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HRM Case Studies With Solutions

Let’s study Human Resource Management Case Studies with solutions. HRM Case studies play a vital role in management education especially in subjects like Human Resource Management (HRM), Personnel Management, PAAP and related subjects.

It gives a clear picture of the concepts when you practise them through case studies. Here we have given some live HRM case studies that are short, useful & interesting. This will allow you to think beyond the theoretical part and make you capable to apply the concepts in real-time situations.

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We are also providing solutions which are free of cost. We welcome your feedback about these HRM case studies.

Below are short and simple Case Studies on HRM with Solutions, Questions, and Answers.

HRM Case Study 1

Harsha and Franklin both of them are postgraduates in management under different streams from the same B-School. Both of them are close to each other from the college days itself and the same friendship is continuing in the organization too as they are placed in the same company, Hy-tech technology solutions. Harsha placed in the HR department as employee counsellor and Franklin in the finance department as a key finance executive. As per the grade is concerned both are at the same level but when responsibility is concerned Franklin is holding more responsibility being in core finance.

By nature, Harsha is friendly in nature and ready to help the needy. Franklin is silent in nature ready to help if approached personally and always a bit egoistic in nature. They have successfully completed 4 years in the organization. And management is very much satisfied with both of them as they are equally talented and constant performers.

Harsha felt that now a day’s Franklin is not like as he uses to be in the past. She noticed some behavioural changes with him. During general conversations, she feels that Franklin is taunting her that she is famous among the employees in the organization, on the other hand, he is not even recognized by fellow employees.

One morning Mr. Mehta General Manager Hy-tech technology solutions shocked while going through the mail received from Franklin about his resignation. Mr. Mehta called Harsha immediately and discussed the same as she is close to Franklin. By hearing the news Harsha got stunned and said that she does not know this before she also revealed here current experience with him. Mr. Mehta who does not want to lose both of them promised her that he will handle this and he won’t allow Franklin to resign.

In the afternoon Mr. Metha took Franklin to Canteen to make him comfortable after some general discussion he starts on the issue. Franklin, after some hesitation, opened his thinking in front of Mr. Mehta. The problem of Franklin is

1) when he comes alone to canteen the people from others don’t even recognize him but if he accompanied by Harsha he gets well treated by others.

2) one day Both of them entered the company together the security in the gate wished them but the next day when he came alone the same security did not do so.

3) Even in meetings held in the office, the points raised by Harsha will get more value so many times he keeps silent in the meeting.

It happens to Franklin that he has to face such degradation in each day of work which totally disturbs him. Franklin also questioned that ” Harsha and myself have the same qualification, from the same institute, passed out in the same year both with first class. We have the same number of experiences in this organization. Moreover, the responsibilities with me are more valuable than those of Harsha. After all these things if I am been ignored or unrecognized by the fellow employees my ego does not allow me to continue here”.

By listening to this statement Mr.Metha felt that it is not going to be very difficult to stop his resignation. Mr. Mehta explained Franklin the reasons for such partial behaviour of the employees. After listening to Mr. Mehta Franklin said sorry for his reaction and ready to take back his resignation. And he called Harsha and spoke with like before.

Questions for HRM Case Studies: Case Study 1

Find the reason that Mr. Mehta would have given to Franklin.

Solution for HRM Case Study 1

Mr. Mehta listening to this case understood the situation and realized the reason behind the partial response given by the employees towards Franklin and Harsha. As Franklin said both Harsha and Franklin are passed out from the same college in the same year. Both of them joined the company together both have the same experience. Even in performance-wise, both stands in the same level i.e. both are constant performers and good performers.

Franklin analyzed all the above-said similarities between him and Harsha. He also stated that he holds more responsibility than that of Harsha. One thing Franklin did not notice or analyzed is the job profile of Harsha. It is true that Franklin holds more responsibility than that of Harsha but when it comes to direct interaction with employees Harsha wins the employees’ attention in this aspect. Harsha being a counsellor in HR she faces the employees every day. She developed good rapport among the employees due to her friendly nature. She is always remembered by the employees whenever they face any problem as she gives good counselling and most of the time she suggests the best solutions for such issues.

Franklin though holding a key position in finance his profile does not allow him to interact with the employees. Though he has a helping tendency he does only when someone approached him personally. As the employees of other departments do not have any relation with him they never approach him for help. Mr. Mehta having a good experience understood these things when Franklin explained his problems one by one. Later he relates each situation, explained by Franklin with the above said reasons and made Franklin understood the reality.

Mr. Mehta said that the security in the gate or the employees in the canteen who recognized Harsha and not Franklin would have interacted with her during counselling or approached her for any issues. And as usual, she would have counselled well or solved the issues of them that is the reason why they treat her and wish her whenever where ever they meet her. When it comes to the case of Franklin they would have hardly met him or interacted with him.

When it comes to the point that even in-office meetings Harsha, points are valued so Franklin keeps mum. For this, Mr. Mehta replied that the points put forward by her would be related to employees or from the employees’ point of view which actually the management wants to know so they give value to her points. And as quoted Fraklin after, one or two such incidents keep silent in the meeting. He never made an attempt to raise some suggestions so management does not have any option to listen to that suggestion.

After listening to all the explanations given by Mr. Mehta Franklin realized his mistake and felt proud of the Rapport developed by Harsha among the employees. He said to Mr. Mehta that he will take back his resignation. And rushed to Harsha to make an apology and to meet her as a friend as like his college days.

HRM Case Studies Part 2:

HRM Case Study 2

Watson Public Ltd Company is well known for its welfare activities and employee-oriented schemes in the manufacturing industry for more than ten decades. The company employs more than 800 workers and 150 administrative staff and 80 management-level employees. The Top-level management views all the employees at the same level. This can be clearly understood by seeing the uniform of the company which is the Same for all starting from MD to floor level workers. The company has 2 different cafeterias at different places one near the plant for workers and others near the Administration building. Though the place is different the amenities, infrastructure and the food provided are of the same quality. In short, the company stands by the rule of Employee Equality.

The company has one registered trade union. The relationship between the union and the management is very cordial. The company has not lost a single man day due to strike. The company is not a paymaster in that industry. The compensation policy of that company, when compared to other similar companies, is very less still the employees don’t have many grievances due to the other benefits provided by the company. But the company is facing a countable number of problems in supplying the materials in the recent past days. Problems like quality issues, mismatch in packing materials (placing material A in the box of material B) incorrect labelling of material, not dispatching the material on time, etc…

The management views the case as there are loopholes in the system of various departments and hand over the responsibility to the HR department to solve the issue. When the HR manager goes through the issues he realized that the issues are not relating to the system but it relates to the employees. When investigated he come to know that the reason behind the casual approach by employees in work is

The company hired new employees for a higher-level post without considering the potential internal candidates.
The newly hired employees are placed with higher packages than that of existing employees in the same cadre.
Narrate the case with a suitable title for the case. Justify your title.

Solution for HRM Case Case Study 2

Employee Equality is not the need for every hour. In the above-said case, Watson Ltd had provided all facilities to employees at each grade in an equal manner. But still, the employees started creating certain issues like materials are meeting the quality supply schedule is not met etc. And the HR manager said that the policy of hiring new employees for the higher post without considering old potential employees is the major problem.

“Employee recognition VS Employee equality ”. As the HR manager states that employees are not been recognized for the potential rather the company has gone for new recruitment. Because of which the company faces problems.

The points rose by the HR manager as the reason for the latest issues in the organization is justifiable or not. Support your answer with Human resource related concepts.

Yes, the points raised by the HR manager is justifiable because “Human beings are social Animals as popularly” said by many Human resources Scholars. So human minds demand social recognition, self-respect, consideration, etc for their work and performance.

In the above-said case, even the company provides and stands by the concept of employee equality when it fails to recognize the potential talents of existing employee they felt dissatisfaction towards the organization and they showed in the way of quality issues and slow down production.

Related HR concept.

Slow down Production:

The concept of slow down production is a type of employee’s strike. The Industrial Relations sates that when the employee wants to show their dissatisfaction to the management but don’t want to go for strike they follow slow down strike. The impact of which will be understood after a particular time period.

Employee Recognition:

Human beings can be easily motivated by Rewards and recognition than that of money. In this case, also the employee is not satisfied even after all facilities just because of the reason that they are not recognized.

Hawthrone Experiment:

In the four types of test conducted by Elton Mayo, the remarkable hike in production is recognized in the stage when they consulted the employees for the management decisions regarding them. The same thing was missing in Watson Ltd. Before the new hires if the management consulted the employees both management and employees would have avoided this issue

Hygiene Factor:

The theory of hygiene factors states that there are certain factors related to employees the presence of which will not create a major impact but the absence of such things will lead to a de motivation to the employees. Employee Recognition is one such factor when the management fails to do so it will Detroit the employees to a great extent.

Help the organization to come out from this critical issue. If you are in the role of HR manager what will be your immediate step to solve this case.

If I was in the post of the HR manager I will try to discuss the issue and ask for the reason from the management for new recruiting rather than considering available potential talents. I will personally analyse the reasons provided by management and if acceptable I will discuss the same with the employees. Everything is possible with a discussion. So I will discuss and convince the employee that this won’t happen again in the organization. I will also initiate the collective bargaining process for reasonable salary hike for the existing employees.

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A Guide to Human Resources Management Case Studies

Published by hr consultants on january 26, 2024 january 26, 2024.

Human Resource Management case studies provide valuable insights into the challenges faced by HR professionals in diverse workplaces. In this comprehensive guide, we will explore real-life examples of HRM in action, showcasing the strategies and solutions implemented to tackle various HR challenges.

Key Takeaways:

Human Resources Management Case Studies offer practical insights for HR professionals.
Real-life examples highlight strategies and solutions for overcoming HR challenges.
Case studies showcase the importance of effective HR strategies in organizational success.
Diverse scenarios demonstrate the application of HRM practices in different workplaces.
Continuous learning and adaptation are crucial for HR professionals to stay effective.

The Changing Landscape of HRM

In the rapidly evolving global business environment, Human Resources Management (HRM) is constantly adapting to new trends and challenges. From the emergence of emerging markets to the digitalization of workplaces, HR professionals have had to navigate through various obstacles to effectively manage their workforce. One of the most significant challenges in recent times has been the global COVID-19 pandemic, which has necessitated swift and innovative HR strategies.

To gain a deeper understanding of how organizations have successfully managed these changes and optimized their HR practices, we will delve into a range of case studies. These case studies provide valuable real-world examples that HR professionals can analyze and apply in their own organizations. By studying these HR case studies , professionals can learn from the experiences of others, gaining insights into successful strategies and approaches.

Utilizing HR case studies for analysis allows us to discover how organizations have leveraged HRM to overcome obstacles and adapt to new circumstances. These real-life examples showcase the diverse ways in which organizations have effectively managed HR challenges, providing valuable lessons and strategies for HR professionals across industries.

Company XYZ, a multinational technology firm, faced challenges in attracting and retaining top talent due to the fast-paced nature of the industry. To address this, they implemented a strategic HR initiative that focused on creating a flexible work environment, providing opportunities for professional development, and offering competitive compensation packages. As a result, the company experienced a significant reduction in employee turnover and an increase in employee satisfaction and productivity.

This case study highlights how HR professionals at Company XYZ were able to adapt to the changing landscape of HRM by implementing innovative strategies. By analyzing such success stories, HR professionals can gain valuable insights into the strategies and practices that drive organizational success.

HRM is constantly evolving to respond to new trends and challenges in the business world.
Case studies provide real-world examples of effective HR practices in managing change.
Successful organizations leverage HRM strategies to optimize their workforce and drive organizational success.

The Importance of Effective HR Strategies

Effective HR strategies are crucial for organizations to attract, retain, and develop top talent. By implementing strategic HR practices, companies can create a positive work environment that fosters employee engagement, productivity, and overall organizational success. In this section, we will explore case studies that highlight successful HR strategies implemented by companies across different industries, providing valuable insights for research and inspiration.

Case Studies: Success Stories in HR Management

Case Study 1: Company X

“Our HR strategy of prioritizing employee well-being and work-life balance has had a significant impact on our organizational culture. Through flexible work arrangements, wellness programs, and regular communication channels, we have seen a remarkable increase in employee satisfaction and productivity.”

Case Study 2: Company Y

“By investing in employee development and career progression, we have been able to attract top talent and retain key employees. The implementation of mentorship programs, training initiatives, and performance feedback systems has led to higher employee engagement and a stronger talent pipeline.”

Case Study 3: Company Z

“Our HR strategy focuses on promoting a diverse and inclusive workforce. Through targeted recruitment efforts, diversity training programs, and inclusive policies, we have successfully created a culture that celebrates and values diversity, leading to improved employee satisfaction and innovation.”

The Impact of Strategic HR Practices

These success stories demonstrate the tangible benefits of strategic HR practices. Organizations that prioritize effective HR strategies are better equipped to attract and retain top talent, foster employee engagement and satisfaction, and drive overall organizational success. By studying these case studies, researchers and HR professionals can gain valuable insights and inspiration to enhance their own HR practices and achieve similar levels of success.

By examining these HRM case studies for research and guidance, organizations can adopt successful strategies and adapt them to their unique contexts. The implementation of effective HR strategies is key to creating a thriving workplace culture that empowers employees, maximizes productivity, and ultimately drives the success of the organization.

Fundamental Concepts of HR Management

Before diving into Human Resources Management Case Studies , it is essential to have a solid understanding of the fundamental concepts that underpin HR management. This section will explore key definitions and concepts to provide a strong foundation for in-depth analysis of the case studies.

Definitions and Clarifications

Let’s start by clarifying some key terms:

Management : Refers to the process of coordinating and overseeing organizational resources to achieve specific goals and objectives.
Resources : In the context of HR, resources refer to the individuals who contribute to the organization’s success, including employees, contractors, and other stakeholders.
Role of a Manager : A manager is responsible for planning, organizing, directing, and controlling resources to achieve organizational goals and objectives. In the HR context, managers focus on effectively managing human resources.
Difference between Management and Administration : While the terms management and administration are sometimes used interchangeably, it is important to note the subtle distinctions. Management is concerned with the implementation of strategies and the coordination of resources, whereas administration involves the overarching policies, procedures, and regulations that govern the organization.

