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SAPReport|PUBLIC

Thetop5HRtrendstoday

—andHR,sguidetowhat,snext

Introduction

Eachyear,the

HRresearchscientistsatSAPSuccessFactors

conductresearchtounderstandthetopHRandworkforcetrendsfacingorganizationsandshareourperspectiveonwhatHRteamsshouldconsiderastheylooktohelptheircompanies

addressthesetrends.Withtheobjectivebeingtogainacomprehensiveunderstandingofthemostprevalentandimportant

trendsin2025,thisyearweaggregatedandsynthesizeddatafrom40globalandregionalreputablebusinesspresssources

thatputforward254individualtrendsandpredictionsgroundedintheirownresearchanddata.Wethenconductedacontentanalysisofthetrendssampletoderivethe?vekeythemes,or“meta-trends,”includedinthisreport.

Whileourannualreportalwaysincludessomepointedcommentaryandcritiqueabouteachtrendbasedonourexpertiseinpsychology,newthisyeariscallinguponourownbodyoforiginalappliedresearchtoincorporatedatapointsandinsights,resultinginamoreevidence-basedpointofview.Foradescriptionofourresearchstudiesandsamplesthatwereference

throughoutthisreport,pleaseseepage

2

0

.Now,readontoseewhat,snowandwhat,snextforeachtrendalongwithsomefastfactsthatuplevelthenerdinessofthisyear’strendsreport.

Thetop5HRtrendstoday—andHR,sguidetowhat,snext2/22

Thetop5HRtrendstoday—andHR’sguidetowhat’snext3/22

HR,sroleinthe2025trends:Thisisyouryeartoshine

Inpastyears,HRhasbeenthesubjectofitsowntrend,usuallyfocusedonhowtheHRfunctionitselfistransformingwithnewset-ups,newroles,ornewskillsrequiredtomeetthebusiness’newneeds.WhileHRwillrightlycontinuetotransform,the

predictionsaboutHRtransformationinthisyear’strendsdatawerenothingnoveltowarrantitbeingitsowntrend,ratherjust

ongoingreferencestotheneedforHRtobuilditsanalyticsskillsandthenever-endingcallforHRto“earntheirseatatthetable.”

SowheredoesthatleaveHRinthisyear’strends?PerhapsweconcludedthatHRwillbelessimportantandrelevantthisyear?Onthecontrary,wearegoing“allin”onHRandthepivotalroletheywillplay.Therationaleforthisstancebecomesreadily

apparentifyouskimthisyear’strends.Employeedisengagement;artificialintelligence(AI);skills;diversity,equity,inclusion,andbelonging(DEI&B);hybridwork—whatmightfeellike“evergreen”topics—areallatcriticalinflectionpointsrequiringHR

stewardship,withworrisometrendsneedingtobereversed,visionsandexpectationsneedingtomanifest,andpolarizingpolicydecisionsneedingtobeshepherdedthroughimplementationwithcare.

Butadmittedly,thesetrendsareindifferentstagesofmaturityandondifferenttrajectories;therefore,therolethatHRneedstoplaytohelpbusinessestackleandcapitalizeonthesetrendsisdifferent.We’veorganizedthetrendsintotwosectionsalignedtothedualroleHRwillplayinaddressingthem.

First,HRasConductor,leadingtheorchestrationofastrategyandassociatedchangemanagementacrossthebusinesstorealizetheopportunitiesthesetrendsoffer:

2

Movingfrom

AIhypeto

AIimpact

3

forward

Strikingabalance

tosteerskills

1

Reconnecting

thedisconnected

employee

Second,HRasNavigator,leadingtheorganizationthroughprecariouswatersandcircumventingobstaclestoputpoliciesintopracticeforthebettermentofallstakeholders:

5

Pluggingintoor

pullingtheplug

onhybridwork

4

doublingdown

onDEI&B

Divestingor

Takingthisyear’strendstogether,whatisincrediblyclearisthisisnottheyearforHRtoturninward,focusingtoomuchontheirowntransformation.Withwhatisafoot,thisisthemomentforHRtobeadrivingforceoftheorganization’stransformation.

