What is the skills gap?

The Skills Gap refers to the disparity between the skills expected by the employer and the capabilities an employee has. In the current climate, the Skills Gap is at an all-time high:

• Cost-cutting in recruitment means businesses have less access to skilled staff
• Inaccurate or misleading job descriptions are causing unsuitable candidates to apply
• Pandemic-induced cuts have led remaining employees to take on tasks outside of their skillset
• A global skills shortage for in-demand areas such as software development is putting more pressure on companies

How can we address the skills gap?

Rather than relying on recruitment alone, employers should look to invest in learning and development in-house. Not only will this improve your value offering as a company; it will also motivate staff and increase retention.

A further benefit to this is a reduction in costs. The average cost for recruiting a new staff member comes to more than £6,000, according to the Chartered Institute for Personal Development. For senior roles such as managers, this can be as much as £19,000.

What’s more, staff who feel that employers have a keen interest in their learning and development are happier. A study by Udemy revealed that eight in 10 employees would feel more engaged with learning and development opportunities. Better still, engaged employees are 22% more productive overall – so it all adds up.

Measurement tools to tackle the skills gap

While the numbers speak for themselves, there is more we can do to track the impacts of learning and development. Measuring skills and competencies coverage will identify weaknesses in both individuals and the company as a whole.

At Natural HR, we recommend a scoring matrix within HR software. This involves mapping the skills required for each role and measuring how individual staff members rank against them.

As an example, we might create a spider diagram with ratings from 1 to 5. An employee would be scored for their:

• Organisation
• Accountability
• IT literacy
• Business acumen
• Data management
• Flexibility

We would plot their score out of 5 against the core competencies required. At scale, we can then plug all employees’ scores into one dataset and identify where the company is lacking on the whole. This is especially pertinent for ‘soft skills’ such as organisation, which may be required across the whole business, as opposed to department-only competencies.

The outcomes of measuring skills and competencies

With this data in hand comes a huge range of opportunities. Not only can we tackle the crisis that is the Skills Gap; we can invest in long-term pursuits such as better employee engagement. This may also impact other business decisions such as potential job roles we have yet to fill.

Likewise, it may lead us to pursue training programmes which would benefit the whole workforce. Investing in employees’ skills should not be a reactive crisis management procedure. It should be a long-term mission for the wellbeing of staff and the resilience of the company.

Find out more in Natural HR’s latest report

Featuring key insights from Natural HR COO Sarah Dowzell and Claire Watt FCIPD, our latest report examines the stats you should be taking to the boardroom. Put your employees front and centre with these actionable steps and strategies for 2023 and beyond.

The post How to tackle the skills gap with measurement tools appeared first on Natural HR.

In this article, we’ll be looking at seven ways the UK’s workplace culture has changed since 2011. While some of these changes result from technology development, others have come about because of shifting perspectives and expectations in the workforce. Even more, have come as the result of the introduction of a new generation to the workplace.

1) The development of the remote workforce

You knew this one was coming. In the past, remote working was reserved for special situations, including those with the technology to partake in it. Still, the fallout of the COVID-19 pandemic has shown the world new freedom where your location is not limited to just the office, but now to the extension of the home office.

The most significant culture change is that HR teams have learned that almost everyone wants to an extent, to not always be in the office and that the typical 9-5 office-based routine and culture is no longer expected. Instead, the new norm is a culture build on trust with a renewed focus on improving the home/work balance.

For many, this has showcased the ability to be a digital-first company, where assists such as booking a holiday, collaboration and content must be easy to access and use on the go, whether it’s in the office or at home.

2) The growth of Internet-based culture 

Technology is constantly growing by leaps and bounds. Still, the 2010s introduced the world to mobile developments in 4G and 5G while establishing and entrenching internet technologies like cloud-based software and hardware like smartphones and tablets. Neither smartphones nor social media were widely used in 2011 when the decade started, but now it’s hard to imagine our world without them.