By understanding these fundamental concepts, we can delve deeper into the case studies and gain valuable insights into the challenges and solutions faced by HR professionals.

Inspiring Quote

“Management is doing things right; leadership is doing the right things.” – Peter Drucker

Key Definitions

Management functions and responsibilities.

Effective management is essential for HR professionals in their role of overseeing an organization’s human capital. Understanding the four basic functions of management – planning, organizing, directing, and controlling – is critical for HRM success. Each function contributes to the efficient and effective management of human resources, ensuring organizational goals are met.

In addition to these management functions, HR managers have specific responsibilities that contribute to the overall success of the organization. These responsibilities include:

Recruitment and selection of qualified candidates
Employee onboarding, training, and development
Creating and enforcing HR policies and procedures
Ensuring legal compliance in all HR practices
Managing employee relations and resolving conflicts
Designing and administering compensation and benefits programs
Developing and implementing employee engagement initiatives
Overseeing performance management and evaluation processes

Furthermore, HR plays a vital role in the administrative cycle of an organization. HR professionals are responsible for managing and maintaining accurate HR records, handling payroll and benefits administration, and ensuring compliance with employment laws and regulations.

By effectively executing their management functions and fulfilling their responsibilities, HR professionals contribute to the development and success of an organization’s human resources, driving overall organizational performance and productivity.

Skills and Competencies in HR Management

The success of an HR manager relies on a combination of technical skills and personal qualities. Understanding and mastering these essential skills and competencies is crucial for effectively managing human resources in any organization. Here, we will explore the key characteristics that distinguish an effective HR manager and how they contribute to success in HR management.

1. Integrity

Integrity is the foundation of trust in any HR department. HR managers must demonstrate honesty, transparency, and ethical behavior in all aspects of their work. By upholding high ethical standards, HR managers cultivate a culture of integrity, ensuring fair and unbiased treatment of employees and fostering a positive work environment.

2. Flexibility

Flexibility is essential in an ever-changing business landscape. HR managers must adapt to evolving workplace dynamics, industry trends, and technological advancements. This includes being open to new ideas, embracing change, and continuously updating HR strategies to align with organizational goals and employee needs.

3. Resilience

HR managers often face challenging situations that require resilience and the ability to navigate complex issues. They must stay composed in difficult times, effectively manage conflicts, and find creative solutions to address HR challenges. Resilient HR managers are invaluable assets to organizations, as they can lead teams through change and uncertainty, ensuring continuity and stability.

4. Proactivity

Successful HR managers are proactive in identifying potential issues before they escalate. They anticipate future needs and create proactive strategies to address them. By staying ahead of the curve, HR managers can plan and implement initiatives that support employees’ growth, well-being, and overall job satisfaction.

“Proactive HR managers take a proactive approach to identify potential pitfalls early on, allowing organizations to prevent problems rather than just managing them when they arise.”

In addition to these personal qualities, HR managers must possess a range of technical skills to effectively manage human resources. Some of these skills include:

Recruitment and selection
Training and development
Performance management
Employee relations
Compensation and benefits
HR data analysis

To exemplify these skills and competencies, let’s take a look at a real-life HR case study:

By analyzing such HR case studies , aspiring HR professionals and organizations can gain valuable insights into the practical application of skills and competencies in HR management.

Now that we have explored the essential skills and competencies in HR management, it is clear that successful HR managers possess a unique blend of personal qualities and technical skills. These individuals play a vital role in driving organizational success by effectively managing human resources and fostering a positive work environment.

Employee Motivation and Engagement

Motivated and engaged employees are essential for organizational success. In this section, we will explore the crucial role of HR in motivating employees and fostering a culture of engagement. By examining real-life case studies, we will identify effective strategies and initiatives implemented by organizations to boost employee motivation and engagement.

Motivation through Recognition

Employee recognition is a powerful tool for motivating and engaging employees. Organizations that prioritize recognition programs create a culture of appreciation and reinforce desired behaviors. Case studies highlight the impact of tailored recognition programs on employee satisfaction, morale, and performance.

Professional Development and Growth

Providing opportunities for professional development and growth is another key driver of employee motivation and engagement. Organizations that invest in training, mentorship programs, and career advancement opportunities empower employees to enhance their skills and fulfill their potential. Real-life examples demonstrate how these initiatives contribute to higher employee satisfaction and loyalty.

Well-being Initiatives

Employee well-being initiatives play a vital role in nurturing a positive work environment and enhancing motivation. By offering wellness programs, flexible work arrangements, and promoting work-life balance, organizations prioritize the holistic well-being of their employees. Case studies highlight the positive impact of these initiatives on employee engagement, productivity, and overall satisfaction.

Effective Communication

Open and transparent communication is integral to fostering motivation and engagement among employees. Organizations that prioritize effective communication channels, including regular feedback, town hall meetings, and collaborative platforms, create an environment of trust and inclusion. Real-life examples demonstrate how improved communication positively influences employee engagement and overall organizational performance.

“Effective employee motivation and engagement are the cornerstones of a thriving organization. By examining real-life case studies, HR professionals and organizations can gain valuable insights into successful strategies and initiatives that fuel motivation and foster meaningful employee engagement.”

The case studies above demonstrate how organizations have successfully implemented strategies to motivate and engage their employees. By leveraging recognition, professional development, well-being initiatives, and effective communication, these organizations have created a positive work environment that drives employee satisfaction, productivity, and loyalty.

Strategies for Effective HR Management

HR professionals play a critical role in developing and implementing effective HR strategies. By analyzing real-life case studies, we can gain valuable insights into HR best practices. These case studies highlight successful strategies in key areas such as:

Recruitment and Selection

Training and development, performance management, compensation and benefits, labor relations.

Let’s explore how organizations have utilized these strategies to optimize their HR practices and achieve their business objectives.

“The key to effective HR management lies in understanding the unique needs and challenges of your organization. By analyzing case studies, we can gain valuable insights and tailor our strategies to drive employee engagement, productivity, and organizational success.”

Effective recruitment and selection processes are crucial for attracting and hiring top talent. Case studies in this area often showcase innovative methods used to identify and attract qualified candidates. From leveraging technology platforms for applicant screening to implementing targeted recruitment campaigns, organizations have successfully optimized their hiring processes.

Investing in employee training and development is essential for enhancing skills and fostering long-term growth. By examining case studies in this domain, we can learn from organizations that have successfully implemented comprehensive training programs, mentorship initiatives, and continuous learning platforms. These strategies contribute to a skilled and motivated workforce.

Effective performance management systems align individual and team goals with organizational objectives. Case studies in this area often highlight organizations that have implemented performance measurement frameworks, regular feedback systems, and performance-based incentives. This data-driven approach ensures transparency, fairness, and continuous improvement.

Strategic compensation and benefits programs attract, retain, and motivate talented employees. Case studies demonstrate how organizations have designed competitive salary structures, employee recognition programs, and comprehensive benefits packages. These initiatives contribute to higher employee satisfaction, engagement, and overall organizational performance.

Managing labor relations requires effective communication, negotiation, and conflict resolution skills. Case studies in this area offer insights into organizations that have successfully fostered positive relationships with unions, implemented fair labor practices, and resolved labor disputes amicably. These examples highlight the importance of proactive labor management strategies.

By learning from these case studies and applying the demonstrated strategies, HR professionals can optimize their HR management practices and create a positive impact on organizational success.

These case studies showcase the application of effective HR management strategies in different organizations. They provide practical examples of how organizations have achieved success by implementing various strategies tailored to their unique needs and challenges.

Leveraging HR Technology

HR technology has revolutionized HRM processes, enabling organizations to streamline operations and enhance efficiency. By leveraging the power of technology, HR professionals can optimize their strategic decision-making and ensure a seamless employee experience.

Let’s examine some insightful case studies that illustrate the successful implementation and utilization of HR technology. These examples demonstrate how organizations have harnessed the potential of HRIS (Human Resource Information System), talent management software, and data analytics tools to drive meaningful outcomes and achieve their HR objectives.

Case Study 1: Enhancing Recruitment with HRIS

In this case study, Company ABC implemented an HRIS software to streamline their recruitment process. The software automated job posting, applicant tracking, and resume screening, significantly reducing the time and effort spent on manual tasks. With the implementation of HRIS, the HR team at Company ABC experienced a 40% reduction in time-to-hire and an improvement in the quality of hires.

“The HRIS software has transformed our recruitment process, allowing us to focus on strategic talent acquisition. The automation and advanced analytics capabilities have enabled us to make data-driven decisions and hire top talent efficiently.” – Sarah Thompson, HR Manager, Company ABC

Case Study 2: Optimizing Performance Management with Talent Management Software

In this case study, Company XYZ adopted a talent management software platform to streamline their performance management process. The software offered features such as goal setting, continuous feedback, and performance analysis, empowering managers and employees to take a more proactive approach to performance improvement. As a result, Company XYZ experienced a significant increase in employee engagement and aligned performance goals across the organization.

“The talent management software has revolutionized our performance management process. It has fostered a culture of continuous feedback and empowered our employees to take ownership of their professional growth. The transparent performance analytics have enabled us to identify and reward top performers effectively.” – John Davis, HR Director, Company XYZ

Case Study 3: Leveraging Data Analytics for Strategic Decision-Making

In this case study, Company DEF implemented advanced data analytics tools to gain insights into their HR processes. By analyzing data related to employee engagement, turnover rates, and performance metrics, the HR team at Company DEF could identify trends, patterns, and areas for improvement. This strategic use of data analytics enabled Company DEF to make informed decisions and implement targeted HR interventions, resulting in improved retention rates and increased productivity.

“Data analytics has been a game-changer for our HR department. By leveraging actionable insights from our HR data, we have been able to proactively address employee concerns, enhance our talent acquisition strategies, and design targeted training programs. Our data-driven approach has significantly contributed to our overall organizational success.” – Lisa Johnson, HR Manager, Company DEF

These case studies demonstrate how organizations can harness the potential of HR technology to drive efficiency, improve decision-making, and enhance the employee experience. By leveraging the right combination of HRIS, talent management software, and data analytics tools, HR professionals can transform their HR practices and contribute to the strategic objectives of the organization.

Leveraging HR technology is essential in today’s digital era, where technology continues to shape the future of work. By staying informed about the latest HR technology trends and exploring case studies, HR professionals can identify opportunities for innovation and drive impactful HR initiatives.

Now, let’s explore another critical aspect of HR management – diversity and inclusion.

Diversity and Inclusion in HR Management

In today’s diverse workforce, creating an inclusive environment is essential for effective human resources management. Organizations that prioritize diversity and inclusion benefit from improved employee satisfaction, increased productivity, and enhanced innovation. Let’s explore some real-life examples of HRM case studies that highlight the successful efforts of organizations to foster diversity and inclusion within their workforce.

Case Study 1: XYZ Company

XYZ Company, a global technology firm, recognized the value of diversity and inclusion in driving organizational success. They implemented a comprehensive diversity program that focused on recruiting and retaining employees from diverse backgrounds. By promoting a culture of inclusion through training, mentorship, and employee resource groups, XYZ Company witnessed a significant increase in employee engagement and creativity. This case study demonstrates the positive impact of diversity and inclusion initiatives on overall organizational performance.

Case Study 2: ABC Corporation

ABC Corporation, a leading retail company, recognized the importance of diversity and inclusion in meeting the needs of their diverse customer base. They implemented unconscious bias training for their hiring managers and implemented policies to ensure equal opportunities for all employees. As a result, ABC Corporation experienced improved employee satisfaction, reduced turnover rates, and a boost in customer loyalty. This case study exemplifies the positive outcomes that can be achieved through a commitment to diversity and inclusion in HR management.

By analyzing these HRM case studies , organizations can gain valuable insights into successful diversity and inclusion initiatives. Implementing similar strategies, such as targeted recruitment efforts, inclusive policies, and diversity training programs, can help companies create a more inclusive and diverse workforce, fostering a culture of innovation and success.

Incorporating diversity and inclusion into HR management practices is not only a legal and moral imperative, but it also leads to tangible business benefits. Organizations that embrace diversity and create an inclusive workplace are better equipped to attract top talent, retain employees, and drive innovation. By learning from these HRM case studies , organizations can develop effective strategies to foster diversity and inclusion, ultimately contributing to their long-term success.

Adapting HR Practices in Times of Crisis

In times of crisis, such as economic downturns or natural disasters, HR professionals face unique challenges that require them to adapt their practices quickly and effectively. By analyzing HRM case studies that showcase organizations’ responses to crises, we can gain valuable insights into the strategies and approaches they employed to navigate through turbulent times and emerge stronger.

The Importance of Flexibility

One key lesson we can learn from HR case studies in times of crisis is the importance of flexibility. Organizations need to be agile and responsive to rapidly changing circumstances. HR professionals play a vital role in proactively adjusting HR practices, policies, and procedures to meet the immediate needs of employees and the organization as a whole.

“During the global financial crisis of 2008, XYZ Corporation faced severe economic challenges that threatened its survival. The HR team swiftly implemented cost-cutting measures, including a freeze on hiring and salary reductions, while carefully balancing employee morale and engagement. Through open communication and transparent decision-making, XYZ Corporation managed to weather the storm and emerge with a more resilient workforce.”

By adopting a flexible approach, HR professionals can help organizations navigate through turbulent times, mitigate the impact on employees, and position the company for recovery and future growth.

The Power of Resilience

Resilience is another critical factor in adapting HR practices during a crisis. HR professionals need to demonstrate resilience in the face of uncertainty and guide employees through challenging times. By instilling confidence, providing support systems, and fostering a sense of unity, HR managers can help organizations withstand the pressures of a crisis and emerge stronger.

Resilience can be seen in action through the implementation of employee assistance programs, mental health initiatives, and crisis communication plans. These measures help employees navigate the emotional and psychological challenges brought on by the crisis, ensuring their well-being and enabling them to contribute effectively to the organization’s recovery efforts.