Because,asmuchasthesemightappeartobejust“peopletopics”relegatedtoHRtosortoutonitsown,theyarefounda-tionalworkforcestrategyissuesthathavedirecteffectsonthesuccessofacompany’sbusinessstrategy.Expectcompanieswho“doright”bythesetrendsthisyear(andHRteamswhohelptheircompaniesmakethishappen)toreapsignificantandtangiblebenefits.

So,leanin,HR!Youareinauniquepositionatauniquetimetodowhatyoudobest—leadingwiththehumanpartofhumanresources.IfnotHR,thenwho?

Thetop5HRtrendstoday—andHR’sguidetowhat’snext4/22

Part1:HRasConductor

Thesefirstthreetrendsarenotreallyhumanresourcestrendsatall—theyarebusinesstrendsthathavefar-reaching

implicationsacrosstheorganization.ThesetopicsrequireclosecollaborationacrossallC-suitefunctionstoformulatea

comprehensivestrategythatfullyrealizesthereturnonwhatwilladmittedlybeaconsiderableinvestmentoftime,energy,andmoney.Inallthreecases—employeedisengagement,AI,andskills—thethemethatiscurrentlyemergingis“moreisnot

better.”Businesseswillnotsucceedbydoingmoreemployeeexperience(EX)programs(insteadofprioritizingonlythemostimportantEXfactorswithmoreintention),racingtoimplementmoreAIusecases(insteadofbeingjudiciousaboutwhichwillprovidethemostvalue),andtryingtobecomefully“skills-based”(insteadofrecognizingthata“fitforpurpose”approachto

skillsiswhatisneeded).EnterHRastheconductortoskillfullyorchestrateaharmoniousstrategy,relyingontheuniquetalentsofeachfunctiontocontributetheirpieceanddeliveracompellingendresultthatinspiresandsatisfiesdiversestakeholders.

Astheyassumethisrole,HRwoulddowelltolearnfromthebestconductors:commandingrespectthroughapowerful

(musical)vision,guidinganensembletoplaywelltogether,refininganditeratingovertimeforcontinuousimprovement,andhavingadiscerningeartoknowwhenlessisindeedmoreinserviceofthebroaderpieceofwork.

Thetop5HRtrendstoday—andHR’sguidetowhat’snext5/22

#1:Reconnectingthedisconnectedemployee

What’snow

Lastyear,wepredictedthatconcerningratesofemployeestress,burnout,anddisengagementwouldserveasaforcing

functionrequiringorganizationstorepairthetrustandrelationshipbetweenemployeesandseniorleadership.Accordingtothisyear’strends,thisreparationhasfailedtomaterialize.Notonlyhavelastyear’spressuresofcontentiouspolicyand

personneldecisions,macroeconomicandsociopoliticalstressors,andtrustbreacheswithseniorleadershipnotbeen

resolved,butnewiterationsofthesestressorshavealsobeenintroduced.Thecompoundingeffecthasresultedinwhatwecanonlydeclareasastateofemergencyonemployees’senseofconnectionwiththeirleadersandorganization.

Tobeclear,whatwearetalkingaboutisbiggerandmoreseriousthanemployeesfeelingdisengagedatworkandtakingpartinrelativelypassivebehaviorslike“quietquitting”or“coffeebadging.”Leftunresolved,weanticipatethatemployeeswillresorttomoreextremeandhighlyproblematiccounterproductivebehaviorsasamethodofcopingwithstress,retaliating,orregainingcontrol—sabotagingdeliverables,withholdingimportantinformation,eventakinglegalaction.Thesebehaviorshavelegalandfinancialconsequences,butalsoculturalconsequencesastheybecomenormalizedandfurtheringrainedinemployees’dailyhabitsandperceptionsoftheirorganization.Organizationswillneedtostartseeingeffortstoreconnectthedisconnected

employeeasanimperativecriticaltothesurvivaloftheirbusiness,ratherthanatrivialboutofhurtfeelingsthatwillresolveitselfovertime.

Thetop5HRtrendstoday—andHR’sguidetowhat’snext6/22

What’snext

1.Leadersmustruthlesslyprioritizefulfillingtheirendofthe“psychologicalcontract.”