In 2021 people of all ages have access to mobile devices, including smartphones and tablet computers, keeping us connected to one another at all times. So ask yourself, what daily workplace tasks could not be done via a mobile phone or tablet with an internet device?

Beyond those now-common advances, technologies like artificial intelligence and machine learning are also changing our workplaces and are set to continue doing so into the next decade.

Workplace tools have also had to change with the times to support this. Natural HR’s online cloud-based HR software is supporting this development by introducing functions and benefits to a now established internet-based culture, including tracking workplace equipment, and enabling the development of employee management via company-specific calendars.

3) An increase in the outsourcing of jobs

For many, this may be one of the most controversial changes in workplace culture. Still, the 2010s saw the development and growth of outsourcing workplace tasks to agencies and workers outside the company, and often from across the world, who will typically work for lower pay.

But this development has been assisted by our previous point, internet-based culture. Why? Because this development has made outsourcing a viable solution because of the wide range of options allowing you to stay connected with your remote workers.

4) Development of expectations from employees 

Over the past decade, employees have come to expect benefits that are as diverse as their skillset, it’s no longer just an afterthought, and for many, the benefits make or break the culture that their workplace presents. From discounts at restaurants to support for healthcare, student load payback support, flexible working, and social gatherings are the standard today.

Technological change and greater diversity are some of the factors that have fuelled employees’ needs for their employer to understand and experience their feelings. Through HR software, such as Natural HR and even its Payroll modules, you’re able to develop and maintain a work culture that is built on the desires of your employees through first-hand data.

At the same time, in 2021, as we discussed, you will be expected to establish and promote a continuous learning environment, meaning knowledge acquisition and training across the organisation must become a part of the day-to-day operations.

5) More rights for workers

Since 2011, there have been several new introductions that have impacted employment law within the UK, and as a result, this has trickled down into the workplace culture. Speaking to HR professionals within the Natural HR group, these as the nine that have particularly impacted workplace culture:

• Default retirement age (DRA) was abolished in 2011.
• Shareholder control over directors pay 2013.
• Modern Slavery Act 2015.
• Shared parental leave.
• National living wage.
• Gender pay gap reporting.
• Employment status – Uber v Aslam.
• Equal pay.

For those in HR, all of these employment law updates have impacted how you undertake your duties, from managing data to ensuring correct payroll and compliance with paid leave. It’s also highlighted the need for a comprehensive all-in-one HR and Payroll software solution to ensure that companies are compliant with these new laws.

6) There are now 4 Generations in the workplace: Baby Boomers, Gen X, Y, and Z

In 2021 there are four distinct groups of generation in the workplace, the most extensive and most diverse it has ever been. If, like us, you’re a bit behind on what the generations are, here’s a helpful reminder:

• Baby Boomers were born between 1946 and 1964
• Gen X was born between 1965 and 1976
• Gen Y was born between 1977 and 1995.
• Gen Z was born between 1996 and 2021.

For workplace culture, this means that your different groups of workers will have different expectations of what to expect in the workplace. Baby Boomers would not have grown up with the internet and connected devices, whilst Gen Z, souring ONS, have grouped social events and the option of hybrid working as holding more value in workplace pensions a showcase of a workplaces culture.

7) The office toolkit has reinvented itself         

If you were working in 2011, think about what your office toolkit consisted of, it likely involved Windows 7, Vista or even XP. It would have been dominated by software like Office 2009, Adobe, and Outlook as your primary methods of communication and creation.

In 2021, the toolkit has reinvented itself on keywords like Cloud, IoT (Internet-of-Things) and video communication (Think Slack, Teams and Zoom). Your toolkit has developed a workplace culture that moves faster, allows instant communication, and for many, increases ease of access for vital workplace tools.

The post Workplace Culture then and now: 7 ways that it has changed since 2011 appeared first on Natural HR.

And rightly so, especially in growing businesses.

A PDR will help your employees focus on the tasks that contribute towards the overall goal of the business and, they know exactly where they stand in terms of their expectations, performance and job security.

