State of HR report analyzes what sets top companies apart
Analysis of a new survey of HR professionals identified four key factors that produce a positive work environment.
By Willa Hart
Few events have changed the workplace as abruptly and totally as the COVID-19 pandemic. With remote work, health and safety issues, and the Great Resignation all posing new challenges, organizations have had to adapt to find ways to continue growing revenue. According to Mineral, an HR services company, one way companies may be able to increase financial gains is by improving employee morale. Their new report, “The 2022 State of the HR Report,” suggests that companies that increased their employee morale last year were 11 times more likely to see increased revenue than organizations that saw decreased morale.
The new report pulls data from a survey of 2,644 senior HR professionals from a range of different industries and companies conducted in February of 2022. Analysis of the report identified four key factors that produce a positive work environment, which Mineral labels “Healthy HR”: thoughtful compensation, like tailored benefits; good work-life balance, such as flexible remote work schedules; potential for career growth, such as clear career ladders; and appropriate workload.
Companies were rated as being strong, average, or weak performers on the Healthy HR metrics. According to the survey, the strongest performing companies were the most likely to see an increase in morale year-on-year, with 68% of strong HR organizations seeing morale boosts, compared to 43% of average companies and 13% of weak performers.
Companies that were rated as strong saw other positive benefits as well. In addition to the increased likelihood of seeing revenue growth, these companies were also 25 times more likely to see boosts in employee productivity, a factor which often contributes to financial gains. Additionally, strong companies were more than twice as likely as weak performers to meet their DEI goals and evolve their workforces.
However, certain challenges were universal across both strong and weak HR companies. The three top issues reported included compliance concerns, inability to fill positions, and improving compensation and benefits. For example, some 72% of survey respondents said they needed to improve their compensation and benefits, while employee morale was also ranked as a top challenge for both strong- and weak-HR-performing companies.
However, while weak-performing companies listed their other top challenges as attracting talent and retaining talent, strong performers said training and development and employee mental health were bigger concerns. In fact, 91% of top-HR-performing companies said their employee’s mental health was a number one priority, compared to only 47% for weak companies.
“Nearly all companies that achieved Healthy HR had an expressed focus on the mental health of their employees, while less than half of Weak organizations shared the same approach,” the report says. “In other words, the organizations that walked the talk on mental health thrived during the pandemic, while others struggled just to survive.”