An inspiring group of HR leaders from across the country recently gathered in Austin, TX for Thrive by 15Five. At this year’s event, some of the brightest and most inspiring voices in HR came together to learn and share with each other.
One of those leading voices belonged to the internationally renowned speaker, writer and adviser. Heather E. McGowan. In her keynote address, Heather covered how people leaders must prepare their organizations for the rapid and disruptive changes occurring in education, work, and society today.
Read on for five of our key takeaways from Heather’s insightful and inspiring presentation.
1. Investors want to invest their money in companies that invest in DEIBs.
As an HR leader, you know how vital DEIB (diversity, equity, inclusion and belonging) initiatives are to an organization. But by and large, industries and the powers that be have been slow to make real and meaningful commitments.
As Heather shared with Thrive attendees, that boost we’ve been waiting for is coming as investors are finally ready to put their money where their mouths are. According to an investigation of McKinsey, the most diverse companies have outperformed the least diverse organizations for the past 20 years, and companies in the top quartile for racial and ethnic diversity are 35% more likely to have financial returns above their respective national industry medians . The ROI on DEI is clear and investors want to participate.
Obtaining (and keeping) diverse leaders is also a top priority in competitive talent markets, and 84% of diverse executives say they would. not take an uncompromising position DEI. The days of companies that claim to care about diversity and inclusion, but take little or no action, are numbered. To compete for both talent and investor dollars, organizations and their leaders must take their commitments seriously.
2. The Great Resignation was brewing long before the pandemic.
Probably the most startling revelation Heather shared in her talk was that the Great Relinquishment was, in fact, not a “post-pandemic phenomenon”. According to Heather, the rotation has been building from as early as 2009. It was around this time that people realized they could change companies or careers for more money, a better culture, or a more flexible work-life balance.
Today, as we face rising inflation and the looming threat of a recession, we’re seeing a shortage in the talent supply, especially in fraught industries like healthcare. according to the latest Staffing Industry Analysts Report the demand for healthcare personnel has grown by 85%, and according to the latest Burning Glass Institute Report currently only one person is studying to be a nurse for every 10 positions in the field. (For pilots, it’s one for every six positions, and for engineering, one for every three.)
As Heather pointed out, 53% of workers quit your job or change industries during the pandemic. The top five reasons people left their jobs in 2021 included too little pay, no growth opportunities, childcare issues, lack of flexibility, and insufficient benefits. Notably, compensation and growth/learning opportunities were evenly numbered, presenting a tremendous opportunity for both HR and L&D professionals.
3. There are 5 “big ones” changing the relationship between individuals and organizations.
We’ve heard a lot about the Great Quit, but according to Heather, there are also four other “big ones” impacting the job market today:
- great resignation
- Great Retirement (Boomers)
- Great Reorganization (retraining, changing industries)
- Large rejection (cost increase without minimum wage increase)
- Large relocation (remote work allows for resettlement)
All of these cultural and economic factors are converging to create what Heather calls “The Great Reset.” To remain competitive, companies are forced to invest in safer and fairer environments for a more skilled workforce.
4. We are in the middle of the fourth industrial revolution.
Heather discussed what is called the fourth industrial revolution, or a “digital convergence.” According to the world economic forum, “The Fourth Industrial Revolution is more than just technology-driven change; it is an opportunity to help everyone, including leaders, policymakers and people of all income groups and nations, harness converging technologies to create a human-centered and inclusive future. The real opportunity is to look beyond technology and find ways to give as many people as possible the ability to positively impact their families, organizations and communities.”
Instead of joining a trade or going to university to study a specific field, this new model has emerged where people must learn, adapt and create new value. As Heather said: “The skills gap may never close, and that’s okay. By finding and framing new challenges, we can formulate new insights.”
5. Leadership must move from individual to collective intelligence.
We are seeing a shift from a company’s sole responsibility to its shareholders to now also being responsible for the well-being of its people, as they are undoubtedly the organization’s most valuable asset. To survive this change, companies must have empathetic leaders who embrace a people-first mindset.
Heather shared the following quote from the Harvard professor francis frei: “Leadership, at its core, is about making other people better as a result of your presence and making sure that impact lasts in your absence.”
To move from what she calls “individual intelligence” to “collective intelligence,” Heather said that leaders of people must go through the following changes:
- A mentality change from managing processes to enabling the success of people.
- A cultural change from peers as competitors to peers as collaborators.
- A shift focus from extrinsic pressure to intrinsic motivation.
- A Behavior change from productivity through fear to effectiveness through inspiration.
To enable your organization to make these changes, she recommends training with one-on-one interactions, supportive collaboration, and engagement with the “we” on each team.
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