Top trends in employee retention

If you were to ask a random person on the street what an HR professional does, their answer would probably be conflict resolution, or that HR folks deal with employee salaries and benefits. And while that is part of an HR professional’s responsibilities — to ensure employee safety, respect and accountability — that doesn’t even scratch the surface. HR plays a crucial role in developing, nurturing and honing employee skills, starting with identifying, hiring and retaining the right talent.

From my time at MeridianLink, a provider of software platforms for financial institutions and consumer reporting agencies, I’ve learned that hiring and retaining employees is time-consuming and challenging, but with the right tools, it can be done well and effectively.

Identifying talent

Today’s job market is tough, and identifying top talent can be a tedious process. According to ManpowerGroup, 75% of employers report difficulty filling roles, a sharp increase over 36% saying the same 10 years ago. Despite this, employers can use the following five techniques for identifying talent they can depend on.

1. Use talent assessments

Talent assessments are incredibly useful and can be offered in many ways depending on the applicant and/or role. I like to include a small project within the application that requires the applicant to complete a task demonstrating their skills for a particular role. This will give an accurate baseline of whether they have the skills necessary to excel at their job.

Countless other options may help hiring managers find the right talent, including job simulations, asking for writing samples, cognitive ability testing and AI-powered interviews.

2. Standardize the interview process

One of the cornerstones of the hiring process, interviews are essential for assessing a candidate's fit for the role and the company culture. They show you how well candidates think on their feet and can give you insight into how they work in group settings. Interviews are useful for finding out who a candidate is, not just what they can do. 

In my interviews, I use the STAR (situation, task, action and result) method. Every candidate is asked the same questions and their answers are rated on a predetermined point scale. This allows for objective scoring and provides realistic comparisons between candidates. Understanding someone’s personality is critical, as you want to ensure they will be a good fit not only within the team but the entire organization’s mission and values.

3. Leverage data to guide your process

Compile the information gathered from each candidate's resume, talent assessment and interview, and use that to inform your decision making process. The more hard data you can compile for each candidate, the better. This data-focused approach helps you objectively compare candidates to each other and assess where there may be weaknesses in each individual. Data empowers the hiring manager to make evidence-based decisions.

At MeridianLink, each of our hiring managers uses an applicant tracking system to understand how interviewers rate, give feedback and engage with candidates to see whether there are challenges or discrepancies present across applicants. My human resources team then uses this data to train managers and interviewers accordingly. Additionally, we use early turnover data to explore how it correlates with manager feedback and any other trends.

4. Be open to changing your process and embrace learning

There isn’t just one way to hire. Recruiters need to be adaptable and embrace new hiring methodologies to stay ahead of the competition.

In addition to seeking advice and best practices from HR professionals at other companies or in other industries, it’s important to solicit feedback from your employees, the people who actually experience the hiring process. Asking your employees for input serves the dual purpose of improving the applicant experience, thereby increasing the chance to attract and retain top talent, and also showing your colleagues that HR takes their feedback seriously.

5. Know that hiring is changing

According to recent studies, talent professionals agree that virtual recruiting will soon become the standard. That’s why implementing varied hiring methodologies, including using AI to expedite processes and technology trends, is necessary to ensure you’re keeping up.

But never underestimate the power of old-school strategies, like referrals. Asking your employees for referrals is an excellent way to tap into talent existing networks and demonstrate to your current employees that you value their insight. This ties into creating a strong company brand and culture to attract top talent.

Additionally, hiring events are extremely valuable as they provide HR and other hiring managers the chance to meet potential candidates outside of the traditional hiring process. These can be mixers, job fairs or conference panels. And because virtual recruiting is on the rise, different tools can now supplement such events.

Retaining talent

While finding the right candidate takes time and effort, retaining talent is equally as important and requires focus and diligence. The first thing to know is that retaining employees doesn’t start on their first day of the job. At MeridianLink, onboarding begins as soon as they are hired.

