Human Capital Intel - 7/10/2024
Eroding attention spans | Rapid regulatory change | Evolving employee expectations | Labor market reverts to pre-pandemic norms but soft spots remain
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
Workplace attention span collapses
The modern workplace is a battleground for employees' attention, with numerous distractions vying for mental real estate, Forbes reported. According to the Insightful report, an alarming 79% of US workers are unable to focus for even an hour at a stretch, with interruptions from both technology and fellow employees significantly impeding productivity. This indicates a profound shift in work dynamics, where not only are digital alerts constant, but human interactions—particularly from sociable younger employees—are frequent enough to disrupt workflow. The report quantifies this distraction, highlighting that up to a quarter of the workweek could be lost, underscoring the urgency for companies to address these productivity leaks.
The decline in attention span is a phenomenon extensively studied by experts like Gloria Mark, who notes a stark decrease over the years in how long individuals can focus on a single task. From an average attention span of two and a half minutes in 2004, to just 47 seconds more recently, the ability to concentrate has been significantly compromised. This trend is exacerbated by the modern necessity to multitask, which, while seemingly efficient, incurs a heavy "switch cost" in terms of time and cognitive capacity lost in transitioning between tasks. This frequent switching is not only inefficient but also raises the risk of errors and stress, further diminishing workplace efficiency.
Technological tools designed to streamline productivity often contribute to the problem. The constant influx of emails, messages, and notifications that workers must manage can lead to missed deadlines and overlooked commitments. This paradox of technology—where tools intended to enhance productivity simultaneously detract from it—suggests that the implementation and management of these tools need careful consideration and strategic planning to truly benefit the workforce.
New research finds DEI isn't as good for profits as consultancies have claimed
When McKinsey declared in 2015 that it had found a link between executive racial and gender diversity and higher profits, it was a breakthrough that influenced investors, regulators, and companies to push for more diverse leadership. The research was used to justify investing in companies with diverse boards and to lobby for diversity mandates. However, new academic studies are calling into question the validity of McKinsey's findings, suggesting that the link between diversity and profitability is weaker than previously believed, the Wall Street Journal reports.
Attempts to replicate McKinsey's results using publicly available data have largely failed, with researchers concluding that there is no statistically significant correlation between executive diversity and various profitability metrics for S&P 500 companies. This lack of replicability raises doubts about the robustness of McKinsey's original study, which keeps the names of the companies it analyzed secret. Additionally, if the financial benefits of diversity were as substantial as McKinsey claimed, one would expect companies to have already capitalized on this advantage, but this has not been the case.
Quote of the Week
“CHROs are having to reevaluate what makes for a happy, effective workplace. So much has changed - and is still changing”
—Jennifer Dulski, Stanford Graduate School of Business
Reading List
Rapid regulatory changes create HR compliance headaches
Despite being a breath of fresh air for businesses, the recent decision by a US District Court in Texas to exempt the state from the Department of Labor's new overtime regulations showcases a significant challenge within HR compliance: rapid regulatory changes. The court's ruling, which halts the increase in the salary threshold for overtime eligibility from $35,568 to $43,888, is a prime example of how local legal actions can disrupt federal policy implementation. Such conflicts not only complicate compliance efforts for HR departments but also signal potential inconsistencies in how labor laws are applied across different jurisdictions.
Employee expectations evolve
In the wake of unprecedented workplace upheaval and ongoing uncertainty in the tech employment market, employees are increasingly prioritizing professional growth and clear paths for career advancement over traditional compensation and benefits. According to a recent survey of CHROs, three-quarters of respondents say their workers are placing greater importance on opportunities to develop and grow, while more than half report that employees are focusing more on finding meaning and purpose in their work. This shift in the employee value proposition has prompted many CHROs to adapt their policies, practices, and organizational culture to meet the evolving needs of their workforce.
US reverts to pre-pandemic norms, but challenges for businesses remain
The US labor market is showing signs of cooling, with job openings rising to 8.14 million in May, a modest increase from April's downwardly revised figure of 7.92 million. While this uptick exceeded market expectations, the overall trend points to a softening in labor demand, with vacancy numbers gradually reverting to pre-pandemic levels. The quits rate, a key indicator of worker confidence, has also normalized, suggesting that wage growth and inflationary pressures stemming from the labor market should continue to ease in the coming months.
Tech disrupts pre-pandemic C-Suite order
C-suite is undergoing a significant shift in priorities and prominence amid AI-driven disruption to organizations, which HCI has previously discussed. While the majority of enterprises currently task their CIOs or CTOs with leading AI initiatives, the increasing pervasiveness of the technology is forcing organizations to adjust their leadership strategies.
Stat of the Week
In Other News
How Part-Time Senior Leaders Can Help Your Business. (Harvard Business Review)
Employers favor AI talent with master’s degrees, job posts indicate. (HR Dive)
The managers aren’t all right: Why those in the middle have the lowest well-being ratings. (HR Dive)
7 of 8 Workers Lack Skills That Are Crucial to the Future of Work. (LinkedIn)
Part-time positions increase, while full-time roles remain flat, Indeed data shows. (HR Dive)
Americans are looking to be paid an "emotional wage", but what is it? (Employee Benefits News)
These 3 policies can help reduce burnout in the workplace. (Fast Company)
Casual dress codes, informal etiquette may help recruiting and retention, survey indicates. (HR Dive)
Attrition rates stabilize, but half of companies report at least 15% turnover. (HR Dive)
We're got employee engagement all wrong; frontline workers have the answer. (Employee Benefits News)
Greece starts six-day working week for some industries. (BBC)
What's preventing employees from using AI? Slack has some answers. (Employee Benefits News)
‘Ultimate workplace diplomats’: How millennials became generational mediators. (WorkLife)
Move over, remote jobs. CEOs say borderless talent is the future of tech work. (CNBC)