Growth Culture as Corporate Culture.

The World Economic Forum (WEF) is an international organization that brings together political, business, and academic leaders with the aim of improving the global economy and society. The WEF was founded in 1971 and is headquartered in Cologny, Switzerland. From the perspective of an average Croatian citizen, given its ties to politics, it can be viewed from several angles. However, its great value certainly lies in the publication of various reports and studies on topics such as global competitiveness, economic development, innovation, risks, and opportunities.

The same World Economic Forum has issued two very interesting reports or overviews.

The First

The WEF report predicting the loss of 14 million jobs in the next five years highlights the significant challenges facing the global economy. The main cause of this job loss is automation and advances in technology, which are changing the way people work.

Although automation has had a positive impact on production and efficiency, its further advancement is predicted to lead to job losses in some sectors. This could have a significant impact on employees and their families, especially in countries already facing unemployment and economic challenges.

However, it is important to note that the WEF report anticipates that new jobs will also be created in other sectors, and that employees could adapt to changes if they possess the appropriate skills and education. The report also recognizes the importance of educating and training employees to ensure that new jobs are filled with qualified workers.

Therefore, the WEF report should serve as a call to action for government and business leaders to ensure that their countries and companies adapt to technological changes and that employees are trained for the new jobs of the future.

The Second

This report provides an overview of the WEF's predictions for changes in the labor market in the coming years, as well as how organizations can prepare for these changes. The report focuses on various aspects of the future of work, including automation, digital transformation, green transition, flexible work, and changes in the skills required for future jobs.

In addition to analyzing global labor market trends, the report also offers deeper insights into specific sectors, including healthcare, education, and industry. The report predicts an increase in demand for new skills, including digital, emotional, and social skills, and emphasizes the importance of investing in lifelong learning and employee training.

Skills that will be in demand:

• analytical thinking
• critical thinking
• creative thinking
• resilience, flexibility, and agility
• motivation and self-awareness
• curiosity and lifelong learning
• technological literacy
• reliability and attention to detail
• leadership and social influence
• quality control

Like previous WEF reports on the future of jobs, “The Future of Jobs Report 2023” aims to provide valuable insights and recommendations for leaders to prepare for changes in the labor market and ensure that their workers are equipped for the future.

Artificial Intelligence

I came across a meaningful post on LinkedIn, so I will take the liberty to quote: “The development of artificial intelligence is one of humanity’s most valuable technological achievements. Yes, the civilization as we know it is coming to an end. But you don't have to fear raging rapist robots from the Ritz. In the civilization that follows, we will live an unimaginably more comfortable, healthier, more beautiful, longer, happier, and more fun life!”

And no, artificial intelligence won't be the death of us, and no, we shouldn't fear raging robots. We should fear the underdevelopment of our human skills and knowledge (in accordance with the changes to come).

Strategic HR

Today, we can view the role of HR in several ways; it can be strategically oriented towards processes and organization, or it can be strategically oriented primarily towards people and employees, and only then adapt processes and the organization to them strategically.

Previous years can be called years of fluctuation. We witnessed job-hopping. Recently, we witnessed mass layoffs. As I recently wrote somewhere, this should be the year of staffing.

HR professionals have been fortunate in all of this, and given global changes and events, I could say they've bought themselves time to sort out some things and situations in “their” companies.

After an article on corporate culture and psychological safety, it's time to dedicate ourselves to growth culture.

Growth Culture

Although sometimes, at least on LinkedIn, we experience a push for American trends like the four-day work week, even though no one draws a parallel between the labor market there and here, even though no one draws a parallel between corporations there and “corporations” here, some topics are constantly discussed. So, even though corporations abroad are “worker bee” corporations, and “corporations” here are companies with (mostly) highly specialized people (which is perfectly fine), making the organization of a four-day work week questionable, no one really discusses an article on growth culture. Although Harvard Business Review published it back in 2008 (https://hbr.org/2018/03/create-a-growth-culture-not-a-performance-obsessed-one), it hasn't experienced a renaissance on LinkedIn here (but, of course, there are exceptional companies in practice!).

