Contents
The importance of succession planning
What to include in your organization’s succession planning toolkit
How to put your succession planning toolkit to work

The importance of succession planning

Business continuity depends on people being ready to step into critical roles without delay or disruption. When key employees leave (whether suddenly or through planned transitions), organizations risk losing more than just capacity. They lose knowledge, momentum, and confidence, both internally and externally.

A clear succession plan ensures that future leaders are identified early and developed with intent, reducing the chaos and cost that often come with rushed replacements. It also signals to high-performing employees that their growth matters, which boosts engagement and retention. Without it, teams are left directionless, power struggles can emerge, and organizations risk falling behind.

Leadership transitions aren’t rare – they’re constant – and businesses without a succession plan will feel each one as a crisis. With the right preparation, however, these moments become smooth handovers, not emergencies. Planning ahead protects stability, preserves knowledge, and gives organizations the agility to keep moving forward, no matter who’s at the helm.

What to include in your organization’s succession planning toolkit

Effective succession planning starts with a solid strategy, but it’s brought to life through a set of practical tools and templates. Each one plays a different role depending on what you’re trying to achieve, from identifying successors to developing them over time.

In this article, we’ve gathered all the tools that every HR professional needs to create and implement strong succession plans across the business. Different situations call for different approaches: identifying potential successors, evaluating performance and potential, creating development pathways, or preparing for the transition of critical roles like the CEO.

A clear, well-organized toolkit ensures consistency, provides clarity across departments, and lets HR teams act quickly and confidently when change is on the horizon.

Here’s a range of succession planning tools and templates that you can mix, match, and adapt depending on your organization’s size, maturity, and strategic priorities.

Core succession planning tools

These are the foundational resources that help HR professionals identify key roles, track potential successors, and clarify the responsibilities of the critical roles. They bring structure and consistency to the planning process and support transparency and alignment across the organization, making it easier to map leadership pipelines and prepare individuals for advancement.

Simple succession planning template

Track and manage potential successors for key roles.

A simple succession plan template outlines a position, the current role holder, and the expected timeline for transition. It also captures the key competencies required, names of potential successors, their readiness level, and a brief overview of their development plan.

The template includes key performance metrics for each critical role and who to contact if the position becomes unexpectedly vacant. This format is especially useful for smaller organizations or teams beginning their succession planning journey, offering structure without complexity.

Best for: When you need a clear, accessible view of leadership pipelines and want to regularly assess the progress of potential successors.

CEO succession planning template

Ensure leadership continuity at the highest level.

A CEO succession planning template begins by clearly defining what the organization needs from its next CEO. This takes into account the company’s long-term strategy, upcoming challenges, and the skills required to navigate them. The template also outlines ideal characteristics, experience, leadership capabilities, and cultural fit.

The template also profiles potential successors, both internal and external, based on how well they meet these criteria and how ready they are to step into the role. Depending on the board’s assessment, it provides a plan for either recruiting or developing candidates and maps out the company’s operational direction over the next three to five years to align leadership selection with business priorities.

This type of template is particularly important for larger organizations or those facing significant transformation, where a thoughtful, deliberate approach to CEO succession is essential.

Best for: Boards of directors and executive teams seeking a structured, forward-looking approach to CEO succession that aligns with long-term business strategy and leadership needs.

Career progression framework template

Map out how employees can grow within an organization.

A career progression framework template defines job levels, outlines role expectations, and details the skills and competencies needed at each stage of an employee’s journey, from entry-level to leadership. It also includes clear performance benchmarks and identifies potential vertical and lateral career paths, giving employees and managers a shared understanding of what growth looks like.

This template supports succession planning by offering employees a visible path forward. It links career progression with learning, feedback, and advancement opportunities. The career progression framework can be particularly useful in organizations that want to build internal talent pipelines, reduce attrition, and create transparent, equitable pathways for growth. By aligning employee development with business needs, the framework helps HR teams manage skills gaps, improve engagement, and foster long-term retention.

Best for: HR teams designing internal career paths that support workforce development, succession planning, and retention across all levels of the organization. 

Roles and responsibilities template

Define what is expected from individuals and positions.

This practical document outlines the role title, reporting lines, department, and a summary of the role’s purpose, followed by a detailed list of key duties and expectations. It also includes the necessary skills, qualifications, and competencies to succeed in the role, which helps create clarity (for both the employee and employer) around job performance and accountability.

It’s especially valuable when establishing a new position, onboarding a new hire, supporting performance management, or preparing employees for internal mobility. In the context of succession planning, the roles and responsibilities template helps identify what future successors will need to take on, making it easier to spot gaps, set development goals, and prepare employees for more senior roles.

It also plays a crucial role during organizational restructuring, helping teams navigate change by clearly outlining evolving responsibilities. Used effectively, it supports alignment, reduces role confusion, and improves collaboration across functions.

Best for: HR professionals and team leaders who need to define, communicate, or adjust job expectations to support hiring, performance, restructuring, or workforce planning.

Evaluating and selecting potential successors

This set of tools supports objective, data-informed decision-making, helping HR teams and business leaders to assess readiness, performance, and leadership potential using structured methods and templates to identify high-potential individuals early, guide development efforts strategically, and make confident, fair succession decisions.

9 box grid

Map employees across performance and potential.

Using a 3×3 matrix, individuals are placed into one of nine categories based on how well they meet performance expectations and what their potential is

 The 9-box grid is a snapshot of where talent currently sits within the organization, from underperformers to future leaders, which is particularly useful during succession discussions. It highlights who is ready for advancement, who may need further development, and where support or intervention is required through an objective, data-driven evaluation that promotes fair, consistent talent conversations.

Best for: HR teams and leadership groups conducting succession planning and talent reviews across mid to senior-level roles.

Employee evaluation template

Assess individual performance.

By evaluating individual performance, managers and HR teams can track progress against goals and guide development conversations. Typically, the employee evaluation template includes sections for performance ratings, areas of excellence, and challenges.

Importantly, the template standardizes how feedback is captured and communicated across the organization and provides a consistent framework for performance reviews, ensuring evaluations are fair, actionable, and aligned with company objectives. Used regularly, these templates support open dialogue, reinforce expectations, and highlight growth opportunities, helping employees stay motivated and focused.

They also give HR teams the performance data they need to support decisions around promotions, training, and succession planning. The template’s flexibility means it can be adapted to different roles, departments, or review cycles, making it a core resource in any performance management system.

Best for: HR professionals and managers conducting structured performance reviews to support employee development, engagement, and organizational alignment.

360 feedback template

Collect performance feedback from a range of sources.

Together, peers, managers, direct reports, and sometimes external stakeholders, offer a well-rounded view of an employee’s strengths and development areas, which is where a 360 feedback template comes in handy. It typically includes both quantitative rating scales and open-ended questions, delivering a mix of measurable data and qualitative insights.

The template standardizes the feedback process, promotes fairness, reduces bias, and makes it easier to analyze feedback across teams and roles. This is especially valuable for succession planning and leadership development, as it brings forward perspectives that traditional top-down evaluations often miss.

Customizable by function or seniority, this tool supports a culture of continuous improvement and trust, and when used consistently, it enhances individual performance and strengthens collaboration and accountability across the organization.

Best for: HR teams facilitating leadership development, performance reviews, or talent development initiatives that require multi-source, well-rounded feedback.

Planning development and monitoring readiness

Once you’ve identified successors, these tools guide the development journey by helping HR teams and people leaders to define the skills, experiences, and support each individual needs to step confidently into future roles. This part of your succession planning toolkit ensures that successors are not only selected but fully prepared for their new roles when the time comes.

Training needs analysis template

Identify the specific knowledge, skills, and abilities.

What skills, knowledge, or abilities do employees need in order to improve their performance and meet business goals? Without a training needs analysis (TNA), training can be hit and miss, and individuals identified for succession may not meet a new role’s needs.

A TNA helps HR and L&D teams diagnose whether performance issues are caused by skills gaps and whether training is the right solution, or which gaps need to be filled by training to support a succession plan. The template typically includes fields for goals, desired job behaviors, skills required, current skill levels, and training recommendations.

It can be used at the organizational, team, or individual level to prioritize learning needs, plan targeted training programs, and ensure alignment with strategic objectives. By uncovering gaps early and focusing resources where they’ll have the most impact, a TNA template supports more efficient, tailored development initiatives and avoids wasting time and budget on irrelevant training, which is especially valuable during change, growth, or when new roles and technologies are introduced.

Best for: L&D and HR professionals assessing skill gaps to plan targeted, business-aligned training that supports individual and organizational performance.

Leadership development plan

Cultivate future leaders through skills, competencies, and experiences.

A leadership development plan outlines clear goals, learning activities, timelines, and evaluation methods tailored to each individual’s growth path, while aligning with the organization’s long-term priorities. This includes formal training, mentoring, job rotations, and stretch assignments to support experiential learning.

When used effectively, a leadership development plan engages high-potential employees, strengthens succession pipelines, and ensures your leadership bench is prepared for both current demands and future challenges.

It also builds accountability by clarifying expectations and tracking development over time among employees, managers, and senior leaders. Leadership development plans are most effective when they’re part of a culture of continuous learning and when supported by senior leadership involvement and measurable outcomes.

Best for: HR and L&D teams preparing high-potential employees for leadership roles and ensuring continuity in critical positions through structured, future-focused development.

Coaching plan template

Guide individual professional growth through structured coaching.

Designed to address skill gaps, performance challenges, or career development goals, a coaching plan aligns personal growth with organizational priorities while offering employees personalized support. It supports accountability by assigning clear roles and responsibilities, backed by regular check-ins, success metrics tracking, and feedback loops to keep progress on track and measurable.

Whether aimed at improving leadership capacity, addressing underperformance, or supporting new managers, a coaching plan builds confidence, sharpens capability, and strengthens engagement, and is especially effective when tailored to the employee’s role, learning style, and aspirations.

Best for: HR professionals and people managers creating structured, individualized development journeys that drive performance, support retention, and build a culture of continuous improvement.

How to put your succession planning toolkit to work

A succession planning toolkit is only valuable if it’s actively used to guide decisions, shape development plans, and support business continuity. Here’s how to apply these tools in practice, embed them in your HR processes, and ensure they deliver measurable impact.

1. Start by identifying critical roles and career paths

Begin by mapping out the roles that are essential to your organization’s ongoing performance and strategic direction. These are the positions that, if left vacant, would create significant disruption or knowledge loss. Think beyond the executive layer and include specialist roles, project-critical positions, and operational leaders.

Use the following tools:

• Simple succession planning template: Track successors for each key role, along with timelines and development status.
• CEO succession planning template: Guide executive leadership transitions with a structured, long-term approach.
• Roles and responsibilities template: Clearly define what each role entails so that successors are aligned with expectations.
• Career progression framework template: Map pathways to leadership across departments and job families to identify where talent can grow into critical roles.

Try this: Involve department heads early to validate which roles are truly business-critical and ensure buy-in on development paths.

2. Evaluate internal talent

Once key roles are defined, assess who in the organization could potentially step into them. Focus on both current performance and future potential. This step ensures you’re building your pipeline based on evidence, not assumptions.

Use the following tools:

• 9-box grid template: Visually map employees based on performance and potential to identify rising stars and those needing support.
• Employee evaluation template: Standardize performance reviews to ensure fair and consistent feedback across roles and teams.
• 360 feedback template: Gather input from peers, direct reports, and managers to provide a full picture of an individual’s leadership readiness.

Try this: Make talent evaluation a cross-functional conversation involving both HR and business leaders to avoid bias and surface hidden talent.

3. Plan development and track progress

Identifying successors is only the first step. The next step is preparing them. A structured development plan bridges the gap between where someone is now and what the future role requires. This includes building skills, offering stretch assignments, and tracking progress against clear goals.

Use the following tools:

• Training needs analysis template: Identify gaps between current skills and future role requirements.
• Leadership development plan template: Create customized learning pathways for high-potential employees.
• Coaching plan template: Provide tailored, one-on-one support to help individuals grow into leadership roles.

Try this: Regularly review and update development plans in partnership with line managers. Link progress to measurable outcomes like project delivery, team feedback, or role-specific competencies.

4. Support the process with software tools

Software helps you gather, organize, and use the data you need for succession planning effectively. When your succession planning toolkit is supported by digital tools, it becomes easier to keep information current, spot gaps, and involve the right people in the process.

Here are a few types of tools that can support your work:

• HRIS (Human Resource Information Systems): Maintain up-to-date records on employees, roles, and reporting structures, giving you a clear overview of the organization.
• ATS (Applicant Tracking Systems): Help evaluate external candidates alongside internal successors, particularly for leadership roles.
• LMS (Learning Management Systems): Link development plans to actual learning activities and track progress across leadership competencies.
• Competency management tools: Help define and assess the skills needed for each role, making it easier to evaluate and develop successors consistently.
• Succession planning software: Provides dashboards, talent maps (such as 9-box grids), and alerts for review cycles to keep succession planning visible and on track.

Try this: Before adding new tools, look at what you already use for performance, learning, or workforce planning. Often, the information you need is already there—it just needs to be organized to support your succession efforts.

5. Make succession planning an ongoing process

Succession planning shouldn’t be a one-off exercise. To be truly effective, it must be embedded into your workforce strategy and reviewed regularly. Treat it as a dynamic process that evolves with your business.

Do this:

• Encourage managers and teams to use the templates in their own planning conversations, rather than just relying on HR.
• Review succession plans and development roadmaps quarterly or biannually, particularly during strategic planning or performance review cycles.
• Store all templates and completed plans in a central, accessible location, ideally within your HR platform or shared drive.
• Promote transparency where appropriate. Letting employees know they’re being considered for future roles boosts motivation and engagement.
• Align succession planning with broader workforce planning, talent reviews, and leadership development programs.

Over to you

An effective succession planning toolkit gives HR the structure and flexibility needed to prepare for change, develop internal talent, and reduce business disruption, but the real value lies in using it consistently across teams, over time, and in response to changing organizational needs. By integrating the right tools into your everyday processes and building a culture of proactive talent development, you position your organization to thrive through every transition.

The post The Ultimate Succession Planning Toolkit for HR Leaders [Free Templates] appeared first on AIHR.

In this article, we’ll explore the best online Human Resources courses and HR classes to help you enroll in the right one for you. 

Contents
Why do an online HR course?
Top online HR courses to enroll in
1. HR certificate programs (AIHR)
2. Introduction to Modern Human Resource Management (Alison)
3. Human Resource Associate Professional Certificate (HRCI/Coursera)
4. Human Resources Essentials Certificate Program (eCornell)
5. Various HR courses (OpenLearn)
6. Certificate in Human Resource Management (Oxford Home Study Centre)
7. HR Management and Analytics (Wharton Online)
8. BernieU (BerniePortal)
9. HR Skills® Fundamentals (MindEdge)
10. International Human Resources Management: An Introduction (Coventry University/FutureLearn)
11. HR Fundamentals (CIPD/FutureLearn)
12. Human Resource Certificate Program (Corexcel)
FAQ

Why do an online HR course?

There are many benefits to completing online HR courses and HR certificate programs:

• Flexible learning: Online courses make it possible to learn from anywhere in the world. Self-paced courses allow you to plan your learning journey around your current job or commitments, while live courses online courses mimic the energy and community of a real-life classroom.
• Cost-effectiveness: Many online HR courses offer enrollment at a fraction of the cost of a formal degree. These courses are shorter in duration and enable you to specialize in the areas of HR that interest you.
• Long-term access: Many of these HR courses online will include long-term or even lifetime access to the content, which means you can revisit specific modules any time you need a refresher.
• Building self-discipline: Completing an online, self-paced course requires motivation and discipline, which are great qualities to develop and carry with you throughout your career. 
• Getting financing from your employer: If you’re already employed as an HR professional, there’s a strong chance you can get your organization to pay for you to complete an online HR course or certification. Employers want to invest in you because, in the long run, this is an investment in the business.

Top online HR courses to enroll in

Please note that this list is compiled based on publicly available information. We have not tried the courses ourselves, with the exception of AIHR’s courses.