PDRs will also provide line managers and HR teams with a paper trail of performance to better reward your top talent and provide a course of action for your lowest (underachievers). Essentially, an employee should never be surprised by a particular outcome such as a promotion, pay rise, training course or even dismissal.

Regular communication improves manager and team member rapport. It is a great way to ensure the priorities of the team are being actioned in accordance with their deadlines and any gaps in their skills can be addressed.

With all of this in mind, it’s clear that there is still a place for Performance Development Reviews.

How do I best structure a performance development review?

Step 1: Set yearly goals and expectations

Whether your financial year is January or April, you should start your yearly PDR here. This will mean that you have fresh company goals from which you can align your team’s performance and objectives.

Each individual goal should be SMART (Specific, Measurable, Achievable, Results-orientated and Time-bound). Remember that these goals will be specific to each employee’s role and should be clearly aligned to your wider company goals. This way, the employee knows exactly how their role contributes to the bigger picture and so they feel valued within the organisation.

For example, if a company goal is to increase revenue by 10% before the end of December 2020, an individual goal for a salesperson may be to win £200,000 of new business before the end of December. This is directly aligned to the company goal.

Step 2: Hold regular meetings, preferably monthly

Now that the employee knows what their yearly goals are, it’s time to track their performance and set smaller, more frequent goals to help hit those goals. For example, using the £200,000 yearly target, a monthly goal may be to make 400 calls a month to ensure their sales pipeline is full, making it easier to reach the yearly goal.

Each meeting should review the previous objectives set out, listening to and giving the employee feedback and setting the following month’s goals. Every performance development review should be prepared for from both sides, have a brief agenda and have an outlet for constructive feedback.

Step 3: Midpoint review

Every six months (or three months if it’s during a probation period) you should have a midpoint review. Within these reviews, you should cover the past three or six months in detail rather than just the previous month. This is where your note-taking from the regular monthly meetings becomes useful as you can refer back to what was discussed.

Similar to the monthly reviews, you will discuss progress towards the yearly goal and discuss the overall performance of the employee. This review may also be a beneficial time to discuss any training needs or anything else the employee needs to help with in order to achieve their targets.

Step 4: End of year review

As the title suggests, this is a recap of the employee’s yearly performance. This is the most important performance management review you will do as it will help towards setting up next year’s goals, indicate whether a reward is suitable for top talent or where there are any shortfalls in an employee’s skillset.

Important tips for a successful performance development review

PDRs can be difficult to get right. The line manager has to ask the right questions and provide constructive feedback whereas the employee needs to think about their workload, performance and be open and honest. Otherwise, the whole PDR process is pointless.

These tips will help you turn a mediocre PDR into a positive experience for your employee.

1. Avoid being biased

As a line manager, you need to stick to facts gained from analysis, observations, and feedback. Don’t discriminate or jump to conclusions – be fair and honest.

2. Privacy is important

Every PDR you do should be a private affair to ensure you have an open conversation. Any feedback or documents should be confidential to let your team members know that you value them.

3. Two ears, one mouth

Allow your employee to do most of the talking. You should listen at least twice as much as you talk. PDRs are a great way to hear some honest views that may give you ideas to help better run your department or business. Also, don’t forget that if you speak first and state your views, the employee will most likely agree and not fully share their real feelings. Give them ample opportunity to say their piece.

4. One-to-one coaching

Coaching your employees should be a constant process to ensure their progress and building it into their PDR is a must. Use the time to discuss what success looks like, and even role-playing to help the employee overcome any uncomfortable situations. 

The best questions to ask in a performance review

Within Natural HR, our all-in-one HR and payroll system, you can run your entire PDR process within the system. With this in mind, we have created a default template for our customers to use, which covers everything you need to run a successful PDR.

The questions you should ask for each regular review includes:

• Employee name
• Date of review
• Have the actions from the previous meeting been completed?
• If not, what can be done to ensure outstanding actions are completed by the next meeting?
• Has there been progress on individual yearly goals?
• What have you done well this month?
• What could you have done better this month?
• What do you need help or support with?
• Do you have any issues or concerns?
• Is there anything else you’d like to discuss?
• Manager observations/comments

You should also set a series of action points/goals for the following month, which will give you the information you need to run next month’s performance review.