A“psychologicalcontract”referstotheunwrittenagreementaboutthebasicmutualobligationsbetweenemployersandemployees;employeeswillworkhardtomeettheircompany’sexpectations,andemployerswillgivethemtheresourcestheyneedtodoso,rewardthemfairly,andtreatthemwell.Thismightsoundsimple—andourresearchsuggestsitcanbe.Whenaskedwhichfactorshavethelargestimpactontheirexperienceatwork,employeesreportedthatthebasics—

physicalandpsychologicalsafety,well-being,fairpay,andmanagercommunication—weremostimportant,outranking

factorslikecareerandskilldevelopment,meaningandpurpose,andflexiblework.Thisfindingsuggeststhatleaderswillrealizemoresuccessandimpactbyrecommittingtogetting100%ofthe“musthaves”rightbeforetheyputeffortintothe“nicetohaves.”

Thisisbecausebuildingastrongpsychologicalcontractreliesonunderstandingemployees’basicneedsand,more

importantly,followingthroughonmeetingthem.Takeemployeelisteningasanexample:basedonthetopicsand

questionsincludedinemployeesurveys,organizationsareactuallysignalingtoemployeeswhatmatterstosenior

leadership.So,willyouchoosetoaskemployeeshowtheyfeelabouttheirrecentcompliancetrainingortheorganizationalchangesthatwerejustannounced?Ifusedtodirectlyassessemployeedisconnectandthefactorsmostresponsiblefor

causingit,listeningcanbeapowerfulwayforleaderstorepairthisconnectionandbuildthepsychologicalcontract.Butchoosingtoshyawayfromtopicsthatmaybedifficultoruncomfortable(butareundoubtedlyonemployees’minds),orspendingtimeaskingaboutthingsyoudon’tfullyintendtofix,aresurefirewaystomakeemployeesfeellikeyou’refailingtoupholdyourendofthedeal.So,getcomfortablewiththeuncomfortable;askthehardquestionsandusethe

informationtorebuildemployees’trust—orbepreparedforemployeestobreachtheirendofthecontracttoo.

2.Peoplemanagerswillbeseenasalifelineforemployeesdrowningindisconnect.

“Peopleleavemanagers,notorganizations”—afamiliarnarrative,butisitstilltruetoday?Accordingtoourresearchdata,managersareindeedthesinglemostimportantsourceofimpactonanemployee’soverallexperienceatwork.Yetthe

contentiousactionscitedinthisyear’strendsasthereasonsforemployeedisconnectandeventualturnover—return-to-office(RTO)mandates,endlessorganizationalrestructures,andmasslayoffs—falloutsidemanagers’spheresofcontrol.Thisleavesmanagersinatrickyspot,notonlydealingwiththefalloutfromtheseactionsbutalsoservingastheprimarysourceofsupportandreassurancefortheirteammembersastheynavigatetheimpactofthesechanges.Andonethingisforsure:inthefaceofsuchuncertaintyanddisconnection,employeeswillleanonmanagersmorethaneverthisyearforsupportandreassurance.Indeed,ourresearchshowsthat“demonstratingconcernandcarefortheirteammembers”isthemostimportantmanagerbehaviortoemployees(evenmoresothan“communicatingandinfluencing”or“fostering

growthanddevelopment”).HRteamscansupportmanagerstoplaythiscrucialroleinreconnectingdisconnected

employeesbygivingthemopportunitiestobuildtheirskillsinempatheticlistening,providingthemwithresourcesto

communicateaclearrationalefororganizationaldecisions,andopeningachannelformanagerstoelevateemployees’concernsasthefirstlineofgatheringfeedback.

Fastfacts

57%ofemployeesbelievethatunlesstheircompanymakes

seriouschanges,theirburnoutwillnotgetbetter.

41%ofemployeesbelievetheir

company’sleaderswould

prioritizemakingmoremoneyoverkeepingworkersatthecompany.

Only8%oforganizationalleadershaveadata-drivenviewintothedamagingeffectsofemployee

disconnect,reportingthattheylinkemployeesentimentdatatobusinessoutcomes.