Proactive Planning for Future Crises

The best HR case studies in times of crisis highlight the importance of proactive planning. While crises may be unexpected, organizations can anticipate potential challenges and develop contingency plans to address them swiftly and efficiently. By anticipating various scenarios and regularly reviewing and updating crisis response strategies, HR professionals can position their organizations for success even in the face of uncertainty.

In addition to crisis preparedness, proactive planning involves identifying key skills and competencies that will be crucial in future crises. By integrating training programs, succession planning, and talent management initiatives into their HR practices, organizations can ensure they have the capabilities necessary to navigate through any crisis that may arise.

Table: Strategies for Adapting HR Practices in Times of Crisis

Adapting HR practices in times of crisis requires a combination of flexibility, resilience, and proactive planning to ensure the well-being of employees, maintain productivity, and secure the organization’s long-term success.

Human Resources Management Case Studies provide HR professionals with valuable insights into real-world challenges and innovative solutions. By analyzing these examples, organizations can learn from best practices and optimize their own HR strategies. The showcased case studies highlight the diverse scenarios that HR professionals face and the creative approaches they employ to overcome obstacles.

Continuous learning from these experiences enables HR professionals to enhance their skills and contribute to the overall success of their organizations. These case studies serve as a source of inspiration, demonstrating the importance of adaptability, strategic thinking, and effective HR management.

By embracing the lessons learned from Human Resources Management Case Studies, HR professionals can strengthen their expertise, foster employee engagement, and drive organizational growth. These real-life examples reaffirm the significance of HRM for businesses in today’s dynamic and ever-evolving corporate landscape.

Source Links

https://www.shrm.org/credentials/certification/educators/teaching-resources
https://www.e-elgar.com/shop/usd/case-studies-in-work-employment-and-human-resource-management-9781788975582.html
https://gfoundry.com/everything-you-need-to-know-about-human-resources-a-manual-for-managers-and-professionals/

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Cases in Human Resource Management

David Kimball - Elms College
Description

Cases in Human Resource Management provides students with insights into common challenges, dilemmas, and issues human resource managers face in the workplace. Using a wide variety of well-known companies and organizations, author David Kimball engages students with original, real-world cases that illustrate HRM topics and functions in action. Each case is designed to encourage students to find new solutions to human resource issues and to stimulate class discussion. Case questions challenge students to think critically, apply concepts, and develop their HRM skills. The contents are organized using the same topical coverage and structure as most HRM textbooks, making Kimball the ideal companion for any introductory HRM course.

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KEY FEATURES

Original case studies bring concepts to life through a number of well-known organizations, including Apple, Amazon, Google, LinkedIn, and Zappos.
Case questions require students to think critically about HR issues and apply HR concepts to each case.
An emphasis on important issues and current trends in HRM brings up key topics in the field such as state and federal minimum wage, succession planning, executive compensation, mindfulness, cyber attacks, CSR, and managing a multigenerational workforce.
A chapter on international HRM topics examines important issues like that of helping expatriates succeed.

Sample Materials & Chapters

Chapter 7: Training, Leading, Talent Management and Development

Chapter 16: Global Issues for Human Resource Managers

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Human Resource Management Case Studies with Solution

Post author: myspeakhr
Post category: Case Study
Reading time: 4 mins read

The below said is the Human Resource Management Case Studies with Solution. This HRM case study is free of cost and can be considered as a sample case study which will be useful for interviews, exams for MBA & MPM students. This free HRM case study with questions ans solution hint is given with a motive to help the students. The HRM case study is basically on introducing a technology into an organisation.

Technology in Asian motors a need for the hour which is about Asian Motors ltd. This Human Resource Management Case Study deals with the external factors affecting the organisation specially challenging HR department. This case study can be categorised under Organisational development, organisational Change, External Factors affecting HR etc.

HR Case Study 1: Technology in Asian motors a need for the hour

Asian motor Ltd is an automobile spare part company which is there in the market from 6 decades. It was serving to the needs of the customers (majorly focused on 3 companies) by giving product delivery time to time and goods with good quality. To achieve the above said things Asian motors had to walk a long history. The work force is the main reason because of which Asian motors is well known for its timely delivery and good quality goods.

Most of the employees in Asian motors are associated with the organisation for more than 3 to 4 decade. It is said that the one who join the organisation as a fresher will leave the organisation as a retired person only. The turnover ratio is very low in Asian motor ltd due to the feel of satisfaction and job security provided by Asian motor ltd management.

Till last year everything was fine with Asian motors. During the last year the scenario has changed. Number of competitors enters in the market and each one of them was well equipped with all modern technologies. 2 among the major 3 customers who applied for Standards like TQM ISO started pressurising Asian motors to go for modern technology as a part of their Standards process. They want the goods that are manufactured through modern machineries.

The management is also ready to go for an organisational development by accruing new machines and adopt all required modern technologies and allocated a big amount of fund towards this plan. The management was fully aware that to sustain the business they have to go for Organisational change and development. The management hired an OD consultant who will work out a plan for the change and find out the hurdles in implementing the plan.

The OD consultant stated in his report that, the employees are the major hurdles in achieving the target of modern plant in Asian Motors. The reasons stated by him are:-

a) Very old employee who are not much comfortable in adopting the new system.

b) Chances of employees to show less interest towards Training in the new machineries as their employment period will be very less due to their age.

C) Major reason is it is not advisable and won’t be fruitful to invest the training and development amount on those employees ( 40% ) who are going to retire in less than 5 years.

This started a pressure in the minds of the employees about the job security. The union leader quoted in front of management that “The place which we felt it is our own organisation which will never leave us aside or where we want to serve for our life time becomes a question mark in front of us”.

The management assured him that “we will never commit such things which will put the employees in loss. There will be no question of job security here. And we all together will create a modern plant equipped with latest technology at Asian motors. Our plan is ready for that.”

He presented the plan in front of all the employees after listening to which the employees felt so happy and they confirmed that it is their own organisation and they will serve for the company till their life time.

1) Discuss the state of mind of employees of Asian Motors before the paln is discussed with them.

2) Locate and discuss the external factors which are determinates of this case in detail.

3) What would be the possible plan drafted and discussed by the management to solve the issue through which both the employees and management would be benefited.

4) Discuss the pros and cons of the plan that is been framed in question no.3.

For solutions of this case study contact us or write in the comment box below.

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September 26, 2022

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HR as a function has undeniable importance from a business management perspective. With the advancement in technology, 2022 saw a huge technological shift in this aspect of business management as well. Apart from digitizing all other business aspects, organizations have begun to incorporate technology and data into HR practices as well.

HR Analytics Case Studies with Business Impact and its benefits are listed below:

An american mnc reduces attrition using people analytics and forecasting.

Case: This American MNC is a client of PeopleStrong and is suffering from a high turnover of employees at five locations. The company intended to install analytics in order to evaluate the main drivers of attrition and do forecasting for their occurrence at different business locations.

Solution: An integrated tool for workforce analytics was created and implemented. This tool could capture attrition results and their drivers and do a forecasting based on trends.

Also Read: Executive Development Program In Human Resource Management From XLRI Jamshedpur

Result: The forecasting report predicted that 500 of the 5000 employees were going to quit in the next 6 months. Better employee retention policies were designed which included rewards and incentives apart from better people strategies. Even though 250 people still left, the figure was 50% lower than the prediction.

Under Armour digitized employee recruitment and enhanced employee experience

Case: Under Armour, an American organization dealing with the manufacture of sports and casual apparel and footwear, is a global company. With more than 130 global outlets and 8500 employees, their ATS system received more than 30,000 resumes in a month. Thus, hiring was a cumbersome process for them as well as candidates applying for a job.

Solution: They engaged in a digital recruitment system called Hirevue. With Hirevue, managers could create interviews with candidates with the help of pre-recorded questions. This screening process helped managers call in only employees who met their requirements for webcam or mobile recorded interviews.

Result: Managers could now hire new employees much more quickly. There was a 35% reduction in time in the overall interview to the hiring process. Talent quality also improved.

These above case studies show the emerging trend of incorporating analytics in the HR function of business management . This can also be seen to have positive results in the recruitment and retention processes.

Human resource management is quite a recent term. Employees are treated with a lot of respect and regard nowadays compared to earlier. There were times when workers were considered to be expendable and they had few rights. Working conditions were miserable and people had no say in how organizations are operated or in the way they were treated. The industrial revolution is what brought changes. Companies started realizing that keeping employees loyal was essential for running businesses smoothly.

Caring For Employees During The Industrial Revolution

Courses for human resources certification online teach that before the industrial revolution there were hardly any large industries and a need for managing workers was not felt. Working conditions were dangerous for them and pay was hardly commensurate with what work they did. In the late 1900s, companies like the UK-based Cadbury and Jacob from Ireland appointed welfare officers. These firms introduced a system of payment during sick leaves and cheap housing for employees.

Also Read: Executive Development Program In HR Analytics From XLRI

It was F W Taylor during the early twentieth century who introduced a system for managing staff. He believed that people could be trained to become experts in certain jobs. The famous carmaker Ford adopted his methods. Tools in manpower management like job analysis, employee selection procedures, and training methods were introduced during this period. Certain fast food organizations also adopted Taylor’s theories. His mistake was that he did not think people can get bored with doing the same job.

Employee Management During The World Wars

Two events that changed many things for us are the first and second world wars. Employee unions had been formed during the first world war. As men went to fight wars, women came to be seen more in workplaces. In your HR training certification by IIM Raipur , you will learn how companies had to think about managing workers and form new rules. Recruitment, dismissal, bonus, and absence from work came under the scope of manpower management.

Researchers like Elton May opined that factors like motivation, job satisfaction, leadership skills, and group dynamics could influence performance. The improvement in the economy after the war saw many firms adopting a more flexible approach to staff members. Big companies used employee benefits to lure and retain people. Personnel and welfare work was in full swing during the second world war, but it was done in a bureaucratic style as government-run firms influenced law-making.

The Post-War Scenario

The 60s were not good times for industrial relations as it was found that none of the entities involved in negotiation had skills to discuss issues of employees. As the decade came to an end, employment opportunities improved, and along with this, people management techniques began to be used. When you study human resources certification online courses you will know that terms like motivation, organizational behavior, and management training were heard more commonly.

Also Read: Executive Development Program In Talent Management

In the seventies, much was talked about rewarding employees. The next two decades saw economies sliding and companies becoming less profitable. But it was also then that many organizations realized the importance of retaining people. They began looking at workers as an asset that must be taken care of if the firm wants to have an edge over competitors. Humans started to be regarded as resources that need to be effectively managed. Human Resource Management was born.

The Nineties To Now

It is no more only personnel management and administrative tasks for workforce heads. The HR training certification by IIM Raipur will tell you that it is more about employee engagement and development that people managers are tasked with now. Human resource departments are strengthening the culture in an organization and finding people who can fit that environment. They are also tasked with ensuring that every employee gets an opportunity to use his or her talents for the benefit of their companies.

Also Read: Why is it Important to Study Human Resource Management?

HR managers are more focused on workers than on processes. This department is also gaining more importance as management’s realize a need to attract and retain the best talents available in the market. HR leaders find themselves among the C-suite as their role in getting the best out of employees is increasing. They must understand the needs of a more diverse, multicultural, and multigenerational workforce and ensure to fulfill them. Retention of good hands has assumed much importance nowadays.

The Future Of HR Management

The human resources certification online courses will teach that it is not just enough to employ and retain people, but they must also be trained and developed. The speed at which new technologies emerge, there is a need to keep employees abreast of modern developments. HR managers must continuously update themselves with modern technology and arrange training programs to empower workers with new skills. The journey of staff members in an enterprise will be that of continuous learning.

Acquiring best talents and retaining them will remain the focus of any progressive organization. People managers will have to find innovative means to attract those who are equipped with the latest skills required for a job. Engaging with prospective employees through social media platforms will be practiced by more HR heads. There will be increased use of automation for screening resumes and conducting initial interviews. This will speed up the process and reduce costs.

HR departments will be trying innovative methods to improve employee experience in the company. They will find out the requirements of the new breed of recruits. Learning opportunities will be improved. Promotions and salary hikes will no longer be based on experience or seniority. New procedures for evaluating employees will be used. Getting HR training certification by IIM Raipur will teach new methods that are used by global enterprises for appraisal and rewarding.

Looking at the evolution of human resource management can show you that there has been a shift from looking at employees as only a means to achieve company objectives, treating them as individuals, and satisfying their needs. There is a realization that it is equally important to ensure that their goals are achieved and these objectives are in line with that of the organization. HR departments will play a more important role as retaining good talent becomes crucial. Combining the human force with machines and using that synergy will be highly important in the future.

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[CASE STUDY] Transforming Organizational Culture

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JUNE 10, 2021

We recently put together a case study regarding one of our clients, Rainbow Municipal Water District (RMWD), and thought we’d share it in case you were looking for ideas on improving your own workplace culture. The post [ CASE STUDY ] Transforming Organizational Culture appeared first on Civility Partners.

Talent Mobility Case Studies and Research [Podcast]

DECEMBER 7, 2016

In addition, I examine some case studies and examples of companies that are doing interesting work with talent mobility, including World Bank Group, Chipotle, and Hootsuite.

Recruiting Feedback Case Study: The Recruiting Revenue Connection

MARCH 11, 2019

In our latest recruiting feedback case study , Craft Brew Alliance (CBA) demonstrates that asking the right questions at the right time can dramatically affect overall recruiting effectiveness AND uncover powerful connections between recruiting and revenue generation. Download the Case Study for More.

Case Study: Credit Union

OCTOBER 1, 2020

Today’s case study explains how TimeSimplicity can help a typical small credit union maintain quality customer service while controlling operating expenses through automated credit union employee scheduling. Our example organization is Springfield Community Credit Union. How much can you save? ArticleID 7414.

Your In-Depth Guide to Implementing Job Shadowing (+ Google Case Study)

AUGUST 14, 2023

Benefits of job shadowing Types of job shadowing Developing and implementing a job shadowing program: 7 Steps Real-life job shadowing example : Google’s G2G job shadowing program Stay interview best practices Tips for successful job shadowing What is job shadowing? Contents What is job shadowing?

Case Study: How Bonfyre’s Top Manufacturing Site Improved Employee Engagement?