How to capture the outcomes for each PDR

As stated above, you should use an HR system such as Natural HR to capture information from each review. With ever-changing legislation regarding employees, you need a central database that holds previous conversations against every employee.

An HR system will allow you to quickly look back through previous review meetings and goals to decide on the best course of action. It will also save time, reduce the amount of paperwork that a Performance Development Review generates and notify the employee to complete their review form ahead of your meeting.

To see how Natural HR can help streamline your PDR process, book a demo with one of our HR system experts.

The post What is the best structure for a Performance Development Review (PDR)? appeared first on Natural HR.

What does a poor work ethic mean?

Unless it stems from deeper issues, the feeling of not wanting to go to work is often the result of a poor work ethic. If you’ve experienced it yourself recently, that doesn’t make you a bad person or employee – a poor work ethic usually arrives subconsciously and is something you’ll have little control over or forewarning of its impending arrival.

Thankfully, there are some methods you can employ to improve your work ethic dramatically, and they’re not quite as tricky as you might think.

To help you get out of that rut and back, fighting fit for a productive time in the office, we’ve decided to list our top eight tips for changing your mindset and developing a strong work ethic.

1. Start with your body – treat it right

A healthy body will help you build a healthy approach to work because the two are intrinsically linked.

If you feel lethargic in the morning, the last thing you’re going to want to do is to spring out of bed and head to the office. You’re far more likely to continually hit the ‘snooze’ button and curse the fact you even have a job.

Lethargy can be a result of not enough sleep and poor levels of exercise, therefore if the feeling just described is something you’re all too familiar with, it’s time to go on something of a permanent health kick. And that doesn’t mean ditching all the treats that make you happy – just the process of regularly exercising and eating more healthily.

Walk when you’d normally take the car and swap those regular naughty treats for fruit and glasses of water – you’ll be surprised how much more up for it you’ll feel each morning.

2. Eliminate as many distractions as possible

How many times do you check your email each day? What about social media? Is your Facebook feed something you access every five minutes to check in on what your friends and family are up to?

We live in a world full of distractions. Multiple forms of content, relentless notifications and devices capable of connecting us immediately to the Internet are everywhere and seemingly impossible to drag yourself away from.

That’s true – unless you can call on your reserves of willpower. Distractions will divert your attention from what matters, and ensure that you have a limited focus on work tasks. In turn, that’ll reduce your emotional connection with the business and negatively impact your work ethic.

Check your email only two or three times a day, turn off notifications and leave social media for the moments when you’re sat on the sofa with nothing better to do.

3. Measure your ethic against others

If you’re forever cursing your colleague’s ability to practically skip into work ready for the day ahead, why not measure your own performance against theirs?

Clearly, something is different. It might be their mindset, attitude towards their role or lifestyle, but if you can be brave enough to measure your performance against others, you’ll quickly suss out where you need to improve.

This can extend far beyond work colleagues, too. For example, if your partner appears to be having the time of their life at work, yet you can barely muster the strength to log onto your computer for the first time each morning, ask them how they’re doing it. You never know – you might just learn a thing or two.

4. Set your own standard of excellence

We all need something to aim towards in life, and nowhere is this more relevant than at work. If you can set your own standards for what constitutes a great day in the office, you’ll reach your goals quicker and be far more inspired to do so.

In tip three, we described the benefits of measuring your working ethic against that of colleagues and members of your family, but you need to be careful not to follow their own standards of excellence if they don’t match your own.

You’re the author of your career, therefore set yourself goals and a standard of work that will help you reach them that you know you’re capable of.

5. Be dependable

If you promise to complete a task or project – do so. Get it done on time (or before, if possible), and if you feel things are slipping, be honest with those for whom you promised completion date.