Thetop5HRtrendstoday—andHR’sguidetowhat’snext7/22

#2:MovingfromAIhypetoAIimpact

What’snow

Early-adoptingorganizationsareenteringtheAIbigleaguesthisyear,transitioningfrompilotprojectsandexperimentation

phasestoambitiousenterprise-widerollouts.Gonearethedaysoftargeting“l(fā)ow-hangingfruit”usecases;instead,topofmindaremulti-facetedusecasesandmaybeevenleapsforwardininnovationlikeagenticAI.Itremainstobeseentowhatextent

thepromisesofAIagentswillmaterializethisyear;however,whatiscertainisthatorganizations(andvendors)willneedto

provethevalueofAIsolutionstoamuchgreaterextentthaninprioryears.CalculatingtheROIofAIwillforceorganizationsthatdon’thaveadefinedAIstrategytogetclearontheirpriorities.WithoutfullyconsideringtheirAIvaluedrivers,organizationsriskfocusingtoomuchonexpectedshort-termcostortimesavingsattheexpenseoflonger-term,morestrategicoutcomeslike

innovation.

What’snext

Thetop5HRtrendstoday—andHR’sguidetowhat’snext8/22

1.OrganizationswillhomeinontheirkeyvaluedriversforAI,revealingtheirtruepriorities.

WhenaskedabouttheirdesiredoutcomesfromusingAI(or“valuedrivers”),HRandITprofessionalsinourresearchcitedawiderangeofgoalssuchasefficiencyandproductivitygains,improvedemployeeexperience,andbetterdataqualityanddecisionsforHRandotherbusinessleaders.Butwhenitcomestovaluedrivers,moreisnotnecessarilybetter.Indeed,

investinginAIwithoutclarityaboutwhatyouwanttoachievewillonlyservetocomplicatedecision-making,dilutethepowerofyourAIspend,andcreateafracturedtechnologylandscape.OrganizationsthatwillwininthenextphaseofAIinvestmentsarethosethat:

2

Prioritizeusecasesbasedonthesevaluedriverstoensurestrongadoption

3

Usethesevaluedriversasmeasurementcriteriato

assessthesuccessoftheirAIinitiatives

1

Considertheirbusiness

strategyandusers,uniqueneedstogetspecificon

theirtopvaluedrivers

Thisexercisewillalsoforceorganizationstoanswerimportantquestionsabouttheirgreatestpriority:peopleorprofit.

ShouldanorganizationstillinvestinanAIusecasethatimprovestheemployeeexperiencebutdoesn’tmovetheneedleonfinancialmetrics?Conversely,shouldanorganizationinvestinanAIusecasethathasfinancialbenefitsbutatthe

detrimentofemployeeexperience?HR’sinfluencewillbecriticalinthesedecisions.NotonlydoesourresearchshowthatHRprofessionalsprioritizeemployeeexperienceasatopAIvaluedriver,buttheyalsoknowbetterthanmostthat

employeeoutcomeshaveadownstreamimpactonbusinessperformancethatmustnotbeoverlooked.

2.ThebodyofresearchontheROIofAIwillbebuiltthisyear.

ThetimetospeculateaboutAI’spotentialimpacthaspassed;thetimetomeasureAI’sactualimpactisnow.ConductingempiricalresearchtoprovethetangiblerealbenefitsofAIisundoubtedlychallenging.Still,weurgebusinessesnottoshyawayfromthisefforttogainimportantinsightsthatcanbeusedtomakedata-drivendecisionsaboutfutureAIstrategy,

prioritization,andinvestment.Forinstance,ourteamofresearchscientistshasbeenconductingthistypeofbusiness

impactresearchwithseveralcustomersoverthepastyear;ourearlyfindingshaveshownsubstantialtimereductionsduetoAIfortaskssuchas:

59%

Self-serviceHR

66%

Writingjobdescriptions

71%

Writinginterviewquestions

Thetop5HRtrendstoday—andHR’sguidewhat’snext

What,snext

Throughourexperienceconductingthisresearch,threethingshavebecomeevident:

?The“blankcanvas”ofAIimpactresearchdoesnotneedtobedaunting.Todate,verylittlerobustresearchhas

beendonetomeasurethereturnonAIinvestmentsinorganizationalsettings.Withoutanexistingbodyofresearch,

organizationsandresearchersalikehavestruggledtogetstartedontheirownstudies.ButtheconceptofROIresearchisnotnewtoorganizationsortheirHRdepartments.WhileAIresearchrequiressomeuniqueconsiderations,HR

alreadyhasmanyoftheskillstheyneedtocontribute:hypothesizinghowthebusinessanditsworkforcewillbe

impactedbyanewinitiativeortechnology,measuringtheimpact,andmakingrecommendationsforimprovement

basedonthosefindings.OurcalltoactionfororganizationsandtheirHRteamsistoplaytotheirexistingstrengths—andgetstarted.