1. HR certificate programs (AIHR)

For any aspiring or existing HR professionals looking to complete a Human Resources certification online, The Academy to Innovate HR offers enticing certificate programs and courses. AIHR’s offering includes upskilling in numerous areas of HR, from the HR Generalist Certificate Program to certificates in HR metrics, compensation & benefits, and more.

What you’ll get

Providing a mix of on-demand video lessons, downloadable guides, and access to a supportive community of HR professionals around the globe, AIHR’s online certificate programs are designed to help you deliver a tangible business impact. You’ll also earn a digital certificate upon completion. The most popular programs include:

• People Analytics
• HR Business Partner 2.0
• Organizational Development
• Learning and Development
• Artificial Intelligence for HR.

AIHR is recognized as an accredited HR program provider with the Society for Human Resource Management, the HR Certification Institute, the Human Resources Professionals Association, and the Chartered Professionals in Human Resources.

2. Introduction to Modern Human Resource Management (Alison)

Alison is a platform featuring free online courses from the world’s leading experts across a wide range of industries and business sectors, including HR. Their HR courses online cover specialist areas including organizational behavior, talent acquisition practices, and understanding and preventing sexual harassment in the workplace.

What you’ll get

Alison’s Introduction to Modern Human Resource Management course helps learners strategically manage their HR responsibilities, maximize employee performance, and contribute to meeting the short and long-term objectives of the business. 

In this course, students will identify the main responsibilities of HRM managers, outline the recruitment and selection process, describe current and future HR needs as technology transforms the world of work, discuss how diversity plays an important role in organizational success, and cover the need for shifting strategic plans and goals as internal and external environments change. 

Alison’s course is CPD-accredited and takes between 1.5 and 3 hours (on average) to complete.

3. Human Resource Associate Professional Certificate (HRCI/Coursera)

Coursera offers 100% online learning from the world’s best universities and companies, through a mix of online courses, professional certificates, university certificates, specializations, and guided projects. HR-related courses include people analytics, generative AI in HR, and Human Resources management and leadership. One of the most popular courses is the Human Resource Associate Professional Certificate by HRCI.

What you’ll get

HRCI Human Resource Associate Professional Certificate is the perfect beginner-level online course for anyone looking to launch their HR career – no degree or previous experience required. It’s a series of five courses including talent acquisition, learning and development, compensation and benefits, employee relations, and compliance risk and management. 

Through a mix of engaging videos, interactive activities, and peer-reviewed projects, learners can complete the course at their own pace, earn a certificate from HRCI, and build credit toward an eligible degree. By committing just hours of learning a week, students can complete the course in 5 months.

4. Human Resources Essentials Certificate Program (eCornell)

Online university eCornell has Human Resources certificate programs developed by faculty from Cornell University’s ILR School. The courses within these programs bring together the insights and work of leading academic researchers with instruction grounded in practice and focused on real-world application.

Cornell has a professional certificate to match the career objectives of HR professionals, whether they are new to HR, an accomplished HR practitioner, or an HR leader or business partner. Programs include HR essentials, HR management, and diversity and inclusion.

What you’ll get

eCornell’s Human Resources Essentials certificate program is perfect for anyone new to HR or looking for a deeper understanding of HR functions. You will learn how to align employee performance with organizational goals, counter bias in the workplace, foster a coaching culture, listen actively and process feedback, interview effectively, and address workplace behavior issues. 

The program is completely online and self-paced, with the option to participate in small facilitated discussions with industry peers. It can be completed within 3 months based on 3-8 hours of study each week.

5. Various HR courses (OpenLearn)

OpenLearn is an initiative from the Open University. They’re on a mission to break down barriers to education by reaching millions of learners each year through free educational resources, including courses on all things HR.

Learners can take free courses and earn a digital badge or statement of participation as evidence of their learning. Courses range from introductory to advanced.

What you’ll get

Available HR online courses include:

• Developing your skills as an HR professional
• Employee relations and employee engagement 
• Hybrid working
• Workplace learning (coaching and mentoring)
• Diversity and inclusion in the workplace
• Risk management.

Each course has clear learning outcomes, is split into manageable modules, and contains a list of suggested additional resources. Learners can go through the content at their own pace, track their progress, and upon completion receive a statement of participation.

6. Certificate in Human Resource Management (Oxford Home Study Centre)

OHSC is a private online college and the leading specialist provider of distance learning professional courses in the U.K. The institute provides accredited home study courses across the world and is set up by a team of professionals with over ten years of experience in delivering home-based study programs. They offer several online HR courses.

What you’ll get

Their Certificate in Human Resource Management QLS Level 2 and Level 3 courses are designed for professionals looking to begin or advance their career in HR, working in any sector at any level. Recommended study hours are 125 hours and 200 hours, respectively, and students can enroll at any time.  

A digital OHSC certificate of completion will be awarded to students who successfully complete the program.

7. HR Management and Analytics (Wharton Online)

Wharton Online is part of the Wharton University of Pennsylvania. The platform offers courses to millions of learners who use them to advance their careers in a variety of fields, including HR. Wharton Online courses are taught by the same world-renowned thought leaders and scholars who teach in Wharton’s on-campus programs.

What you’ll get

If you’re looking for online HR management courses, Wharton’s HR management and analytics program might be suitable for you. The program combines theory with practical application via video lectures, real-world examples, applications to data sets, and debriefs of learnings. 

Modules include:

1. Intro to people analytics and performance evaluation
2. Motivation and reward
3. Tasks, jobs, and systems of work
4. Strategic staffing
5. Collaboration networks
6. Talent management and analytics
7. Managing your career as an HR professional.

It’s suitable for mid- to senior-level HR and learning development professionals, general managers, business heads who crossover into HR management, and business performance professionals. This self-paced online program requires 4-6 hours of study per week over two months. 

8. BernieU (BerniePortal)

BernieU offers a collection of free online HR certification training programs, all of which are pre-approved for HRCI and SHRM credits. Their aim is to provide high-value HR tools and resources that help employers build great places to work. 

What you’ll get

Courses on offer include:

• HR ethics
• HRIS technology and tools
• Payroll basics for employers
• HR hiring guide
• Retention essentials
• Benefits administration.

Each course requires no more than 90 minutes of study and can be enrolled in and completed at any time. Each course is split into a series of smaller lessons, making the content easy to digest. 

9. HR Skills® Fundamentals (MindEdge)

MindEdge is an online learning company that offers professional development and continuing education courses across a wide range of fields. Founded by educators and digital learning experts, MindEdge focuses on flexible, accessible online learning designed to help individuals gain practical skills and knowledge. Their catalog includes a variety of courses for HR professionals.

What you’ll get

The HR Skills® Fundamentals Certificate is an online, self-paced program that combines 8 courses covering hiring, interviewing, onboarding, HR law, training and development, and more. It’s perfect for anyone who wants to explore a career in HR or managers who supervise employees. Students who commit 1-10 hours of study per week can expect to complete the program in 2 weeks, but they will have 720 days to complete it.

10. International Human Resources Management: An Introduction (Coventry University/FutureLearn)

FutureLearn offers online courses, certifications, and degrees from over 200 world-class institutions and educators, such as UCL, Cambridge, and the CIPD. HR courses include HR fundamentals, green HR, how to become an HR manager, HR analytics, employment law, and more.

What you’ll get

The International Human Resources Management course by Coventry University is 100% online and self-paced, requiring just 3 hours of study per week over 2 weeks to complete. The course covers an intro to HR, the role HR takes in a business setting, the HR practices of multinational companies, and a peer review of an international business’s HR practice. It serves as a great introduction to HR for anyone who wants to study HR management at a higher level.

As part of the International Business and People Relations program, this course contributes to the BA in International Business degree.

11. HR Fundamentals (CIPD/FutureLearn)

Also hosted through FutureLearn, the CIPD’s HR Fundamentals program offers an introduction to the field of Human Resources and helps people develop the skills they need to become successful HR professionals. 

What you’ll get

The course includes an exploration of what HR means, HR practice, people and strategy, performance and engagement, and recruitment. By the end of the program, learners will understand the importance of HR and the key role it plays in organizations, apply basic principles of workforce planning, and know how to get the best out of employees. 

This online course can be completed in five weeks with three hours of study per week, and all students who complete the program will receive a digital certificate. 

12. Human Resource Certificate Program (Corexcel)

Corexcel offers a range of online courses, employee assessments, certifications, and facilitator materials for both employees and employers to help people develop and excel in their careers. They offer a range of online HR courses, including a certificate in HR management, an introduction to HR management, and detailed explorations of HR specialities including compensation and benefits, employee rights, and performance management. 

What you’ll get

The Human Resource Certificate Program combines seven individual courses and covers key areas of HR, including HR management, compensation, data, employee selection, equal employment opportunity, performance management, and talent management.  

This is a fully online, self-paced program that can be enrolled in at any time. It includes professional videos with transcripts for learning, interactive review exercises, and an ask the expert features where students can submit questions directly to the program experts. 

A final word

So, how do you select the right HR course for you?

The best online HR course for you depends on your current career status, your budget, and your desire to grow. 

For example, if you’re an aspiring HR professional who currently works in a different industry, you might value a free introductory course that requires a small hourly commitment each week. On the other hand, if you’re currently already working in HR, you might be looking for a course that includes certification, and you may be able to get your organization to pay for your training, in which case, you can enroll in a more premium offering. You might also be an HR practitioner looking to specialize in a particular field; therefore, completing a course within this field would make the most sense. 

Take time to research the options we’ve rounded up above, contact companies for more information about each program’s features, and make the decision that feels right for you.

FAQ

The post 12 Best Online HR Courses To Take in 2025 appeared first on AIHR.

At Credit Suisse, predictive analytics helped identify employees at high risk of leaving by analyzing patterns across engagement, performance, and compensation data. This gave managers a chance to intervene early, adjusting workloads, offering development, or addressing concerns. The strategy improved retention and saved the company an estimated $70 million annually in turnover-related costs.

That kind of impact is only possible when HR has the analytical capability to connect the dots. And that starts with embracing data, developing new skills, and seeing AI as a practical partner in the work, not a far-off concept.

Contents
Why you should have an HR data strategy
What to include in your HR data strategy
How to build an HR data strategy
HR data strategy examples from practice

Why you should have an HR data strategy

An HR data strategy is a structured approach to collecting, managing, analyzing, and using workforce data to drive business outcomes. It defines how data collected across the employee life cycle supports broader business priorities by setting clear priorities for what data to collect, how to interpret it, and how to embed those insights into decision-making.

A well-developed HR data strategy ensures consistency, accuracy, and governance. It also addresses the tools, systems, and talent needed to support data literacy and effective decision-making in HR.

Implementing a robust HR data strategy delivers numerous measurable benefits, including:

• Improved decision-making by providing HR leaders and business stakeholders with real-time, evidence-based insights rather than relying on instinct or anecdotal evidence.
• Better problem-solving by identifying patterns and root causes of issues like high turnover or low engagement.
• Increased business impact, positioning the HR function as a partner in driving productivity, profitability, and workforce agility.
• Stronger compliance with data privacy laws and ethical standards is critical in managing sensitive employee information.
• Improved workforce planning, better talent forecasting, and stronger alignment between people strategy and organizational performance.

What to include in your HR data strategy

A well-designed HR data strategy gives HR professionals the tools to turn workforce data into timely, focused insights. Think of it as your practical framework for using workforce data in ways that directly support organizational goals.

However, before you can build an HR data strategy, it is important to identify the different components that you will need to address across your organization. Let’s take a look.

Strategic objectives and business alignment

According to Gartner’s global survey of over 1,400 HR leaders, strategic alignment is a core driver of successful HR transformation, with the most effective teams leveraging data to support broader organizational priorities.

Begin by clearly articulating what the HR data strategy must achieve, whether the focus is on improving workforce planning, supporting DEI outcomes, optimizing recruitment, or enhancing employee engagement. This alignment ensures that data-driven insights are relevant, actionable, and prioritized according to business needs and that your strategy is rooted in broader organizational goals.

Data collection methods

Detail where your workforce data will come from and how it will be collected. This includes structured data from HRIS and payroll systems, ATS platforms, performance management tools, and learning systems, as well as unstructured data from employee surveys, engagement platforms, and feedback channels. A successful strategy captures data across the entire employee life cycle to provide a 360-degree view of the workforce.

Data governance and privacy

Define your governance framework and make sure that data is collected, stored, and used ethically and securely. A successful framework assigns data ownership across the HR function, establishes access controls, and develops policies that comply with local and international privacy regulations like GDPR.

Data quality and integrity protocols

High-quality data is the foundation of credible analysis, so implement processes for data validation, cleaning, deduplication, and enrichment. Without consistent data hygiene practices, even the most sophisticated analytics tools will yield misleading results, so schedule regular audits to assess the accuracy and completeness of your datasets.

Advanced analytics and data modelling

Outline how your organization will move beyond basic reporting into deeper analysis and achieve higher HR analytics maturity. This includes the use of descriptive analytics (what happened), diagnostic analytics (why it happened), predictive analytics (what might happen), and prescriptive analytics (what to do about it).

Invest in data science capabilities — internally or through external partners — to develop models that support forecasting, scenario planning, and decision simulation. It’s worth the effort and investment. 

McKinsey’s research into people analytics found that organizations that embed analytics into talent processes outperform their peers across multiple dimensions, including talent acquisition efficiency, employee retention, and leadership development. In fact, McKinsey recommends using data to benchmark performance, uncover bias, and directly link talent strategy to business impact, all goals central to this element of your HR data strategy.

AI and intelligent automation

According to Deloitte’s recent Global Human Capital Trends research, high-performing organizations are more likely to use predictive tools for workforce planning and performance optimization, and they tend to achieve stronger financial results, including improved stock performance. Increasingly, AI’s role is growing beyond isolated use cases, becoming a key enabler of boundaryless HR, helping HR move from a siloed function to an integrated discipline embedded across the business.

AI and machine learning can support this transformation by powering scalable, real-time people analytics; informing workforce planning based on live skills data; and supporting cross-functional collaboration. Organizations can also use AI to screen candidates, identify attrition risks, analyze employee sentiment, and match skills to shifting roles.

However, deploying AI in the people function requires clear governance. It’s critical to be transparent about how algorithms are trained, monitored, and tested for bias, especially in areas involving people’s decisions. The shift to boundaryless HR starts with a new mindset, but it’s brought to life through the intentional use of AI, new metrics, and business-aligned people strategies.

Reporting and communication frameworks

Develop a consistent approach for delivering insights across the business, including real-time dashboards for operational use, as well as executive-level reports that track key HR metrics and their impact on business performance. Effective reporting should display data, tell a story and offer insight into what actions should be taken.

Technology infrastructure and tools

Specify the systems and platforms that will support your data strategy. Focus on your core HRIS, cloud-based analytics tools like Tableau or Power BI, data warehouses, and integration platforms that connect disparate data sources and prioritize tools that support scalability, real-time analytics, and ease of use for HR and business users.

Data literacy and capability building

Even the best tools are ineffective without people who can use them, so commit to upskilling HR teams in data interpretation, storytelling, and basic analytical methods. It’s also a good idea to partner with Learning and Development to roll out foundational and advanced training that equips HR professionals to work confidently with data and engage in evidence-based decision-making.

Ethical use of data and AI

Address the growing need for ethical standards in how data — and especially AI — is applied in HR. The entire HR function should be transparent about how data is used to make decisions, from hiring to performance evaluation. Establish checks to prevent misuse or bias and ensure that employees understand their rights in relation to how their data is collected, analyzed, and applied.

Scalability and future-readiness

Finally, as business models evolve and new technologies emerge, your HR data strategy should be able to accommodate additional data sources, new regulatory requirements, and the growing need for real-time insights. It’s therefore important to design your strategy to be flexible and future-proof, laying the foundation today that can support the strategic ambitions of tomorrow.

How to build an HR data strategy

Here’s how you can start building your HR data strategy step by step.

Step 1: Establish clear objectives aligned with business priorities

Begin with clarity. What are you trying to achieve with your HR data strategy? Whether the goal is to reduce turnover, improve workforce planning, or identify skills gaps, your objectives must directly connect to business challenges and opportunities.

