Creating a People-First Workplace Culture that Retains Top Talent

Ching Li Chew, People and Communication director, KONE South East Asia in a recent interaction with Asia business Outlook Magazine, shares her views on the role HR should play in fostering a people-first culture, and how they can overcome resistance to change, the key factors that influence talent retention, and how organizations can proactively address them and more.Ching Li is an accomplished HR leader with over 20 years of experience spanning strategic business partnering and total rewards across industries like banking, insurance, FMCG, and escalators. Currently, she leads People and Communication Strategy at KONE Southeast Asia, driving impactful initiatives to support organizational growth.

HR shapes culture but faces leadership and employee resistance to change.What role should HR play in fostering a people-first culture, and how can they overcome resistance to change?

In association with business leaders, Human Resources (HR) is essential to the development and maintenance of a people-first mindset. This is necessary to combat resistance to change which is a constant and inevitable challenge in every organization. Change is an ongoing process that is a reaction to internal and external stimuli. External stimuli such as market changes, new technology, and factors that require governmental action could lead to change actions.

Internally, changes in growth, leadership, and strategic directional changes could require change in action. Companies who seek to keep competitive only have so many ways to do so - improving productivity, cutting costs, and creating more efficient operations. Any organization that wants to survive, grow, adapt, and thrive is required to engage in proactive change. Organizations that engage in proactive change can seize new opportunities for advancement, improve their position in the marketplace, and create a culture of continuous improvement.

In order to effectively promote a people-first culture and address resistance to change, it is imperative that HR pays attention to three areas. First, HR needs to model desired behaviors consistent with a people-first culture and partner with leadership and create open and transparent dialogue, show heartfelt empathy, and champion the cultural shift forward. With a commitment to this purpose, the organization will begin to move with a single mind.

Secondly, the HR will need to provide the individuals and organization with the "why" and "what's in it for me." Change can be frightening and resistance is often built from misunderstanding. HR should partner with leadership to facilitate change in oneself and often the organization. For example, at KONE we use the change management framework and the 5 stages of change, which are Awareness (need for change), Desire (a will to support change), Knowledge (skills and knowledge), Ability (acting on behaviors and skills), and Reinforcement (sustaining change).

The third area of emphasis for HR is the recognition and celebration of milestones. Leaders often are only focused on completing the last phase of the change initiative - they do not always appreciate that reviewing smaller milestones matter along the journey. Recognizing milestones and celebrating progress, even small wins during the process, helps to maintain momentum, reinforces the work culture, and raises team morale. Recognition and celebration of milestones also helps to show employees that they are cared for and that their contributions matter during the transformation process.

Retaining top talent has become increasingly difficult due to changing employee expectations. What are the key factors that influence talent retention, and how can organizations proactively address them?

In the current landscape of business, keeping top talent in place has become a paramount concern and it is ever-changing. The complication resides in the fact that we have a multi-generational workforce composed of Baby Boomers, Gen X, Milennials (Gen Y), and Gen Z, all of whom may view work and their roles differently. In the next few years Generation Alpha; those born post-2010, will begin to take their place in the workforce as well. Organizations must adjust their retention strategies to match the needs of employees based on their individual generation.

Rapid changes in how employees view their careers, pay, and work-life balance have prompted the need for a new, strategic, and flexible solution. Any talent retention strategy will include some aspect of career development and career growth. All generations of employees want meaningful career development; however, their expectations will differ in various ways. Baby Boomers tend to appreciate stability of employment and the chance to ascend in the hierarchy.

Millennials and Gen Z value career advancement more than Boomers. They want to develop quickly, keep learning, and enjoy their work. Organizations will want to develop career programs for all aspects of employee career paths to account for the differences. Senior employees may have aspirations for leadership and stability while younger employees may want something completely different such as fast track development programs, e-learning programs, mentorships, cross-functional projects and even global assignments.

To close that gap, organizations must communicate the mission, vision, and values, and how the individuals work contributes to a larger strategic purpose. Providing examples through corporate social responsibility (CSR) initiatives, volunteer opportunities, and sustainability efforts can attract a younger workforce and keep them engaged and loyal to a company. Giving an opportunity for staff across generational cohorts to contribute to a purpose with a similar outcome creates a sense of workplace culture. Job security and stability is also an important retention factor especially since the global economy is in a precarious condition. The COVID 19 pandemic and, subsequently a host of geo-political shocks, made job stability an even greater concern. Furthermore, older generations, like Baby Boomers and Gen X tend to be more risk-averse. Additionally, while millennials and Gen Z could be more open to mobility in the job market, they still seek some amount of stability with their current employer.

In order to address these concerns, organizations should focus on communicating honestly about financial performance, plans for growth, and challenges that may occur. Trust can be build by being open about the direction of the organization and its future. Additionally, enhancing retirement benefits for older employees, recognizing length of service, and providing opportunities for career advancement can reassure them. Providing leadership development and upskilling opportunities for younger generations can keep them engaged as well. In conclusion, retaining talent in a multi-generational workforce calls for organizations to acknowledge and understand the disparate needs of various age groups.

While prioritizing people's well-being is crucial, how can organisations maintain a balance between employee well-being and business performance? 

Maintaining the balance between employee well-being and organizational performance is a continuing struggle for organizations. It's not a science, it's an art - it will take thoughtfulness, time, and effort. Organizations are at their best when they actively listen to their employees, and help meet their needs for a personally and professionally rewarding experience at work.  Achieving that balance means that businesses must be more sincere in recognizing employee voices and concerns. Employee well-being is a key aspect of a thriving workplace culture that embraces the importance of communication and commitment to establishing balance with evolving workplace employee needs.

While it is important to hear suggestions from employees and consider various perspectives, organizations must also be more purposeful and strategic about prioritizing employee well-being initiatives. Organizations obviously cannot implement all suggestions; however, an organized plan for improving employee well-being can be made which prioritizes the most opportunity for improvement.  Companies can realize substantive well-being and return on investment only after they select and identify initiatives of significance which contribute to employee culture and productivity. Investing in employee well-being whether through mental health support, or workplace flexibility, or career advancement, is an investment in your organization that will ultimately create positive pay-offs in productivity, morale, and the overall success of the business.