What is growth culture?

Growth culture is a culture in organizations that encourages the continuous development of employees and the organization as a whole. The main principles of growth culture include continuous learning, openness to change and innovation, focus on employee development, and teamwork.

The fundamentals of growth culture include the following:

• Learning as a key element: Growth culture involves a constant focus on employee learning and development.
• Openness to change and innovation: Growth culture emphasizes the need for innovation and changes that will improve the organization. This will be achieved by promoting openness to new ideas, experimentation, and risk-taking.
• Focus on employee development: Growth culture focuses on employee development as a key element of organizational success, which will include providing opportunities for advancement, mentorship, guidance, and constructive feedback.
• Teamwork: Growth culture promotes teamwork and collaboration as a way to achieve organizational goals, and this includes developing team skills, collaboration, and a focus on common objectives.

Growth culture is important for organizations because it fosters innovation, productivity, and long-term success. By establishing a growth culture, organizations can ensure that employees develop their talents, acquire new knowledge and skills, and become capable of performing higher and more complex tasks. This will ultimately lead to greater motivation, employee satisfaction, and organizational success as a whole.

Motivation, employee satisfaction, and overall organizational success will lead to that famous ENGAGEMENT, which is becoming the new HR buzzword.

And of course, all of this will lead to the most desirable outcome, which is employee retention. That's why this year should be the year of staffing. Because every “lost” employee represents 12 months of onboarding sadly spent (first 6 months for the one who joined, then six months for their successor). In total, the lost amount can go up to €20,000 per employee (probably more).

Prerequisites for Growth Culture

Before a company turns to a growth culture, the criterion of employee psychological safety must first be met, followed by transparency, which is considered one of the most important (hygiene) elements because it promotes openness, honesty, and trust among employees and management. When a company establishes a culture that values transparency, it will reflect on all aspects of its operations, including hiring practices, decision-making, management, and growth culture.

Some of the prerequisites are outlined below, and we can agree that a good portion of them should also be part of any corporate culture.

Developing a growth culture in an organization requires several prerequisites. Some of the key prerequisites are:

• Growth-oriented leaders – Leaders of every company should play an active role in promoting a growth culture. They need to be committed to providing resources, support, and incentives to their employees to develop and advance.
• A climate of open communication – The company needs to have a climate of open communication where employees feel free to express their opinions and ideas. This will encourage collaboration and knowledge sharing, which is crucial for developing a growth culture.
• A system of continuous learning – The company needs to have a system that supports the continuous learning and development of its employees. This can include various forms of training, mentoring, and tailored, personal development plans.
• Adaptability – The company must be adaptable and ready for change. A growth culture requires a change in mindset, and this will not happen overnight. It is necessary to be prepared to adapt to new approaches and ideas and to take risks in finding new ways to achieve success.
• Focus on long-term success – A growth culture requires a focus on long-term success, not just short-term gains. The company needs to have a vision and strategy based on the development of its employees and long-term success.
• Commitment to values – The company needs to be committed to values that support a growth culture, such as transparency, collaboration, innovation, and adaptability. This will help create a positive climate where employees feel inspired and motivated to learn and develop.

The Importance of Proper and Tailored Employee Development

What are abilities, and what are skills?

Human abilities are inherent characteristics related to an individual's mental, physical, and emotional potential. Cognitive abilities are specific brain capacities that relate to how a person processes information and thinks. They include the ability to solve problems, think abstractly, understand and apply mathematical and logical concepts, language skills, spatial perception, and similar. All of these are highly measurable through psychometric tests.