Being dependable at work will earn you respect and increase your levels of satisfaction considerably. If people know they can rely on you to get the job done, you’ll be rewarded with their gratitude, and there are few things that can push you on to achieve more than a heartfelt “thank you”.

6. Work a flexible day

Working a strict nine-to-five isn’t for everyone, and if you find yourself regularly flagging at 3 PM, or uninspired until mid-morning, you’ll probably benefit from working a more flexible day.

This, of course, depends on whether or not your employer will allow flexible working, but if they do (or if you’re the boss), being a little more dynamic with the hours you work will help you raise productivity levels and increase your desire to get the job done.

Advances in web-based technology have made this form of working more possible than ever before and the ability to work when you feel most inspired and stop when you can’t see the wood for the trees is liberating.

7. Start your day strong and get to work on time

Do you regularly arrive to work a minute or two late? If so, your work ethic clearly needs some fine-tuning.

Many people mistake late arrivals for laziness or a lack of desire, but that isn’t always the case. Chances are, you want to get to work on time, but something is preventing you from doing so. It might be a collection of the issues described above, or something more closely related to job satisfaction, but whatever it is, you need to identify the root cause and work on a solution.

A great day at work starts with a strong start to the day itself. A black coffee, a thirty-minute blast on the exercise bike and some push-ups might do it for you, or you might be the sort of person who benefits from a morning of getting the mundane stuff (email, to-do list management, etc) out of the way.

Whatever method you choose to get your day off to the best possible start – stick to it, because you’ll find late arrivals soon become a thing of the past.

8. Don’t let mistakes ruin your progress

You’ll slip up – probably daily. We all do. However, the people with the best work ethics are capable of picking themselves up swiftly after their mistakes, learning from them and moving on.

If you allow mistakes to ruin your progress at work by occupying every thought, your desire to get the job done will quickly evaporate.

Great things will happen if you embrace failure. No one has ever achieved greatness without slipping up at multiple stages along the way, and you’re no different.

We’re imperfect, but that’s what makes us brilliant.

Wrapping up

Unless you’re particularly spritely in the morning, it’s unlikely that you’ll literally jump out of bed and head to work full of an endless supply of energy, but if you follow our tips above, you’ll greatly increase your ability to foster a healthy approach to work.

Whenever you feel uninspired by your role, but you know it’s something more superficial than job dissatisfaction, check that you’re doing all you can to improve your work ethic. As we’ve demonstrated today, it really isn’t that difficult at all.

The post 8 tips for improving your work ethic appeared first on Natural HR.

Sure, you can book people on week-long training courses and invest heavily in on-site development of their skills, but if they don’t want to learn, they simply won’t. You could create the best course material on the planet or employ the services of the most engaging trainers within your market – it simply doesn’t matter if the desire isn’t there on behalf of those in attendance.

The ability to learn is simply a mindset, although one that’s developed very early on in life. As kids, we’re desperate to learn more about the things we love doing; football, reading, horse riding – whatever it is that sparks a deep interest.

That desire to learn is carried through into adult life, only it becomes a little more sophisticated. As we grow in confidence and become more experienced with the world around us, the desire to understand more about the mechanics of life, industry and leisure activities grows.

The same degree of proactive learning should exist in business, but it is all too often vacant. Dull courses, uninspiring teaching methods and training material that is completely irrelevant to the job at hand will never connect with our innate desire to learn as human beings.

But how do you foster a culture of self-improvement?

Good news – we’ve got the answers, and we’d like to let you into a few secrets in this blog post.

Take a fresh, modern approach to social media and instant messaging
Businesses thrive on good communication. Without it, departments often work at odds with one another and the lack of coherence means employees usually have vastly different understandings of the business goals.

To be able to learn effectively in the modern working environment, employees need access to the most appropriate communication tools. In 2017 and beyond, that means relying on instant messaging platforms and social media in conjunction with the more traditional forms of communication.

A report conducted last year found evidence that social channels and modern internal communication methods are driving employee engagement. It’s why companies are turning to intranets and in-app messaging to ensure everyone can stay in touch and fully informed.

