EMPLOYABILITY & LEARNING CULTURE

Boston Consulting Group | Is Your Upskilling Program Paying Off? | This study by BCG explores how organisations can determine whether their upskilling programs deliver measurable returns on investment (ROI). It outlines critical metrics that assess business alignment, performance improvements, and employee engagement, providing clear steps for ensuring that upskilling efforts contribute to sustainable growth and talent retention.

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Introduction

As the need for new skills intensifies, businesses ramp up investments in upskilling programs to stay competitive. Yet, many companies need help assessing whether these initiatives deliver tangible business results. For HR leaders, business executives, and sustainability professionals, understanding how to measure the ROI of upskilling programs is critical to aligning these efforts with broader business objectives and ensuring the development of a future-ready workforce. This report offers a practical guide to evaluating the success of upskilling efforts through well-defined, actionable metrics.

Key Insights

• Business alignment is critical: Companies must ensure that upskilling programs support specific business outcomes such as innovation, productivity, or employee retention. Programs without a clear connection to strategic goals are less likely to succeed.

• Measurable impact: To determine the effectiveness of upskilling, businesses should focus on hard and soft metrics. Examples include performance improvements, employee satisfaction scores, and financial metrics like revenue growth or cost savings from increased efficiency.

• Engagement drives success: Upskilling is more effective when employees are actively engaged. Engaged employees are up to 40% more likely to improve their performance post-training, emphasising the need to foster strong participation in these programs.

• Iterative process: Successful upskilling initiatives are continuously refined. As business needs and skill requirements evolve, companies must revisit and adjust their programs to keep them relevant and impactful.

Recommendations

• Align upskilling programs with business objectives: Before launching a new initiative, define the specific business outcomes the program aims to achieve, such as boosting productivity or reducing turnover. Ensure alignment with long-term strategic goals.

• Develop a balanced measurement framework: Use a mix of quantitative and qualitative metrics to assess the impact of upskilling. For example, track productivity changes and employee feedback to evaluate the program's success.

• Encourage employee engagement: Upskilling works best when employees are motivated. To enhance engagement, create clear pathways for career progression tied to skill acquisition and communicate the benefits of participation.

• Regularly review and iterate programs: As business priorities and market conditions shift, regularly review upskilling programs to ensure they align with your organisation’s evolving needs.

Conclusion

Evaluating the ROI of upskilling programs is crucial for ensuring these efforts deliver sustainable value. Organisations can turn upskilling into a strategic advantage by aligning programs with specific business outcomes, measuring their impact through comprehensive metrics, and fostering employee engagement. Continuous iteration will help keep these programs relevant, positioning the organisation to thrive in an ever-changing talent landscape.

EMPLOYEE EXPECTATIONS

Willis Towers Watson | 2024 Global Benefits Attitudes Survey | This research explores employee attitudes towards benefits, well-being, and workplace policies based on WTW's 2024 Global Benefits Attitudes Survey. It reveals vital insights on changing employee priorities, the impact of remote work, financial concerns, and mental health challenges.

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Introduction

The world of work has changed dramatically in recent years, with the COVID-19 pandemic acting as a catalyst for shifts in employee expectations and workplace dynamics. While staffing pressures have eased, companies face challenges navigating a complex environment marked by inflationary pressures, return-to-office mandates, and increased focus on diversity, equity, and inclusion (DEI). This research aims to help employers better understand their workforce and adapt their benefits strategies accordingly.

Key Insights

• Employee retention has improved: The number of employees intending to stay with their current employer has increased from 56% in 2022 to 63% in 2024, indicating a return to more normal labour market conditions.

• Benefits have become more important: The importance of benefits packages in attracting talent has risen significantly across all regions. In North America, 70% of employees now cite benefits as an essential reason for joining their employer, up from 57% in 2017.

• Remote work preferences have strengthened: Employee desire for remote work has increased sharply. In North America, 42% of employees prefer to work mostly or entirely remotely, compared to 27% in 2022.

• Financial concerns are widespread: Approximately one-third of employees report being worse off financially than a year ago, and a similar proportion state that money concerns negatively impact their well-being.

• Mental health remains a challenge: Despite some improvement, one in three employees globally report suffering from anxiety or depression. However, only 35% of those affected sought treatment.

Recommendations

• Align benefits with employee priorities: Review and adjust benefit offerings to better match employee preferences, particularly in areas like flexible work arrangements, health benefits, and financial well-being support.

• Enhance benefit choice and flexibility: Implement more excellent benefit customisation options. Employees with high levels of choice are nearly twice as likely to say their benefit package meets their needs as those without.

• Develop a comprehensive remote work strategy: Balance business needs with employee preferences for flexibility by reviewing and potentially adjusting remote work policies and exploring alternative flexible arrangements.

• Strengthen financial well-being support: Prioritise programs that help employees grow their savings, maximise benefit value, and build emergency funds. For retirement planning, focus on assisting employees to make decisions throughout their retirement years.

• Promote lifestyle improvements for health: Facilitate social interaction, physical activity, and outdoor time to support physical and emotional well-being. Leverage social connections at work to encourage participation in well-being programs.