AUGUST 11, 2022

For example , they share site and facilities updates, real-time crisis updates and resolutions, system updates, upcoming events and leadership communications. Yes, sign me up to receive tips, case studies , and other helpful materials! Please indicate if you are in the EU (GDPR). Bonfyre is committed to your privacy.

Are You Throwing Your Employees Under the Bus? [Case Study] - DecisionWise

AUGUST 1, 2017

A Case Study on Improving The Customer Experience (CX) at the Risk of The Employee Experience (EX). In this case study we examine how the Chicago Transit Authority sought to improve its Customer Experience while failing to focus on its Employee Experience. Case Study ] appeared first on DecisionWise.

Case Study: Bonfyre helps call center leaders to engage teams in a remote setting

APRIL 27, 2023

For example , Bonfyre can be used to share training materials, facilitate DEI discussions, and recognize employees for their diversity and inclusion efforts. Yes, sign me up to receive tips, case studies , and other helpful materials! Bonfyre is increasing awareness and impact of learning, DEI, and other programs.

Case Study: The Value Of Pay Transparency And How To Implement It

HR Tech Girl

JULY 5, 2023

Here I aim to shed light on what pay transparency looks like at Compt, explain its mechanics and influence on overall compensation structures and raises, present real-world examples of its benefits, and provide practical considerations for organizations contemplating this approach.

Case Study: Growing Your Sales Organization Beyond The Deal

MARCH 16, 2017

In the following case study , you will learn how a high-growth company uses a software solution to respond to these challenges. For example , responses to “what are you hearing about our competition?” For example , his SDRs are capturing all of the biggest objections that they receive early in the sales cycle.

Case study: Executing a recruitment marketing video plan

MAY 19, 2021

This case study is an excerpt from our new ebook, Getting Buy-In for Your Employee Story Project: The Ultimate Guide to Employer Branding and Recruitment Marketing ROI. was the right fit, not only from the great examples of quality work they provided, and the array of project options that they offered. Read the Full Case Study .

Case Study – Goulburn Valley Water

NOVEMBER 26, 2020

A Case Study on Performance Management & Policy Management. For example , it was difficult and time-consuming to identify who had read, understood and signed off policies due to the inability to produce reports on policy compliance for managers, the risk team and an external auditor.

The Talent Slow Fade: A Case Study of Motley Fool’s Approach to Engagement

JULY 6, 2017

In one example provided by the company, Burbage talked about one of the company’s engineers. This is a great example of talent mobility in action –using employee interests and strengths where they can benefit the company the most. How can we help people be happy and pursue their interests and strengths? How does this sound?

The Evolution of HR with AI Technologies

FEBRUARY 19, 2024

Case studies from various companies show the success of integrating AI into HR strategies. These examples highlight how AI has helped companies streamline their HR processes, improve employee satisfaction, and make better strategic decisions.

13 HR Analytics Courses Online To Check Out in 2024

FEBRUARY 23, 2024

All subjects are illustrated by real-life examples of how various organizations tap into HR analytics techniques to help them flourish. A dashboard example is included below. It includes facilitated discussions, case studies , group and individual activities, and self-assessments. Want to know more?

9 Digital HR Case Studies with Business Impact

Digital HR Tech

OCTOBER 23, 2019

In this article, we have collected some of the best Digital HR case studies we’ve come across. They’re good examples of organizations that really get Digital HR and make the most of it. Each case study is connected to a specific business imperative. What’s in? Anchor Trust 2. Deloitte 5.

Wal-Mart: Our Fastest Growing Business Line is Delivering Experiences [Case Study]

APRIL 26, 2018

For example , one area in particular that is growing faster than any other part of the business is personal shopping assistance. For example , how should you respond if the customer’s item is out of stock? This set of training examples in itself is highly indicative of the kind of work these people are doing.

Text Analysis in HR: A Brief Case Study

JANUARY 5, 2020

Take ‘ use’ and ‘ need’ as examples : do they occur often due to a particular focus on what is needed or should be used, or do they typically occur anyway when sharing knowledge through writing? In my opinion, text mining and natural language processing are prime examples of that. Words that are common may not always be important.

Case Study: Growing Your Marketing Agency With Automated Employee Feedback

MAY 24, 2017

For example , when co-founders Kelsey Meyer & John Hall were leading a team of ten, a weekly in-person meeting was sufficient to surface and address the most important issues facing the business. Influence & Co. , With hierarchy now in place, passing information up the ladder was critical to prevent information bottlenecks.

Case Study: How One Healthcare Agency Uses Appreciation to Improve Business and Patient Outcomes (#greatness17)

AUGUST 8, 2017

This data is one company’s example of how to do that, but it’s a great script for those of you that are looking to explore the value that appreciation and recognition can bring. Thanks to O.C. Tanner for the invitation to the event and for access to Ms. Ullom-Vucelich for the amazing conversation! Enjoyed this?

Case Study: Steelcase Uses Onboarding Technology for Leadership Development

FEBRUARY 4, 2019

That’s what companies are discovering about onboarding technology and here’s a super interesting example . For a deeper look at the Steelcase program, read the full case study . The post Case Study : Steelcase Uses Onboarding Technology for Leadership Development appeared first on SilkRoad. Unlimited possibilities.

Develop Your Talent Acquisition Strategy With 6 Practical Examples

In this article, we’ll explore what a talent acquisition strategy looks like, how to develop a talent acquisition strategy, along with some best practices and examples to help you move your company forward. Consider, for example , putting together an attractive compensation package with good health benefits (including mental health).

Sonoco Case Study

OCTOBER 30, 2018

Take Mary E, for example . Rebecca M, for example , is a part of Sonoco’s Young Professionals group. The post Sonoco Case Study appeared first on Stories Incorporated. We spoke with individuals ranging from interns early in their career to team members tenured 30+ years at Sonoco.

13 Great Employer Branding Examples To Inspire You in 2024

SEPTEMBER 15, 2023

In this article, we’ll share 13 exceptional employer branding examples and what we like about them to inspire you in building your employer branding strategy. Types of employer branding content Employer branding examples 1. Now, let’s dive into the best employer branding examples ! Contents What is employer branding?

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12 Case Studies of Companies that Revised How They Compensate Employees

A person is handing a check to another person.

S HRM has partnered with ChiefExecutive.net to bring you relevant articles on key HR topics and strategies.

Higher compensation is part of the ransom for dealing with the pandemic for most American companies and industries. So salaries, wages, benefits and perks will cost them more—perhaps a lot more—in the year ahead.

The way CEOs and CHROs can make sure the Great Raise works to their companies' advantage is to be proactive, creative and equitable about it. Yet they also must weigh strategically the demands of the moment with their long-term compensation strategy.

"This is a time for real balance when it comes to how you deal with retention and attraction," said Paul Knopp, chair and CEO of KPMG US. "We all have to make sure we meet the market when it comes to base compensation, but the market has changed in a way that you also have to look at those benefits that are most attractive to employees for their careers."

While median full-time earnings of $1,001 per week in the third quarter of 2021 were nearly 9% higher than two years earlier, according to the Labor Department, expectations for 2022 remain frothy given the tight market for talent, the free-agent ethos encouraged by remote work, the geographic reshuffling of workers and decades-high inflation. U.S. wages will increase by 3.9 percent in 2022, according to the Conference Board, the highest rate since 2008.

The compensation surge is occurring at the high end, at a low end that's getting higher and everywhere in between. Goldman Sachs, for example, is offering paid leave for pregnancy loss and expanding the amount of time employees can take for bereavement leave while also boosting its retirement-fund matching contributions for U.S. employees to 6% of total compensation, or 8% for those making $125,000 a year or less.

Meanwhile, at Tyson Foods' chicken-processing plant in New Holland, Pa., the company has started offering a three-day workweek, plus pay for a fourth day that retains employees' status as full-time workers. Just for good measure, Tyson has created a $3,000 sign-on bonus for new hires.

"We're in a bidding war for talent that will go on for a long time," said Alan Beaulieu, president of ITR Economics.

For CEOs and CHROs, several new factors demand their attention along with the overall spike in compensation. They include:

The end of retention. The "idea of a long-term commitment to one employer has been dead for a while, but it's really dead now," said Dave Roberson, CEO of the RoseRyan financial consulting firm. "You must have a stream of people. Assume you're going to be replacing people. So how do you keep the people you have, if you can, but also bring the next group in?"
High-balling. A deal to recruit someone may not really be a deal these days. "You've made an offer and you think you've got a hire, and then they're asking for $5,000 or $10,000 more," said David Lewis, CEO of OperationsInc, an HR consulting firm. "Now you have to ask yourself what makes more sense strategically: say no and hold the line and lose the candidate and restart the process, not knowing how that will work out? Blow up your compensation structure? Or as a Band-Aid, give that person a sign-on bonus in hopes that the package will get them in the door?"
Need for equalization. Recruiting with higher compensation also requires boosting pay and benefits for retention. "You need to be mindful of what you're paying others in the organization and understand the detrimental impact it will have when you bring someone in alongside a tenured employee," Lewis said. "Operate on the idea that everyone's salary is basically posted on the pantry door in your office."
A focus on mental health. The pandemic, anti-contagion measures and the takeover of remote work has left many Americans isolated, confused, lonely—or at least disjointed. And they expect their employers to help them cope and adjust.

"Mental health is a real thing, regardless of how [a previous generation of leaders] feel and what we did," said Jeffrey Immelt, former CEO of General Electric. "Particularly post-Covid, it's something worth your time to try to understand."

Many Fortune 500 companies already offered mental-health benefits, but by now "mental health is just a place setter: You've got to have it in place to be competitive in the market today, across the board," said Richard Chaifetz, founder and CEO of ComPsych, a large provider of employee-assistance programs. "Companies understand the importance of keeping their people functioning at the highest level."

Codility, for example, has begun supplying all employees with 27 days of paid time off per year plus four mental-health days, which don't have to be approved. "We're offering these days in addition to personal-time-off days to recognize and bring to light the importance of mental health," said Natalia Panowicz, CEO of the platform that evaluates the skills of software engineers, with its U.S. hub in San Francisco.

CHRO360.com asked a dozen CEOs, CHROs and other top executives about their compensation strategies and practices for 2022. Here are some of their ideas:

Let Them Name Their Salary

Chris kovalik, ceo, rushdown revolt, a video-game maker in new york city.

We started as 12 part-timers, mostly people who were giving me their moonlight hours. That's not a lot different from now, except now we have 75 people. The magic of what we do is that we don't recruit anybody. We're just a magnet. We let people come to us.

When it comes to compensation, some say they wanted to volunteer, that they weren't expecting compensation. But we never, ever allow people to volunteer their time for us. So we say our company minimum wage is $15 an hour, and if you insist, we can pay you that per hour.

But generally people come to us with an expectation of compensation because they see that we're making money. When compensation came up, we'd say, "I don't know what your skill set is. I've never hired you before. How much do you think you're worth, and how much do you need?"

If every hour we're compensating them for the amount of money they want and need, if someone is part-time and only giving me 10 hours a week, I'd argue that they're giving me their best 10 hours. Because they're getting paid what they want and doing things that they want to be attached to and be part of.

There's no pattern to the compensation requests. If their number is too low, we'll say, "Are you sure? Are you just giving me a low-ball number I'll say yes to?" If it's high, I don't talk them down, but I ask them to justify it, and if the justification isn't adequate, what I say is, "How long do you think you'll need to prove that justification? Two to three weeks? Then let's pay you two-third to three-quarters of what you asked, and if you prove it, we'll go up to whatever you said."

Tailor Package for Youth Appeal

Ronald hall jr., ceo, bridgewater interiors, an auto-seat maker in detroit.

We enjoyed very low turnover pre-Covid, but during the last two years we have had to replace probably one-third of our workforce at our largest facility, about the same number from termination as voluntary. So we've had to work harder than ever to recruit.

Our most-tenured employees, who are the most highly trained, have had to pick up the slack, working record amounts of overtime and less-predictable production schedules.

In our upcoming negotiations with the United Auto Workers, we're trying to emphasize short-term bonuses rather than wage increases that get baked into our costs. But we have continued health insurance through the pandemic as well as our tuition-reimbursement program, and many employees have thanked me for that.

What I am hearing from new employees is that they're not as interested in benefits but rather in higher cash wages. We've long touted benefits like our generous 401(k) matching and better medical coverage versus our peers, but we're finding that doesn't resonate as readily now as it did a decade ago. So I've asked my team: Should we be looking at some kind of hybrid model of offering higher wages to people who want those and move those dollars from the benefits side to the wages side?

We've also looked at providing childcare in a partnering arrangement where there could be a center developed near our facilities, and we would arrange for some sort of company subsidy or guarantee some level of attendance. The challenge with that is the auto industry runs around the clock, and you'd need a daycare provider who'd be committed to opening around the clock and provide legal, regulated, benchmark-standard levels of care to all those children in the off hours.

Equalize as You Acquire

Diane dooley, chro, world insurance, a business and personal insurer in tinton falls, n.j..

We onboarded about 800 employees in 2021 through acquisitions of small agencies and organic growth, but there had been no compensation modeling. Now we're building out our compensation philosophy with commission plans, incentives and bonuses, centralizing components and ensuring we have the right framework.

When we do an acquisition, we might retain their compensation model for a year or two years then slowly migrate, but make sure employees aren't taking a cut in pay. We are also capitalizing commissions into base compensation—identifying what commissions would have been and what they will be, and recognizing roles that are moving away from a commission base.

Some agencies we acquire are smaller and may be below-market for total compensation. Now we're addressing those concerns. They need to be more front and center. We must do everything to retain our employee population. If they're woefully underpaid, or not at market, we risk losing people, and we don't want to do that.

Educating the owners of some of the agencies [we acquire] is a piece of this. As we partner with them, we are evaluating them and asking, "Did you give people an increase this year?" We're not telling them what to do but providing guidance about what to do.

We're also modifying and increasing our benefits, such as giving employees pet insurance. And making counteroffers is a critical piece today, usually for high-end employees. They work better than they used to because not a lot of people really want to make a move in this environment.

Innovate for the New World

Jason medley, chief people officer, codility, a provider of skill-evaluation software in london.

