Traditional business structures (versus flat organizations) face more business challenges, hiring is difficult, and traditional perks no longer work for today's employees.
Here are three key insights the Global Webindex 2020 Report:
1. Finding and hiring talent is one of the biggest challenges companies face today.
- Over 3 in 10 employees say that the companies they work for are challenged in that respect. This is the third-most cited business challenge, on par with staying profitable, and superseding other key challenges like keeping up with industry innovations and maintaining government compliance.
- 64% of business leaders globally anticipate their company’s workforce to grow moderately or significantly in the next year, and 76% expect the same for their revenue.
- 28% of employees (and 33% of HR workers) feel that employee morale and retaining staff is also a challenge for their company.
- Talent migration is a growing issue for companies, with the number of people quitting their jobs in the U.S. projected to rise to 47 million in 2020, an increase of around 6 million since 2018.
- Those working in the government and manufacturing sectors are the most likely to cite acquisition as a challenge.
Employee retention is mostly a problem for organizations with hierarchical structures
- Companies that face challenges with keeping their talent are 29% more likely than average to have a very hierarchical versus flat structure. These businesses are usually more traditional in nature, and rarely go the extra mile with the perks and benefits they offer to their employees.
- Flat structures are generally associated with greater ratings of collaboration, communication, and overall workplace culture. Employees in flatter organizations are also more likely to feel aligned with the company’s vision (72%) and to feel empowered to make strategic decisions (68%).
- 52% of businesses faced with talent challenges have a hierarchical structure, compared to 45% of companies that aren't.
Traditional Perks on the Outs
Organizations that provide benefits beyond traditional perks like medical coverage and life insurance are most likely to have a driven workforce and enjoy higher employee satisfaction. Offering non-traditional benefits like paid vacation and childcare prove integral to maintaining a driven and productive workforce.
- 12% of satisfied employees are offered unlimited holiday, compared to only 7% on average.
- Alongside ‘finding cost savings’ (41%) and ‘improving efficiency and productivity’ (43%), companies who face talent challenges listed ‘improving employee recruitment and retention’ (39%) as important initiatives for driving growth.
- Glassdoor has identified 9 values that drive positive culture inside the highest performing companies:
Agility
Collaboration
Customer
Diversity
Execution
Innovation
Integrity
Performance
Respect
The study also identified what drives morale, finding that ‘overall workplace culture’ rounded out the top three most important alongside salary and career progression.