For remote employees, give them their computer as early as possible before their start date, and set them up with IT so there are no glitches on their first day. An effective and attentive onboarding makes sure new hires feel welcome, heard and cared for. More importantly, it helps to ensure everybody is on the same page when it comes to the onboarding process.

One of the most effective strategies I’ve seen at MeridianLink is offering new employees a mentor for their first 90 days of employment, separate from their day-to-day manager. The mentor helps employees learn about the company, is available to answer any questions, and performs frequent check-ins so any concerns are addressed as they arise, not when it becomes an issue. Retention is not just about hiring the right people; it’s about creating a positive and supportive work environment in which the right people can thrive.

We make a point to regularly check in with managers to see what they need and to learn what we can focus on to help teams stay motivated. Manager insight is always valuable.

One of the most important things an HR professional can do is listen to employees and potential hires. By doing so, you’re opening the door to crucial conversations that will serve your organization better in the long run.

More than half (51%) of employers say employee satisfaction, employee mental health and emotional support are top priorities, according to research from Integrated Benefits Institute. The findings suggest that the stresses of modern working life coupled with rising healthcare costs have made employee well-being an increasingly critical priority, IBI stated in the release.

Survey data from 305 HR professionals in the U.S. also revealed that employers struggle with initiatives that engage both on-site and remote employees; 45% said adapting to new virtual and hybrid work arrangements poses hurdles, such as balancing remote work (45%), isolation/social interaction (44%) and managing employee burnout (33%).

Although investing in workplace wellness initiatives yields benefits, employers must still “balance quality programming with cost management, account for diverse workforce needs, and leverage data analytics to gauge value,” IBI said.

More than half of employers do link insights from data collected on employee satisfaction (72%), retention (57%) and productivity (52%) to the cost and quality of their programs and initiatives, the survey found. But employers can also gain by re-evaluating existing policies and programs to ensure they map to objectives around productivity, growth, efficiency and other metrics, and by assessing which roles are best suited for fully remote, hybrid or in-office work based on business needs, IBI recommended.

Given recent projections of increased turnover and concerns about declining employee engagement, it follows that employers will want to regularly review how satisfied employees are with their current situation — especially since an overwhelming percentage of HR leaders have said they expect retaining existing workers to be a key part of their talent strategy in 2024, a December report from The Conference Board found.

Engagement is a concern because it’s about the energy employees want to put in their jobs, as one HR exec described it. Actively disengaged employees may be disgruntled with their employer and likely to leave, another expert pointed out.

But there are ways HR can respond, including clarifying expectations, a big component of engagement, HR leaders have said. IBI recommended that employers offer training to managers. A key training point should be getting managers to think about how their direct reports’ jobs are structured and to have brief, but meaningful and weekly conversations with their reports about such issues as goals, well-being and recognition, according to Gallup research.

Employers should also take a multi-dimensional approach to engagement, focusing as well on financial well-being, mental health and caregiver support, HR leaders have said — issues cited in the IBI report as other important priorities.

Flexibility and work-life balance are additional concerns, the IBI research found. But employers have to find ways to engage both on-site and remote employees, who differ on the benefits of each arrangement, according to a previous report. For example, while nearly 6 in 10 survey-takers said working independently in a remote setting is more productive, about the same percentage said they like meeting new colleagues in the office, and workers were split on where they focused better.

Because no one-size-fits-all option satisfies all employees, employers may want to conduct “stay interviews,” with open communication at every step of the way, from the recruiting process, to onboarding, to performance management, to training and development, one executive has recommended.

Employers should also be aware that as the work environment continues to evolve, workers’ needs will change and engagement strategies must evolve also, others have noted.

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Employee retention is a paradox in 2024. While a number of large firms have been in the news for their massive layoffs, many companies continue to struggle to find and retain top talent. Despite a decline in quit rates between Q4 2022 and Q4 2023, according to the Bureau of Labor Statistics, and a 20% decrease in job openings, employers remain concerned.  According to Gallup, nearly half (48%) of employees are ready to quit their jobs for the right opportunities.