We really have to step back and be innovative and force ourselves to change. The companies that are going to win are going to be more progressive early and not fighting what's happening.

One thing we've done is change our outdated compensation models that give higher pay to employees living in tech hubs like San Francisco and New York and lower compensation for areas inside the coasts. Now, we've created a United States-wide salary band, so no matter where you live, the compensation is based on the role, not the location. You can go live and work wherever you want to.

We decided to approach compensation through a very human lens. People have seasonality in life, and maybe they are caregivers at different moments and want to live in different places. We want to be as flexible as possible, and this country band gives us that flexibility.

We are starting to see the same thing in Europe, where we have our headquarters in London and offices in Berlin and Warsaw, and employees all over, especially in Poland. People are wanting to live in the countryside of Spain but demanding a London salary. So we are transitioning to one European Union band and saying, "Here is your rate—live where you want to."

We are also seeing that with global warming, it's harder to get work done for people on the west coast of the U.S. and in Europe, because they didn't build homes with air conditioning. If you're sitting in a house at 90 degrees with no air conditioning, there's no way your performance is the same as someone with AC. Supplementing air conditioning isn't something we thought about before, but now we're very much having to look at those things.

Stay Ahead of Expectations

Traci tapani, ceo, wyoming machine, a sheet-metal fabricator in stacy, minn..

Our wages have gone up by about 20% for the typical worker. When I found people I could hire, I knew they were being brought in at an hourly rate that was too high for what I was paying my incumbent workers.

My strategy has been to be proactive about that and not wait for [existing] employees to say something about it or give them a reason to look for another job. We're proactively making wage adjustments to make sure our incumbent workers are in line.

Employees will leave for more money, so they're very appreciative of it. But in my shop, I also know that people like working here, and I know they don't want to leave. I don't want to give them a reason. If they can get an increase in pay that's substantial, I know that I can cut them off at the pass. Retaining my workforce is my No. 1 strategy. They're already here, and I'm going to do everything I can to keep them.

For that reason, we've also been more generous as time has gone on with paid time off, offering it sooner than we once would have, especially for new workers. We recognize that it's healthy for people to be away from work and also, in the pandemic, people need to be away from work. Knowing they have some paid time off makes it easier for them.

Leverage Benefits for DE&I

Mark newman, ceo, chemours, a chemical manufacturer in wilmington, del..

In general our company hasn't seen the Great Resignation. And in fact, we continue to believe our focus on being a great place to work is serving us well, along with appropriate benchmarking on compensation issues.

Chemours is a great place to work. We survey our employees every year, to improve our working environment from a compensation and benefits perspective. Also, from the [diversity, equity and inclusion] perspective, we're trying to make sure we tap into the full breadth of talent in our industry.

That means, for instance, we are helping people more with college loans. We are offering same-sex [marriage] benefits. We are providing more family leave for people who have kids. There is clearly an aspect of our benefits package that is evolving to be consistent with our strategy of making Chemours a great place to work.

Overall, we view compensation as something where we want to be either in the median or upper quartile. It's something we're very focused on from both a wage as well as benefit level. From Covid, there's been no fundamental change as it relates to us wanting to be in the median to top quartile.

We've had to make some local adjustments where the labor market is more super-charged. For example, we see a lot of that in the Gulf Coast region, especially with oil prices coming back, and petrochemicals and refining. But it's very much a regional factor. So if industries are moving to a certain region, like the South, you have to make sure you stay current with local benchmarks.

Offer Skin in the Game

Cesar herrera, ceo, yuvo health, a healthcare administrator in new york city.

We're a year-old company that provides tech-enabled administrative solutions for community health centers across the U.S. that are specifically focused on providing primary-care services for low-income individuals. We have a team of about 10 people right now, and we have a number of open roles and positions where we're likely going to be tripling the size of our team in 2022.

Google can compensate well above the market rate. We don't have that since we're an early-stage organization. What we do have as levers aren't up-front financial compensation but equity, support in your role and a relatively flat organization where you can have significant autonomy.

A lot of individuals are going to be driven by the mission; that's the case with the entire founding team. We've made sacrifices to create this organization. So you can come in at a meaningful position with a lot of decision-making.

But one of the biggest carrots we can give is, if you accept the lower pay and the risk that comes with an early-stage organization, you can have meaningful equity in the company. We have an options pool which is not to exceed 10% ownership of the organization, and as we grow and scale, we increase that options pool. For senior-level leaders, we do expect to be able to distribute up to 10% of the company to them.

Pay Extra for Continuity

Corey stowell, vice president of human resources, webasto americas, a maker of automotive sunroofs in auburn hills, mich..

We had to recruit for several hundred new openings at a brand-new facility right at the beginning of the pandemic. So we instituted an attendance bonus. For those who worked all their hours in a week, we paid an additional $3 an hour. We really had to keep it short-term, so we paid it weekly. If you wanted to pay it every month, you couldn't do it, because people needed that instant gratification.

Otherwise they could get it on unemployment. With our pay rate, they could earn more to stay at home and collect unemployment, a significant amount more than they could earn than working for us. So we also had to increase our wages, and we increased them by more than 20% in some classifications [in the summer of 2020].

We've filled all of our positions, but it's still a challenging market. We've had to increase all our wages, with the lowest for a position being $17 an hour, on up to $30 an hour.

We also have offered stay bonuses of $500 a month for three consecutive months, up to $1,500. And for hourly employees we've instituted a different attendance policy, where they can earn two hours of paid personal time for so many hours that they work consecutively with no attendance issues.

The key is the schedule—we can prepare and get someone to cover. That's easier to do than just managing whoever's going to come in today. In this environment, that really has changed with our workforce, and it's tough to rely on our current workforce.

Give Them the Keys

Elliott rodgers, chief people officer, project44, a freight-tracking software provider in chicago.

We have equipped and subsidized a van that we call Romeo, which employees can use to combine work with personal uses like family road trips. We cover the cost of the rental. It's a luxury van that comes equipped with a bed, a toilet and shower, Wi-Fi, device charging and a desktop workspace. And it's pet friendly.

We started it as a pilot project and reservations were full within 10 minutes of when we posted it internally. Then we extended it into 2022. By the end of 2021, more than 20 unique team members completed or nearly completed reservations. They've ventured out to places spanning Mount Rushmore and the Badlands; Rocky Mountain National Park; Salem, Mass.; and Pennsylvania. A pretty broad number of places.

It's something we're really proud of. It allows our team members the opportunity to work in a lot of different places while still being connected to us. And they've appreciated the opportunities to stay connected, but also be connected in other ways with nature and other places in the world. They can maintain their perspective while also continuing to contribute to their role in a productive way.

When you place a team member at the center of what they'd want in an experience like that, the value of it answers itself. It creates a comfort level where it provides the necessities for you to be able to continue to work, and you can work from anywhere. It's the best of both worlds. It's one thing to find that on your own but another to have that accessible to you via work, but done in a way that caters to you.

Help Them Come, Go—and Stay

Aamir paul, country president - u.s., schneider electric, a maker of electrical distribution and control products in andover, mass..

With our knowledge workforce, it's been about intentional flexibility. So, for instance, we launched a "returnship" program for women who'd left the workforce but might want to come back even at reduced hours. That means 20, 30, up to 40 hours a week, and we're finding some incredibly talented people who haven't been in the workforce.

This program is available to men as well. If there's a field engineer who's been in the electrical industry for 35 years and he's now retiring, but he's five years from getting his medical benefits, we say: Don't retire. Go on the program. Work 20 hours a week. Work from home. We'll reduce your pay proportionally, but we will couple you with three university hires, and they will call you on Microsoft Teams and show you what's happening on the job site, and you're going to walk them through it. Work just three days a week. We'll cover your benefits.

We've also expanded the parental leave policy, which already was one of the best in the industrial sector. And we created a way for people to buy more time off without having to leave their positions. They apply for more unpaid time off and we allow them to retain their position and seniority and allow them to work through whatever life event it is.

We landed on six weeks for the maximum. In the most intense industries—such as a fighter pilot or a surgeon—they've found that six weeks of being out of the rotation allows them to re-set. So that's what we did. Before, the limit was two weeks.

Give Sway to Local Management

Tom salmon, ceo, berry global, a maker of plastic packaging in evansville, ind..

We've got to be competitive in all the geographies we serve. We have 295 sites around the world and manage our employees in those sites geographically. Every geography will be a different labor environment. There are different criteria that employees are looking for. It's not just about wages but taking everything into consideration.

We let local management handle things with their insight about wages and competition. They're hearing directly from employees about what they like and don't like, what they want more of and less of. It's a site-by-site discussion.

For example, at some sites, it may be important for employees to be able to access the internet at lunch; at other sites, they may not value that as much. Some want a more advanced locker facility, with different shower facilities. That includes the southwestern United States, where the temperatures are warmer; but in New England, some might not want that.

In any event, if you treat these things locally, you're going to be able to affect that local population and address the need of that geography. If you blanket something across our entire plant population, you may provide something that's not desired or needed.

We depend on our local management to respond to the different demands in terms of compensation and benefits at their sites. The better the front-line leadership is, and the more satisfied their team is, the higher our retention rate and productivity and safety performance. So these leaders participate in profit-sharing plans for those respective sites, because they have a great influence on the success of a given facility.

Focus Benefits on Flexibility

Paul knopp, chair and ceo, kpmg us, a financial consulting firm in new york.

We announced a new package of enhancements to our benefits and compensation, tied to mental, physical, social and financial well-being. These increases are the biggest in the history of the company. You have to make sure your base compensation meets the market, but you also must have attractive benefits.

For example, we cut healthcare premiums by 10% for 2022 with no change in benefit levels, and we introduced healthcare advocacy services. We are replacing our current 401(k) match and pension programs with a single, automatic company-funded contribution within the plan that's equal to 6% to 8% of eligible pay.

As part of this, we're focusing on the crucial element of ensuring that employees know you're watching out for them. They also are looking for flexibility—you don't want to under-index on how important that is. So we also are providing up to three weeks additional caregiver leave, separate and apart from PTO. And all parents will receive 12 weeks of paid parental leave, in addition to disability leave for employees who give birth, allowing some up to 22 weeks of paid leave. We also have expanded our holiday calendar to now include Juneteenth.

Dale Buss is a long-time contributor to Chief Executive, Forbes, The Wall Street Journal and other business publications. He lives in Michigan.

Rising Demand for Workforce AI Skills Leads to Calls for Upskilling

As artificial intelligence technology continues to develop, the demand for workers with the ability to work alongside and manage AI systems will increase. This means that workers who are not able to adapt and learn these new skills will be left behind in the job market.

A vast majority of U.S. professionals think students should be prepared to use AI upon entering the workforce.

Employers Want New Grads with AI Experience, Knowledge

A vast majority of U.S. professionals say students entering the workforce should have experience using AI and be prepared to use it in the workplace, and they expect higher education to play a critical role in that preparation.

Artificial Intelligence in the Workplace

An organization run by AI is not a futuristic concept. Such technology is already a part of many workplaces and will continue to shape the labor market and HR. Here's how employers and employees can successfully manage generative AI and other AI-powered systems.

HR Daily Newsletter

New, trends and analysis, as well as breaking news alerts, to help HR professionals do their jobs better each business day.

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Teambase human resources management solution

Project overview, client information.

TeamBase is a consulting and software services company that helps SMEs bring their business to a new level. They provide cloud-based solutions for insurance and HR, retails, and hospitality.

Team composition

Client name

TeamBase DMCC

Expertise used

BI and reporting

Services provided

UI/UX design , Web app development , Mobile app development , Custom software development

United Arab Emirates

Human Resource , Computer Software

Business challenge

The customer needed some solutions that could become more than a traditional HR system. They wanted a new system to combine recruiting, onboarding, performance monitoring, payroll, and corporate administration. The final product should modernize and automate all the HR operations within an organization and be universal enough to be implemented for any industry. The system had to store the information in one place for easy access by both HR managers and employees.

Technical challenges

For security measures, the system had to provide role-based user access for various roles like an HR manager, CEO, Operations Manager, CTO, and others. It also had to be combined with payroll functionality for the maximum usability of the resource. We had to empower the system with document expiry tracker, notifications, and capabilities for automatic organizational chart creation.

Solution delivered

To meet the customer’s needs, our team developed a robust solution that allows managing employee records, handling onboarding tasks, processing payroll, keeping company documentation in a secure place, and performing a lot of daily HR functions. Data that is accurately structured and stored in one repository ensures high security and quick sharing among company workers.

Key features

teambase human resources managment solution key 1

Employee data management

The system offers capabilities to store and manage all the information about company employees in one place. Here, you can collect personal data about each of your employees, for example, emergency contacts, bank details, and other essential information.

Employee self-service

Self-service allows employees to apply for day-offs and sick leaves as well as to manage travel spendings and other business expenses. This feature simplifies traditional HR processes by empowering employees with a convenient way to manage their time and expenditures.

The system includes a simple payroll calculation function that connects the pay data with deductions and reimbursements automatically. It makes the payroll process transparent and manageable.

Corporate administration

Companies can store all the critical corporate data in one repository. Papers like corporate mission statements, NDAs, legal agreements, insurance policies will always be up to date since the system is empowered with special reminders for the expiring data.

teambase human resources managment solution key 2

Onboarding goes comfortable with a standardized procedure described online. Both newcomers and HR managers can monitor onboarding tasks, progress, and all other information stored in the system.

Performance management

Track productivity, set goals, schedule regular reviews. Measure and evaluate employee performance right in the HRMS, record results, and keep them for the future review to compare.

Reports and analytics

HR managers have all the necessary tools to analyze and report on salary, employee demographics, time and attendance, etc. Real-time data ensures the most accurate picture of your organization; you can make data-driven predictions and spot trends for future staff requirements.

Shared company calendar

Now, everybody is on the same page. A shared calendar allows for getting updates on meetings, events, appointments, holidays, etc.

Value to our client

Employee satisfaction level increase by 50%.

Collaboration and self-service capabilities make staff feel more engaged in teamwork, which leads to increased satisfaction with the work environment and communication with colleagues.