?TheimpactofAIisnotoftenstraightforwardoruniversal.Tobeclear,notallorganizationsoremployeeswill

benefitequallyfromAI.TherelationshipbetweenAIandoutcomesisoftenmorecomplexandrequiresmeasuringandanalyzingadditionalfactorsthatchangethestrengthornatureofastatisticalrelationship(called“moderators”).For

example,youmightfindthatusingAIyieldsgreaterproductivity—butonlyforemployeeswhoarecurrentlylow

performers.OrAIsavesemployeestime—butonlyforcertaintasksornewhireswhoaren’tasfamiliarwiththetasks.Thiscomplexityisn’tareasontoabandonAIsolutions.Infact,understandingthecontextualfactorsbehindwhyAIisorisnothavingthedesiredbenefitwillbeincrediblyinformative,ascompaniesgetmoreprecisewiththeirAIinvestmentdecisionsandoptimizeforadoptionandimpact.Again,ourcalltoactionfororganizationsandtheirHRteamsisto

embracethesecomplexitiesandwhatcanbelearnedfromthem—andgetstarted.

?AIcapabilitiesarecontinuouslychanging,soresearchmustkeeppace.ThisfastpaceofAIinnovationand

improvementaddstothechallengeofstudyingitsimpact,especiallybecauseitmightrequirecollectingdataat

multipletimepointsorreplicatingpreviousstudies.Ifinitialresearchshowsweakresults,youmayfindthattheimpactofAIisclearerorstrongerastechnologicalcapabilitiesmatureandmoredataiscollected.OurfinalcalltoactionfororganizationsandtheirHRteamsistonotjustgetstartedwithAIresearch,buttostickwithitovertime.

So,whileourcalltoactionisclear,youdon’thavetodoitalone.WeencourageorganizationstoholdtheirAIvendors

accountabletosupportthemin,orevenlead,thisresearch.Itisinanorganization’sbestinteresttounderstandthevalueoftheirinvestments,anditisinavendor’sbestinteresttodemonstratethevalueoftheirsolutions.

Thetop5HRtrendstoday—andHR,sguidetowhat,snext9/22

Thetop5HRtrendstoday—andHR’sguidetowhat’snext10/22

What’snext

3.Organizationswillfindfrictionbetweenleaders’andemployees’goalsforusingAI.

ThereisnoquestionthatAIcanmakeworkhappenmorequickly;ourresearchshowsthat58%ofemployeeshavesavedtimebyusingAItools,averaging31minutessaved.“Savingtime”isalsoemployees’#1valuedriverforusingAI.Onthe

surface,employeesandtheirorganizationsarealignedintheiranticipationofandexcitementaboutsavingtimebyusingAI.

Butdigalittledeeper,andatroublesomediscrepancyemerges.OrganizationalleadersexpectthatwhenemployeessavetimeusingAI,theywillspendthatextratimedoingmorework,whichiswhyleadersoftenciteproductivitygains

asthebenefittheyarelookingforfromAI.Butemployeesseeitdifferently.Withburnoutandstressunderpinningthis

year’strendofemployeedisconnect,someemployeesfeeltheyhaveearnedthetimebackforthemselves.Infact,

accordingtoourresearch,46%ofemployeesfeelthatthetimetheysavebyusingAItoolsatworkbelongstothem,nottheirorganization.Forthoseemployeeswhofeeltheyarealreadygivingtheirorganizationsomuchoftheirtimeand

energyandtheirorganizationisn’tholdinguptheirendofthepsychologicalcontract(see

trend#1:Reconnectingthe

disconnectedemployee

),it’snotsurprisingthatthoseemployeeswouldfeeltheydeservetorecoupsomeoftheirtimeandautonomyoverhowtheyspendit.