Employee retention strategies should be top-of-mind for organizations of all kinds in this environment as they seek ways to adapt to a volatile job market.

The data behind turnover and retention

Not all employees are equally at risk of jumping ship, but there are some interesting commonalities about the reasons they choose to leave.

Despite much attention given to the return-to-office (RTO) debate and mandates from some employers, data indicates that only 30% of job seekers in Q1 2023 were looking for remote or hybrid work. Even more startling, perhaps, is that 78% of GenZ workers prefer in-person work.

What they are looking for, though, is flexibility and better work-life balance. But, it’s not really about the hours they’re working or how hard they work, according to Pew Research, which reports that only about one-third of employees who leave their jobs are doing so because of the hours they’re working. What matters most is better pay, more opportunities for advancement, and feeling respected.

These are needs that employers can, and should address. Understanding the factors that motivate employees today is critical for HR to create more engaging and respectful work environments. Today’s workers value work-life balance, stability, meaningful work, and alignment between their values and the values of the organizations they work for.

Strategies to retain employees

Businesses that neglect employee retention strategies are facing critical risks. With a competitive labor market, employers must demonstrate their commitment to a “people first” policy. Investing time in employee pulse surveys focused on key issues like flexibility and manager effectiveness are essential tools for engaging employees and identifying turnover risks.

While general statistics on employee sentiment and retention trends offer helpful insights, it’s essential to understand the specific issues impacting your workforce. People analytics can help you get the critical insights you need.

Investing in clarity on skills and training, remodeling benefits and rewards programs, and staying informed on the job market and salary trends are crucial steps. By integrating compensation data with people analytics, you can better understand the correlation between pay, performance, and productivity, to retain top talent effectively.

Proactive, data-driven actions are essential for organizations to navigate these challenging times and emerge stronger. By focusing on employee retention through innovative strategies and analytics, businesses can ensure a resilient and engaged workforce ready to thrive in any economic cycle.

Ask. Analyze. Answer.

Regularly assessing employee sentiment while also monitoring the data behind employee satisfaction and turnover can help companies reduce turnover risk and boost both engagement and retention. Pulse surveys are an important tool, but so are one-on-one interactions between employees and their managers.

By transforming raw HR data into meaningful answers, insights, and solutions, people analytics can help companies address turnover and develop better retention strategies. Adapting your strategies through proactive solutions will lead to better retention, productivity, and bottom-line business results.

Both hiring managers and job seekers see the benefits in offering mentorship programs, which can aid recruitment and retention in the year ahead, according to a report from Express Employment Professionals.

Most job seekers and hiring managers supported mentorship programs for upskilling and reskilling opportunities, attracting prospective employees and cultivating greater connections between employees.

“A mentorship program in companies is like a shortcut to success,” Bill Stoller, Express Employment International CEO, said in a statement.

“It’s a practical way to transfer knowledge, refine skills and foster a culture of continuous improvement,” he said. “By connecting experienced individuals with those eager to learn, companies not only boost employee development but also build a stronger, more collaborative workforce.”

In a survey of more than 1,000 hiring decision-makers and more than 1,000 U.S. adults, 82% of hiring managers said they believe job candidates are more attracted to companies that offer mentorship programs. Eighty-five percent of job seekers agreed.

Around two-thirds of hiring managers said their company offers on-the-job training/upskilling, followed by mentorship programs (40%) and reskilling (31%). Among those that offer mentorship programs, 81% said they do it for upskilling purposes.

In addition, 2 in 5 companies offer mentorship programs to reduce brain drain and keep older employees engaged, particularly as companies lose employees to retirement, as well as their institutional knowledge and experience.

Among companies that don’t have a mentorship program in place, 52% said they’re likely to implement one in the next two years.

Formal mentorship programs may be on the rise as more companies say they plan to implement one in the coming years, according to an Association for Talent Development report. Although in-person, one-on-one chats remain the most common way to provide mentorship, virtual programs have grown in popularity as well.