3 times less paperwork burden

HR specialists can save time on repetitive and manual tasks since the system is entirely automated. The response time reduced, employees can monitor their requests online instead of using paper.

One-stop HR management

A solution is a one-stop place for all the HR-related tasks and procedures that combine 10+ most critical functions, including payroll and self-service for employees._x0000_

1-day updates

New values were updated in the Golden Source dictionary within 1 day, instead of 1 month.

Our tech stack

Client feedback

The collaboration has increased by as much as 25% each year, thanks to DICEUS’ technical capabilities and quick feedback adoption. The team’s professionalism, cost-effective rates, and consistent delivery continue to support both the engagement and product end-users.

Robert Koval, Managing Director, TeamBase DMCC

Software solutions bringing business values

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1.4 Cases and Problems

Chapter summary.

Human resource management is the process of employing people, training them, compensating them, developing policies relating to the workplace, and developing strategies to retain employees. Three certification exams, which are offered by the Human Resource Certification Institute, can be taken to show HRM skills and become more marketable.
Human resource management involves seven main areas: (1) staffing, (2) workplace policies, (3) benefits and compensation, (4) retention, (5) training, (6) employment laws, and (7) employee protection.
Human resource managers need many different types of skills. Being able to organize, multitask, and communicate effectively, as well as having specific job skills, such as how to run a particular computer program, and a sense of fairness and ethics, is crucial to a successful career in HRM.
There are many contemporary challenges associated with HRM. First, it is up to everyone in the organization to contain costs. HR managers need to look at their individual departments and demonstrate the necessity and value of their functions to the organization. HR managers can also help contain costs in several ways, such as managing benefits plans and compensation and providing training.
The fast-changing nature of technology is also a challenge in HRM. As new technologies are developed, employees may be able to implement innovative ways of working such as flextime . HR managers are also responsible for developing policies dealing with cyberloafing and other workplace time wasters revolving around technology. Employee stress and lack of work-life balance are also greatly influenced by technology.
Awareness of the changes in the economy allows the human resource manager to adequately plan for reductions and additions to the workforce.
The aging and changing workforce is our final factor. As baby boomers retire, there likely will not be enough people to replace them, and many of the skills the baby boomers have may be lost. In addition, having to work with multiple generations at once can create challenges as different expectations and needs arise from multigenerational workforces.

Chapter Case

Changes, Changes

Jennifer, the owner and manager of a company with ten employees, has hired you to take over the HRM function so she can focus on other areas of her business. During your first two weeks, you find out that the company has been greatly affected by the up economy and is expected to experience overall revenue growth by 10 percent over the next three years, with some quarters seeing growth as high as 30 percent. However, five of the ten workers are expected to retire within three years. These workers have been with the organization since the beginning and provide a unique historical perspective of the company. The other five workers are of diverse ages.

In addition to these changes, Jennifer believes they may be able to save costs by allowing employees to telecommute one to two days per week. She has some concerns about productivity if she allows employees to work from home. Despite these concerns, Jennifer has even considered closing down the physical office and making her company a virtual organization, but she wonders how such a major change will affect the ability to communicate and worker motivation.

Jennifer shares with you her thoughts about the costs of health care on the organization. She has considered cutting benefits entirely and having her employees work for her on a contract basis, instead of being full-time employees. She isn’t sure if this would be a good choice.

Jennifer schedules a meeting with you to discuss some of her thoughts. To prepare for the meeting, you perform research so you can impress your new boss with recommendations on the challenges presented.

Point out which changes are occurring in the business that affect HRM.
What are some considerations the company and HR should be aware of when making changes related to this case study?
What would the initial steps be to start planning for these changes?
What would your role be in implementing these changes? What would Jennifer’s role be?

Team Activities

In a group of two to three people, research possible career paths in HRM and prepare a PowerPoint presentation to discuss your findings.
Interview an HR manager and discuss his or her career path, skills, and daily tasks. Present your findings to your class.

Human Resource Management Copyright © 2016 by University of Minnesota is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License , except where otherwise noted.

Innovation & Enterprise

For students
For businesses

Case studies

Thinking inside the box: UCL startup improves logistics efficiency with its data-driven solution

Startup BoxxDocks, supported by UCL, has developed a track and trace platform, helping distributors to boost efficiency and cut emissions.

A man wearing a hi-vis top moving some packing crates

4 April 2024

BoxxDocks is the brainchild of UCL alumnus James Della Valle (BSc Architecture 2020 and MSc Architecture 2023), Amrajit Pall and Alessandro Attanzio.

The trio, who worked together previously, came together during lockdown when they noticed an untackled issue in the UK logistics industry. Namely, the lack of innovation and visibility in distributors’ backend logistics.

“We could see many businesses were struggling as a result of a lack of real-time visibility into the whereabouts and condition of their shipped goods,” explains BoxxDocks co-founder and CTO James.

“Environmental concerns and the carbon footprint of operations were also a priority, which were being exacerbated by the widespread use of non-reusable packaging.”

BoxxDocks retrofits existing reusable packaging (such as plastic logistics boxes) with advanced tracking and tracing technology. This technology gives companies real-time visibility into the location and condition of each box in a way they haven’t had access to before.

Companies can then analyse data from the packaging to boost efficiency. Crucially the packaging can also be re-used, doing away with single-use plastics and cardboard, lowering costs and environmental impact.

After receiving business support from UCL Innovation & Enterprise, BoxxDocks secured investments from TechStars, British Design Fund and Angel Investor to take their solution to market.

The company was named one of the top 100 startups in the UK in 2021 by TechRound. They also won the Wired Award in 2022 by TATA, were Santander’s Hatchery Start-up of the Year 2023 and were included in TransportTech 50 Top 10 for 2023.

BoxxDocks recently launched their solution with Sigma Pharmaceuticals, a UK leading pharmaceutical distributor, and are now expanding their services in multiple sectors.

Read more about James Della Valle’s experience of setting up a startup with support from UCL .

Find out more about:

Entrepreneurship support available to UCL students and recent graduates
UCL’s Hatchery startup incubator programme
Sigma Pharmaceuticals introduces BoxxDocks’ data-driven track and trace solution
UCL entrepreneurs win global Techstars investment
The Bartlett School of Architecture

Email: [email protected]

Meet the team

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Sustainable, inclusive housing growth: A case study on Columbus, Ohio

Over the past two decades, the Columbus region has enjoyed outsize population and economic growth compared with leading peer cities and the US average. 1 In this article, “Columbus” refers to the Columbus metropolitan statistical area unless otherwise specified. See “Ohio Metropolitan Statistical Areas (MSAs),” Ohio Department of Job and Family Services, Office of Workforce Development, accessed June 22, 2023. Yet growth has come at a cost—specifically by outpacing the region’s supply of available housing. Home and rental prices have soared as stock has been depleted, making homeownership—and sometimes even having a roof over one’s head—increasingly out of reach for many people, particularly those from historically marginalized communities.

About the authors

This article is a collaborative effort by Brandon Carrus , Seth Myers , Brian Parro, Duwain Pinder , and Ben Safran, representing views from McKinsey’s Social Sector Practice.

In just this past decade, the increase in housing prices and rents has dramatically outpaced household income. Additionally, the region’s population of people experiencing homelessness (PEH) has grown faster than those of its US peers in recent years. The region’s challenges have a disproportionate impact on historically marginalized populations (such as Black and Hispanic residents), who have a dramatically lower likelihood of being a homeowner and a much higher likelihood of experiencing homelessness. Amid ongoing rapid growth, the need for affordable housing and support services for PEH will only continue to increase unless significant action is taken. 2 HUD defines affordable housing as “housing on which the occupant is paying no more than 30 percent of gross income for housing costs, including utilities.” See “Glossary of terms to affordable housing,” HUD, accessed June 22, 2023.

Columbus is a microcosm of the United States’ housing insecurity plight. While many major cities are receiving national press coverage for this issue, housing insecurity is a humanitarian challenge facing communities of all sizes across the country. The National Association for Home Builders estimates that about 70 percent of US households cannot afford a new home at the national median price. 3 NAHBNow , “Nearly 7 out of 10 households can’t afford a new median-priced home,” blog entry by National Association of Home Builders, February 15, 2022. In 2022, US home vacancy rates were at their lowest levels since 1987, 4 “Home vacancy rate for the United States,” US Census Bureau, retrieved from Federal Reserve Bank of St. Louis (FRED) June 22, 2023. and the country is estimated to have a shortage of 6.5 million housing units. 5 Anna Bahney, “The US housing market is short 6.5 million homes,” CNN, March 8, 2023. Renters are also facing increased pressure nationally: 23 percent spend at least half of their income on housing costs, 6 Katherine Schaeffer, “Key facts about housing affordability in the U.S.,” Pew Research Center, March 23, 2022. rendering them “severely rent burdened” as defined by the US Department of Housing and Urban Development (HUD). 7 “Rental burdens: Rethinking affordability measures,” PD&R Edge, accessed June 22, 2023.

As in many regions in the United States, the primary contributors to the housing shortage in Columbus are embedded within deeply vexing economic and social issues, including stagnating incomes, racial gaps in homeownership, and access to financing and services.

As Columbus charts a growth strategy for the decades ahead, addressing housing and homelessness will be an essential component in realizing the goal of prosperity for all. Today, Columbus is projected to have a shortage of as much as 110,000 housing units by 2032. 8 Vogt Strategic Insights, “Analysis of housing need for the Columbus region,” Building Industry Association of Central Ohio, August 30, 2022. Without an increase in the supply of housing, Columbus may struggle to continue on a growth trajectory. Specifically, we have identified four priority interventions designed to work in concert to increase housing stock, keep rents affordable, and help more people, including historically marginalized populations, access the housing market:

Tap into existing housing capacity potential. Public–private collaboration on policies can identify land available for housing either as underused property or as part of broader rezoning efforts to increase the supply of homes, which is a requirement for sustained economic growth.
Reduce the cost of new construction. Promising cost-reduction opportunities include simplifying the permit process and engaging builders with expertise in cost-effective construction methods.
Support homebuyers and renters. Local government and policy makers can expand resources and consider policies that support public- and private-sector initiatives to improve homeownership rates, assist with rental affordability, and reduce the risk of homelessness.
Prioritize tackling homelessness. Alleviating homelessness requires increasing awareness of currently available resources for PEH and expanding relief funds to assist residents with affordable housing, healthcare support, training for employment, and other resources critical to reducing homelessness.

Many local leaders are well aware of the challenges that can result from booming growth. The policy-neutral research presented in this article is intended to complement the work already under way by leaders in the city of Columbus and surrounding areas to inform decision making about the housing shortage, affordable housing, and homelessness. 9 For example, see Bonnie Meibers, “Columbus details plan to build, preserve and invest in inclusive affordable housing,” Columbus Business First , June 27, 2022; Bonnie Meibers, “Columbus City Council announces 12-part plan to combat affordable housing shortage,” Columbus Business First , March 16, 2023; Bonnie Meibers, “The Punch List: Columbus lays out new solutions to housing crisis,” Columbus Business First , October 24, 2022; Mark Ferenchik, “Worthington considering asking for $1.1M affordable housing bond issue on November ballot,” Columbus Dispatch , January 16, 2023. In the process, we believe the Columbus region’s approach to housing could both build on and inform the economic development strategies of other regions across the country—with successes offering a potential blueprint for progress.

The fastest-growing region in the Midwest

From 2000 to 2021, the Columbus Region’s population increased by a third, adding more than 500,000 people and becoming the fastest-growing metropolitan statistical area (MSA) in the Midwest. 10 “Resident population in Columbus, OH (MSA) [COLPOP],” US Census Bureau, retrieved from FRED April 7, 2023. Includes MSAs with populations greater than one million. Midwest defined as Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Ohio, Nebraska, North Dakota, South Dakota, and Wisconsin. See “Resident population in Columbus,” retrieved April 7, 2023; Factbook 2020 , City of Columbus, accessed June 22, 2023. In September 2022, Columbus was named the fifth-hottest housing market in the United States, driven by the speed of home sales and demand. 11 “CAGDP1 County and MSA gross domestic product (GDP) summary,” US Bureau of Economic Analysis, accessed May 12, 2023; “Table 1.1.6. Real Gross Domestic Product, Chained Dollars,” US Bureau of Economic Analysis, accessed May 12, 2023.

This growth was precipitated by, and continues to benefit from, the region’s mounting economic strength: from 2008 through 2021, Columbus outpaced national GDP growth by almost ten percentage points. 12 “Total gross domestic product for Columbus, OH (MSA) [NGMP18140],” US Bureau of Economic Analysis, retrieved from FRED June 23, 2023; “Gross domestic product [GDP],” US Bureau of Economic Analysis, retrieved from FRED June 23, 2023. Growth has also been bolstered by more-recent major commercial investments from a range of industries, including semiconductors, financial services, and biopharmaceuticals. 13 “Intel breaks ground in Ohio,” JobsOhio, accessed June 22, 2023; “Project announcements,” One Columbus, accessed June 22, 2023; “Western Alliance Bank expands into the Columbus Region, creating 150 new jobs at new technology hub,” One Columbus, January 9, 2023; “Discover plans to open a customer care center in Whitehall to bring high-quality jobs and enhance equity in the Columbus Region,” One Columbus, November 18, 2022.

Growing pains: Coping with rapid growth

The population influx has measurably strained Columbus’s residential real estate and rental markets, particularly for people of color. Increasing housing supply is a critical enabler for the region’s continued growth trajectory.

Increasing housing supply is a critical enabler for the region’s continued growth trajectory.

Rapidly rising home prices. Although the region remains relatively affordable compared with leading peers, home prices have skyrocketed in relation to incomes. Data from Zillow reveal that roughly a decade ago, the growth of median household incomes in Columbus and the value of the city’s “lower tier” housing stock began to diverge (Exhibit 1). In the ten years since then, lower-tier housing prices within the city’s boundaries increased at 1.9 times the growth of median household income—an unsustainable divergence. 14 Zillow Home Value Index (ZHVI) All Homes - Bottom Tier Time Series, accessed April 19, 2023. A cavalry in the form of new-housing construction may be slow to arrive: from 2004 to 2022, annual construction of new single-family homes in Columbus fell by 34 percent, and it has yet to return to pre-2004 levels. 15 “B19013 Median household income in the past 12 months,” ACS 5-Year Estimates 2016–21, American Community Survey, US Census Bureau. In fact, for every 100 net new jobs in the region, only 65 new housing permits were issued. 16 Analysis of housing need for the Columbus region , Vogt Strategic Insights, August 30, 2022.

