4 Common HR Problems That Skyrocketed During COVID-19

2020 has been a challenging year, and to be honest, we’re not sure 2021 will start-off any easier. We know that the future of work is changing dramatically and that many of the policies we put in place today are here to stay for good. Many common HR problems, like burnout, for instance, have been amplified during the COVID-19 crisis, causing companies to pivot and make changes drastically to help retain top talent and prevent plummeting productivity. We’re going to highlight some of these problems and how preventing these core issues is essential in building a strong and healthy company culture that can weather future storms.

Problem #1: Job security is low, fear is high 

The uncertainty of what the future holds for organizations of all sizes causes employees to fear losing their jobs. According to Statistics Canada, 20% of Canadian businesses had laid off 80% or more of their staff by the end of April 2020 due to the pandemic. Job security has plummeted for companies in industries negatively affected by the pandemic like the travel and restaurant industries. Pairing mass layoffs with the increasing uncertainty of what the future looks like results in skyrocketing fear and stress among employees. Top team members, especially ones frequently recruited, are at risk of leaving for safer opportunities if they feel they’re at risk or see the lack of a future at their organization. 

The solution: Increase transparency

A solution for easing worried minds? Increase transparency between leadership and the rest of the company. Not to sound cliche, but honesty is the best policy. Blindsiding your company with a mass termination or layoff breaks down trust, and once lost, it's tough to earn back. One suggestion is a monthly financial update sent to the entire company. If the employees have some insight into the company's revenue and that revenue is steady or increasing, they will feel more secure. Putting a COVID-19 policy in place, like a contingency plan, will also help employees cope with their future at your company. Why is transparency within your organization so essential? Without it you get uncertainty, which leads to employees making bad assumptions. Negative assumptions can quickly propagate across the company, and send your company culture into a downward spiral. Look for ways to increase transparency, communication, and feedback to create a safer space. 

Problem #2: Employees are burnt out 

Burnout should be nominated for the word of the year for 2020. If mentally, you haven’t suffered at some point during the last ten months, hats off to you because the rest of us are tired. A new survey from FlexJobs and Mental Health America (MHA) reported that 75% of workers have experienced burnout, and 40% of those polled said it was a direct result of the coronavirus pandemic. We’re tired of the unknown, we’re tired of being scared for our health, and we’re tired of working our butts off for companies that don’t appreciate us or give us what we need to power through it. Identifying burnout isn’t as easy as it seems; many high-performers will try to power through it, ignoring symptoms until it becomes a more severe problem. Burnout happens at an individual level, which is why managers and people leaders need to have frequent 1:1s and check-ins with their team to identify it. In this case, prevention is the best policy.

The solution: Better wellness & mental health offerings

It’s a great time to revisit your company’s wellness and mental health programs heading into 2021. Your team is likely experiencing a high amount of stress outside of work, so improving your wellness offerings is a great way to demonstrate that the company cares about your employees. Some ideas include increased mental health days—no questions asked. Mental health continues to have a negative stigma attached to it, so calling it a generic term like “personal day” or “happy day” is a great alternative. Revisit your vacation policy and make sure you’re actively encouraging your team to take it. Employees may not be using vacation days because there is “nowhere to go”; consider making it mandatory to ensure people take the time they need to reset. Providing a generic wellness credit that employees can spend on anything related to sports equipment, health apps, clothing, or running shoes will help employees put their health as a top priority. Lastly, frequent 1:1s that “check-in” on employee happiness and growth, instead of on work projects, is a great way to connect personally and identify stress and burnout. 

Problem #3: Employees are hyper-aware of their happiness at work

It isn’t easy to wake up every day and spend eight hours working for a company that doesn’t appreciate you. Because of COVID-19, we don’t have access to all the things that previously brought us joy, which is causing many to look at their lives under a microscope, analyzing what’s working and what’s not working. Unfortunately, many high performers are stuck in roles they don’t feel valued or appreciated in. If they no longer feel excited about their work or accomplishments and performance is plummeting, those who were previously complacent in their roles may be getting restless.

The solution: An employee recognition strategy 

Recognizing your employees means highlighting their accomplishments and celebrating milestones that are meaningful to them. Recognition makes employees feel valued, appreciated, and, more importantly, seen on a personal level. Increased productivity, loyalty and a sense of belonging are some benefits of implementing a recognition strategy. When it comes to recognition, consistency is key. It’s not a one-time thing; recognition should be an ongoing part of your people operations strategy. Some ways to recognize employees include the success of a project launch, work anniversary, birthday, personal milestones like the birth of a child, job promotion and more. During these challenging times, build a more robust company culture through real-life, tangible employee recognition. One solution is to implement an ongoing employee subscription box service that highlights monumental moments throughout the employee lifecycle. 

Problem #4: Distributed hiring competition

As more companies shift towards remote-first, top talent seeking new opportunities now have a larger pool of organizations to choose from. A work-from-home world is beneficial for both companies and talent. Companies get a more diverse and well-rounded selection of applicants, and the applicants have more opportunities to find a role that’s the right fit. However, for companies who aren’t hiring remote positions, it will become increasingly difficult to compete if you aren’t offering exciting perks, growth opportunities, and a competitive salary. The tech industry is the most volatile, with a whopping 13.2 percent turnover rate, based on LinkedIn member data. Not only will hiring become more competitive, but retaining talent will also be more challenging—employees are at risk of jumping ship for better opportunities. Remote-first champions like Shopify are putting themselves in an advantageous position to hire the best of the best from around the world. 

The solution: Compensation and growth considerations

If your employees think they’re underpaid or under-utilized, sooner or later, they will walk away.  The average compensation increase for an employee who takes another job is 15%, which is an unlikely increase for workers in their current role without a promotion. Industry-standard compensation, perks, equity or a wide range of growth opportunities should be on the table so that high-performing employees stick around. For companies that can’t afford to pay massive salaries, you must leverage your strengths and get creative with the non-monetary perks you’re offering, like vacation time, equity and health benefits.