Do this:

• Meet with executive leadership to understand top business priorities and where HR can provide support through data.
• Define three to five core HR objectives (e.g., “Improve leadership pipeline visibility,” “Predict and reduce voluntary attrition”).
• Use these objectives to guide which data you collect, which metrics matter most, and how success will be measured.

Step 2: Audit existing data and identify gaps

You can’t build a strategy without knowing what you’re working with. Most organizations already hold a wealth of people data, but it’s often fragmented, outdated, or underused. Auditing your existing HR data sources gives you a clear view of your current capabilities and uncovers opportunities for integration and improvement.

Do this:

• Map all current HR data sources (HRIS, ATS, payroll, engagement tools, exit interviews, etc.).
• Assess data types (structured vs. unstructured), quality, and accessibility.
• Identify gaps where key data is missing (e.g., skills inventory, training ROI, internal mobility data).
• Document duplication or inconsistencies across systems need to be addressed later.

Step 3: Build a governance and privacy framework

A sound HR data strategy requires strong foundations in data governance and compliance to ensure accuracy, clarity of ownership, and protection of employee privacy. Governance builds confidence in both your team and your stakeholders that the data being used is reliable and ethically managed.

Do this:

• Define data ownership: who is responsible for maintaining what data?
• Set standards for accuracy, storage, retention, and version control.
• Ensure compliance with data privacy regulations.
• Establish access levels so that only authorized personnel can access sensitive data.

Step 4: Ensure data quality and consistency

No matter how advanced your tools are, poor data quality will undermine everything because inconsistent or inaccurate data leads to bad decisions, reduced trust in HR, and wasted effort. Start with data hygiene as your foundation and make this an ongoing practice.

Do this:

• Create data validation and cleaning routines to remove duplicates, correct errors, and standardize fields.
• Build a data dictionary so key terms (e.g., “high performer”) are defined and used consistently across systems.
• Run monthly or quarterly audits to maintain data health.

Step 5: Integrate disparate data sources for a unified view

To uncover meaningful insights, you need a complete picture of the employee life cycle, not a disconnected set of spreadsheets. Integrating systems gives HR professionals access to richer analysis and supports predictive modelling that drives real value.

Do this:

• Choose an integration approach (e.g., API connections, data warehouses, or middleware tools).
• Prioritize integrating critical systems first (e.g., HRIS, performance, learning).
• Work with IT or an external partner to ensure scalability, security, and clean architecture.

Step 6: Upskill HR in analytics and data literacy

Building HR’s analytical capabilities is essential. A strong strategy means little if the team lacks confidence in using the data, so make sure your team has the training and knowledge to ask the right questions, interpret results accurately, and use insights in decision-making.

Do this:

• Assess current data literacy levels across your HR team.
• Provide training in data interpretation, storytelling, basic statistics, Excel, and business intelligence tools like Power BI.
• Encourage the use of data in team discussions, planning sessions, and decision-making processes.
• Nominate internal “data champions” to lead by example.

Step 7: Invest in the right technology, tools, and people

Technology is a critical enabler, but it’s only effective when paired with the skills to use it, so choose platforms that support your strategic objectives, and don’t neglect the human capability to extract real value from these tools.

Do this:

• Select tools based on the problems you’re solving, and don’t be swayed by features you won’t use.
• Invest in platforms that support dashboarding, analytics, visualization, and forecasting (e.g., Tableau, Power BI, Visier).
• Ensure you have support (internal or external) to configure and maintain the tools effectively.
• Allocate budget for training, ongoing support, and upgrades.

Step 8: Operate with ethics and transparency at the core

As HR increasingly uses AI and predictive analytics, ethical use of data becomes a business-critical issue. Employees must trust that their data is handled responsibly and that algorithms are not making unfair or biased decisions.

Do this:

• Establish clear ethical guidelines for how employee data and AI tools are used.
• Regularly test algorithms for bias or unintended consequences.
• Be transparent with employees about what data is collected and why.
• Ensure consent is obtained and data is anonymized when appropriate.

Step 9: Collaborate across departments for holistic insights

HR data doesn’t exist in a vacuum. Partnering with Finance, Operations, IT, and business units unlocks richer insights and ensures data is used in cross-functional planning, not just HR reporting.

Do this:

• Set up regular touchpoints with other departments to align on goals and share data.
• Identify common challenges (e.g., absenteeism, productivity, turnover costs) where joint analysis adds value.
• Use shared dashboards or reports that show HR metrics in business context (e.g., cost per hire linked to revenue growth).

Step 10: Turn insights into actionable strategies

The goal isn’t just insight, it’s impact. Your HR data strategy should culminate in better decisions and smarter action, which means translating data into stories and recommendations your stakeholders can understand and use.

Do this:

• Build dashboards that show trends and provide context and suggested actions.
• Present data with recommendations, not just charts.
• Use insights to inform real policy or program changes (e.g., revamped onboarding, internal mobility programs).
• Track what actions were taken and evaluate the results to build a feedback loop.

Step 11: Communicate progress and value to stakeholders

To maintain momentum and funding, your data strategy must be seen as valuable, so show how HR data has led to better decisions, saved money, or improved outcomes, and tailor this message for each audience.

Do this:

• Report on outcomes (e.g., reduced turnover, faster hiring, higher engagement) tied to data initiatives.
• Create stakeholder-specific reports or presentations (e.g., what matters to the CFO vs. the COO).
• Share quick wins and use them to build confidence in long-term goals.

Step 12: Review, evolve, and stay ahead

A data strategy is a living framework. As new business questions arise, systems develop, or your workforce changes, your strategy should adapt too, so treat this as a continuous improvement process.

Do this:

• Set quarterly or biannual reviews of your strategy and tools.
• Collect feedback from HR, IT, and business users.
• Stay updated on new technologies, AI tools, and compliance changes.
• Adjust your roadmap and retrain your team as needed.

HR data strategy examples from practice

Case study #1: Empowering managers with data at Shutterstock

Shutterstock, a global creative platform, launched a transformative journey to bridge the gap between employer and employee data. Under the leadership of Max Iacocca, Head of Global People Operations, the company identified two primary challenges: a lack of actionable insights from existing data and a top-down approach to employee engagement that limited managerial autonomy.

To address these issues, Shutterstock prioritized standardizing data definitions and reporting periods, ensuring consistency across departments. This initiative was strengthened by close collaboration between HR and finance teams, aligning workforce planning with cost allocation strategies.

Recognizing the important role of managers in driving engagement, Shutterstock shifted its culture to empower them with accessible data analytics tools. Managers overseeing teams of five or more were granted access to detailed engagement data, helping them to make informed decisions and create a more inclusive work environment.

A significant milestone in this transformation was the overhaul of the employee engagement survey process. Transitioning from a traditional, top-down model, Shutterstock implemented a more agile and inclusive approach, integrating engagement data with broader workforce metrics. This supported more nuanced insights into retention, collaboration, and autonomy, ultimately boosting organizational health.

The key takeaway: Through these strategic initiatives, Shutterstock successfully democratized data access, empowered its managers, and cultivated a high-performing, engaged workforce

Case study #2: Making people analytics operational at CBRE

CBRE, the world’s largest commercial real estate services firm, transformed its HR strategy by embedding people analytics into its decision-making processes. Led by Méline Van Slyke, Director of Human Resources at CBRE Limited (Canada), the HR team partnered with HireRoad to align analytics with business needs, particularly in recruitment and workforce planning.

Initially, CBRE lacked the tools to track its “Strategic Recruitment Initiative” effectively. By implementing tailored dashboards, they gained visibility into recruitment trends, supporting data-driven talent conversations. This shift helped the identification of gaps and informed decisions beyond intuition.

Recognizing the unique performance metrics in sales roles, CBRE collaborated with HireRoad to integrate revenue and commission data with demographic insights and gain a better understanding of sales performance, which was crucial for a company in constant recruitment mode.

The HR team tackled the challenge of comparing performance across different offices by developing side-by-side analytics for key metrics like support staff ratios and demographic breakdowns. This gave market leaders a clear view of how their teams stacked up and the data they needed to take targeted action.

The key takeaway: By aligning people analytics with specific business needs and making insights directly actionable for leaders, CBRE moved beyond static reporting to a more dynamic, operational use of HR data, supporting smarter decisions in recruitment, workforce planning, and team performance management.

To sum up

The value of HR data lies not in the numbers themselves, but in how people use them to inform decisions, build trust, and act with intention. From analyzing the impact of learning on promotion rates to equipping managers with real-time insights to support their teams, the message is clear: data becomes transformational when it is relevant, accessible, and aligned to outcomes people care about. HR professionals who treat data as both a cultural and operational priority are better positioned to drive measurable business value.

Of course, a well-designed HR data strategy alone isn’t enough. Effective execution depends on cross-functional collaboration, clear governance, continuous upskilling, and a strong commitment to quality and ethics. 

The most successful HR teams do more than report on trends; they connect data to action, using it to shape policy, improve performance, and elevate the employee experience. As you plan your next steps, your priorities should be to invest in capability, build credibility with stakeholders, and ensure the systems you build today can flex to meet the needs of tomorrow.

The post 12 Steps To Build an HR Data Strategy [+ Examples] appeared first on AIHR.

This has led to 74% of companies evaluating candidates’ skills in new ways, 68% rewriting job descriptions, and 20% removing degree requirements altogether.

This article discusses how to write a recruitment policy and what to include in one. It also provides a free recruitment policy template to help you strengthen your organization’s recruitment process.

Contents
What is a recruitment policy?
Why is a recruitment policy important?
11 things to include in a recruitment policy
The benefits of using a recruitment policy template
Key elements of a recruitment policy template
Free recruitment policy template
9 steps to write a recruitment policy
4 recruitment policy examples

What is a recruitment policy?

A recruitment policy (or recruitment and selection policy) is a formal document that defines how a company attracts, evaluates, and hires new employees. It acts as the blueprint for every stage of the recruitment process, from identifying talent needs and advertising vacancies to evaluating candidates and making final hiring decisions.

Why is a recruitment policy important?

A recruitment or hiring policy defines how an organization gains new hires by mapping out a straightforward, consistent process that guides every step, from identifying vacancies to making informed hiring decisions. Instead of letting each department or manager navigate these steps individually, it provides a standardized approach that supports efficiency and good judgment.

A good recruitment policy ensures that the company treats all candidates fairly by using the same objective criteria to assess them and treat them with respect and integrity. Having a detailed recruitment policy to follow also helps hiring managers and recruiters comply more easily with relevant labor laws and treat all applicants equitably.

This policy also supports organizational culture, values, and reputation. Also, it makes sure hiring decisions are based on merit and objective criteria, creating a more inclusive workplace that values diverse perspectives.

Without a good recruitment policy, hiring can be inefficient and fragmented due to unclear expectations, inconsistent evaluation standards, bias, and misaligned decisions. This raises the risk of unfair treatment or discrimination, which negatively impacts the candidate and employee experience and employer brand. This can also expose the organization to legal risks.

11 things to include in a recruitment policy

Here’s what you should include in your recruitment policy to ensure it covers the entire recruitment process:

1. Scope and objectives of the policy: State the policy’s purpose and the hiring activities it covers. Explain how it supports goals like workforce growth, diversity, and talent development so HR, hiring managers, and candidates understand its role.
2. Roles and responsibilities: Define what HR, hiring managers, and others are responsible for. For instance, HR might write job ads and post them, while hiring managers handle interviews and make final decisions.
3. Legal and ethical hiring guidelines: Follow employment laws and ethical standards. Reference relevant labor laws and international hiring guidelines to ensure fair and legal practices.
4. Steps in the recruitment process: Outline key steps in the hiring process. You don’t need to include every single detail, but include an overview with key points and a link to guides or templates for more information.
5. Equal opportunity and DEIB commitment: Show commitment to fair hiring, diversity, and inclusion. This can include diverse interview panels and inclusive job ads that go beyond just meeting legal requirements.
6. Use of recruitment tools: List the required systems for job postings, tracking applicants, and assessments. Provide training or guides so that all hiring managers can use them confidently.
7. Internal versus external hiring considerations: Clarify when to post roles internally, externally, or both. If you intend to prioritize internal candidates, state so clearly to support transparency and internal mobility.
8. Data protection and candidate privacy: Explain how your company will collect, store, and delete candidate data in accordance with relevant data privacy laws and organizational ethical standards.
9. Pre-employment checks and assessments: State which checks are required (e.g., background, references, or skills tests) and explain that you’ll obtain express candidate consent beforehand.
10. Use of external recruitment partners: Set rules for working with external recruiters. Make sure they follow your legal, ethical, diversity, and privacy standards.
11. Appeals or candidate feedback process: Offer a way for candidates to request feedback or raise concerns. This builds trust and helps HR and hiring teams improve the process.

The benefits of using a recruitment policy template

A recruitment policy template can offer HR professionals practical advantages and long-term value, including benefits such as the following:

• Saves time and effort: A solid template gives you the full structure, so you can focus on tailoring the content to your organization instead of starting from scratch.
• Ensures consistency across HR teams: A shared template keeps recruitment processes consistent across departments and locations.
• Helps smaller teams start faster: Small teams can adopt a structured approach more quickly without having to rely on ad hoc methods.
• Reduces legal risks by covering essential components: Good recruitment policy templates cover legal basics, helping you stay compliant and avoid missing key rules.
• Easier to tailor to company-specific needs: Because templates are customizable, you can easily adapt them to fit your company’s culture, industry, and goals.
• Supports training and onboarding of HR staff: New HR team members can quickly get up to speed using the policy as a guide, flattening the learning curve and driving a seamless transition during onboarding.
• Encourages regular policy reviews: When laws or hiring needs change, you can update specific sections easily without redoing the entire policy.

Key elements of a recruitment policy template

If you’re keen on using a template to help create your recruitment policy, here are the essential components of a good template you should know about:

The company’s recruitment philosophy

The recruitment philosophy sets the tone for an organization’s talent acquisition approach. It reflects the company’s beliefs about its people, how it evaluates potential, and how it balances skills, experience, and cultural fit. Write a concise statement reflecting your organization’s definition of great talent and the qualities it prioritizes in team-building. 

Recruitment framework

This outlines the structure for hiring activities, detailing the steps, stakeholders, and decision points involved. It brings consistency to the recruitment process while allowing flexibility for different roles and departments. Develop a visual or written process flow mapping all the recruitment stages, so all involved parties understand their responsibilities.

Job requisition and approval process

Formalizing how the company identifies, documents, and approves hiring needs ensures precise business requirements, not ad hoc decisions, drive its recruitment process. This helps control costs, maintain headcount, and prioritize critical roles. Create a standard requisition form and approval workflow, including justifications for each role and necessary budget approvals.

Advertising and sourcing channels

Specifying channels and methods for attracting candidates promotes efficiency and reach. Depending on the role and target audience, these may include job boards, professional networks, or recruitment agencies. Refer to an updated list of preferred job boards, sourcing platforms, and recruitment partners tailored to different role types and seniority levels.

Interviewing and selection procedures

Develop and link to structured interview guides and scoring rubrics aligned with your recruitment framework’s competencies and values. Standardize interviewing and selection processes to ensure fair, consistent candidate assessment. Lay out clear procedures to guide interview formats and selection criteria, reduce unconscious bias, and improve hiring quality.

Background and reference checks

Incorporating checks into the recruitment process adds due diligence, verifying candidate qualifications, experience, and suitability. Clear guidelines also protect the organization from compliance risks and poor hiring decisions. Define roles needing specific checks and their timing, and ensure you obtain candidate consent beforehand.

Offer management and documentation

A transparent process for preparing, approving, and delivering job offers ensures accurate, consistent terms aligned with company policies and promotes a positive candidate experience. I recommend the use of a standard offer letter template reviewed by legal counsel and the establishment of a procedure for internal approvals before extending offers.

Equal opportunity and anti-discrimination clauses

Include these clauses to reinforce the organization’s commitment to fair hiring practices and clear compliance with legal and ethical standards. Review the clauses to ensure they reflect current legislation and are consistently applied throughout recruitment communications and procedures.