Rent increases outpacing wage increases. Renters in Columbus have also seen a price surge.

Rent prices in Columbus increased by about 35 percent between December 2016 and December 2021, exceeding median household income growth in that period by 11 percentage points (Exhibit 2). As a result, by 2021, approximately 40 percent of renters in Columbus were spending more than 30 percent of their income on rent, meeting HUD’s definition of “rent burdened.” 17 “Gross rent as a percentage of household income,” 2021: ACS 5-Year Estimates, American Community Survey, US Census Bureau. And renters account for a significant percentage of residents: as of 2021, nearly 40 percent of total households in the metro area were rentals, which is comparable to other fast-growing US regions such as Austin (around 41 percent) and Miami (about 40 percent) but much higher than similar sized regions such as Pittsburgh (around 29 percent) and Indianapolis (about 32 percent). 18 “B25008 Total population in occupied housing units by tenure,” 2021: ACS 1-Year Estimates, American Community Survey, US Census Bureau.

More people experiencing homelessness.

Columbus outpaced its US peers in the growth of its PEH population from 2008 through 2022 (Exhibit 3), and early reports indicate homelessness was up 22 percent in January 2023 compared with January 2022. 19 “Columbus region leaders introduce new action on homelessness: Funding for programs and services introduced as data shows increase in homeless count,” Community Shelter Board, June 6, 2023. McKinsey research on homelessness in the Bay Area indicates that homelessness is a result of a range of disparate triggers, including economic issues (such as job loss, raised rent, or foreclosure), health factors (such as substance abuse or mental illness), and social factors (for example, incarceration or domestic violence). 20 For more, see “ The ongoing crisis of homelessness in the Bay Area: What’s working, what’s not ,” McKinsey, March 23, 2023. A brief but significant drop in the number of PEH in Columbus in 2021 is likely attributable to additional support during the pandemic (for example, eviction moratoriums and stimulus payments). Still, as of 2022, Columbus had the fastest-growing PEH population among its peers.

Columbus outpaced its US peers in the growth of its PEH population from 2008 through 2022, and early reports indicate homelessness was up 22 percent in January 2023 compared with January 2022.

Disproportionate effect on historically marginalized communities. The racial disparities that plague many leading US regions are also starkly apparent in Columbus. Some historically marginalized groups are less likely to be homeowners: one-third of the region’s Black households own their homes, compared with more than two-thirds of White households (Exhibit 4). Black household incomes in the region are also about 42 percent lower than those of White households. 21 “S1903 Median income in the past 12 months (in 2021 inflation-adjusted dollars),” 2021: ACS 1-Year Estimates, American Community Survey, US Census Bureau.

In addition, Black residents account for 16 percent of Columbus’s general population but 60 percent of the homeless population. 22 “DP05 ACS demographic and housing estimates,” 2021: ACS 5-Year Estimates Data Profiles, American Community Survey, US Census Bureau; “PIT and HIC data since 2007,” HUD Exchange, February 2023. And even when people in these communities have housing, Black households are almost five times more likely to be overcrowded (more than one occupant per room) than White households. 23 “B25014B Occupants per room (Black or African American alone householder),” 2021: ACS 5-Year Estimates, American Community Survey, US Census Bureau; “B25014A Occupants per room (White alone householder),” 2021: ACS 5-Year Estimates, American Community Survey, US Census Bureau. These disparate experiences in different communities are reflected in other metrics of financial and housing stability, including income and the ability to pass on generational wealth. 24 “B19013B Median household income in the past 12 months (in 2021 inflation-adjusted dollars) (Black or African American alone householder),” 2021: ACS 5-Year Estimates, American Community Survey, US Census Bureau; “B19013A Median household income in the past 12 months (in 2021 inflation-adjusted dollars) (White alone householder),” 2021: ACS 5-Year Estimates, American Community Survey, US Census Bureau; Jung Hyun Choi, Laurie Goodman, and Jun Zhu, Intergenerational homeownership: The impact of parental homeownership and wealth on young adults’ tenure choices , Urban Institute, October 2018.

These disproportionate effects have wide-ranging impact, including on overall economic growth. PolicyLink and the USC Equity Research Institute estimate that the racial gap in Columbus is costing the region’s economy $10 billion annually. 25 Erica Thompson and Mark Williams, “Racial inequities costs Columbus economy $10 billion a year, report finds,” Columbus Dispatch , updated May 12, 2022.

Four interventions to address Columbus’s housing challenges

Housing is a critical enabler for economic growth—and Columbus’s housing challenges are no secret. Local leaders, organizations, and partnerships have long worked to improve housing security directly. Advocates and organizations have all published research on housing and homelessness, including the Mid-Ohio Regional Planning Commission, the Coalition on Housing and Homelessness in Ohio, the Affordable Housing Trust for Columbus & Franklin County, the Center for Social Innovation, and the Community Shelter Board of Columbus. 26 Healthy Beginnings at Home: Final report , CelebrateOne and the Health Policy Institute of Ohio, June 2021; Regional Housing Strategy final report: Central Ohio , Mid-Ohio Regional Planning Commission, September 2020; Annual report 2021: Preserving, creating & facilitating , Affordable Housing Trust for Columbus and Franklin County, 2021; Columbus, Ohio: Initial findings from quantitative and qualitative research , Supporting Partnerships for Anti-Racist Communities (SPARC), Center for Social Innovation, May 2018. Yet the latest estimates show that the region could need as many as 110,000 housing units beyond the current run rate by 2032 to cover expected job growth. This would require more than doubling the construction rate, from around 8,300 units per year to as many as 19,300 per year. 27 Analysis of housing need for the Columbus region , Vogt Strategic Insights, August 30, 2022.

After reviewing the available research, examining the actions taken by other local governments, and drawing on our experience in the real estate and public sectors, we have identified four key interventions that can augment existing efforts to address Columbus’s housing challenge: tap into existing housing capacity potential, reduce the cost of new construction, support homebuyers and renters, and prioritize tackling homelessness.

Tap into existing housing capacity potential

Zoning regulates how land is used, where residential or commercial buildings may be constructed, and the density of new developments, making it a key lever in changing a city’s residential landscape. The city of Columbus spans 220 square miles of central Ohio, and it has 50 more square miles of single-family zoning than multifamily zoning. 28 Nicholas Julian, “Zoning in Columbus: Single-family vs. multifamily,” Ohio Housing Finance Agency, April 2, 2019; “QuickFacts: Columbus city, Ohio,” US Census Bureau, accessed June 22, 2023. Increasing density and creating housing “hot spots” are both potential options for Columbus to address current housing supply challenges.

Increased housing density. Zoning has a direct impact on housing density. In Washington, DC, for example, areas zoned for detached single-family units typically consist of up to 1,200 units per square mile, 29 Yesim Sayin, “Single-family zoning and neighborhood characteristics in the District of Columbia,” D.C. Policy Center, July 17, 2019. compared with up to 40,000 units per square mile in large multifamily buildings. But zoning in most US cities largely restricts higher-density homes. Three-quarters of the land in US cities is barred from development for anything other than detached single-family homes—and where multifamily buildings are allowed, height and lot size requirements hurt the economic calculus for development. 30 Jenny Schuetz, “To improve housing affordability, we need better alignment of zoning, taxes, and subsidies,” Brookings Institution, January 7, 2020. Specific zoning adjustments could contribute directly to closing the housing gap, not just in the city limits but also in the surrounding suburbs. For example, a recent analysis by the Columbus Dispatch found that zoning contributed to the lack of affordable housing options in Upper Arlington, New Albany, and suburbs in Delaware County. 31 Jim Weiker, “Columbus suburbs offer few affordable housing options,” Columbus Dispatch , May 4, 2023. High-density zoning can be a meaningful part of a community’s housing ecosystem to enable future growth.

‘Housing hot spots’ created by reusing and rezoning underused property. To help alleviate the shortage of homes in the near term, municipalities can also identify potentially high-impact housing areas by reviewing the zoning of properties that meet criteria for vacant or underutilized land, homes with room for more units, and more. This approach has been used elsewhere to great effect. An analysis of three counties in California found room for more than five million new units, 32 Jonathan Woetzel, Jan Mischke, Shannon Peloquin, and Daniel Weisfield, “ Closing California’s housing gap ,” McKinsey Global Institute, October 24, 2016. and separate efforts are under way in New York City and Los Angeles to rezone underused commercial zones for residential or mixed use—making more space available for housing construction without needing to expand a city’s footprint. 33 “Mayor Adams unveils recommendations to convert underused offices into homes,” City of New York, January 9, 2023; “Adequate sites for housing,” 2021–2029 Housing Element , Los Angeles City Planning, November 2021.

Reduce the cost of new construction

A priority for the Columbus region will be reducing the cost of new construction to accelerate the pace of development. Programs that accelerate construction, reduce permit fees, or otherwise defray development costs are common levers to help reduce the cost of affordable housing. Several approaches can be prioritized to address the challenges facing Columbus and other US regions.

Innovative, cost-saving construction techniques and builders. As in many areas of the United States, inflation drove up the cost of building materials, labor, and financing in Columbus by as much as 18 percent between 2021 and 2022. 34 “How much does it cost to build a house in Columbus?,” Home Builder Digest , accessed June 23, 2023. Innovative, low-cost approaches such as modular and prefabricated construction can help; in our experience, when applied at large scale, these techniques can reduce the cost of construction materials by up to 20 percent and decrease build time by 20 to 50 percent without sacrificing build quality. 35 Modular construction: From projects to products , McKinsey, June 18, 2019. This is especially true with projects featuring repeatable elements, such as schools and affordable housing.

Columbus, specifically, can establish itself as a center of excellence for modular and prefabricated construction by leveraging the region’s transportation network (such as railroads and highways) to efficiently transport modular units into the region. The region can further attract builders that use these construction techniques by offering tax incentives, investing in land and modular units at scale, reskilling the labor force, and streamlining the approval process to help drive affordable housing growth. These and other approaches could improve the economics for these kinds of construction projects almost immediately once implemented. For example, Portland, Oregon, made changes to its design review process to allow mixed-use and multifamily projects to go directly to the permit process, saving developers time and money by decreasing their financing costs. Local governments in the Columbus region can further improve the economics of housing development by producing and holding off-the-shelf design schematics that can easily be used by prospective housing-unit developers.

Reduced development costs. Identifying parcels of public land for housing development could defray the overall cost of new projects in addition to rezoning efforts. Some cities, including Copenhagen, London, New York City, and Stockholm, have established professional management of their publicly owned land, allowing them to identify suitable city-owned sites for affordable developments. 36 “ Affordable housing in Los Angeles: Delivering more—and doing it faster ”, McKinsey Global Institute, November 21, 2019.

Accelerating the construction permit process could help reduce lengthy permit timelines that both create delays and increase developers’ costs. Under Columbus’s permit approval system, new-construction permits can take six to nine months. In fast-growing metro areas elsewhere in the United States, permits can take as little as a few weeks—a disparity that the City of Columbus is reviewing as part of its longer-term affordable-housing initiatives. 37 Allen Henry, “Columbus to overhaul zoning code for first time in 70 years,” NBC4 WCMH-TV, October 20, 2021. The Affordable Housing Trust in Columbus has launched the Emerging Developers Accelerator Program to provide education and funding for minority developers. 38 Jim Weiker, “New program seeks to build ranks of minority and female developers,” Columbus Dispatch , updated May 18, 2022. Yet the holding costs due to the lengthy time horizon between initial plans and selling the first house keep many potential developers out of the business.

Reduced development finance costs and fees. Financing costs and government taxes tend to be a heavy burden on housing developers. Legal agreements and public financing tools, such as joint powers authorities (JPAs) and tax increment financing (TIF) programs, provide incentives for public and private partners to collaborate in the development of affordable housing. In instances where traditional incentives and subsidies are unable to produce the desired outcomes, JPAs enable the city, partnered with a developer, to issue bonds and use its property tax exemption to purchase a property or finance the creation of a new development process. As part of the acquisition process, the JPA agrees to restrict the rent of a set number of units in line with affordable-housing standards. This approach is unlike traditional affordable-housing projects in that long-term ownership rests with the city, with an option to purchase the property back from the JPA after a set period.

JPAs are eligible for significant tax exemptions on their properties, with the added benefit that these savings are passed on to renters. Bond financing can also be tax-exempt given that governmental bodies have the authority to issue tax-exempt bonds for facilities that provide a public benefit. 39 “Portantino bill creating regional affordable housing trust passes assembly local government committee,” Senator Anthony J. Portantino, California State Senate, June 9, 2022; Brennon Dixson et al., The ABCs of JPAs , SPUR and the Terner Center for Housing Innovation, June 2022. In California, the Burbank-Glendale-Pasadena Regional Housing Trust is leveraging these benefits to address barriers to building nearly 3,000 affordable-housing units in the region. 40 “Newsom signs Portantino bill creating Pasadena-Glendale-Burbank affordable housing trust,” Pasadena Star-News , August 24, 2022. The JPA will be allowed to request and receive private and state funding allocations, as well as authorize and issue bonds, to help finance affordable-housing projects.

As another option, TIF districts enable cities to freeze property tax revenue at current levels and use incremental tax revenue generated from a development to reimburse the developer’s costs over time. In 2018, for example, the City of Chicago approved TIF measures for The 78, a $7 billion mixed-use project to transform a former railroad property into 13 million square feet of residential, commercial, and institutional construction with a 20 percent commitment for affordable-housing units. According to plans, this TIF district will reimburse around $551 million in future increments for the construction of new infrastructure related to this project, including a new subway station, street improvements and extensions, and riverfront renovations. 41 “The 78,” Department of Planning and Development, City of Chicago, accessed June 23, 2023.

