace. With the rise of remote work and virtual meetings, employees are feeling more isolated than ever, even when surrounded by colleagues, the Wall Street Journal reports. This disconnect is driving up turnover and absenteeism, costing companies an estimated $154 billion a year.
While it may be tempting for business leaders to view this as a personal problem, the reality is that loneliness is now a business issue. Employees who feel disconnected are less engaged, less productive, and more likely to leave. However, this presents an opportunity for savvy executives to differentiate their companies and boost retention by fostering a sense of community at work.
Quote of the Week
“Many of us are pursuing something impossible. So, we’re on this journey, trying to find a job that lights us up, uses all of our talents, makes us feel like we’re putting a dent in the world, and pays great, and work is just not designed to do that, unfortunately.”
—Psychologist Jodi Wellman on why work should not be your whole life
Reading List
Employees turn to ‘quiet vacationing’ amid a fear of using PTO
The lines between work and leisure are increasingly blurred, as a new Harris Poll survey reveals that 78% of US workers, particularly Gen Z and Millennials, don't take all their paid time off (PTO). The pressure to meet deadlines and maintain productivity has led to a "quiet vacationing" trend, where employees take time off without communicating it to their managers. Nearly 4 in 10 Millennials admit to this practice, along with other tactics like moving their mouse to appear active on company messaging platforms and scheduling messages outside of regular hours to give the impression of working overtime.
Facing an obsolete work resources, your employees are learning new skills from social media
As company training programs gather dust in the face of rapidly changing needs, employees are increasingly turning to unconventional sources to acquire the skills they need to stay competitive. A recent survey by KPMG revealed that nearly two-thirds of desk-based workers are leveraging social media and online platforms to develop digital skills, sector-specific knowledge, and soft skills such as leadership and communication. This trend is particularly pronounced among younger generations, with 56% of employees aged 18-24, and 36% of those aged 25-34, exploring generative AI as a means of learning.
RTO mandates continue despite demonstrated bump in attrition
Companies are persisting with return-to-office (RTO) mandates, even as evidence mounts that these policies are driving away valuable talent. According to a recent survey by Resume Builder, one in four companies plans to increase the number of required in-person work days, with half of the respondents already asking employees to be in the office four out of five days a week. This trend persists despite 80% of surveyed employers reporting that they have lost talent due to RTO mandates.
Talent is abundant…if you recruit off the beaten path
In today's tight labor market, companies are struggling to find the skilled workers they need to thrive. Cybersecurity teams, for instance, are critically understaffed, with only 10% of companies increasing cyber hiring in the past year, despite a 49% increase in cyberattack frequency. The result is overworked, burned out employees and greater organizational risk.
Read more about how unconventional talent requires flexibility but rewards in hard work.
Stat of the Week
In Other News
Redefining career development: Skills, mobility and retention. (Human Resource Executive)
'Trying to stay human': A look into what it takes to land a job. (WorkLife)
Real average hourly earnings increased 0.5 percent from April 2023 to April 2024. (US Bureau of Labor Statistics)
Is ‘personality’ a good enough reason to hire someone? (Working It Podcast)
4 Steps to a Successful Onboarding Strategy. (HuntScanlon)
Why "stress bragging" can annoy your co-workers and hurt your career. (CBS)
4-day workweek is the top additional benefit employees want, Bank of America report finds. (HR Dive)
‘It’s gotten me every job I’ve had’: The growing value of a strong LinkedIn presence. (WorkLife)
Landing a Job Is All About Who You Know (Again): Networking is making a comeback as employers drown in computer-generated job applications. (Wall Street Journal)
Your employee engagement needs help as employee engagement hits an 11-year low in Q1. (HR Brew)
America’s $38 Trillion Retirement Pool Is Nowhere Near Enough. (Bloomberg)
Heat-related laws in Texas, Florida, Phoenix to be put to the test. (Constitution Dive)
South Carolina embraces new EWA law. (HR Dive)
Webinar: Compliance Series: Critical Strategies for Small Business Success. (Paycor)
When setting compensation for AI roles, HR can lean into transparency, upskilling. (HR Brew)
The humble email sign-off is not what it used to be: The rise of the permanent out-of-office is a sign of the dire state of work email. (Financial Times)