Review dates and policy ownership

Assign ownership of the recruitment policy and set review dates to ensure the document stays updated and meets the organization’s needs as it grows or adapts to market changes. Identify a policy owner—typically an HR leader—and schedule a formal review annually or biennially (or whenever significant changes occur in employment law or business strategy).

Resources

List and link to available resources relevant to the recruitment process, such as your company’s employee referral program or the application process for current employees looking to fill open roles via internal hiring.

Free recruitment policy template

If you need a starting point to help create your recruitment policy, download AIHR’s free recruitment policy template. It’s also customizable, so you can tailor it to match your organization’s hiring requirements.

9 steps to write a recruitment policy

Here are nine steps you can take to write a solid recruitment policy:

Step 1: Define your recruitment goals

Clarify what you want the recruitment policy and process to achieve for the organization. Setting clear, measurable goals will shape subsequent decisions. Align goals with business priorities, consider practical objectives, and engage leadership to confirm that the goals align with long-term organizational needs.

Step 2: Gather input from HR, legal, and leadership

Collaboration ensures the policy is comprehensive, practical, and compliant. Consult your HR team for insights on recruitment challenges, and involve legal advisors early to ensure compliance. Ask for leadership input to align the policy with company values and strategic objectives, and use structured interviews or workshops to gather meaningful feedback.

Step 3: Map your existing hiring process

Familiarize yourself with the current recruitment framework before making improvements. Document every stage, from job requisition to onboarding, and identify who makes decisions for each one. Additionally, create a process map or workflow diagram to visualize the full recruitment cycle and note any variations between departments or teams.

Step 4: Identify gaps or compliance risks

A clear view of weaknesses will help you address potential problems using the new policy. Look for inconsistencies or delays in the current process, identify potential bias or unfair practices, and ensure legal compliance. This will allow you to identify and address areas for improvement in the current process and refine it in the new policy.

Step 5: Choose a recruitment policy template

A good template provides structure and saves time. Select a recruitment policy template that includes essential components like recruitment philosophy, approval processes, and compliance standards. Look for templates recommended by HR professionals or industry bodies, and ensure the template allows easy customization.

Step 6: Customize the template to fit your company’s values

Tailor the template to reflect your organization’s hiring approach. Adapt language and tone to suit company culture and clarify procedures for key steps like job requisition, advertising, and selection. You should also incorporate DEIB hiring commitments and ensure consistency with other internal policies and documents.

Step 7: Review with stakeholders

Collaborative review leads to a stronger, more practical policy. Share the draft with HR, legal, leadership, and hiring managers, and request specific, constructive feedback from them. Based on this, revise the policy to address concerns and suggestions while maintaining clarity and consistency. After this, all stakeholders should approve the final version before implementing it.

Step 8: Train hiring managers on the policy

Training ensures the policy is understood and applied correctly. Provide training sessions or workshops to explain the recruitment framework and hiring policy, with practical examples and scenarios to clarify expectations. Additionally, they distribute written guides or quick-reference materials and offer follow-up support for managers who may need further guidance.

Step 9: Update the policy regularly

Keeping the policy current maintains its relevance and effectiveness. Assign responsibility to someone in HR leadership to oversee this and set up a review schedule (annually or after major legal or organizational changes). Update the policy to reflect new laws, technologies, or strategic priorities, and be sure to communicate these updates clearly to all relevant teams.

4 recruitment policy examples

Below are four real-life company examples of successful recruitment policies:

Example 1: The University of York

The University of York’s recruitment policy revolves around meritocracy, equal opportunities, and professionalism, ensuring an inclusive recruitment process. It bases its recruitment decisions on merit, with structured procedures to identify the best candidate for each role. It also supports candidates with disabilities, making necessary adjustments for a fair recruitment experience.

Example 2: CUTS International

CUTS International emphasizes a transparent, merit-based recruitment approach, ensuring equal opportunities for all candidates. The organization has established clear procedures to ensure it provides equal employment opportunities and avoids discrimination based on race, gender, sexual orientation, nationality, age, and other immutable personal characteristics. 

Example 3: Google

Google’s recruitment process aims to identify and hire individuals who are aligned with the company’s mission and values, emphasizing fairness, consistency, and a commitment to diversity and inclusion. It also handles candidate information per its Applicant and Candidate Privacy Policy, ensuring confidentiality and compliance with data protection regulations.

Example 4: Microsoft

Microsoft’s recruitment process is designed to identify individuals who not only meet technical and behavioral requirements but also align with the company’s disciplined, systems-focused approach to problem-solving. Hiring at Microsoft plays a critical role in reinforcing a data-aware culture driven by leadership accountability and structured collaboration.

To sum up

In light of the shift toward skills-based hiring, HR leaders must ensure their recruitment policy reflects current realities. A well-defined policy supports consistent decision-making, compliance, inclusivity, and a stronger candidate experience, especially in hybrid and remote environments where processes can easily become fragmented.

Your policy should go beyond just listing steps — it should reflect your organization’s recruitment philosophy, clarify responsibilities, and integrate compliance, equity, and digital tools. When built correctly, it provides the structure needed for high-quality, bias-aware hiring decisions and helps your HR team scale talent acquisition strategically.

The post [Free Template] Your 2025 Guide to Writing a Recruitment Policy appeared first on AIHR.

This article explores how HR can lead to AI integration while preserving these human foundations of work.

Contents
The hidden risks of the growing AI adoption
Why HR needs to lead AI integration and capability efforts
What a human-centered workplace looks like in an AI world
Making human-centered work a strategic priority for HR

The hidden risks of the growing AI adoption

It is easy to get swept up in the excitement of AI’s promise. The technology is already reshaping how work gets done, from generative AI tools that write job descriptions to algorithms that screen resumes in seconds. However, while the benefits are significant, so are the risks, especially if we focus solely on efficiency and ignore the broader implications for people and jobs.

While concerns about bias and unethical AI use are valid, the conversation must include more systemic implications of how AI shapes our organizations and society.

Productivity gains may come at the cost of engagement

Globally, AI could displace up to 300 million jobs, with 47% of workers in the United States alone at risk of being affected by AI-driven automation. One in four CEOs anticipates job cuts due to generative AI in the near future, while 30% of workers are concerned about their jobs.

Despite AI’s potential to boost productivity, we must also remain mindful of its impact on the meaning people find in their work. Global employee engagement levels are already in decline, and if AI is implemented without intentional design, businesses risk creating future roles that lack challenge, purpose, and fulfillment. The result could be a workforce that is more efficient but less inspired and invested.

“I’ve seen the pictures—and you have too—of robots on Amazon lines, moving large packages from one conveyor belt to another, being able to track their movements precisely. They’re part of the supply chain now. They’re not human; they don’t talk, they don’t call in sick, and they show up every day. I think that’s resonating with leadership. One company said, ‘We’ll make the $70,000 investment—this pays for itself in a year or two. We don’t have to pay benefits.”

Professor Marc Miller

Short-term decisions are backfiring

OrgVue’s research reveals that many CEOs are experiencing AI regret, second-guessing decisions made to replace human work with artificial intelligence. In the UK, two in five businesses (39%) reported making redundancies as part of their AI adoption efforts. Yet, over half of those organizations (55%) now admit that those decisions were misguided.

Many companies have faced unintended consequences rather than unlocking the anticipated gains in efficiency and innovation, such as internal confusion, increased employee turnover, and a decline in productivity. These outcomes highlight a critical lesson: AI decisions must be guided by long-term thinking and organizational foresight, not short-term cost-cutting or hype-driven expectations.

AI risks increasing inequality and anxiety

Beyond the headlines, we also need to understand that displacement due to AI is rarely evenly distributed. Younger workers, lower-income employees, and workers of colour are disproportionately worried about the future. The promise of AI has, for many, become entangled with feelings of insecurity, inequality, and exclusion. 

This is especially important as AI adoption risks deepening existing inequalities. In contrast, in high-income countries, as many as 60 percent of jobs are considered automatable, compared to just 26 percent in low-income economies, leading to increased anxiety related to AI’s impact on skilled labor. 

These disparities are not just societal concerns. They have direct implications for how organizations adopt and scale AI. If left unaddressed, they risk breaking down trust between employees and employers, leading to increased fear and anxiety towards AI and undermining the goals AI is meant to serve. This is where HR’s role becomes critical.

Why HR needs to lead AI integration and capability efforts

HR is uniquely positioned to play a critical role in how AI is adopted in organizations. No other discipline holds the mandate to align technology with people or the responsibility to balance organizational priorities with workforce wellbeing. As AI becomes embedded in how organizations hire, manage, develop, and engage people, HR must lead its adoption, not just for productivity gains but to preserve the human essence of work.

HR’s role is to drive the implementation of AI solutions that improve efficiency and service delivery while safeguarding employee experience, trust, and inclusion. The challenge lies in ensuring that innovation serves people, not the other way around.

“It’s the human aspects—the organization has to be human-centered. It has to be the kind of environment that makes someone want to join the company. And HR sits right at the center of that through recruiting and branding.”

Professor Marc Miller

What a human-centered workplace looks like in an AI world

The term human-centered is often misunderstood as opposing performance or technology. However, a truly human-centered workplace does not reject AI; it integrates it thoughtfully to protect psychological safety, amplify purpose, and deepen connection. 

HR is the custodian of this balance. It must set the tone for how AI is introduced, communicated, and experienced across the organization, balancing decisions to drive business results with human implications. A truly human-centered HR function uses AI to enhance, rather than replace, the human aspects of work. This involves applying technology thoughtfully to reduce friction, support better decision-making, and personalize employee experiences, all while preserving human connection.

For instance, AI can efficiently manage repetitive tasks such as scheduling interviews or analyzing employee feedback data. By automating these routine activities, HR professionals can focus on high-impact, high-touch efforts like coaching leaders, facilitating inclusion dialogues, and shaping experiences that build a sense of purpose and belonging.

However, when AI is applied without consideration for the human experience, the consequences can be counterproductive. Some organizations, for example, have experimented with using AI to replace managers fully in the performance review process. These initiatives often backfire. Employees resisted being evaluated solely by algorithms and strongly preferred maintaining a human relationship with their managers. They see AI as a tool that should assist managers by reducing bias and supporting better insights, not as a substitute for human judgment and connection.

Making human-centered work a strategic priority for HR

For HR to lead AI in a human-centered way, you need to embed five key principles within all HR activities. Each of these supports the broader goal: making sure technology supports people, not the other way around.

1. Build psychological safety into your AI strategy and address fear proactively

Across all AI efforts, HR should aim to create psychological safety for individuals. This means that employees feel that they have the space to voice their concerns, process disruption, and participate in shaping the future. HR can enable open dialogue and create forums for listening, allowing employees to express their fears and concerns. 

Transparency and proactive communication also play a critical role in building psychological safety. Research shows that only 32 percent of employees feel their organization has been transparent about how AI is used. This lack of openness undermines trust and reinforces anxiety.

Employees want to understand how AI is being used, who benefits from it, and what safeguards are in place to ensure ethical, fair, and inclusive practices. That’s why HR should avoid vague or overly technical messaging in employee communication and involve teams early through pilots and feedback sessions.

Also, executive leaders should openly discuss their plans for adopting AI and influencing jobs in the future, as well as their plans for reskilling or transitioning employees.

2. Build an AI-ready workforce

With 120 million workers expected to retrain in the next few years, HR must lead the development of new learning pathways and career transitions. It’s essential to go beyond the intent and principle of reskilling and be more specific in terms of:

• Which jobs will be in focus, and how the organization is segmenting and prioritizing workers who are currently in those jobs
• What skills will be required in the future, and what paths to develop these skills entail
• What the investments required to transition the workforce into these opportunities are, and if the organization is willing to invest these numbers into its workforce.

Upskilling and reskilling efforts haven’t always prioritized AI. According to a TalentLMS and Workable report, only 41% of companies include AI skills in their upskilling programs, and just 39% of employees say they use those skills in their roles. This gap highlights the need for a more holistic approach—one that goes beyond training to include opportunities for real-world application, alignment with business needs, and clear links to growth and recognition.

3. Audit AI systems for fairness and inclusion

HR needs to partner with the Risk Management, Compliance, and Legal teams to conduct realistic audits of AI systems to evaluate them for fairness and inclusion. The results of these audits should show how AI initiatives are intentionally inclusive and highlight where AI initiatives might be unintentionally excluding specific groups.

For example, how AI is adopted can lead to exclusion and perceived unfairness. A global financial services firm adopted AI tools for client insights and productivity, which were rolled out first to senior consultants and head office teams, giving them a significant edge in performance and visibility. Meanwhile, regional teams and junior staff received delayed access and minimal support, limiting their ability to benefit from the same tools. This uneven implementation widened internal inequalities, creating a digital divide within the organization.

4. Redefine the value of work

AI can help eliminate low-value tasks. HR should use this opportunity to elevate roles focused on creativity, empathy, and collaboration, the parts of work that technology cannot replicate. HR should rethink work design and intentionally design for meaningful work that improves engagement, wellbeing, and job satisfaction. 

Meaningful work also balances the individual’s need to be challenged and feel like they are contributing to work that adds value to the business objectives and strategies.

AI offers a great opportunity to completely reinvent work design, and HR needs to lead the efforts to ensure the responsible adoption and implementation of these principles.

5. Create guiding principles for ethical AI use

Establish internal policies that prioritize consent, transparency, and data dignity. Data dignity means treating people’s data with the same respect as the individuals themselves, ensuring they have visibility, control, and fair benefit from how their data is used.

These principles should guide all decisions around AI deployment in the workplace. While most AI policies today focus on basic compliance, HR has an opportunity to go further by helping shape policies that are grounded in human-centered thinking, not just minimum standards.

The future of HR and work is more human, not less

There is a growing narrative that the future of work is digital, fast-paced, and AI-powered. That may be true, but it is incomplete. The future of HR must also be deeply human.

As technology becomes more powerful, HR’s responsibility is not to abandon the human side of their work but to amplify it. This means using AI to unlock time, insights, and possibilities; not to replace judgment, empathy, and connection. 

AI is an opportunity to elevate the human aspects of work, not replace them. HR is key in shaping authentic human-centered organizations, making sure that as AI is integrated, connection, thoughtful work design, and values like dignity and inclusion remain at the core.

The post Putting the ‘Human’ Back into Human Resources: How HR Can Protect the Human Side of Work appeared first on AIHR.

This article discusses the importance of employee motivation and the role HR plays in driving and maintaining it. It also shares 31 employee motivation ideas for increasing and maintaining a high level of motivation at your organization.

Contents
Why is employee motivation important?
31 employee motivation ideas to keep your workforce happy
– Recognition
– Growth and development
– Work-life balance
– Culture
6 steps to develop employee motivation strategies

Why is employee motivation important?

Employee motivation fuels energy, creativity, and commitment at work. When people feel motivated, they perform better, stay longer, and contribute more to innovation and a healthy culture. Without it, companies face burnout, low productivity, and high turnover.

Motivated teams are also more adaptable. They’re quicker to embrace change, take initiative, and solve problems without being pushed. This is critical in fast-moving industries, where you need flexibility and ownership to ensure your organization remains competitive in the long term.

HR’s role in employee motivation

HR plays a central role in motivation by managing the full employee experience. Key responsibilities include:

• Shaping company culture, communication, and total compensation (three pillars of motivation)
• Launching programs to support employee development, recognition, and wellness
• Gathering and analyzing employee feedback to understand what motivates them
• Partnering with team leads to tailor motivation strategies to employee needs — this is especially important in remote work setups
• Fostering a positive work environment that encourages collaboration, respect, and inclusion.

31 employee motivation ideas to keep your workforce happy

Pay and benefits matter — but they’re not the only motivators for employees. Here are 31 employee motivation ideas to inspire your own approach to building a motivated workforce:

Recognition

Employee recognition validates staff efforts and connects them to organizational success. This gives them a sense of purpose and belonging, and motivates them to continue performing well. In fact, 83.6% of employees say recognition influences their motivation to succeed at their jobs.