Mentorship and sponsorship programs can also boost diversity, equity and inclusion initiatives, according to reports of successful programs at FedEx and Edward Jones. Senior leaders, in particular, can elevate underrepresented talent by guiding them through career development and leadership skills.

When considering return-to-office and hybrid policies this year, employers may consider highlighting the opportunities for mentorship and learning while in the office. A WFH Research report found that employees spend more of their workday on mentorship, training and professional development when they’re on site.

Mentorship can also play a key role in succession planning, HR experts told HR Dive. With a transition plan in place, mentorship can help a new leader gain on-the-job training and retain the institutional knowledge of the departing employee.

DEI isn’t just about getting people from varied backgrounds in the room, but supporting them as well. For women and other birthing people, reproductive health benefits continue to be a way that HR can champion gender diversity. For example, while tense, post-Dobbs decision discussions about employer-sponsored abortion benefits ended up shaping employers’ talent acquisition and retention strategies.

Menopausal benefits, one HR professional argued, will be the next frontier.

Kate Westrin is currently looking to bridge that gap between DEI objective and flesh-and-blood support. As head of people experience, partnering, and product engineering for Xero’s Americas division, she told HR Dive how her team had taken a forward-looking approach to their colleagues’ reproductive health.

“Over the past few years, we had really pushed for looking at building out our fertility and inclusive family-forming support,” said Westrin.

Xero currently works with a vendor known to offer benefits including adoption, egg and sperm freezing, IVF and other forms of assisted reproduction, postpartum support and surrogacy. The conversation turned to how HR is more than a liaison between employees and management these days — less transactional, and more involved in shaping the “people” part of the business. Benefits are directly tied to that conversation, including paying stricter attention to holistic aspects of health — like menopause.

“In recent years, there’s been a lot more just dialogue and acknowledgment of the impact that menopause has on women physically, mentally and emotionally. And also [more] acknowledgment that the symptoms can impair daily activities and the ability to be a productive employee,” Westrin said.

Benefits are just one piece of the puzzle

As Xero’s people team seeks to solidify the company’s menopause benefits, the organization puts on health education events for its employees in the meantime. “We’ve had some speakers come in and talk to our broader workforce,” Westrin said. “I think that there is a big opportunity in terms of awareness, as well as wanting to create a space where there’s open dialogue around the impact that [menopause] can have on women.”

Westrin plans to use this approach when Xero nails down its menopause offerings, too. “We’ll want to really promote and raise awareness, once we get a benefit in place,” she said. She said she’d want to outline the details of the offering and how employees can access it in her communications.

Open dialogue about reproductive health, family-planning is crucial

Xero employees had actually been reaching out to their people team “proactively,” Westrin said, in order to thoroughly understand their benefits package. Employees were also asking questions about what Xero would offer them in the future, “from a women’s health and menopause perspective,” Westrin recounted.

This openness was rare in the past: As one COO of a family-planning benefits platform previously said, discussing pregnancy with one’s boss at all was once a social faux pas. From hiding morning sickness to lying about OB-GYN appointments, pregnant people kept their conditions under wraps. But now, it’s increasingly common for pregnancy and other aspects of reproductive health to be at the forefront of work-related conversations.

When asked about why the taboo around reproductive health discussions has started to melt away, Westrin didn’t have any concrete answers. (Two researchers at Mercer previously told HR Dive their theory: The COVID-19 pandemic revealed that good child care has been tenuous at best and that all caregivers, especially parents and parents-to-be, need more support.)

But what Xero’s people chief did say was that fertility benefits are now standard for leading workplaces. Some major employer news that affirms this: In 2022, Walmart rolled out doula benefits for workers in Illinois, Indiana and Louisiana after piloting them a year earlier for Walmart workers in Georgia. The next year, Amazon expanded its fertility benefits to workers across 50 countries.

Menopausal support and hormonal treatments, Westrin said, are “just a continued evolution of how employers take a more progressive approach to supporting employees.”