Mistrustandcontentionawaitorganizationsthatdonotrecognizeandproactivelyaddressthismisalignment.Makenomistake,thisissueisurgent.Whileourdatashowsthatemployeesarecurrentlysavingaboutahalf-hourintheirdaybyusingAI,weanticipatetheamountoftimeinquestionwillonlycontinuetoincreaseasAIefficienciesmultiply.HRwill

needtomediatebetweenleaders’expectationsofmoreproductivityandemployees’expectationsofmorepersonaltime.Indoingso,organizationsshouldbeopen-mindedaboutwaysinwhichemployeescanspendtimebenefittingthebusinessthataren’tjustaboutgettingmoreworkdone,likeimprovingtheirskillsordoingtaskstheyfindmeaningful.

Simplyput,clearcommunicationisneededabouthowemployeesareexpectedtousetheirnewfoundtimeandhowexpectationsabouttheirproductivitydoordon’tchangeasaresultofusingAI.

Fastfacts

IfrequiredtoreallocateanytimesavedfromAItootherwork-related

activities,employeessaytheywouldbemostlikelytospenditon:

1.Improvingtheirexistingworkproducts

2.Catchinguponworktheydidn’thavetimefor

3.Doingmoreworktasksthattheyfindmeaningful

4.Improvingtheirwork-relatedskillsorknowledge

57%ofemployeessaythattheircompanyhasnotcommunicatedwiththemabout

howAIwillorwillnotimpacttheirjob.

Thetop5HRtrendstoday—andHR’sguidetowhat’snext11/22

#3:Strikingabalancetosteerskillsforward

What’snow

Read

3keytakeawaysfromatopHRtrendtoday:Skills-basedtalentmanagement

foradeepdiveonourtakeofthistrend!

Onceagain,thisyear’strendshighlightthepervasiveskillgapsorganizationsarefacing,partlyduetotherapidpaceofAIdevelopmentandtheneedforupskillinginthisarea.WesawcallsforHRto:

3

Helpemployeesleaninto“humanskills”astheir

uniquedifferentiatoragainstAI

2

Buildstrongerlearning

culturesanddesign

meaningfullearning

experiencestoencouragereskillingandupskilling

internally

1

Adoptskills-basedhiringtomoreaccuratelyfindand

securetheskillsneededfromtheexternal

marketplace

Buteachofthesecalls,thoughwell-intentioned,ismissinganimportantpieceofthepuzzle.Webelievethisistheyear

organizationswillmaketangibleprogressintheirskillsjourneybystrikingabetterbalance:recognizingthatbeing“skills-

based”doesnothavetomeanbeingallinonskills,thatbuildingemployees’motivationtoupskillrequiresbothintrinsicandextrinsiccomponents,andthatleveragingourhumannesstounderstandthetechnicalchangesandadvancementsofAIsothatwecanadaptappropriatelymaybethebest“defense”ofall.

What,snext

1.“Skills-based”willnolongerbethe(only)goal.

Althoughpracticeslikeskills-basedhiringhavereceivedplentyofattentionacrossthisyear’strends,ourresearchservesasanimportantreminderthatadoptingentirelyskills-basedapproachesisnottheendgoalformanyorganizations—nornecessarilyshouldtheybe.

Whereas63%saidtheywantedtoincludeskillsdatainadditiontootherinformationwhenmakingdecisions

Only34%ofsurveyedorganizationsreportedtheywantedtoeventuallytakeanentirely

skills-basedapproach

Employeesandmanagersagreethatwhileskillsshouldbeprioritizedwhenmakingdecisions,thisinformationshouldn’tbeusedalone.Accordingtooursurveydata,basingdecisions70%onskillsand30%onothercriteriaiswhatemployeesandmanagersfindtobetherightbalance.

Withoutquestion,skills-basedpracticesareassociatedwithimportantpositiveoutcomes.Employeesreportedtheywouldhaveabetteremployeeexperience,performbetterattheirjobs,andbemoremotivatedtolearnnewskillsiftheyknew

theircompanymadedecisionsbasedonskills.Butwewonder—isthereapotentialdownsidetogoingtoofardownthepathofdeconstructingemployeesintoalistoftheirskills?Couldemployees’senseofidentityatwork,whichweknowis

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