Conclusion

Employers must adapt their benefits strategies as the workplace evolves to meet changing employee needs and expectations. Focusing on flexibility, financial support, and holistic well-being can enhance employee satisfaction, productivity, and retention. Implementing these recommendations will help create a more engaged and resilient workforce that is better equipped to navigate today's dynamic work environment challenges.

HEALTH & WELL-BEING

The Conference Board | Is AI the Answer to Employee Mental Health and Well-Being Challenges? | This research explores the potential of AI to address employee mental health and well-being challenges in the workplace. It highlights the growing urgency of the mental health crisis and the limitations of traditional approaches. It presents case studies demonstrating how AI-driven immersive therapies can offer personalised, practical solutions.

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Introduction

Employee mental health and well-being are in decline, with significant implications for productivity, engagement, and retention. A recent survey by The Conference Board reveals that nearly one-third of employees report lower levels of mental health, engagement, and sense of belonging compared to six months prior. This trend underscores the urgent need for effective interventions in the workplace.

Key Insights

• Mental health decline is widespread: 34% of employees reported lower mental health levels, 37% lower engagement, and 37% lower sense of belonging compared to six months prior. Alarmingly, 69% feel they are working harder than expected.

• Traditional approaches are falling short: While 88% of organisations offer mental health support programs, only 29% of employees find them helpful. Among C-Suite executives, fewer than 25% find any traditional well-being programs useful.

• AI-driven therapies show promise: Bank of America's implementation of an AI-driven virtual reality therapeutic platform resulted in 76% of users reporting reduced stress and anxiety over six months.

• VR interventions demonstrate effectiveness: A Mayo Clinic study found that 96% of participants felt relaxed after viewing nature-based VR scenes, significantly decreasing anxiety and emotional distress and improving focus.

Recommendations

• Invest in AI-driven mental health solutions: Implement personalised, AI-powered platforms that offer immersive experiences tailored to individual employee needs. These technologies have shown promising results in reducing stress and anxiety and improving focus.

• Prioritise data-driven decision-making: Utilise platforms that provide robust analytics to monitor the effectiveness of mental health interventions. This allows for continuous improvement and tailoring of programs based on employee feedback and outcomes.

• Foster a culture of openness: Address the stigma surrounding mental health in the workplace. Encourage open discussions and provide training to recognise signs of mental health concerns, as 37% of employees would find such helpful training.

• Integrate VR technologies: Consider incorporating virtual reality experiences into your well-being programs. VR-based interventions have shown significant potential in reducing anxiety and improving focus among healthcare providers and could be adapted for various workplace settings.

Conclusion

As traditional approaches to employee mental health and well-being fall short, AI-driven solutions offer a promising path forward. By leveraging personalised, immersive therapies, organisations can more effectively address the growing mental health crisis. Implementing these innovative approaches can improve employee well-being, productivity, and overall organisational performance.

PSYCHOLOGICAL SAFETY

MIT Sloan Management Review | Skills Training Links Psychological Safety to Revenue Growth | This research explores how skills training focused on psychological safety, and perspective-taking can lead to tangible business outcomes, as demonstrated by a case study at Skandinaviska Enskilda Banken (SEB). It highlights the importance of combining theoretical understanding with practical application to drive innovation, collaboration, and financial performance.

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Introduction

Many organisations recognise psychological safety as crucial for innovation, collaboration, and transformation. However, most need help converting theoretical understanding into bottom-line results. This study examines how skills training in the context of real work can bridge this gap, leading to improved organisational performance and financial outcomes.

Key Insights

• Psychological safety is trainable: Viewing psychological safety as a skill that can be developed through practice allows organisations to improve performance. Creating an environment where people feel safe taking interpersonal risks is particularly important during times of change.

• Combining skills training with real work yields results: SEB's investment bank achieved revenues 25% above yearly targets in a strategically important market segment after implementing a training program that combined psychological safety skills with hands-on problem-solving.

• Perspective-taking enhances collaboration: Training in intentionally considering others' viewpoints, motivations, and emotions alongside psychological safety skills can significantly improve team dynamics and decision-making.

• Structured dialogue techniques drive progress: Applying learned skills to specific complex challenges using structured dialogue techniques helps teams make tangible progress on strategic initiatives.

• Short interventions can have a significant impact: A two-hour training session was a turning point that enabled SEB's senior management team to pool their knowledge and expertise more effectively.

Recommendations

• Implement targeted skills training programs: Develop training initiatives tailored to your organisation's specific challenges and goals, focusing on psychological safety and perspective-taking skills.

• Integrate training with real-world application: Design programs that combine skills training with hands-on work on actual business problems to demonstrate the immediate value of interpersonal skills.

• Foster a culture of candor: Encourage an environment where expressing unpopular opinions, disagreeing constructively, and sharing mistakes is accepted and expected.

• Utilize structured dialogue techniques: Incorporate structured dialogue methods into team meetings and decision-making processes to effectively apply psychological safety skills.

• Measure and communicate outcomes: To demonstrate value, track training programs' impact on soft metrics (team collaboration, innovation) and hard metrics (revenue growth, project success rates).

Conclusion

By viewing psychological safety as a trainable skill and implementing targeted programs that combine theory with practical application, organisations can unlock significant potential for innovation, collaboration, and financial growth. The SEB case study demonstrates that even short interventions can substantially improve team dynamics and business outcomes when properly designed and executed.

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