Why extra menopausal and fertility support may be needed

Reproductive support can be an obvious lure, considering that most people can’t afford fertility treatments out of pocket, according to Carrot. Last year, the family planning vendor surveyed 5,000 workers in Canada, India, Mexico, the U.K. and the U.S., each of whom were building their family in some way.

About one-third said they could afford fertility treatments. Twenty-nine percent said they would probably need to go into debt to afford these treatments and 39% said they would have to use their savings, according to the April 2023 report.

Further, 47% of U.S. survey-takers said they’d shoulder a loan to pay for the necessary treatments. Along with Canadians, Americans were the most likely to say they’d take a second job. More than any of the other groups, Americans said they would sell their possessions to help grow their family.

“Fertility is not only a healthcare issue, but also a global workplace concern,” Tammy Sun, founder and CEO of Carrot, noted at the time. The survey results show how “essential” these benefits are, Sun added, and “showcase the opportunity employers have to make impactful investments in this critical part of healthcare."

Beyond attracting new talent, introducing and highlighting a comprehensive benefits package may also help retain current employees and make them more productive. 

In Carrot’s report, 65% of survey-takers said they have researched fertility treatments and benefits on the clock. To be fair, respondents taking a survey offered by a family planning vendor may have more of a vested interest than the average worker; however, that concern may still be worthwhile for HR to address.

More than half of Carrot’s survey-takers said that fertility challenges have “detrimentally” affected their work performance. And in general, per Calm’s Voice of the Workplace survey, the majority of workers say that their mental health has worsened over the past year. 

All data points to the long-held belief that mental and physical health go hand-in-hand — and that should inform benefits strategy. When asked what would keep them in the workforce longer, 75% of women in a British Standards Institute survey said more maternity support, including during the return to work, and 72% said increased support for perimenopause or menopause. Regarding the lack of resources, BSI researchers said, “It does not have to be this way.” 

Along with benefits, researchers recommended providing schedule flexibility and creating “a positive workplace
culture that prioritizes people of all ages,” especially in its well-being programs. “Nor is this just for women to address — there is an opportunity for male colleagues and workers of a different generation to play a role and turn ambition into action,” researchers said.

Psychological safety in the workplace, or the feeling of being able to speak up and take risks without fear of being blamed or criticized, can lead to higher motivation, happiness and retention, according to a report from Boston Consulting Group.

Among employees reporting the lowest levels of psychological safety, 12% said they were likely to quit within a year. However, among those with high levels of psychological safety, only 3% were at risk of quitting.

In addition, the report found that empathetic leadership — which shows understanding and respect for team members’ perspectives, emotions and life situations — is a key driver of psychological safety and its benefits.

“Collective buy-in from the team is important, but leaders have an outsize impact when it comes to building psychological safety,” Nadjia Yousif, chief diversity officer at BCG, said in a statement.

“They set the tone by being role models and signaling what behaviors will be rewarded and what won’t be tolerated,” she said. “Psychological safety can flourish only if it’s driven from the top.”

In a survey of 28,000 professionals across 16 countries, psychological safety was associated with employees feeling 2.1-times more motivated, 2.7-times happier and 3.3-times more enabled to reach their full potential at work.

These effects were particularly pronounced among women, people of color, LGBTQ+ employees, people with disabilities and those from economically disadvantaged backgrounds. 

For instance, among employees who experience psychological safety at work, retention increased by more than four times for women and for those who identify as Black, Indigenous or people of color. Retention also increased by five times for people with disabilities and by six times for LGBTQ+ employees. In comparison, retention increased by two times for men not in these groups.

However, in workplaces where psychological safety was low, attrition was higher among members of diverse groups. In the bottom 30% of the psychological safety spectrum, 18% of LGBTQ+ employees were at risk of attrition, as compared with 12% of straight and cisgender employees. 

Among those in the top 30% of the psychological safety spectrum, the attrition risk gap between the groups narrowed dramatically, leading to a 3% attrition risk for all.

The BCG report noted tactics to foster psychological safety in the workplace. For instance, leaders can encourage sharing and learning among employees by setting aside time in meetings for people to connect with one another as humans.