1. Acknowledge small wins

Acknowledging small wins shows staff that their daily work makes a difference. Encourage managers to watch for and promptly acknowledge individual and team performance improvements, useful ideas and solutions, and landmark progress toward goals.

2. Public praise

When leaders visibly recognize individual, team, and company-wide accomplishments, it models a culture of appreciation that sees and values hard work. Advocate for frequently broadcasting praise in large group meetings and through the company’s digital channels. 

3. Employee of the month awards

A monthly award for exceptional team or individual performance gives employees something to aspire to and contend for while increasing engagement. Work with managers to set measurable, unbiased, and transparent criteria for earning the award.

4. Peer recognition programs

Supportive peers inspire one another to perform at their best for mutual benefit. Peer recognition also builds camaraderie among colleagues. Implement it via dedicated company platforms and regular informal shoutouts during team meetings.

5. Commemorate personal milestones

Commemorating staff birthdays, work anniversaries, and educational goals or professional certifications makes employees feel valued. Honor these milestones with handwritten notes, small gifts, or announcements on internal communication platforms.

6. Make rewards worthwhile

To be truly motivational, rewards must be authentic, meaningful expressions of appreciation. Consider various ways to accommodate different staff preferences, such as gift cards, personalized plaques or trophies, PTO, and team parties or outings.

Growth and development

Growth and development opportunities offer employees a sense of direction — 80% believe learning gives their work purpose. Workers who have access to such opportunities will likely improve their skills, discover new strengths, take on job enrichment, and gain confidence.

7. Regular one-on-one check-ins

Schedule regularly one-on-one meetings between employees and supervisors to allow them to share their thoughts and receive feedback, coaching, and practical advice. This motivates them by building rapport and trust and helping them navigate challenges. 

8. Goal-setting

Help staff set individual goals that align their efforts with the organization’s vision. This signals their work’s impact, motivating them to continue doing well. Reaching milestones and achieving goals will also lead to greater job satisfaction and further motivation.

9. Personalized development plans

Offer tailored development plans to give employees a structured path for professional growth, and show that the organization values them and their potential. Being able to envision a future with the company creates a sense of belonging and incentivizes staff to do well. 

10. Training and upskilling opportunities

Provide training and upskilling opportunities to improve employees’ job performance. When employees expand their capabilities, they build the competence, confidence, and motivation necessary to perform at a higher level and take on new challenges.

11. Company-paid learning 

Making external educational resources available to staff is a great way to motivate them, as it shows the company wants to invest in their development. This typically entails covering the cost of courses, study materials, certifications, seminars, and conferences.

12. Cross-training

Being able to fill more than one role opens people up for new opportunities, increasing their professional value and preparing them for potential advancement. A cross-training program can support this and motivate staff to focus more on their professional growth.

13. Internal promotions

Hiring internally, primarily through promotions, shows that career advancement is possible. Support this by initiating internal candidate precedence — establish a policy that prioritizes qualified internal applicants for open roles before recruiting externally.

Work-life balance

61% of workers find it highly important to have an employer that respects the need for a healthy work-life balance. Clear boundaries between their personal and professional lives give employees the energy and motivation they need to perform at their best in their jobs.

14. Flexible working hours

Giving employees control over how they work allows them to expend maximum effort without neglecting personal obligations. If possible, incorporate flexible work choices, such as self-scheduling, staggered office hours, condensed workweeks, and job-sharing.

15. Remote work options

Offer remote or hybrid work wherever possible, as employees appreciate the autonomy and flexibility it offers them. In fact, 69% of employees have changed or considered changing jobs in the past year, with 67% citing remote work options as the top factor.

16. Discretionary time off

Grant employees paid days off to use at their discretion, as this allows them time away from work to handle their other responsibilities and needs. Not only does this contribute to a better work-life balance, but it also supports employees’ mental health and wellbeing.

17. Wellness initiatives

Investing in employee wellbeing can drive retention and motivation. Advocate for wellness resources that go beyond work, such as stipends for fitness wearables, healthy cooking classes, financial advisory seminars, and incentives for cycling to work.

Culture

Organizational values and practices shape company culture. A positive, supportive culture is likely to increase employee retention, motivation, and engagement. As an HR professional, you have the power to influence organizational culture via its impact on employee experience. 

18. Coherent communication channels

Managers and leaders who communicate clearly and promptly build trust in employees. Be sure to inform all new hires of all internal communication channels and collaboration platforms, and use tools like pulse surveys to encourage open dialogue and feedback.

19. Transparency from leadership

Leaders motivate employees when they’re accessible, approachable, and relatable. Have them take part in townhalls and Q&A sessions, and make major announcements. This inspires confidence in staff and helps them feel more connected to leadership.

20. Celebrate workplace traditions

Customary events and celebrations that employees can look forward to and take pride in unite them with a shared purpose and sense of community.  To encourage this, help organize events such as:

• Company milestone celebrations (i.e., founding anniversary, revenue goal achievement, new product launch, winning an industry award)
• Employee achievement award ceremonies/parties
• Holiday and seasonal festivities
• Annual group excursions
• Community service projects.

21. Employee resource groups

Employee resource groups motivate staff by providing emotional support, networking opportunities, and career development resources. Establish such groups to connect those with common identities or interests, and promote a sense of belonging.

22. Up-to-date equipment and tools

It’s hard to be motivated at work if slow, outdated equipment and tools hinder your ability to perform tasks. Work with leadership to get your organization to invest in software and tools that can optimize employees’ output and motivate them to keep improving.

23. Discreet correction and discipline

Publicly criticizing employees embarrasses them and makes others uncomfortable. Train managers and your HR team to conduct corrective feedback and discipline privately to maintain a culture of respect and discretion, and motivate employees to improve.

24. Stand by employees

Employees in customer-facing roles need assurance that the company will advocate and protect them in adverse circumstances. Arrange training not just for staff on handling unreasonable customers but also for managers on supporting employees in these situations.

25. Avoid nepotism

Family or other close personal relationships that lead to special privileges or unqualified hires and promotions drain employee motivation. To avoid this, your recruitment policy must clearly detail the company’s interview, hiring, and selection processes, and apply the same criteria to all candidates.

26. Fairness and neutrality

Employees become discouraged when treated unfairly. To ensure fairness, use objective employment criteria, be impartial in conflict resolution, engage in transparent and equitable salary practices, and enforce stringent non-discrimination policies.

27. Team-oriented environment

Conscientious, enthusiastic collaboration can ease individual burdens and result in team successes. To ensure consistent, effective teamwork, encourage leaders to build teams with diverse perspectives, complementary hard and soft skills, and a strong work ethic.

28. Determine demotivating factors

Reinforce employee motivation by finding out what demotivates employees. Use feedback and workplace behavior observation (e.g., diagnostic tools, anonymous surveys, exit interviews) to identify and address demotivation factors and failing systems.

29. Stick with what works

Significant alterations to workflows and processes can take their toll on employees’ efficiency and demotivate them. Make sure organizational changes are absolutely necessary and will help improve both workforce and business outcomes in the long run.

30. Avoid surprises

Springing major announcements on employees with no prior information leads to employee resistance and demotivation. To avoid this, prepare them gradually for transformation by sharing information promptly and in clear, sufficient detail.

31. Safeguard culture

Creating a workplace culture that motivates employees is not enough — you must also safeguard it. Model behaviors and attitudes that support the culture, gather employee feedback to monitor its pulse, and make necessary adaptations to keep it going strong.

6 steps to develop employee motivation strategies

Here are some steps you can take to develop dynamic and effective employee motivation strategies:

Step 1: Identify motivation drivers

Use employee surveys or feedback sessions to determine the collective sources of motivation within your workforce. Be sure to consider both intrinsic (internal satisfaction) and extrinsic (external incentives) motivators, so you can decide on the ideal combination to boost motivation. 

Step 2: Segment the workforce

Blanket motivation techniques are unlikely to be effective throughout your organization. Customize your strategies to meet the needs of different individuals, teams, and departments. This shows them the company is invested in their wellbeing and motivates them to do well.

Step 3: Set clear goals

Decide what makes your employee motivation strategies successful, and how to measure this success. You can tie it to performance, retention, and engagement metrics, which should give you a clear picture of how well your strategies work and where they may need improvement.

Step 4: Keep motivation efforts organized

Use a calendar, spreadsheet, or software to systematically manage ongoing activities, such as monthly or quarterly recognition, feedback surveys, and events. Setting up automated reminders and generating reports is especially helpful in keeping your efforts organized.

Step 5: Track what works

Use data to assess the impact of your organization’s employee motivation initiatives. To monitor motivation levels, look at employee engagement scores, turnover and absenteeism rates, performance metrics, and participation rates in the motivation initiatives.

Step 6: Stay flexible

Based on relevant data and employee feedback, adapt your approach and tweak strategies. A strategy that may have worked very well initially may not be as successful a few months later, so it’s important to constantly monitor the impact of your initiatives and adjust them when needed.

To sum up

Motivation isn’t a one-off effort but a continuous process that needs attention and consistency. While salary and benefits are important, employees also want to feel recognized, trusted, and supported in their growth. Employers who meet these needs typically have an engaged, high-performing workforce.

As an HR professional, you play a critical role in shaping that environment. Use the ideas and advice in this article to figure out what works for your teams and fine-tune your approach to cater to your workforce better. Beyond successfully completing tasks, motivated employees also help drive the entire organization forward.

The post 31 Employee Motivation Ideas To Increase Engagement & Retention appeared first on AIHR.

This article discusses core values in the workplace, their importance, 27 examples of such values, and how you can help promote them in your workplace to drive workforce morale and positive business outcomes.

Contents
What are core values in the workplace?
Why are core values necessary in the workplace?
27 examples of core values in the workplace
How to promote core values in the workplace: 5 HR tips

What are core values in the workplace?

Core values in the workplace (also called organizational values) are the fundamental beliefs and guiding principles that define how people in an organization interact with one another, make decisions, and achieve business goals. They are shared beliefs that inform everything, from leadership style to how a company handles conflict or responds to market changes.

Core values can influence strategy by guiding long-term planning, decision-making, and setting expectations for teamwork and communication. Values like transparency or empathy directly impact customers’ perception of and interaction with your company. Core values also set the workplace’s cultural tone, from onboarding to offboarding.

Why are core values necessary in the workplace?

Core values in the workplace are necessary for the following reasons:

• Consistency and trust: When your workforce knows what the company stands for, they can trust that decisions are made thoughtfully and fairly. As such, there’s less second-guessing, and staff feel more secure in their roles.
• Stronger employee alignment and performance: Employees who connect with organizational values and understand their role in the company’s bigger picture are more likely to be engaged and collaborative.
• Conflict resolution and prevention: Strong core values provide a solid basis for resolving disagreements. These values can offer direction in conflict, challenges, and uncertainty.
• Improved reputation and employer brand: Having strong core values and living up to them helps your company build a stronger, more authentic brand, which can attract and retain more top talent.

HR’s role in promoting core workplace values

Promoting a company’s values is a key HR function that allows you to add significant value to your organization. HR’s role in promoting core workplace values includes the following responsibilities:

• Hiring: Include core values in job descriptions and interview questions to give candidates an indication of what’s essential to your company. This can increase your chances of attracting talent aligned with those values.
• Onboarding: Introduce values early and explain their relevance in day-to-day work to help new hires better understand company culture, give their work greater meaning, and highlight the importance of embodying such values.
• Training and development: Reinforce values through ongoing learning programs. Interactive training can help employees better understand the company’s core values and why they matter in their daily job activities. 
• Performance management: Define goals and expectations and recognize and reward behaviors aligned with values. This will help reinforce core values, increase staff morale and performance, and motivate and engage employees.
• Culture leadership: Model the values yourself. It’s critical to lead by example and champion leaders who do the same. If employees don’t see their leaders modeling the values, they are unlikely to do so themselves.

27 examples of core values in the workplace

The following 27 examples of core values in the workplace can inspire your approach to determining and driving your organization’s principles. Each value includes a real-life company example to illustrate how that organization embodies the value in question.

Example 1: Integrity

Integrity means doing the right thing consistently, even when it’s difficult or unpopular. Companies that lead with integrity build stronger relationships with employees, customers, and partners because this shows people can count on them to be honest and accountable.

Real-life example

Patagonia uses sustainable materials, promotes fair labor practices, and urges customers to buy only what they need — even if it means lower sales. It’s transparent about its supply chain and environmental impact, and has donated its $10 million tax cut to environmental groups. The brand has also transferred ownership to a trust to ensure future profits support climate causes. 

Example 2: Innovation

Innovation involves encouraging creativity, experimentation, and continuous improvement to stay ahead of the current and competitive. It also allows companies to adapt and thrive in changing environments, and motivates employees to learn and develop on the job.

Real-life example

Google cultivates a culture of innovation with its “20% time” initiative, which lets employees spend part of their workweek on passion projects. Many of these have led to breakthrough products like Gmail—developer Paul Buchheit began working on it during his 20% time, and it eventually became one of the world’s most widely used email services.

Example 3: Teamwork

Teamwork is about strengthening and prioritizing collaboration, mutual support, and collective success over individual gain. It creates synergy and improves problem-solving processes, as well as stronger relationships among team members and team leads.

Real-life example

Atlassian embodies this core value with products like Jira, Confluence, and Trello, which enable better collaboration, communication, and project management. Internally, it promotes a strong team culture through cross-functional collaboration. Its Team Playbook reflects its belief in transparency and offers strategies to improve team health and performance.

Example 4: Accountability

Accountability is about taking responsibility for your actions and results and holding others and yourself to high standards. While mistakes are unavoidable occasionally, what matters is taking responsibility for your part in them and learning from them to avoid repetition.

Real-life example

Amazon uses leadership principles like ownership to instill a strong sense of accountability in employees at all levels. Employees are expected to take full responsibility for their work and results, while teams set clear goals, track progress with data, and fix problems at the root. Everyone is expected to deliver on promises and own both successes and failures.

Example 5: Customer focus

Customer focus prioritizes understanding and exceeding customer expectations. It creates loyalty and long-term relationships.

Real-life example

Zappos empowers employees to go above and beyond when serving customers, even if it means going off-script. Its support team is available 24/7, with no scripts or time limits, and is encouraged to do whatever it takes to make customers happy, including sending flowers or helping with non-Zappos purchases.

Example 6: DEIB

DEIB (Diversity, Equity, Belonging, and Inclusion) promotes a workplace that celebrates differences and helps a diverse workforce thrive. It ensures that all staff feel valued, respected, and empowered regardless of immutable traits like ethnicity, gender, or sexual orientation.

Real-life example

Salesforce invests heavily in DEIB programs and regularly publishes diversity reports, aiming for equity at all levels. It created an Office of Equality, supports employee-led groups, and practices inclusive hiring. It also tracks progress with data tools like equality dashboards and works to improve representation across the company.

Example 7: Sustainability

Sustainability entails environmentally conscious operations that prioritize conservation. It requires accountability for and transparency on governance, as well as environmental and societal impact. This includes carbon emission reduction, ethical resource use, and fair treatment of workers and communities.

Real-life example

Ben & Jerry’s integrates environmental and social missions into its business model, advocating for climate justice and sustainable sourcing. It uses fairtrade-certified ingredients, supports sustainable farming, works to reduce its carbon footprint through eco-friendly packaging and cleaner energy, and partners with non-profits to help drive climate action.

Example 8: Respect

Respect ensures individuals treat one another with dignity, listen actively, and appreciate different viewpoints. This core value is essential in the workplace as it builds trust, improves teamwork, and creates a positive environment where everyone feels valued and heard.

Real-life example

Microsoft emphasizes a respectful, inclusive company culture that supports open dialogue and psychological safety. It supports diverse perspectives through inclusive hiring and employee resource groups. The company also sets clear standards for behavior, addresses bias, and creates a workplace where everyone feels valued and heard.

Example 9: Empathy

Empathy involves understanding and sharing others’ feelings, leading to stronger interpersonal relationships and a more compassionate workplace. It helps employees feel safe and supported, making them more likely to share their opinions and any issues they may face.