Support homebuyers and renters

In conjunction with initiatives that improve the supply of affordable housing, Columbus can explore approaches that improve an individual’s ability to pay for housing. The region can take these approaches in tandem to reduce the risk that demand will outpace supply and drive up prices on housing, making it even more unaffordable.

Homebuyer assistance from the public sector. Increasing investment in housing programs could help broaden the range of homes applicants can consider purchasing. For example, the City of Columbus’s Housing Division currently offers homebuyer assistance under its American Dream Downpayment Initiative (ADDI), which provides eligible first-time homebuyers with a loan of up to 6 percent of the purchase price (or up to $7,500) to put toward their down payment. 42 “American Dream Downpayment Initiative (ADDI) Program,” City of Columbus, accessed June 23, 2023. This loan is forgiven after five years if the resident meets certain requirements, including maintaining residency and not selling the property.

In Cleveland, Cuyahoga County’s Down Payment Assistance Program covers up to 10 percent of a home’s purchase price (or up to $16,600). 43 “Cuyahoga County Down Payment Assistance Program,” CHN Housing Capital, accessed June 23, 2023. This higher amount is especially significant given that the median sale price for a home in Columbus was $250,000 in December 2022, compared with $175,000 in Cuyahoga County and $115,000 in Cleveland itself. 44 “Columbus housing market,” Redfin, accessed June 23, 2023. The down payment program available in Cleveland provides greater assistance in real dollars in an area where those dollars can go further than in Columbus. Beyond affordable housing, assistance in the form of microloans and flexible funding programs have been shown to enable this transition. 45 Interval House, “How flexible funding can create stability and prevent homelessness,” Long Beach Community Foundation, accessed June 23, 2023.

Increasing the amount of assistance available could help broaden the options available to prospective homebuyers who could benefit from programs such as these, especially for historically marginalized communities that tend to have much lower rates of homeownership.

Rental assistance from the public sector. Some 54,000 households in the Columbus region are spending more than half their monthly incomes on rent, making rental assistance a cornerstone of the effort to improve housing affordability in the region. 46 Homeport website, US Department of Homeland Security and the United States Coast Guard, accessed June 23, 2023. Today, the State of Ohio and Franklin County have a number of rental assistance programs, including specific funds to help families, seniors, and veterans. 47 “Rent assistance providers,” Rentful, accessed June 23, 2023. Alternative programs, including flexible funding that allows for short-term, flexible financial assistance, could help stabilize individuals’ housing needs. 48 “How flexible funding can create stability,” accessed June 23, 2023.

Additionally, HUD subsidizes rent for low-income families. 49 A family’s income may not exceed 50 percent of the median income for the county or metropolitan area in which the family chooses to live, and 75 percent of vouchers must be provided to applicants whose income does not exceed 30 percent of the area median income. For more, see “Housing choice vouchers fact sheet,” HUD, accessed June 23, 2023. For fiscal year 2023, Columbus is allocated to receive approximately $12.7 million dollars in HUD funding for housing programs—approximately 16 percent more than Austin and 35 percent more than Denver 50 “Community Development Block Grant Program,” HUD, updated December 22, 2022; “HOME Investment Partnerships Program,” HUD, updated December 22, 2022; “Community planning and development formula program allocations for FY 2023,” HUD, updated May 3, 2023. —but the need for housing support exceeds the availability of funding. Columbus and Franklin County have also received more than $120 million combined due to the reallocation of unused federal COVID-19 relief funds to fight evictions, a majority of which is expected to go toward rent and utility assistance for low-income residents. 51 Bill Bush, “Columbus, Franklin County get over $120 million windfall in federal rental assistance,” Columbus Dispatch , May 8, 2023.

In addition, the Columbus City Council has made it illegal to deny a lease based on the source of a potential tenant’s rental payment—an effort to prevent landlords from denying leases to tenants using Section 8 subsidies. 52 Yilun Cheng, “Some landlords reject Section 8 renters despite Columbus law against discrimination,” Columbus Dispatch , February 8, 2022. The Columbus Metropolitan Housing Department has even offered cash incentives to landlords, and nonprofits have offered home upgrades in attempts to persuade more landlords to accept vouchers. 53 Jamilah Muhammad, “Central Ohio mother struggles to find homes accepting HUD vouchers,” Spectrum News 1, December 1, 2021. However, while these vouchers can effectively keep people housed, wait times to obtain them can be as long as 12 months. And about 30 percent of vouchers have expired over the past three years because participants could not find landlords in time. 54 “Some landlords reject Section 8 renters,” February 8, 2022. Streamlining the process from application to placement in subsidized housing could increase the impact of housing choice vouchers.

Potential interventions from the private sector

The private sector can take an active role in ensuring housing stability for both their employees and the communities where they operate by investing in and implementing sustainable-housing initiatives.

Three actions offer the potential for significant impact:

Offer housing assistance to employees. To build effective assistance plans, businesses can assess the specific needs of their employees and design targeted assistance, including employee housing, emergency housing assistance, down-payment assistance, and mortgage rate subsidies. Sugar Bowl Resort in California offers an array of affordable employee housing options near the resort. 1 “Employee housing,” Sugar Bowl Resort, accessed June 23, 2023. In Ohio, MetroHealth launched an employer-assisted housing program (EAHP), providing eligible employees $20,000 toward the purchase of a home near the hospital’s campus. 2 “MetroHealth System employees to receive up to $20,000 to buy a home near West 25th Street main campus,” MetroHealth System, June 24, 2019. Similarly, Habitat for Humanity in Dallas, Texas, started an EAHP with up to $13,000 in a forgivable loan for down payment assistance. 3 Lin Grensing-Pophal, “Employers begin offering home-buying support benefits,” SHRM, November 8, 2022.
Invest in increasing the supply of affordable housing. Businesses can invest in building new affordable-housing units in their communities. UnitedHealthcare has invested nearly $800 million to create approximately 19,000 housing units across the United States. 4 “Building health equity with $100 million in housing,” United HealthCare Services, July 6, 2022. In Columbus, Nationwide Children’s Hospital invests in the Healthy Neighborhoods Healthy Families initiative, which aims to increase access to and supply of affordable housing. And as businesses navigate a new hybrid phase of work and reassess their footprint needs, affordable housing is a powerful way to invest in and repurpose excess space. In Columbus, the owners of Continental Centre and PNC Tower have started converting office space to residential, creating hundreds of new rental units. 5 Dean Narciso, “Nationwide Children’s Hospital builds homes in South Linden with $4.2 million fund,” Columbus Dispatch , June 24, 2021.
Focus on affordable housing in site selection. Businesses can select sites for new locations based on availability of affordable housing, as well as give preference in requests for proposal (RFPs) to commercial real estate owners who invest in expanding affordable housing. 6 Bonnie Meibers, “Chase Tower in downtown Columbus could be converted from office to residential,” Columbus Business First , updated May 23, 2023.

Housing assistance from the private sector. Private-sector employers in Columbus and across the United States play a crucial role in helping employees maintain stable housing by providing appropriate compensation. However, simply paying employees a living wage may not be enough to ensure stable housing in the face of unexpected expenses or other financial difficulties. A recent Harvard Business Review article suggests that any investment in housing assistance can both attract new workers (a growing challenge for companies across the United States, with ten million unfilled jobs 55 “Total unfilled job vacancies for the United States,” Organisation for Economic Co-operation and Development, retrieved from FRED July 7, 2023. ) and increase the productivity of existing workers (for example, by creating a shorter commute or reducing stresses related to housing affordability). 56 Edward L. Glaeser and Atta Tarki, “What employers can do to address high housing costs,” Harvard Business Review , March 14, 2023. Other housing-security interventions—such as housing search and placement services, access to shower facilities, or even temporary hotel rooms—can support employees more quickly than local social services and also reduce employee turnover. Some corporate programs can provide immediate relief to recipients, while others can provide long-term benefits to at-risk individuals over the course of several years (see sidebar, “Potential interventions from the private sector”).

Any investment in housing assistance can both attract new workers and increase the productivity of existing workers.

Employers also can collaborate to provide a broader set of resources to employees. In Cleveland, for example, the Greater Living Circle offers financial assistance for home purchase, rent, and renovation projects for employees of nonprofit institutions in the Greater University Circle area, including in low-income neighborhoods. Such collaboration is also the goal of the Columbus Regional Housing Coalition, a task force focused on convening leaders across the region to address the region’s housing and homelessness challenges.

Prioritize tackling homelessness

Homelessness across the region served by the Columbus and Franklin County, Ohio Continuum of Care has increased by 33 percent in the past decade 57 The Columbus and Franklin County, Ohio Continuum of Care is the organization that oversees programs funded by HUD in the region. ; in January 2023, more than 2,300 people in the region were experiencing homelessness. 58 “Columbus region leaders introduce new action on homelessness,” June 6, 2023.

Improving awareness of available resources and expanding access to essential resources—such as healthcare, transitional housing, and training programs—can help alleviate challenges for PEH and reduce the homelessness rate across the region.

Improve awareness of existing resources. A recurring problem in approaches to homelessness is a lack of public awareness of resources available to PEH. This is especially a concern among people who have recently lost their source of housing, including young people (aged 18–24). Partnering with other organizations to increase awareness of and augment available resources can equip individuals with the means to self-resolve or seek help earlier. Even initiatives that partner with existing organizations can provide immediate relief. For example, in December 2022, the City of Columbus partnered with Columbus Coalition for the Homeless to launch an interactive map showing the locations of warming centers and homeless shelters to help individuals find places to keep warm in the winter months.

Expand essential resources to alleviate homelessness. Expanding access to essential resources will be necessary to combat the increase in homelessness. Health resources make it much more likely that PEH will remain housed after securing a more permanent living situation. For PEH who have health issues such as substance abuse or severe mental health disorders, long-term health-focused housing should be considered. Efforts that expand housing with easily available healthcare resources could provide both immediate and gradually increasing support in reducing chronic homelessness. These resources can be combined with existing techniques for ensuring PEH have the resources they need to secure permanent housing. Other innovative solutions such as alternatives to traditional security deposits and credit scores can support PEH who may not have enough savings for a security deposit or the credit history to be approved for a loan.

One emerging strategy is providing training to PEH by placing them in some form of transitional housing and helping them find employment so that they can remain housed. Portland, Oregon, and other cities have also amended zoning to allow for more homeless shelters and more flexible group living, while increasing access to resources PEH may need. 59 “Warming stations,” City of Columbus, accessed June 23, 2023; Lindsey Mills, “Columbus leaders, community partners launch interactive map for warming centers, homeless shelters,” WBNS-TV, December 19, 2022. In Columbus, the Community Shelter Board (CSB) serves thousands of people through programs to prevent and respond to homelessness, including partnering with landlords to create additional housing capacity for PEH and with the Homelessness Prevention Network to coordinate social services in the community for PEH. 60 “Major updates to the City’s housing-related zoning rules coming August 1,” City of Portland, Oregon, July 16, 2021.

As Columbus’s population continues to grow, stressors that come from growth need to be understood and mitigated head-on through innovative approaches. Through a focus on housing development, the region’s public, private, and civic leaders are seeking to improve housing security while supporting economic development. By setting clear goals to increase the overall housing supply, reduce the cost of new construction, provide support to improve housing affordability, and assist those who are currently experiencing homelessness, 61 Community Shelter Board website, accessed June 23, 2023. Columbus could make significant strides toward sustainable and inclusive growth, set an example for other regions, and ensure that all who wish to reside here can find a place of their own to call home.

Brandon Carrus is a senior partner in, and managing partner of, McKinsey’s Ohio office, where Seth Myers is a partner and Brian Parro is an associate partner; Duwain Pinder is a partner in the Ohio office and is a leader of the McKinsey Institute for Black Economic Mobility; Ben Safran is a partner in the Washington, DC, office.

The authors wish to thank Kyoka Allen, Charlie Baca, Laura Hempton, and Sarthak Soni for their contributions to this article.

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Case Studies

Air Canada’s ticket sales take flight

Campaign results

$2,315,191 in incremental sales
$6.3MM in total sales
80% new customer transactions
$542 average order value

Opening account

In its efforts to explore new ways to inspire more U.S. travelers to chose Canada’s largest airline to travel the globe, Air Canada turned to Chase Media Solutions right out of the gate.

How do you motivate someone to take a chance on a new brand? And, more important, how do you do it when they’re buying something as significant as an international flight? Air Canada was eager for answers, and Chase Media Solutions was happy to show how transaction-based marketing could deliver.

Branching out

Air Canada leveraged Chase Media Solutions’ exclusive purchase data to create a campaign targeting new-to-the-airline customers within Chase’s 80MM audience. The team identified a transaction-based segment composed primarily of customers with no purchase history with the brand in the last year. Then, working together, Chase Media Solutions and Air Canada designed a cash back offer construct that would drive the specific growth the airline craved: Ticket sales. They did this by setting a minimum spending requirement that encouraged shoppers to make purchases larger than just an upgrade or baggage fee.

Total gains

Air Canada’s transaction-based marketing campaign landed an impressive $2,315,191 in incremental sales (45% incrementality for new customers) and successfully inspired transactions from 9,450 new customers . It garnered 32.2MM customer impressions during the 30-day campaign and an average order value of $542 .

Continued growth

Air Canada decided to run a subsequent campaign to build on the momentum. With Chase Media Solutions’ help, the airline used this second campaign to test and optimize the offer construct while continuing to engage both new and existing customers. (Offers can be designed with different reward formats, such as a percentage or a fixed cash back amount). Their second campaign achieved a 40% incremental lift for new customers and a 75% incremental lift for loyal customers . It also resulted in transactions from 7,475 new customers, $2,270,172 in incremental sales and $5,166,599 in total sales .

Onward and upward

“The Chase team succeeded in creating a thoughtful, targeted offer that exceeded our expectations.”

O’Leary continued, “Within a 60-day period they developed, tested, and validated two distinct offer constructs in market that simultaneously drove incremental revenue and awareness for Air Canada amongst Chase’s cardmember base. Running the second campaign allowed us to additionally test a slightly different offer construct, enabling us to build upon the strong performance of the first month. These tests clearly demonstrate the potential of the Chase Media Solutions channel, and we look forward to working together more in the future to attract more U.S.-based travelers to Air Canada.”

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