Leaders can also hold regular team reflections to celebrate what the team is doing well and discuss areas for improvement. During feedback sessions, criticism should focus on the work, not the person, according to the report. Finally, leaders should be open and authentic by sharing their own mistakes and lessons learned with the team.

Without psychological safety, employees have a lower sense of belonging and engagement, according to a report from The Courage Collective. This leads to higher turnover among people of color, especially among those in management roles.

Psychological safety at work takes time, according to a McLean & Co. report, which builds on three pillars. First, leaders should work to prevent harm, including physical, emotional and psychological harm. Next, workplaces should promote health, including physical, emotional and psychological health. Finally, leaders should resolve incidents and concerns in a responsible way.

Another key is empowering employees to speak up, particularly during performance reviews but also year-round, Reggie Willis, the chief diversity officer at Ally Financial, wrote for HR Dive. When employees feel safe, they’re more likely to be open, which will help leaders to gain insights into their strengths, weaknesses and goals.

When companies implement rigid return-to-office (RTO) mandates, they’re likely to drive away high-performing employees, women and millennials, according to recent survey results from consulting firm Gartner’s HR practice.

High performers’ intent to stay was 16% lower with employers that have strict RTO requirements — double the rate of average employees (8%), the survey found. Among women and millennials, the intent to stay was 11% and 10% lower, respectively, according to the 2,080 knowledge workers surveyed in May and June 2023. In a separate June 2023 survey of 3,500 employees, nearly half said their company’s RTO mandates prioritize what leaders want versus what employees need to do good work, Gartner noted.

“Mandated on-site requirements can carry very steep costs for talent attraction and retention. This is especially true for high-performers, women and millennials — three employee segments who greatly value flexibility,” Gartner HR practice Director Caitlin Duffy stated in a press release. “Often these costs far outweigh the moderate benefits to employee engagement and effort,” Duffy said.

In the early months of 2024, stakeholders have continued to adjust to evolving RTO and hybrid work practices.

There have been successes, like financial technology firm Global Payments, which refashioned a mandatory RTO policy into a hybrid approach after employee feedback revealed that the lack of flexibility was one of the top reasons people were leaving the company.

Before rolling out the new approach, the company’s HR president reached out to employee resource groups, including its diversity action team, the CHRO recently told HR Dive. Knowing they have flexibility to respond to something going on in their personal life makes it easier for them to come into the office, the CHRO said.

Leading an RTO trend that fosters inclusiveness and belonging, Minnesota-based The Coven offers co-working space designed with community in mind. This creates a sense of physical and psychological safety, which in turn allows members to focus on the work, one of the co-founders previously explained.

For many employees, working in-office is simply more pragmatic. While the preference leans toward remote work whenever possible, professionals will take office-based roles if those roles provide the best career growth, according to a recruitment expert.

Flexibility has positive results, especially with high-performers, women and millennials, the Gartner survey found. For instance, high performers feel they proved themselves and maintained high levels of performance throughout the pandemic and remote work, but see mandates as a signal they still can’t be trusted to work autonomously to make the best choices about how their work gets done, Gartner said.

“Losing high-performers to attrition cost[s] organizations in terms of productivity, difficulty in backfilling the role, and the overall loss of high-quality talent available to fill critical positions,” HR practice director Duffy said.

Increased flexibility and the ability to work from home during the pandemic had a positive affect on the ability of women to manage work and life priorities in a holistic, integrated way, Duffy added. Women also report experiencing fewer microaggressions and biases compared to when working in an office.

For millennials, the generation now most likely to have caregiving responsibilities, Gartner data found their performance was lower at organizations with RTO mandates, the firm noted.

It recommended four best practices HR leaders can consider if their organizations seek to formalize an in-office work requirement:

1. Motivate, rather than mandate, by designing office spaces and hybrid policies that make everyone feel capable, autonomous and connected;
2. Focus on yearly, not weekly, attendance requirements;
3. Enable employees to shape the policy; and
4. Provide clear reasons for requiring employees to work on-site.