Real-life example

LinkedIn strongly emphasizes practicing empathy, particularly when managing teams and responding to employee needs. It encourages leaders to listen, understand challenges, and lead with compassion. The company offers one-on-one coaching to all employees, not just executives, helping staff navigate challenges like burnout and impostor syndrome.

Example 10: Growth mindset

A growth mindset embraces challenges, sees failure as a learning opportunity, and values continual development. This value is important because it encourages learning, resilience, and continuous improvement, helping teams adapt and succeed in changing environments.

Real-life example

Netflix fosters a high-performance culture that encourages learning and adapting quickly to change. Its famous “freedom and responsibility” approach empowers teams to make decisions and learn from outcomes rather than fear mistakes. This mindset helps Netflix stay innovative and competitive in the streaming industry.

Example 11: Transparency

Transparency involves open communication, honest information sharing, and building trust through transparency in decision-making. It also inspires confidence in employees and leadership, leading to better collaboration and business outcomes.

Real-life example

Buffer is known for radical transparency, openly sharing company information — including salaries, revenue, and internal decisions — online with both employees and the public. It maintains a public salary calculator, publishes diversity reports, and discusses challenges and mistakes on its blog, reinforcing a culture of honesty and clarity.

Example 12: Excellence

Excellence drives high performance, continuous improvement, and pride in one’s work. It means setting high standards, paying attention to detail, and always striving to improve (both individually and collectively). This leads to better results and long-term success.

Real-life example

Apple’s laser focus on product design and user experience reflects a relentless pursuit of excellence. The company is known for its keen attention to detail, from product engineering to packaging, and encourages a culture of precision and craftsmanship. It also pushes employees to challenge limits and constantly improve, with a strong focus on quality over convenience.

Example 13: Curiosity

Curiosity inspires learning, innovation, and problem-solving. It involves asking questions, exploring new ideas, and being open to different perspectives. Curious employees are more likely to find better solutions, adapt to change, and help their teams grow.

Real-life example

3M focuses on curiosity to drive innovation, with its 15% Culture encouraging employees to dedicate 15% of their time to experimental projects. This policy has resulted in the invention of breakthrough products like Post-it Notes and Scotch Tape, which became two of 3M’s most prominent products and significantly boosted its innovation portfolio.

Example 14: Cost-consciousness

Cost-consciousness helps companies use resources wisely, avoid waste, and stay financially healthy through awareness of expenses and spending decisions. It also means finding ways to do more with less, supporting long-term growth, and keeping businesses competitive.

Real-life example

IKEA makes its products affordable and sustainable through smart design, flat-pack packaging, and efficient supply chains. It also encourages employees to find low-cost solutions to help the business stay lean while offering customers value. As part of its commitment to maintaining low costs, frugality is a key part of IKEA’s culture, from travel policies to product development.

Example 15: Adaptability

Adaptability helps teams stay effective amid change by ensuring they’re open to new ideas, can handle unexpected events, and can quickly adjust to shifting priorities. Adaptable employees keep businesses flexible, resilient, competitive, and ready to grow.

Real-life example

Zoom adapted rapidly during the COVID-19 pandemic, scaling operations and addressing new customer needs virtually overnight. It also improved its security features. Internally, Zoom supports flexible work and encourages teams to respond quickly to feedback as part of a company culture that embraces change and continuous improvement.

Example 16: Empowerment

Empowerment gives employees the confidence and authority to make decisions, solve problems, and take ownership of their work. It entails providing the right tools and support and encouraging initiative, leading to better engagement, performance, and team morale.

Real-life example

Spotify uses agile Squads, Tribes, Chapters, Guilds, Trios, and Alliances to give teams autonomy to make decisions and manage their own projects, fostering ownership, experimentation, and speed. This structure encourages creativity, fast problem-solving, and a strong sense of responsibility, helping the company stay agile and innovative.

Example 17: Collaboration

Collaboration unites people to share ideas, solve problems, and achieve common goals more effectively. This means working as a team, communicating openly, and respecting each other’s strengths, which leads to better results and a stronger, more connected work culture.

Real-life example

Slack’s product fosters collaboration, and the company culture is designed around cross-team interaction and shared goals. It uses its own product to promote open communication, cross-team alignment, and quick decision-making. This focus on seamless, transparent collaboration helps both its employees and customers work better together.

Example 18: Responsibility

Responsibility reflects a company’s commitment to doing what’s right for its employees, customers, community, and environment. It ensures everyone, especially leadership, follows through on their tasks, owns their actions, and contributes to overall business success.

Real-life example

Through its Sustainable Living Plan (USLP), Unilever prioritizes social and environmental responsibility. The plan sets clear goals (e.g., cutting greenhouse gas emissions, using sustainable raw materials, and supporting fair labor practices), and Unilever publishes regular progress reports to demonstrate taking responsibility for its social and environmental impact.

Example 19: Trust

Trust builds strong working relationships, encourages open communication, and helps teams work smoothly. This value is vital, as being honest, keeping promises, and relying on one another to do the right thing typically leads to a more positive and productive environment.

Real-life example

The Motley Fool trusts its employees by allowing them to manage their schedules, work remotely, and take unlimited vacations. The company encourages open communication and shares business information transparently. This culture of trust helps employees feel valued and motivated, leading to strong performance and loyalty.

Example 20: Wellbeing

Prioritizing physical, mental, and emotional wellbeing creates a happier, more productive workforce. This typically involves making a healthy work environment, offering support (e.g., flexible schedules and mental health resources), and encouraging work-life balance.

Real-life example

SAP ensures employee wellbeing with flexible work options, mental health support, and wellness programs focused on physical and emotional health. It provides resources like counseling, fitness benefits, and regular check-ins to support employee needs. SAP also promotes a culture of balance and care, recognizing that healthy employees are key to long-term success.

Example 21: Learning

A learning culture promotes continuous education, skills development, and knowledge sharing, helping employees grow their skills, stay up to date, and adapt to change. This often involves training, feedback, and new challenges, leading to stronger teams and business success.

Real-life example

Deloitte University is a central hub for employee learning and development (L&D), offering in-person and virtual training programs to build leadership, technical, and soft skills. It allows all employees to grow through hands-on learning, collaboration, and mentorship. This reflects Deloitte’s commitment to investing in its people and preparing them for future challenges.

Example 22: Passion

Passion drives motivation, creativity, and a strong commitment to doing quality work. It entails caring deeply about your role, taking pride in what you do, and bringing energy that inspires others, leading to better results and a more engaged team.

Real-life example

Nike embodies this value by inspiring employees and customers through its commitment to sport, innovation, and empowerment. It encourages employees to channel their love for sports and creativity into bold, innovative ideas and products, creating a workplace that channels passion into better performance and business outcomes.

Example 23: Courage

Courage empowers people to speak up, take smart risks, and face challenges head-on. It involves being honest even when it’s difficult, doing the right thing (and encouraging others to do the same), and pushing for change. This helps teams grow stronger and more resilient.

Real-life example

Airbnb shows courage by supporting refugees and immigrants through its Open Homes program. It launched Airbnb.org to provide shelter for people in crisis, and offered free stays to those affected by the 2017 U.S. travel ban. The company also pledged to house 100,000 refugees, and partners with groups like the International Rescue Committee to make it happen.

Example 24: Humility

Humility helps people stay open to feedback, learn from mistakes, and value others’ ideas. It means putting team success ahead of ego, admitting when you’re wrong, and always looking to grow. This often results in better collaboration and stronger leadership.

Real-life example

Shopify encourages humility through a culture where learning and growth matter more than ego. It encourages employees to ask questions, admit when they don’t know something, and improve through feedback. Leadership emphasizes servant-style management, where managers support their teams rather than control them, reinforcing a humble and team-first mindset.

Example 25: Efficiency

Efficiency is crucial in the workplace because it helps teams get more done with less time, effort, and resources. It entails working smart, staying focused, and streamlining processes to reduce waste, leading to better results, faster progress, and lower costs.

The Toyota Production System (TPS) has revolutionized efficiency through lean manufacturing and continuous improvement (Kaizen). Through this system, Toyota focuses on making only what’s needed, when it’s needed, and reducing anything that doesn’t add value. This helps the manufacturer build high-quality cars quickly and cost-effectively.

Example 26: Purpose-driven

Being purpose-driven entails aligning daily work with a larger mission. This boosts engagement, guides decision-making, and helps teams stay focused on long-term impact. It also gives employees a clear sense of meaning and motivation beyond profits.

Real-life example

TOMS practices being purpose-driven by building its business around social impact. It started with its One for One model, which involved donating a pair of shoes for every pair sold. Though the program is now defunct, the company has since expanded its mission to support mental health, access to education, and equity initiatives, giving a third of its profits to grassroots efforts.

Example 27: Fairness

Fairness entails treating people equally, making decisions based on merit, and consistently and transparently applying rules, opportunities, and rewards. Doing so builds trust, reduces conflict, and helps everyone feel respected and valued, increasing employee morale.

Real-life example

Accenture ensures fairness through equal opportunity, pay equity, and inclusive hiring. Additionally, it helps clients design transparent, unbiased, and inclusive AI systems and has developed frameworks to detect and reduce algorithmic bias. It also trains its teams on ethical AI practices to ensure fair AI use that benefits all users, not just a select few.

AIHR’s core values

Like the companies mentioned above, AIHR has its own set of clearly defined core values that have helped shape the company’s culture and guide its approach to all aspects of the business. These five core values and what they entail are:

• Ownership: Taking initiative, owning both successes and failures, and proactively solving problems. It also means celebrating the initiative and not just the outcome, delegating authority and enabling colleagues, and leading by example.
• Excellence: Aiming to over-deliver by always giving 100% and refusing to settle for anything besides the best. This value also involves taking pride in one’s work, and continuously improving work processes.
• Data-driven: Being data-driven entails using data to make unbiased, informed decisions, and sharing data that leads to conclusions. At the same time, it’s important to challenge available data to ensure it’s accurate and up-to-date.
• Trust: Delivering on commitments, trusting one another to make the right decisions, and always assuming good intentions. AIHR models this by encouraging autonomy, transparent communication, and openness about vulnerabilities.
• Hunger to grow: The hunger to grow involves continuously improving daily, fueling the desire to learn, being unafraid to fail and celebrate mistakes, and being proactive in sharing feedback and keeping one another accountable.

How to promote core values in the workplace: 5 HR tips

Here are some key actions you can take to promote core values in the workplace:

1. Integrate values into hiring: Use behavioral interview questions to assess each candidate’s alignment with company values. This ensures you don’t just hire for skills but also for cultural fit and contribution.
2. Recognize and reward aligned behaviors: Publicly recognize and reward employees who demonstrate core values, and tie recognition programs to specific value-based behaviors.
3. Mention values in daily operations: Reinforce values in staff meetings, emails, and performance reviews to keep them at the top of everyone’s mind.
4. Offer training tied to core values: Develop training sessions that build skills and behaviors around each value (e.g., empathy, leadership, or teamwork.
5. Create a strong value statement: Write a strong and clear value statement that forms the foundation of your company’s work culture. Define your mission, determine your values, use clear language, and embed the values across the board.

To sum up

Whether you need to add to your culture or are just starting to define it, core values in the workplace are more than just corporate slogans; they influence your work environment and employer brand.

Start by understanding why core values are important, identifying the right ones for your business, and intentionally promoting them through hiring, training, and daily behavior. This will help you create and support a workplace where both employees and the business thrive.

The post 27 Examples of Core Values in the Workplace To Help Inspire & Promote Yours appeared first on AIHR.

The most effective organizations no longer treat redesign as a one-off event but as an ongoing process. In this article, we’ll look at how traditional organizational design models are still useful for diagnosing misalignment and how newer, more flexible models are helping companies adapt to continuous change.

Contents
What is organizational design?
What is the purpose of organizational design models?
Diagnostic models
Transformational models
Experimental models
The Flexible Organization Model
Choosing an organizational design model

What is organizational design?

Organizational design refers to how an organization is structured to execute its strategic plan and achieve its goals. This means the optimal type of organizational design is determined by the organization’s strategy.

Organizational design is creating the best structure for:

• Strategy execution in relation to the external environment
• The organization’s unique internal strengths, weaknesses, competence, and leadership style.

There’s no single organizational design method that works for everyone. Each organization has its own goals, culture, and constraints, so copying another company’s structure or approach rarely delivers lasting results. That’s why organizational design isn’t about following a fixed formula. It’s about using frameworks to guide thinking and tailor solutions to the specific context.

What is the purpose of organizational design models?

An organizational design model is a conceptual framework an organization uses to:

• Diagnose its current state
• Visualize a future state that will succeed
• Establish an identity—purpose, value, and culture—to help the organization thrive.

Simply put, these models are tools for diagnosis, planning, and alignment that help leaders make informed choices about how to structure work, roles, and relationships to support the organization’s goals.

This has become more important than ever. Up until the early 2000s, companies typically undertook organizational redesign only every few years or even decades. For most executives, it was something they’d encounter only a handful of times in their careers. But with the rise of automation, globalization, and rapidly evolving business models, the pace of change started to pick up fast.

By the mid-2010s, organizational change had become more frequent and far-reaching. A McKinsey study showed that 60% of organizations had redesigned themselves within the previous two years. Another 25% had done so three years before that.

What once felt like a rare event is now constant. The time between changes has shortened, and the scale of those changes has expanded. Organizations are no longer tweaking org charts—they’re rethinking how work gets done, how decisions are made, and how people collaborate across functions and geographies.

Some businesses are still responding reactively, adjusting structures only when pressures force their hand. But the most resilient and high-performing organizations have adopted a different mindset: they treat change as a core capability, not a disruption. They embrace adaptive structures, fluid teams, and design models that support continuous evolution rather than rigid stability. Organizational design models offer a way to navigate that complexity, helping leaders not just respond to change but build organizations that can keep changing in thoughtful, strategic ways.

Here’s a useful overview of organizational design models:

Let’s take a closer look at each of these models.

Diagnostic models

Most of the well-known organization models in use today originated in the 70s and 80s. Their creators were moving organizations from the industrial age hierarchical models to flatter, more responsive structures.

Organizations have different priorities and challenges in organizational design. Understanding traditional organizational design models can help you choose the right tools for diagnosing and changing your operating models.

McKinsey’s 7S Design Model

Probably the most well-known and used design model has been the McKinsey model.

Its purpose is to analyze organizational effectiveness through the interactions of seven key elements. You do that not by examining any one element or viewing them only in relation to strategy, but as they balance and align together as a whole.

First, the “hard” elements of structure, strategy, and systems:

• Strategy defines how the company will compete in the market.
• Structure is the way it organizes business functions, reflected in the organization chart.
• Systems are the decision framework, processes, and procedures that determine how the company does business.

These elements are easier to manage than the “soft” elements of skills, staff, style, and shared values:

• Skills are the organization’s ability to perform, usually defined in a competency framework that aligns them from organizational competencies to individual knowledge, skills, and abilities, and the analytics to manage them.
• Staff refers to the shape of the workforce and how it is managed.
• Style refers to the way top-level leaders manage the organization and the symbolic value they present to stakeholders.
• Shared values are the norms and standards that guide behavior at every level of the organization, and thus, form the core of the 7S model.

Advantages of the 7S Model

• The McKinsey model’s value balances the critical elements instead of focusing only on strategy and structure.
• It can be beneficial during mergers and acquisitions to bring functional elements and processes together.
• 7S also helps apply policies, regulations, and strategies formulated by business leaders
• You can use the model to develop analytics to measure the impact of changes.

Disadvantages of the 7S Model

• The McKinsey model does not include an action plan for change management. It is a static analysis of the balance of all the organizational elements.
• There is some criticism that it is focused inward and not considering external factors. However, strategy formulation by definition includes analysis of externals.
• The model doesn’t explicitly explain organizational effectiveness or performance.

The 7S model has been criticized for not being specific in identifying gaps in strategy or execution. We should bear in mind that McKinsey, like other consulting firms, developed its models as frameworks for organizational design consulting. It’s unlikely that its original intent had anything to do with do-it-yourself organizational change.