Skills are learned abilities developed through practice and experience, which enable an individual to perform specific tasks. They can be developed through formal education, training, mentorship, or self-learning. Examples of skills include programming, time management, presentation delivery, communication skills, and similar. They are learned, but also partially depend on our cognitive abilities. When we talk about human skills such as active learning and listening, critical thinking, analytical skills, judgment and decision-making skills, decision strategies, supervision, negotiation… they are also precisely measurable for each employee through psychometric assessments.

In principle, there is a significant correlation between abilities and skills. Abilities represent the foundation upon which skills are built. For example, cognitive abilities, such as problem-solving capacity and abstract thinking, enable the development of skills in areas such as programming or engineering. However, abilities alone are not sufficient for skill development. Opportunities for practice and development are necessary, and this is achieved through education, training, and other activities.

Much research has been conducted on employee learning and development. Most of this research has been mentioned in previous texts, but we can summarize it in a few sentences. Just as we choose professional training in coordination with expert leaders, in accordance with the needs, knowledge, and capabilities of employees, we should also approach human skills. There is no need to send an employee to active listening training if they have problems with analytical skills. However, if an employee has problems with analytical skills, and the problem stems from insufficient active listening skills and a cognitive deficit in text comprehension, then they probably need all three types of training. This is where the need for a science-based individual development plan created by an industrial-organizational psychologist arises. Only such structured training will be effective.

In this way, we will not be “part of the error” in research that states we only focus on building skills needed for current jobs, instead of focusing on a broader perspective of employees' actual needs now and in the future.

According to Harvard Business Review, companies often make mistakes in their approach to employee learning and development by using passive methods such as lectures or online courses, instead of active methods such as simulations or interactive work assignments that allow employees to apply learned skills in a real work environment.

In the article summary, they state that not only is most training ineffective, but the timing and content of the training are also poor. They suggest that employees should be sent to training that aligns with their actual needs!

Also, the text discusses the problems with traditional employee training programs in many companies. The authors argue that such programs are often ineffective because they lack alignment with the specific needs and goals of individual employees.

A study conducted by IBM showed that companies that invested in employee training and development had 65% lower turnover rates than those that did not invest in such programs. According to Deloitte's research, companies that invested in employee development had 37% higher productivity rates and 34% higher employee satisfaction rates.

Development Plan

An HR professional (ideally an organizational psychologist, pedagogue, etc.) should follow these steps when creating a personal development plan:

• Understanding the context: It is vital to understand the context in which the employee operates, including their job, the organizational culture they are part of, and other relevant factors.

• Identifying strengths and areas for improvement: The next step is to identify the employee's strengths and areas for improvement. The HR professional should talk with the employee and psychometrically assess their cognitive abilities, skills, values, interests, personality traits, etc.
• Setting goals: In the next step, it is necessary to set personal development goals together with the employee. These goals should be based on the employee's actual needs, organizational needs, and labor market demands.
• Identifying activities: Then, it is necessary to identify activities that will help the employee develop their skills and abilities. These activities may include training, mentoring, practice, projects, reading, etc.
• Monitoring progress: Finally, it is necessary to regularly monitor the employee's progress and adjust the plan if needed. Monitoring progress allows the HR professional to assess the plan's effectiveness and identify potential problems or challenges the employee may encounter in achieving their goals.

Gamification

A few weeks ago, the European Parliament published a call to all companies with experience in developing role-playing games and serious games with the intention of improving its offering of education based on role-playing and serious games (Serious Play).

Why is this the case? One of the answers comes from Harvard Business Review, where the authors state that companies often err in their approach to employee learning and development by using passive methods such as lectures or online courses, rather than active methods such as simulations, role-playing games, serious games, or interactive work assignments that allow employees to apply learned skills in a real work environment.

Serious Games

One of the generally accepted gamification methods is Lego® Serious Play®.

Lego® Serious Play® helps in organizational development, building high-performing teams, improving recruitment processes, and conflict resolution. LSP is a scientifically developed method that has been helping companies and organizations deal with complexity, increase dialogue, unleash employee potential, manage change, and much more since 1999.