Whilst attracting and retaining talent remains an important objective for North and Latin American HR teams’ strategies, they’re increasingly turning their attention to employee incentivization to help drive business performance. According to a recent study, the top human capital risks for organizations across the globe are ‘low or declining employee engagement’ and ‘lagging productivity’ (43% and 31% respectively). It’s becoming clear to organizations that to combat these risks, they need to ensure they are creating an environment that motivates and engages employees. This in turn promotes business performance as innovation, creativity and productivity all increase.
HR teams in North America aim to do this by taking a global approach, placing creating globally consistent employee experience, tightening control of global costs and developing global employee wellbeing programs at the top of their priority list. A global focus is also key for HR teams in Latin America where they put even greater emphasis on creating a globally consistent employee experience - 82% of respondents list this as their top priority, 9% more than their northern neighbors.
North and Latin American organizations are achieving their global goals through technology. Over a third of North American organizations consider themselves technological innovators with this figure increasing to 57% for organizations in Latin America. And being one of the first to implement tech is proving successful as our research found that the earlier organizations are to adopt new technology to achieve their objectives, the more likely they are to meet or exceed their employee engagement score targets.
With the region’s key objectives focused on global initiatives; it’s not a surprise that local-level decentralized systems are being pushed aside in favor of integrated ecosystems that allows HR teams to pick and choose which apps and tools they want to use. This approach allows HR teams to test their approach and tweak as necessary, adapting each environment to meet local needs. Yet they can only do this if they have effective data and analytics tools - and the teams in place to be able to interpret it into actionable insights. And the results are promising - currently 82% of organizations in North and Latin America are collecting employee data. But collecting it is not enough - are they using it to its full potential?
Whilst organizations in these regions are analyzing their data, the areas they prioritize highlight room for improvement. 75% use data for departmental cost control and 63% focus on benchmarking against peer organizations. If organizations put the same energy into tracking employee sentiment or wellbeing - areas that have an actual impact on employees and their performance at work – productivity, efficiency and organizational performance in the long term will increase. Having a strong people analytics team is also vital to ensure data is interpreted and the insights used in the right way. As a result, 58% of employers are upskilling their current employees to be able to do just this. So the good news for HR professionals is that technology is an enabler, not a threat, allowing them to increase their skillset and play a more strategic role in their organizations.
Whilst North and Latin America may still have some way to go in developing their data and analytics strategies, the region’s global outlook and approach to technology firmly places it as a key HR innovator and disruptor. By focusing on driving business performance, with the use of new technology, they’re staying ahead of the competition and ensuring they’re known as top employers - this region is one to watch!
To learn more about the research specific to North and Latin America, download the whitepaper now
To find out more about the global HR tech disconnect research download the full report now.