If your business is yet to harness the power of modern communication technology, it’s missing out. And, while it may be tempting to ban what is often seen as frivolous, extracurricular activity from use within the office, the benefits of using these platforms are fast tempting businesses to realign their thinking.

If you still need convincing, think about how people learn in the digital age; if we need an answer to something, we pick up our smartphone and ask it a question; to increase our knowledge of a particular subject, we head to social media and see what influencers are saying.

Your staff are doing this already, so make sure you give them the opportunity to do so within the four walls of the business, too.

Make the opportunities obvious to all

Let’s take another trip down memory lane to when we where children. Back then, we desperately wanted to learn how to play football or play the guitar because we knew there were significant opportunities ahead if we became proficient.

Clearly, the thought process back then was rather more simple; learn guitar, become as cool as Slash. Now, it’s far more intricate. In business, we’ll be more encouraged to learn a new skill if we can see a significant wage rise beyond or the ability to jump into the shoes of an outgoing peer.

It’s for this reason that businesses should always take the opportunities that are available to staff blindingly obvious.

There are several ways this can be done:

• Always advertise vacancies internally, and do so prominently (announce them at company meetings and on social media, rather than simply stapling them to the notice board)
• When new products and services are announced, provide a clear view of the roadmap, detailing the avenues the new developments may open up for the business
• If a new market segment is discovered, shout about it from the rooftops and encourage cross-company feedback on how best to tackle it
• Give every employee the ability to have their five minutes of fame at company meetings – let the spotlight shine on them if they have something they want to say

• The techniques above will force staff to realise that the company actively encourages personal development and values what they have to say about the future. It also demonstrates a willingness, to be honest about the company’s plans – in turn showing exactly what opportunities lie ahead for anyone willing to put everything into their own personal development.

• Encourage sideways movements within the business
• Promotions shouldn’t always result in another step up the corporate ladder and increased pay packet.
• No, really; gaining a promotion at work should result in a new role that makes you happier and more determined to succeed. For some, that will indeed be the next level up, but for others, it might be a completely different role in another part of the business.

• Such sideways movements should be encouraged. They may not always result in better pay, but if staff know they’re not stuck within a rigid progression path, they’ll always keep an eagle eye out for opportunities elsewhere within the business.

• Do everything you can to encourage sideways movements within the organisation. As part of the performance development review (PDR) process, ensure that managers feel able to discuss such opportunities with their staff and empower the staff themselves to talk openly about any desires they may have to try different things.

• Don’t pigeonhole; make cross-training available
• Sideways movements can only take place if cross-training opportunities are made available to all staff. Such learning is great not only for the employees, but for the business itself.

• We now live in the era of the ‘multipersonality’ where the ability to demonstrate a high or moderate level of skill in more than one discipline is highly valued.

• The benefits are obvious. If you have a member of the accounts team who is also a gifted designer, who better to call in when it’s time to rebrand? The company benefits from a lower capital outlay for the work and the employee realises that they can apply their second skill within the same building.

• A common mistake made by businesses is to pigeonhole training sessions; if a social media marketing course is only made available to the marketing team, how can anyone else benefit from the development of this crucial skill? Who’s to say those in the sales team or production department wouldn’t want a bite at that cherry, too?

• They probably do. Break down the walls surrounding training and ensure everyone gets the chance to learn, no matter what it says on their business card.

Final thoughts

• You can’t force people to learn, nor can you turn employees into self-improvement gurus overnight. Instead, and as with so many things in business, it all comes down to the company culture.

• When you enter your place of work every day, you need to feel empowered to learn, but if the training made available to you appears to be neither relevant nor exciting, why should you? Imagine instead a fluid, dynamic culture which makes it abundantly clear that opportunities exist for everyone within the business. In that realm, you’d be far more compelled to dip your toes into foreign water.

• We hope you’ve found this post enlightening. There’s no quick fix, and the methods described above require time and effort if they’re to have a positive effect on your company’s culture, but stick with them and you’ll quickly start fostering a culture of self-improvement.

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