Employers have several factors to consider when deciding how to approach the return-to-office conversation. But as one HR department’s experience shows, employee feedback is perhaps the most crucial.

Global Payments, the Atlanta-based financial technology firm, faced a post-pandemic scenario typical of many large employers that shifted to remote work. In 2020, the company was “pretty much fully remote,” according to Andréa Carter, senior executive VP and CHRO. A gradual reopening of offices followed as Global Payments allowed workers time to assimilate back into the workplace.

By 2022, the company implemented a formal RTO policy that required employees to return to the office at least four days per week. A subsequent review of the company’s talent acquisition data raised some concerns about its stance, however.

Flexibility became a pain point for employees, said Carter, who explained that her team produces a monthly attrition report for the company’s leadership. These reports outline why current employees leave Global Payments and why candidates fall out of the hiring process.

Attrition data showed that flexibility ranked seventh in the top 10 list of reasons employees had left the company. That result aligns with other research establishing a link between RTO policies and retention issues. Carter said Global Payments used its findings — combined with the results of separate employee pulse surveys — to make a change to its RTO approach.

Instead of a mandatory four days per week in office, the company allowed employees who could work a hybrid schedule to work between two and four days per week in-office as well as one to three days per week remotely.

A few months after the change, flexibility fell out of the top 10 causes of attrition at Global Payments, and “we saw attrition overall decrease in the organization,” Carter said.

Avoiding a ‘black hole’

The results of Global Payments’ policy change are just one part of the story. Carter explained that the company’s leadership did not implement the updated hybrid work policy without first showing the survey findings to employees.

“It wasn’t just the leadership team going into a black hole and coming up with it,” Carter said. “We engaged our team members to look at the data to help come up with a proposal that we thought would be mutually beneficial for our team members and our organization.”

Specifically, Carter said she had the company’s HR vice presidents reach out to employee resource groups including its “diversity action team,” present the flexibility statistics and engage with ERG representatives to gauge how employees felt about the subject.

“That was important because we wanted stakeholder buy-in [and] our team members were critical stakeholders in this process,” she added.

Asked why employees appeared to respond to the change, Carter said Global Payments’ workforce values flexibility for several reasons. Some may be part of the “sandwich generation” of employees that is simultaneously responsible for caring for younger as well as older relatives. Others may have appreciated flexibility in order to address mental health and well-being concerns that emerged since the pandemic.

Interestingly, Carter said that she has not seen much of a difference in terms of employees coming into the office since the policy change. The company does not formally track attendance, she noted, “but you can gauge.” Aside from the camaraderie that comes with seeing co-workers and company-hosted team appreciation activities, Carter said the real value of flexibility may simply be that it is there if employees need it.

“When you think about what the pandemic did to people from that perspective, just knowing that they have the flexibility to react or respond to something that’s going on in their personal lives makes it a lot easier for [them] to come into the office,” she said.

Maintaining a robust data function

Data is central to this story, and it’s been central to Carter’s approach as CHRO. She said the creation of a dedicated people analytics team was one of her first goals upon assuming her current role.

“I think oftentimes people look at the CHRO job as we’re emotional because we are for employees and team members,” Carter said. “What we’ve got to do as CHROs is use data to inform and influence decisions.”

“You can’t go to your CEO and say ‘we have to do this because it’s the right thing to do,’” Carter said; while that may be true, CHROs must be able to say “it’s the right thing to do because” and then use data to back it up.

The company’s attrition and attraction data reporting is run through Workday. Pulse surveys require a bit more in the way of coordination, Carter explained, because the company wants to avoid survey fatigue. Another priority for 2024 concerns the results of the company's recent global engagement survey, which it is currently analyzing.

“We had a very high participation rate in the survey, and so we are excited to peel the layers of that onion back to further hear from our team members about what it is from a human capital perspective that we need to focus on to continue to make this a better place to work and to move our culture forward,” Carter said.