Jay Galbraith’s Star Model™

The Star Model is a framework for influencing employee behavior through a “series of design policies” controllable by management:

• Strategy determines goals and objectives, values and missions, and the “basic direction of the company”. It establishes the “criteria for choosing among alternative organizational forms” to enable strategists to choose the relative importance of activities.
• Structure determines where power and authority lie in the organization based on analysis in four areas:
  • Specialization refers to job specialties required to perform work.
  • Shape describes the number of people in the organization units or span of control at each level.
  • Distribution of power can be vertical, determining how flat or hierarchical the organization is; it can also be lateral, referring to the movement of power to a department dealing with critical issues.
  • Departmentalization is the formation of the organization units on the dimensions of functions, workflow processes, markets, customers, and geography.
• Processes are the flow of information and decision-making processes across the organizational structure. Vertical processes allocate funds and talent, while horizontal (lateral) processes are the workflow.
• Rewards align employee goals to organizational goals. To do so, they must align with the other design components.
• People refers to aligning human resources policies and functions to develop both people and organizational capabilities.

Advantages of the Star Model

• Galbraith supports his model with an extensive collection of books and guides.
• The model supports a detailed description of elements and the interaction between them.

Disadvantages of the Star Model

• It does not address culture and purpose as motivating factors. Instead, it relies on a seemingly Pavlovian approach to human motivation.
• The model does not include inputs and outputs.

Weisbord’s Six Box Model

Marvin Weisbord’s model, presented in 1976, comes from his work on creating “a working tool anybody can use”. He wrote that it helped him to rapidly expand his diagnostic framework “from interpersonal and group issues to the more complicated contexts in which organizations are managed.”

By envisioning the six elements as blips on a radar screen, he shows how to manage the relationship, just as air traffic controllers work aircraft distance, altitude, and velocity. Like other organizational design models, the Six-Box model is a diagnostic tool designed to understand relationships and balance elements.

1. Purpose: What business are we in?
2. Structure: How do we divide up the work?
3. Relationships: How do we manage conflict (coordinate among people using what technologies)?
4. Rewards: Is there an incentive for doing all that needs doing?
5. Leadership: Is someone keeping the boxes in balance?
6. Helpful mechanisms: Do we have adequate coordinating technologies?

Weisbord’s approach is similar to Galbraith’s. Either can be helpful as a diagnostic tool. Like Galbraith, Weisbord supports the use of his models through an extensive body of writings and guides.

Advantages of the Six Box Model

• Examines information and input from both internal and external sources.
• Analyzes communication structures to process information effectively.
• Each box begins the discussion with diagnostic questions to frame the analysis.
• It starts with purpose, which has proved to be critical in later models.

Disadvantages of the Six Box Model

• The model does not appear to speak to balance, which may create a risk of focusing too much on some elements at the expense of others.

Goold & Campbell’s Model

This model is a tool to assess how well an organization’s design (its structure, roles, and processes) supports performance. The idea is that good design is context-specific—it should “fit” the organization’s strategic intent, people, and environment. Goold & Campbell suggest using four fit drivers to assess that context, along with five design tests (or “good design principles”) to evaluate quality.

The four fit drivers describe the main factors that shape how an organization should be designed:

1. Product-market strategies: These are the choices a business unit makes about how to win in its market. For example: Should it be fast and innovative? Or low-cost and operationally tight? Different strategies require different structural priorities—speed might need autonomy; efficiency might need tight coordination.
2. Corporate strategy: This is about how the broader organization (the corporate center) relates to its business units. Is it highly involved or mostly hands-off? Does it centralize capabilities or let units operate independently? The design must reflect how much the corporate center needs to integrate or control.
3. People: This includes the leadership team, workforce capabilities, preferences, and cultural norms. For instance, a high-trust, entrepreneurial workforce might thrive with more decentralization; a risk-averse group might need more structure.
4. Constraints: These are external or internal limits, like regulations, legacy systems, geographies, or even existing cultures. Design needs to work within these limits, not ignore them.

A good structure will be shaped by all four, not just one. For instance, you might want to decentralize, but if systems or people aren’t ready, you’ll need to adapt the design.

After considering the four fit drivers, Goold & Campbell suggest considering five good design principles to help assess whether the structure will support performance.

• Specialization principle: Similar tasks and roles should be grouped in a way that builds efficiency, deepens expertise, and reduces duplication of effort.
• Co-ordination principle: The design should enable the right flow of information, decision-making, and collaboration across teams, units, and functions.
• Knowledge and competence principle: Expertise should be developed, located, and applied where it’s needed, especially in roles critical to delivering value.
• Control and commitment principle: Structures should balance oversight with autonomy, creating clarity around accountability while supporting employee engagement.
• Innovation and adaptation principle: The organization should be able to adjust its structure, processes, and capabilities in response to change, without requiring a full redesign each time.

Together, these principles help leaders evaluate whether their structure will actually work in practice.

Advantages of Goold & Campbell’s Model

• Encourages structural alignment with strategic context by focusing on four fit drivers.
• Bridges diagnosis and design, helping organizations identify misalignments and evaluate how to improve both fit and performance.
• The five design principles provide a well-rounded checklist to assess whether the structure supports specialization, coordination, adaptability, and engagement.

Disadvantages of Goold & Campbell’s Model

• Requires a strong understanding of organizational context, which can make it hard to apply without experience or external support.
• Some principles can be difficult to measure objectively.

Transformational models

As the practice and methods of organizational design have matured, the focus has been on managing successful change more than diagnostics.

While change models can still be excellent diagnostic tools, they are more concerned about the journey to greater effectiveness. They are also more likely to concentrate on the human factors of organizational performance.

Transformation Model

The Center for Organizational Design created the Transformational Model in 1995. It is an organizational design framework with two purposes: to help leaders understand their organizations and guide a successful redesign.

The model comprises eight variables that form the context of an organization. The objective is to understand and manage the variables to achieve balance.

Environment. The organization is a living system that can only survive if it maintains “harmony with its external environment.” That environment includes the competition and “the legal, social, and political climates.”

Strategy is about how the organization will compete by adding value for customers. It includes performance targets and a system for growth. It’s about where the organization is going.

Core Process is the flow of work in the organization and all enabling technology and resources. It organizes all other business activities around core processes.

Structure describes how the business organizes people around business processes. It helps us understand boundaries, roles, responsibilities, and reporting relationships.

Systems are the activities and tasks that organize and coordinate work. We are probably more accustomed to calling them functions. Interestingly, the Center’s something of a side note: “the most effective systems are often the simplest.”

Culture is how the organization really operates and how well it translates strategy into practice.

Results are the measures of how well the organization functions. Well-designed metrics are the basis for understanding performance.

Leadership sets goals and monitors results, defines the vision and strategy, and designs the organization.

Advantages of the Transformation Model

• It creates a better understanding of how people respond to change.
• The Center provides a seven-phase process for organizational design.

Disadvantages of the Transformation Model

• The one-way flow doesn’t emphasize the way all eight elements interact.

The Congruence Model

The Congruence Model, also known as the Nadler-Tushman Model, presents a six-step plan for closing the gaps in how the elements of an organization work together. It examines communications and information flow to understand the congruence of four components.

• Work is the tasks employees carry out, and whether they align with company objectives.
• People refers to skills and knowledge, experience, and education in relation to compensation and development of their potential.
• Structure creates consistency between what the organization wants and what it does.
• Culture is values and norms, behavioral patterns, and both written and unwritten rules.

Advantages of the Congruence Model

• The model is simple and easy to follow.
• It includes a discussion of both formal and informal organizational elements.
• It requires congruence (being in agreement) among the boxes.

Disadvantages of the Congruence Model

• Lack of detail in the model may lead to the omission of critical elements.

The Burke-Litwin Organizational Change Framework

The organizational change framework could be used as a diagnostic tool, but its primary purpose is to guide organizational change. 

Burke-Litwin is a causal change model designed to show where change happens and flows through the organization.

The framework is much more complex and complete than most organizational design models. It groups 12 factors into five groups. Each group is affected by the group above and below it.

• External Factors are at the top of the groups because they create the need for change.
• Strategic Factors include strategy/mission, leadership, and organizational culture.
• Operating Factors are structure, management practices, and systems (including policy and procedures).
• Individual Factors are work unit climate, skills and tasks, motivation, and individual needs and values.
• Outputs include both individual and organizational performance measures.

Advantages of the Burke Litwin Organizational Change Model

• It includes essential elements of human motivation, work climate, management practices, and individual needs and values.
• A feedback loop shows the relationship between individual skills and actions and strategy.
• A feedback loop indicates that individual needs and values affect and are driven by organizational culture.

Disadvantages of the Burke Litwin Organizational Change Model

• Some will find it too difficult to grasp quickly. On the contrary, others may see the detail as an advantage.

Experimental models

The science of organizational design is advancing as rapidly as change itself. Here, we present two organizational design models we think deserve your consideration. 

McKinsey Helix Model

When McKinsey discovered in 2020 that modern matrix and agility models made businesses too complicated, slow, and inflexible, they developed the helix organizational model.

They named the model on the concept of the double helix structure of a DNA molecule. It entails creating two distinct, parallel lines of accountability that are equal and intertwined but different.

The device people leadership into two sets of tasks:

• The first is value creation (what gets done), overseeing day-to-day work, and satisfying the customer. This idea makes us wonder if Sandy Ogg’s Talent to Value concept influenced their thinking. Ogg’s vision was to make the organization’s highest priority to provide the best possible talent wherever the organization creates value.
• The second is capabilities (how work gets done). Develop people and resources, set standards, and drive excellence.

As in matrix organizations, a person reports to two managers, but the managers are not in conflict with regard to that person’s time and or attention. They have separate functions.

The helix is an advanced — and, to a degree, experimental — design to most organizations, but there have been early successes.

McKinsey offers four recommendations to ensure success:

• Make resource planning transparent, flexible, and focused on value, requiring frequent business reviews to prioritize and allocate resources.
• Create an internal talent marketplace to align people to value based on supply and demand.
• Support leaders who are shifting their mindsets and culture. The model requires a culture of collaboration to align resources and business requirements.
• Balance performance management across the two roles with both providing feedback.

Advantages of the Helix Model

• It enables the shift of value creation to the highest return on investment.
• The structure reduces complexity and increases flexibility.
• It encourages faster decision-making.
• It also empowers employees to act.

Disadvantages of the Helix Model

• The model requires a significant change in how the organization operates in the way leaders manage.
• It cannot succeed without a relinquishing of control and “a healthy dose of humility.”

Holonic Enterprise Model

The holonic model serves global virtual organizations by allowing self-directed information and resource management linked through the Internet.

The theoretical framework isn’t new: it originated in the work of Arthur Koestler in 1968, published in 1970 as Beyond Atomism and Holism—The concept of the holon 1.

Koester studied the self-organizing tendencies of social and biological systems.

He coined the word holon to describe a state where an entity is both a self-contained whole and a part of a more extensive system, or a subsystem of a greater system.

It combines the Greek holos, meaning ‘whole’, with the suffix -on referring to ‘a particle or part’. The holonic enterprise operates on three levels:

The Global Inter-Enterprise Collaborative Level

In the enterprise meaning of the word, companies enter a collaborative hierarchy to produce products or services.

We have traditionally regarded this as a supply chain moving from the customer to the producer.

However, when we regard the construct as a holonic enterprise, we see that each holon seeks to optimize its efficiency. It operates as an independent entity in collaboration with the extended enterprise.

A customer in the chain seeks to work with the most efficient and responsive supplier. The supplier aims to sell to the most profitable customer.

The result is an optimization of the whole collaborative inter-enterprise.

The Intra-Enterprise Level

Each enterprise in the holocracy must organize its internal resources to deliver according to the coordination requirements of the collaborative cluster.

This organization requires planning and dynamic scheduling of resources, including functional reconfiguration.

A failure such as machine downtime requires a re-clustering of enterprise resources (see Task Distribution Pattern).

The Machine (Physical Agent) Level

The third level manages the distributed control of the machines that perform the work.

The distribution is done through agile manufacturing using self-reconfiguring, intelligent distributed automation elements.

The Flexible Organization Model

The Flexible Organization Model is not among our experimental organizational design models as it is not an experiment, but a proven set of practices that innovators and lean startups use to disrupt markets.

It’s the force that accelerates the pace of organizational change. By adopting these innovative practices, your organization becomes a disrupter.

In the report Unlocking the flexible organization: Organization design for an uncertain future, Deloitte presents a model and path that traditional companies, or any other, can use to become agile and quick to market.

Traditional organizations have based their structure on organizational silos that produce repeatable results in predictable markets. They are bureaucratic, multi-layered hierarchies that resist change.

That model will no longer suffice. In today’s markets, things change quickly, and rigid models will fall behind more agile competitors.

The organization of the future is a network of self-managed teams that organize themselves around a specific outcome.

Radical interventions usually fail, but Deloitte has found a method that unleashes the agility of empowered teams without upending the organization.

In the report, they offer four steps to unlocking the flexible organization.

Advantages of the Flexible Model

• It fosters creativity, teamwork, and innovative thinking.
• The structure places decision-making at the point of need rather than a chain of command.
• It creates a culture of empowerment and commitment to the team’s mission.
• The absence of bureaucracy creates an agile, adaptive organization that thrives on change.

Disadvantages of the Flexible Model

• It cannot be done too quickly or in a manner that disrupts the core. The culture needs time to adjust to autonomous teams.
• It will take time to develop the managers needed in the new environment.
• Traditional command and control managers may need outplacement.

This description is only a quick overview. We recommend reading the whole report before you take any action.

Reaping the benefits of this model might be difficult on your own. Find an experienced partner who has helped organizations achieve tangible results in creating autonomous teams.

Choosing an organizational design model

Here are a few recommendations on how you can get the most from your efforts:

• Choose the right partner. Check references and talk with other organizations that have worked with your potential partners. Ask for specifics on how your potential partner helped their organization.
• Start with purpose and strategy. Without that solid footing, your efforts can be derailed.
• Carefully consider your organizational priorities as you review your purpose and strategy. Examine all the internal and external forces that affect your business.
• Consider both current and future organizational needs. Be constantly aware of how things might change. Resist the urge to go defensive to protect your current position. Instead, prepare to discover the opportunities that change will bring. 
• Culture is critical. If it doesn’t fit your culture, it won’t work. If you need to change your culture, get the right help, and approach culture change as essential for your organizational transformation.
• Not all organizational design models will fit your situation. Consider each carefully, and don’t let a model limit what you can do. Let your analysis do the talking.
• Seek compatibility in the change tools you use. For example, your project management and organizational approaches must agree, as should your culture and change management plan.
• You don’t have to do everything today. Change, especially cultural change, takes time. Don’t get ahead of yourself in what you can accomplish.

Over to you

Whether you’re diagnosing challenges, planning a shift, or adapting to new realities, these organizational design models offer valuable frameworks to guide your thinking and subsequent action.

While no single model offers all the answers, using the right one for your context can help you make more informed, confident decisions. What’s clear is that change is ongoing, and it won’t slow down.

Organizations that build the flexibility to respond, adapt, and evolve will be best positioned to not only manage change, but to use it as a strategic advantage.

The post 10 Organizational Design Models You Should Know appeared first on AIHR.

This article discusses pay equity audits, why your organization should care about them, and how to conduct one. It also provides a free, customizable pay equity audit checklist template to guide your audit process.

Contents
What is a pay equity audit?
Why should your organization care about pay equity audits?
Pay equity vs. pay equality
8 steps to effectively conduct a pay equity audit
The benefits of using a pay equity audit checklist template
7 key elements of a pay equity audit checklist template
Free pay equity audit checklist template
Tips for using AIHR’s pay equity checklist audit template

What is a pay equity audit?

A pay equity audit lets you find and fix pay gaps before they become legal or reputational problems. As an HR professional, ensuring fairness in your organization’s pay structure is a key priority. Conducting a pay equity audit is an important step toward an inclusive workplace.

