A report from McKinsey & Company on the challenges facing the workforce suggests that the most pressing challenge facing employees and their employers is how to deal with the fear of being terminated.
The report, titled What To Expect From Human Resources (HR) in 2020, argues that HR managers should not focus on the number of job openings and the number that are filled, as the fear is a hindrance to hiring and the retention of staff.
Instead, it argues that the best way to motivate employees is to work to find and keep them.
McKinsey has released the report alongside the HR 2018 conference, which was hosted by the US Department of Labor (DOL) and the US National Science Foundation (NSF).
It says that HR should be focusing on “building a culture of excellence and trust in its employees and its business operations”.
It says it is also vital that HR leaders make clear that they are not going to give up on people who are working in a hostile environment.
Instead it should be focused on ensuring that HR is a place where employees can build trust and a sense of belonging.
The study comes on the back of McKinsey’s recent report, entitled The Future of Human Resources, which outlined how the US workforce could be transformed.
It also cites research showing that HR has a strong impact on business success, but says it can be a difficult place to start.
It states that there are four main areas of concern, which it calls “the three major risk drivers”.
The first is “disruption, disruption, disruption”, the second is “lack of engagement and retention, and the third is the fear that the HR director will be fired or terminated”.
“If HR is viewed as a place that people can be fired, that doesn’t necessarily create a great workplace environment,” said McKinsey CEO Paul Hochberg.
“We think this report will give HR managers, as well as managers across the country, a sense that the time is right to do a better job of engaging with their employees and making sure they are treated with respect and are not feeling alienated.”
A key focus for the McKinsey report is on the fact that HR doesn’t have a clear understanding of what is causing the turnover.
It says: “HR has a lot of issues that need to change, and it is an area that will be very difficult for the organization to address.
There are a lot that can be done to improve how we do things, but it will be a challenge for the company to do that.”
It also argues that employees have a right to be treated with dignity and respect, and that HR departments need to develop a culture that is inclusive.
But the report also says that the “human resource environment is still evolving”.
“We are in a time of change,” said Hochburg.
“We need to move forward.”