A pay equity audit systematically reviews your company’s compensation to identify and correct unjustified pay gaps. These gaps may arise from biases related to gender, race, ethnicity, age, disability, or other protected characteristics. This audit ensures employees in similar roles with comparable skills and responsibilities receive fair compensation.

Why should your organization care about pay equity audits?

Here’s why your company should take pay equity audits seriously:

• Helps spot and fix pay gaps early: Unintentional pay differences can occur due to promotions, hiring practices, or salary decisions. A pay equity audit helps spot pay gaps, allowing you to address them early.
• Shows employees fairness is a priority: Employees want to be sure they’re paid fairly. Regular pay equity audits show that the company prioritizes fairness, which builds trust and improves engagement and retention.
• Protects brand reputation: Pay equity helps protect brand reputation. A solid pay equity strategy shows a commitment to ethics and transparency and supports ESG goals, which are common expectations among stakeholders.
• Strengthens DEIB efforts: Pay equity audits are key to diversity, equity, inclusion, and belonging (DEIB) initiatives. They provide actionable data to close gaps that affect underrepresented groups.
• Looks beyond pay to spot systemic issues: Pay equity audits can uncover larger hiring, promotions, or performance review issues. Understanding them enables you to improve policies and processes across the business, not just in pay.

Pay equity vs. pay equality

8 steps to effectively conduct a pay equity audit

To conduct an effective pay equity audit, observe the following steps:

Step 1: Plan the audit

Start by defining your goals. Are you checking for legal compliance, looking to support DEIB initiatives, or addressing employee concerns? Once you’ve clarified the audit’s purpose, get buy-in from leadership and legal to ensure it has the necessary support and resources.

Step 2: Collect clean, reliable data

Gather accurate data from your HRIS or payroll systems. This includes compensation details, job titles, performance ratings, tenure, and demographic information. Using a pay equity audit tool or software can streamline this step, reduce errors, and ensure consistency.

Step 3: Group employees by role

Use consistent criteria such as job level, function, location, or department to create employee groups based on comparable roles. This helps you evaluate “like for like” work and spot meaningful differences to inform the direction of your audit going forward.

Step 4: Analyze pay gaps

Use statistical analysis or straightforward averages to examine pay differences within the various employee groups. A more advanced pay equity audit software platform may include built-in analytics highlighting unexplained gaps more quickly and accurately.

Step 5: Identify root causes

Once you’ve found pay gaps, dig deeper to determine the reasons for them. Is experience, performance, or education level responsible for these gaps, or are they unexplained? Be sure to document these causes clearly so you can justify or correct pay differences.

Step 6: Take corrective action

Adjust compensation where necessary to address unjustified salary gaps. If immediate changes aren’t possible in certain scenarios, consider phased approaches or adjustments over time that you can work towards and implement whenever possible.

Step 7: Communicate your findings

Share the results with leadership and plan how to communicate them to employees. Be transparent but sensitive in your approach, especially if changes are still in progress. Focus on your commitment to the next steps and fairness to all employees.

Step 8: Monitor progress over time

Pay equity is a continuous process that requires constant monitoring and adjustment to ensure accuracy and fairness. Use your pay equity audit software to run regular checks, track improvements, and ensure ongoing compliance with legislation and internal policies.

The benefits of using a pay equity audit checklist template

There are multiple benefits to using a pay equity audit checklist template to help conduct your pay equity audit, including the following:

• Saves time and adds structure: A template provides a ready-made structure for your audit, outlining key steps and data points. This allows your team to focus on analysis and action, instead of having to spend time starting from scratch.
• Considers all important factors: From job categories and performance ratings to demographic data and pay components, a template prompts you to collect and assess all relevant information, not just the obvious details.
•  Reduces the risk of missing critical steps: The audit process involves planning, data collection, analyzing gaps, identifying causes, and taking corrective action. A template covers all details, improving accuracy and accountability.
• Clarifies responsibilities and improves collaboration: Templates assign roles to specific team members, making clear who handles each part of the process. This helps the audit run more smoothly and keeps everyone aligned.
• Makes progress easier to track: Templates include status checklists or timelines, allowing you to monitor progress and keep the audit on schedule. They also make it easier to revisit decisions and results at a later date.
•  Reduces human error: A consistent structure to help gather and review data reduces the chances of mistakes or oversights, especially when multiple individuals are involved in the pay equity audit process.
• Strengthens compliance: In the event of legal scrutiny, a clearly documented audit process shows you prioritize pay equity and have acted in good faith. A template demonstrates due diligence, which can be critical in defending your practices.
• Creates a repeatable process for future audits: Once you’ve completed an audit using a template, you’ve established a repeatable model for future audits. This supports continuous improvement and makes it easier to track progress.

7 key elements of a pay equity audit checklist template

Below are seven essential elements of a pay equity audit checklist template to guide your entire audit process:

1. Audit initiation

Purpose: To define the audit’s scope, set expectations, and get organizational alignment.

Checklist items to include

• ✔ Define the scope of the audit (full company, departments, protected characteristics)
• ✔ Set objectives (identifying pay disparities or reviewing systemic issues)
• ✔ Identify the team involved (HR, finance, legal, external consultants)
• ✔ Set a timeline and allocate resources
• ✔ Secure leadership support
• ✔ Prepare for potential compensation adjustments.

2. Collection and cleaning of relevant data

Purpose: To gather complete and accurate data for analysis.

Checklist items to include

• ✔ Collect job descriptions and required qualifications for roles under review
• ✔ Extract employee data — job title, gender, race/ethnicity, hire date, pay, location, hours worked, and other compensation details (bonuses, overtime, benefits)
• ✔ Review and verify that job descriptions accurately reflect duties and required skills
• ✔ Confirm data integrity and consistency across systems (ideally using a pay equity audit tool or spreadsheet).

3. Audit conducting

Purpose: To compare employee pay within job groups and uncover potential disparities.

Checklist items to include

• ✔ Group together employees performing equal or substantially similar work
• ✔ Analyze average total pay by group and demographic
• ✔ Identify pay differences within those groups
• ✔ Investigate whether differences can be explained by legal factors (e.g., tenure, performance, location)
• ✔ Flag unexplained or non-compliant discrepancies for correction.

4. Pay differences cause analysis

Purpose: To separate justified and unjustified pay variances.

Checklist items to include

• ✔ Review organizational pay policies and any documented justification for differentials
• ✔ Evaluate if current policies are being applied consistently
• ✔ Identify any informal or subjective practices that could be contributing to bias.

5. Action plan development

Purpose: To address issues uncovered in the audit.

Checklist items to include

• ✔ Create a plan to correct unjustified pay gaps, including salary adjustments
• ✔ Set priorities based on severity or risk
• ✔ Review and revise hiring, promotion, and compensation practices to prevent recurrence
• ✔ Consider implementing salary bands to ensure greater consistency.

6. Communication of findings

Purpose: To maintain transparency and trust.

Checklist items to include

• ✔ Share key findings with senior leadership
• ✔ Decide on messaging for employees (if appropriate)
• ✔ Emphasize the company’s commitment to fairness
• ✔ Detail the next steps.

7. Monitoring and follow-up

Purpose: To ensure the audit leads to ongoing improvement.

Checklist items to include

• ✔ Schedule regular audits (annually or biannually)
• ✔ Use a pay equity audit template and, where possible, pay equity audit software to track changes over time
• ✔ Monitor compensation practices
• ✔ Ensure continued compliance with laws and internal policies.

Free pay equity audit checklist template

AIHR has designed a customizable pay equity audit checklist template to enable HR teams to carry out a structured, thorough, and repeatable audit, from planning and data collection to analysis and corrective action. Download the template for free below.

Tips for using AIHR’s pay equity checklist audit template

Here are some useful tips to help you make the most out of AIHR’s pay equity audit checklist template:

Customize it to reflect your organization’s structure

Adapt the checklist to match your company’s job levels, departments, locations, and reporting lines. If your audit covers global regions with different laws, add extra sections, and include additional demographic categories if you’re tracking specific DEIB goals.

Assign clear ownership for each checklist item

Add a column or comment field for each item on the checklist and assign an owner (HR, finance, DEIB lead, etc.) to it. Ensure every task has a designated team or individual responsible for delivery and encourage cross-functional input, especially from the legal and payroll teams.

Set realistic due dates and timelines

Turn the checklist into a working project plan by adding start and end dates for each task, building in review points to assess progress, and prioritizing time-sensitive actions like data collection or legal compliance checks.

Track your progress

Use the checklist as a live document, update it as tasks are completed, add notes or status updates to highlight blockers or changes, and keep a record of what you’ve completed and when. This helps with repeat audits and compliance reviews.

Build in space for audit insights and findings

Extend the template to capture what you learn. You can add rows or sections for recording key findings (e.g., unexplained gaps or outdated job descriptions), or create a space to note policy changes, salary adjustments, or areas for follow-up. Use these insights to refine future audits and inform leadership reports.

Use the checklist as a communication tool

The checklist can double as a briefing tool for stakeholders. Share the completed version with leadership to show progress and findings, and use it in team meetings to keep the audit on track. You can also attach it to formal reports or presentations as part of your pay equity documentation.

To sum up

Pay equity reflects your organization’s integrity and long-term strategy. Addressing pay gaps improves employee morale, strengthens your employer brand, and demonstrates a genuine commitment to fairness. When people feel valued, they are more likely to stay, perform better, and advocate for the company.

The goal is not simply to fix gaps as they appear, but to prevent them. This means building pay equity into everyday decisions, from defining roles to setting starting salaries. It also means revisiting pay data regularly and being transparent with your workforce. A pay equity audit is a good start, but your organization must make pay equity an ongoing process.

The post Pay Equity Audit: How To Conduct One (Plus Free Checklist Template) appeared first on AIHR.

This article explores the importance of continuous performance management, its key elements and benefits, and HR’s role in the process. It also discusses how you can successfully implement it at your own organization to benefit your workforce and the company.

Contents
What is continuous performance management?
The benefits of continuous performance management
HR’s role in continuous performance management
The process of continuous performance management
Traditional vs. continuous performance management
7 steps to implement continuous performance management

What is continuous performance management?

Continuous performance management is an ongoing approach to managing employee performance. It aims to improve engagement, development, and alignment with company goals and, as such, focuses on conversations, feedback, and growth. The process involves managers and employees continually discussing the latter’s goals and job performance.

A typical continuous performance management process involves managers providing their employees with constructive, real-time feedback and aligning employee development goals with broader business objectives. 

Traditional performance management: Fast facts 

• Only 2% of CHROs think their performance management system works.
• Less than 33% of employees believe performance reviews are “very fair and equitable”.
• Only 6% of organizations are rethinking performance management and making significant progress toward changing it.

The benefits of continuous performance management 

The benefits of continuous performance management include: 

• Increased engagement: In a continuous performance management process, feedback is more frequent and timely, which can boost employee engagement.
• Better manager-employee relationships: Managers and employees communicate regularly, which enables them to build stronger, healthier working relationships. 
• Early detection of issues: If an employee or a manager encounters potential issues, ongoing communication enables them to address them before they escalate quickly. 
• Faster development and skills building: Continuous performance management allows employees and managers to detect and close skills gaps early.
• Easy adaptation to changing business environments. In a well-structured continuous performance management process, individual objectives and goals align with those of the team and the organization. This means that if, for example, due to changing market conditions, the company goals evolve, those of individual employees can evolve with them more easily too.

Continuous performance management: Fast facts

Compared to companies with annual performance management, organizations that use continuous performance management report significant improvements in their ability to:

• Engage the entire workforce (58% vs. 37%)
• Ensure enterprise agility (65% vs. 35%)
• Increase performance from all employees (58% vs. 35%)
• Retain high-performing talent (63% vs. 41%)
• Keep organizational focus on top business priorities (54% vs. 33%).

HR’s role in continuous performance management 

Continuous performance management requires a well-structured process to function effectively. While this may look different for every organization, HR’s role involves some common elements:

Developing a performance management framework

This framework defines how a company structures and supports efforts to monitor and improve performance. For practical tips about how to develop such a framework, explore AIHR’s guide on how to develop a performance management framework.

Offering training on feedback

It’s essential to train managers and employees to give and receive constructive feedback. For in-depth information and best practices in this area, check out AIHR’s ultimate guide to continuous feedback.

Integrating performance and talent management

Performance management should be part of the organization’s larger talent management strategy and integrated with areas such as learning and development (L&D), promotions and rewards, and succession planning.

Collecting data

You need to track and measure the effectiveness of your continuous performance management process. You can use different methods, such as feedback sessions, performance management software, or pulse surveys.

The process of continuous performance management 

While implementation may vary, every continuous performance management process should include these core elements:

Regular goal setting and updating

Start by setting clear goals that align with team and company objectives. These goals help employees understand their priorities and how their work fits into the bigger picture. Review and update goals regularly to keep them relevant as business needs change and to enable employees to respond to new challenges.

Frequent check-ins

Schedule regular check-ins between managers and employees to discuss progress and remove roadblocks. These conversations should be short, focused, and happen often enough to keep goals on track. Informal chats between meetings also help build trust and keep communication open.

Real-time feedback

Don’t wait for annual reviews to give feedback. Provide it in real-time so employees can adjust and improve right away. Include feedback from both managers and peers to give a complete view. You can use a variety of free feedback tools to make this an easy process that’s part of everyday work.

Development tied to business goals

Employee development should support company goals. When skill gaps come up in check-ins, help employees build those skills in ways that also benefit the business. This ensures personal growth leads to better job performance and business results.

Growth instead of ratings focus

Move away from once-a-year ratings, and focus instead on helping employees improve continuously through regular feedback and support. This can lead to stronger skills, better performance, and greater contributions to company goals. This can, in turn, help maximize employee retention and job satisfaction.

Traditional vs. continuous performance management

Continuous performance management focuses on regular, real-time feedback and ongoing development, while traditional performance management relies on infrequent, often annual, formal reviews. The table below provides an overview of the key differences between the two:

7 steps to implement continuous performance management

Making the shift from traditional performance management to continuous performance management requires some preparation. Here are seven steps to consider:

Step 1: Start with leadership buy-in

A successful project must start with leadership fully endorsing the initiative to ensure a strong foundation. Their buy-in ensures resources, support, and alignment. A lack of leadership buy-in, however, will likely hinder progress and possibly lead to the project failing.

Step 2: Create a timeline

Structure the transition from traditional to continuous performance management by determining its stages and timing. Questions to ask yourself include:

• By when do you want to roll out the new system? 
• Are you going to start with a pilot first (highly recommended)?
• What performance management method do you currently have in place?
• What framework do you want to use moving forward? 

Step 3: Train managers

Managers play a crucial role in continuous performance management. Ensure they receive training on areas like coaching, feedback, and goal-setting so they can apply their learnings consistently, confidently, and fairly to their performance management process.

Step 4: Set up a simple system

Choose, develop, and set up a simple continuous performance management system. You can use software for this, but if your organization has a limited budget, you can also initially opt for a manual process. This system will help standardize the process and ensure fairness for all staff.

Step 5: Pilot the process

Starting small, especially with a potentially large project like shifting your performance management process, is a good way to test the waters. Pilot the new process in one department first before deciding on a company-wide rollout.  

Step 6: Gather feedback and adjust

Collect feedback about the continuous performance management process from everyone involved in the pilot (and from everyone else once you’ve rolled out the new method). This will help you decide how to adjust the new process as soon as possible.  

Step 7: Make check-ins part of the culture

Schedule regular check-ins to build trust between managers and employees. To make them a part of the organization’s culture, emphasize them in your employer branding, during the employee hiring and onboarding processes, and when you onboard and train managers.

To sum up

Continuous performance management is a more innovative way to keep your people engaged, motivated, and aligned with business goals. By focusing on regular conversations, real-time feedback, and ongoing development, you build stronger relationships and address issues before they escalate. This not only helps employees grow but also drives better business results.

Start small, train your managers, and build a system that supports open communication and continuous improvement. When done right, continuous performance management can become part of your company culture and help you turn high potential into high performance.

The post What Is Continuous Performance Management: Your 101 Implementation Guide appeared first on AIHR.